Faculty of Business: Accounting
Credit points: 8 cp

Subject level: Postgraduate

Result Type: Grade and marks

Requisite(s): 22814 Accounting Information for Managers AND 25846 Managerial Finance
There are also course requisites for this subject. See access conditions.

Handbook description

This subject introduces students to quantitative techniques for forecasting, planning and analysing business operations, using accounting and financial management measurement and analytical tools. Statistical data analysis and business modelling techniques are applied to generate forecasts of future business operations to provide quantitative information support for management decision making. The consideration of internal organisational and external environmental factors with regard to the revenue streams and the impact of economic indicators on business activity are also considered. Data analysis and conversion to information products, utilising information technology productivity tools, are applied to practical 'real-life' situations confronting managers.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. Develop skills in statistical techniques to investigate and analyse quantitative data relating to business operations, and to use this information for the preparation of forecasts of future business activity.
2. Utilise information technology productivity tools for data analysis and model development relating to the core business operations of the firm as revealed by the revenue streams and cost structures of the firm.
3. Demonstrate an ability to query databases to extract information products that provide decision support for a range of business decisions that require the integration of knowledge gained in the areas of accounting, finance, economics and marketing.
4. Determine valuations of an entire business or a business segment using either assets, earnings and/or cash flows as the basis of the valuation. (This topic will utilise the concepts covered in points 1, 2 and 3 above for the forecasting of future business activity to be used as the basis for the valuation).

Contribution to graduate profile

Business Decisions and Models is an integrating subject combining knowledge gained in prior studies in the areas of accounting, economics, finance, marketing and general management. The subject focuses on developing quantitative skills for business analysis and planning. The subject Students will make use of on-line databases to undertake company research and to acquire skills using statistical techniques and economic analysis to plan and model future business operations. The subject aims at developing leading-edge practice, equipping students with the relevant technical and conceptual expertise currently expected of commercial managers in order to meet the challenges of an ever-changing business environment.

Teaching and learning strategies

This subject is a practical, quantitative subject that combines accounting, finance, economics, marketing and management concepts. It will require students to have access to computer resources during class-time. Ideally it would require a computer laboratory with 40 terminals to accommodate a full class so that each student has access to a computer terminal. Students will utilise information technology productivity tools to convert data into information products. Data for coursework and projects will be acquired from on-line databases provided by the UTS Library. These data will be used for forecasting, financial modelling, planning and analysis of business activity, using accounting and finance concepts and practices.

Content

• Business forecasting using time series techniques
• Risk analysis using probability theory and practice
• Business forecasting using causal techniques – simple and multiple regression
• Cost measurement, analysis and forecasting
• Revenue, cost and earnings modelling
• Financial modelling – analysis and planning of operations
• Pricing and revenue management
• Business valuation

Assessment

Mid-semester Exam (Individual)	35%
Addresses objectives 1 and 2.
Case Study (Group)	30%
Addresses objectives 1-4.
Exam (Individual)	35%
Addresses objectives 1, 3 and 4.

To pass the subject, students must achieve at least 50% of the marks allocated to the mid-semester examination and at least 50% of the marks allocated to the final examination.

Recommended text(s)

Pazmandy, G., (2005) Business Modelling, 5th Edition, Tekniks Publications Pty. Limited, Sydney.

Indicative references

Anderson, D. R., Sweeney, D. J. and Williams, T. A., (2006) Statistics for Business and Economics, Thomson South Western, USA, 10th edition

Copeland, T., Koller, T. and Murrin, J. (1990) Valuation: Measuring and Managing the Value of Companies, McKinsey & Company, Inc 1990

Langfield-Smith, K., Thorne, H. and Hilton, R.W.(2003) Management Accounting An Australian Perspective, McGraw Hill, Sydney Australia, 4th edition

Horngren, C. T., Foster, G. and Datar, M. S. (2003) Cost Accounting, A Managerial Emphasis, Prentice Hall, New Jersey, USA, 11th edition 2003

Pazmandy, G. (2006) Applied Business Computing, Tekniks Publications Pty Ltd, Sydney Australia

Penman, S. (2004) Financial Statement Analysis and Security Valuation, McGraw Hill

Palepu, K., Healy P. and Bernard V. (2003) Business Analysis and Valuation using Financial Statements: Text and Cases, 3rd edition

Hollander, A. S., Denna, E. L. and Cherrington, J. O. (2000) Accounting, Information Technology, and Business Solutions, McGraw Hill, 2nd edition