James Cook University Subject Handbook - 2024

LB5212 - Accounting and Finance for Managers

Subject Description

This subject provides students with an understanding of the fundamentals of accounting. The aim is to build on basic concepts to develop a clearer understanding of financial statements, their uses and limitations in decision-making. The capacity to analyse financial statements and make decisions based on them will be emphasised. The subject examines decisions on cost structures and the implications for operating leverage and thus the financial statements. An introduction to capital budgeting and the application thereof to various cases is also covered.

Learning Outcomes

• Understand the nature of assets, liabilities and income in the context of the accounting model
• Develop an understanding of an ability to prepare basic accounting statements such as the statement of financial position and the statement of financial performance
• Ability to produce and interpret budgets and understand the various ways in which a business assesses capital investments, develop it's capital budget and make long term resource allocation decisions
• Understand the behaviour of costs and know how to conduct analysis of changes in sales and costs on profits. Understanding operating leverage, its measurement and the impact it has on financial statements through the cost structures as well as the use of cost structures in short-term decision regarding resource usage
• The ability to analyse and interpret financial statements and understand of the relationship between the different statements

Subject Assessment

• Written > Examination (centrally administered) - (50%) - Individual
• Written > Test/Quiz 1 - (20%) - Individual
• Report and budget sheets - (30%) - Individual

Note that minor variations might occur due to the continuous subject quality improvement process, and in case of minor variation(s) in assessment details, the Subject Outline represents the latest official information.

Inadmissible Subject Combinations:  BU5002 LB5001

Availabilities