Good management of its finances is a critical success factor for all organisations - a lack of control in this area is often a key contributor to organisational failure especially where input materials, work-in-progress and finished goods may form a significant part of the organisation's asset base. As procurement and supply professionals spend ever-increasing proportions of their firm's revenues on necessary goods and services, it is very important that they have an understanding of financial accounts and management of finance. This module aims to provide learners with an appreciation of financial and management accounting.

As procurement and supply professionals spend ever-increasing proportions of their firm's revenues on necessary goods and services, it is very important that they have an understanding of financial accounts and management of finance. This module aims to provide learners with an appreciation of financial and management accounting. Analysing Financial Statements: Interpretation of Financial Statements - Trading, profit and loss accounts and balance sheets; cash flow statements in line with FRSI guidelines; application of ratio analysis to the understanding and interpretation of financial statements; sources of business finance - short, medium and long-term sources; role of the finance function and its interface with procurement. Inventory: Methods of inventory valuation and its effect on profit and asset values including lowest of cost, replacement price or net realisable value and FIFO, LIFO and average cost (simple and weighted); costs and benefits of maximum and minimum stocking policies; cost of holding inventory, and scarcity and obsolescence. Management Accounting Techniques: Absorption Costing and Marginal Costing - Marginal costing and contribution; preparing profit statements using marginal and absorption costing approaches; allocating overheads; apportioning overheads in job costing; overhead absorption rates and recovery rates; activity-based costing (ABC). Standard Costing Variance Analysis: Direct material cost variances price and usage; direct labour cost variances, rate and efficiency; variable overhead cost variance; fixed production overhead variance, expenditure and volume; sales variances, price and volume; breakeven analysis - calculating breakeven; margin of safety; contribution to sales ratio; limitations of breakeven analysis. Budgetary Control: Costing and Budgetary Control - Introduction; terminology; role of budgets in business and in procurement department; master budgets; cash budgets; incremental budgets, zero-based budgets, flexible budgets. Capital Investment Appraisal: Capital investment appraisal - net present value (NPV); internal rate of return (IRR); accounting rate of return (ARR); payback method.

On completion of this module, students should be able to: 1. Analyse the financial statements of various types of organisations and relate the analysis to supply chain management needs. 2. Assess stock valuation methods and how supply chain management can utilise these assessments to impact on company profits and asset values. 3. Evaluate the role of budgets and costing methods within organisations and link these evaluations to the supply chain management process to enhance company performance. 4. Assess the sources of business finance and analyse the role of finance within the supply chain management function. 5. Apply variance analysis techniques to supply chain management related issues. 6. Evaluate the theoretical and practical considerations inherent in the capital appraisal decision.

On completion of this module, students should be able to: 7. Appreciate possible ethical issues facing the finance manager. 8. Discuss the conflicts of interest that arise when planning finances.

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Blended learning module using the eLearning platform Moodle. Fulfilling UL Graduate Attributes: Knowledgeable - Demonstrate Critical Thinking; Insight into latest developments and theoretical thinking within consumer behaviour. Creative - Use of a modern eLearning platform; innovative teaching techniques and methods of assessment. Responsible - Appreciate the importance of a adopting a responsible approach to consumption. Collaborative - Use of social media, online platforms and eLearning environments. Articulate - Competency in conveying ideas clearly, effectively and professionally; recognition of the importance of effective written, verbal and digital communication skills.