Course Title: Financial Decision Making

Part B: Course Detail

Teaching Period: Term2 2008

Course Code: ACCT5113L

Course Title: Financial Decision Making

School: 650T TAFE Business

Campus: City Campus

Program: C5127 - Diploma of Business (International Trade)

Course Contact : Laurine Symington

Course Contact Phone: +61 3 9925 5484

Course Contact

Name and Contact Details of All Other Relevant Staff

Maurice Sheridan

Note Maurice is only available at RMIT on Thursday and Friday.

Nominal Hours: 60

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites


Course Description

This unit covers all of the significant aspects of financial management for operational managers who are not financial specialists. It includes the preparation & analysis of financial reports and emphasises the communication of financial objectives through budgets, consistent surveillance of budget performance, and early intervention where required.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

BSBMGT504A Manage budgets and financial plans


1. Communicate budget and financial plans

Performance Criteria:

1.1 Budget/financial plan communication package reviewed by finance specialists
1.2 Package is amended/revised where appropriate
1.3 Training activities are undertaken with users of the budget and plans across the organisation
1.4 All data and terms are defined and understood by the users of the plans
1.5 Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities


2. Monitor and control activities against plans

Performance Criteria:

2.1 Delegations and budget accountabilities are confirmed in writing prior to budget period
2.2 Funds are allocated in accordance with budget objectives and parameters
2.3 Recording systems and documentation meet all audit requirements and legal obligations
2.4 Risk management plans are implemented and contingency plans in place for all financial plans
2.5 Performance is monitored and variances identified on a real time basis
2.6 Variances are analysed in conjunction with relevant experts to determine cause and effect
2.7 Remedial action is taken swiftly to minimise negative impact and maximise benefits
2.8 Budgets and plans are renegotiated/restructured where necessary to optimise organisational performance


3. Report outcomes of financial plans

Performance Criteria:

3.1 Records of financial performance are properly maintained within organisational systems
3.2 Financial performance is analysed and reported in a form and language appropriate to the audience
3.3 Non financial objectives are reported in the context of overall organisational performance
3.4 Strategies and plans are reviewed and updated to optimise organisational performance

Learning Outcomes

This course will cover all aspects of business operations in which financial management and decision-making occurs. Period activities relating to revenue expenditure and cash flow management including capital expenditure proposals and capital budgeting will be presented

The role of the operational manager as a communicator and trainer in respect to the implementation of the budget needs, is also included, along with the need for and use of regular and quality reporting of budget performance through the analysis of budget performance and resulting follow up action.

Details of Learning Activities

The candidates for this unit will be required to complete exercises as prescribed in the textbook, and on completion, complete three closed book tests to determine their knowledge of the concepts presented and the application of the skills for them in their future work environments.

Teaching Schedule

Week Week Beginning Topic as per Student Course Guide Learning Outcome Classwork and Assessment
17th JulyOverview of course 
 Topic 1 Introduction to Financial Decision Making 
Underpinning Knowledge.Introduction to course including review of course guide, weekly program and assessment guide and DLS.  Knowledge and skills exercises
14th JulyTopic Two Accounting concepts.Underpinning Knowledge.Knowledge and skills exercises
321st JulyTopic Three Budgets and plans, the development of a budget Underpinning KnowledgeKnowledge and skills exercises
 4 28th July

Topic Four Financial Mathematics.

Topic Five Cost benefit

Underpinning Knowledge. Knowledge and skills exercises
5 4th August Topic Six Capital expenditure proposals Underpinning Knowledge.Knowledge and skills exercises
611th August Topic Seven Risk Management BSBMGT504A 2.4Knowledge and skills exercises
718th AugustTopic Eight Monitoring budgets and performance plansBSBMGT504A 2.1-8

 Knowledge and skills exercises

 Test One.

825th AugustTopic Eight Monitoring budgets and performance plansBSBMGT504A 2.1-8Knowledge and skills exercises
9 8th SeptemberTopic Nine Techniques for financial analysis Underpinning Knowledge.Knowledge and skills exercises
1015th SeptemberTopic Nine Techniques for financial analysis 
Underpinning Knowledge.Knowledge and skills exercises
11 22nd SeptemberTopic Ten Communication and the budget process
BSBMGT504A 1.1-5 Knowledge and skills exercises
12 29th SeptemberTopic Eleven Responsibility BSBMGT504A 2.1-4
Knowledge and skills exercises
Test Two
13  6th OctoberTopic Twelve Variance Analysis BSBMGT504A 2.5 Knowledge and skills exercises
14 13th October
Topic Twelve Variance Analysis BSBMGT504A 2.5 
Knowledge and skills exercises
20th October
Topic Thirteen Remedial action for restructuring of budgets BSBMGT504A 2.7 Knowledge and skills exercises
16 27th OctoberTopic Thirteen Remedial action for restructuring of budgets. BSBMGT504A 2.7, 3.1-4 Knowledge and skills exercises
17 3rd NovemberRevision and final assessment
 Test Three
18 10th NovemberReview of the Unit

Learning Resources

Prescribed Texts

Prepare and manage budgets and financial plans, Anandarajah, Aseervatham and Reid, 3rd Edition Pearson Education Australia.


Other Resources

Overview of Assessment

Throughout this course interactive class exercises performed as a group, followed by discussion of the solutions and question & answer sessions will provide formative feedback to the students regarding their progress in achieving competency.

Assessment tasks may include individual in-class exercises, closed book class tests, assignments, question & answer activities and closed book exams.

Assessment Tasks

The first test will be at the completion of Topic Seven. The questions will be selected from the exercises completed in Knowledge and skills. It will count 30% toward your final mark for the course.
The second test will assess Topics Eight to Ten. The questions will be similar to the exercises completed in Knowledge and skills It will count 30% toward your final mark for the course.
The final test will be in week seventeen (17) and will assess the work covered in Topics Eight to Thirteen. It will count 40% toward your final mark for the course.
A mark of greater than 50% in total is required to be deemed Competent for the unit. Resit opportunities will be available during week seventeen (test one and two) and eighteen (test three).

Assessment Matrix

 Knowledge and skills exercises. Resubmission Available week 17 and 18.Practical tests
1. Communicate budget and financial plansYesYesTest 1 and 3
2. Monitor and control activities against plans YesYesTest 2 and 3
3. Report outcomes of financial plans
YesYesTest 3

Other Information

It is expected that students will complete the tasks as specified, either in the class or elsewhere, but they MUST attend for the tests in the times as specified.
Special Consideration
Special Consideration is a process that enables the University to take account of unexpected circumstances such as illness, injury or bereavement that affect a student’s performance in assessment. You must apply no later than two working days after the examination/assessment that has been affected. You must complete the Special Consideration Application Form and lodge the original and one photocopy at the Hub. Forms are available from the Student Hub on Level 3 or from http://

Course Overview: Access Course Overview