Module Overview

Financial Planning

The purpose of this module is to enable the learner to examine and interpret financial and management statements; use revenue and cost information in decision making; calculate break–even analysis and profit maximisation; construct a cash budget; apply cost information to pricing decisions, and prepare a profitability analysis report

Module Code

DMKT H2022

ECTS Credits


*Curricular information is subject to change

Analysis and interpretation of financial and Management statements:

• Analyse the profit and loss account and balance sheet of a business by preparing key ratios, thereby gaining a greater understanding of the performance of a business. Analyse non monetary ratios from management accounting reports such as no. of products per product line, • The results of the formulae concerned are considered in the context of marketing campaigns/month on month trends/year on year trends and also in relation to the industry sector in which the business operates.• They key ratios are listed here: Ratio Analysis for Profit and Loss Account: Gross Profit Margin, Net Profit Margin, Breakeven, Expenses as a percentage of sales: Ratio Analysis of the Balance Sheet: Debtor days, Creditor Days, Current Ratio and Stock Turnover, Contribution per product, machine hours ; downtime; non monetary ratios

Cost Volume Profit Analysis

• Examine the relationship between changes in activity (marketing spend) and changes in total sales revenue and profit, thus allowing management to identify critical output levels. • Contribution, profit – volume ratio, margin of safety and breakeven point will be examined to aid the decision making process

Budget process and budgetary planning

• Explain how budgeting fits into the overall organisation• Identify and describe the purposes of budgeting and the stages in the budget process• Preparation of cash budgets

Pricing & Profitability Analysis

• The role of cost information in pricing decisions• Product, customer and regional profitability analysis• Describe the target costing approach to pricing, and the different cost plus pricing methods for deriving selling prices• Identify and describe the different pricing policies

Module Content & Assessment
Assessment Breakdown %
Other Assessment(s)100