Course Title: Introduction To Financial Management

Part B: Course Detail

Teaching Period: Term2 2011

Course Code: BUSM6116

Course Title: Introduction To Financial Management

School: 130T Engineering (TAFE)

Campus: City Campus

Program: C6011 - Advanced Diploma of Engineering (Aerospace)

Course Contact : Program Manager

Course Contact Phone: +61 3 9925 4468

Course Contact

Name and Contact Details of All Other Relevant Staff

Daniela Achim
Tel. No. 99254523

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

The purpose of this course is to provide training at the paraprofessional level to enable participants to describe the processes of financial management in their enterprise, to perform relevant calculations and to prepare a budget for their enterprise.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

EB023 Introduction to Financial Management

Learning Outcomes

1. Define the accountant’s role and the accounting process.
2. Describe the financial tools available to management.
3. Define and explain the function of key financial terminologies.
4. Describe the characteristics of an overhead and the bases for allocation of overhead expenses and calculate overhead recovery rates.
5. Describe the information required to effectively manage a business enterprise and a profit centre within an enterprise.
6. Define and apply production efficiency ratios.
7. Prepare key financial and accounting reports.
8. Explain the purpose and function of a budget.
9. Calculate break even point for a given project in monetary value and units.
10. Evaluate the various sources of finance available to an enterprise.
11. Identify reasons for a company’s inability to collect all debts and demonstrate an understanding of how its credit policy can be efficiently controlled.
12. Demonstrate an understanding of the financing of capital equipment.

Details of Learning Activities


In class activities including role play, review and analysis of financial statements

Team project analysis of public company financial management

Close book test and a final exam 


Teaching Schedule

Session/Beginning Week  Topics Reference Assesment
  • Fundamentals of accounting process
  • The accountant’s role
  • Financial teminology
  • Robert Clift, (1990), Australian Financial Accounting, eds Harper & Raw Publishers, Sydney, Ch1, pp 1-18.


Assessment 2

  • The accounting tools available to managers
  • Budgeting
  • The elements of a budget
  • Zero-based budgeting
  • Preparation of budgets
  • Anandarajah, Aseervatham, Reid (2005), Prepare and manage budgets and financial plans, 3rd edition, eds Pearson, Prentice Hall, Ch4, pp 86-87.


  • Financial terninology
  • Profit and loss
  • Ballance sheet
  • Current and non-current assets and liabilities
  • Legal structures
  • Ray Jopling, Peter Lucas, Gary Norton, (2007), Accounting for business A non-acountant’s guide, 2nd edition, eds McGraw Hill, Ch1, pp1-9, Ch5, pp72-73, 76-77.


  • Fixed and variable overhead
  • Methods for allocating overhead expenses
  • Overhead recovery
  • Hogget &Edwards, (1990), Accounting in Australia, 2nd edition, eds Wiley, Ch 21, pp 971-991 
  • Ballance sheet
  • Profit and Loss Records
  • Operating budgets
  • Monthly sales reports
  • Cash flow forecast
  •  Colin Bear, Peter Blythe, David Flanders, (2005),Introduction to budgeting, 4th edition, Cengage Learning, Ch7, pp127-135.
  • Revision Weeks 1-5


7Assessment 1 - Quiz’s (Week 7) - 20%  Assessment 1 Quiz 20%
  • Purchase variance price
  • Materials usage variance
  • Labour efficiency variance overhead recovery variance
  •  Jacqueline Birt, Keryn Chalmers, Suzanne Byrne, Albie Brooks, Judy Oliver, (2008), Accounting business reporting for decision making, 3rd edition, eds John Wiley and Sons Inc, Ch8, pp302-340.
  • Cost centre report
  • Job or contract assessment
  • Key financial ratios
  • Current ratio
  • Liquidity ratio
  • Debt to equity ratio
  •  Horngren, George Foster, (1991), Cost accounting – a managerial emphasis, 7th edition, eds Prentice Hall, International Editions, Ch8, pp252-270.
10 Assessment 2 Financial report of chosen organization (30%)  

 Assessment 2, in class 30%

  • Main elements of a budget
  • Who is responsible
  • How is a budget developed
  • Cash flow to fund activity level
  • Greg Dickman, (2000), Business mathematics, 2nd edition, eds Nelson Thompson Learning, Ch3, pp52-64
  • Describe the purpose and function of break-even analysis
  • Financial factors
  • Calculate the break-even in $ and units
  •  Robert Clift, (1990), Australian Financial Accounting, eds Harper and Row, Ch19, 659-677.
  • Traditional creditors
  • Bank overdraft
  • Bank loans
  • Leasing operational and capital
  • Owners equity
  • Present and future vaue annuities
  • Factors required to maintain good credit control
  •  John Hoggett and Lew Edwards, (1990), Accounting in Australia, 2nd edition, eds. john Wiley and sons Inc, Ch 20, 474-491.

 Assessment 2

Hardcopy or e_document


  • Revision Weeks 8-13
15, 16,17Assessment 3 - Final Exam - 50%  

Final Exam-50%

in class

Learning Resources

Prescribed Texts


Other Resources

Overview of Assessment

To successfully to complete this course the student is required to pass written assessment tasks and demonstrate skills and ability by completing practical tasks.

Assessment Tasks

Assessment 1 - Quiz’s (Week 7) - 20%

Assessment 2 - Financial Report of chosen organisation  (Week 10) - 30%

Assessment 3 - Final Exam - 50%

Assessment Matrix

1 Quiz
2 Financial Report
3 Exam

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