Course Title: Introduction to Financial Management

Part B: Course Detail

Teaching Period: Term2 2013

Course Code: ACCT5072

Course Title: Introduction to Financial Management

School: 130T Engineering (TAFE)

Campus: City Campus

Program: C6016 - Advanced Diploma of Engineering Technology (Principal Technical Officer)

Course Contact : Program Manager

Course Contact Phone: +61 3 9925 4468

Course Contact

Name and Contact Details of All Other Relevant Staff

Dr. Daniela Achim

Telephone: (03) 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

This course will enable students 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

On completion of this module the learner should be able to:

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  final exam 


Teaching Schedule

Session/Beginning Week  Topics                                                                                              Assesment                                        
  • Fundamentals of accounting process
  • The accountant’s role
  • Financial teminology


Assessment 1

  • The accounting tools available to managers
  • Budgeting
  • The elements of a budget
  • Zero-based budgeting
  • Preparation of budgets


  • Financial terninology
  • Profit and loss
  • Ballance sheet
  • Current and non-current assets and liabilities
  • Legal structures


  • Fixed and variable overhead
  • Methods for allocating overhead expenses
  • Overhead recovery
  • Ballance sheet
  • Profit and Loss Records
  • Operating budgets
  • Monthly sales reports
  • Cash flow forecast
  • Revision Weeks 1-5


  • Purchase variance price
  • Materials usage variance
  • Labour efficiency variance overhead recovery variance
  • Cost centre report
  • Job or contract assessment
  • Key financial ratios
  • Current ratio
  • Liquidity ratio
  • Debt to equity ratio
9-10 Assessment 1 Financial report of chosen organization (30%)

 Assessment 1, Due 30%

  • Main elements of a budget
  • Who is responsible
  • How is a budget developed
  • Cash flow to fund activity level
  • Describe the purpose and function of break-even analysis
  • Financial factors
  • Calculate the break-even in $ and units
  • Traditional creditors
  • Bank overdraft
  • Bank loans
  • Leasing operational and capital
  • Owners equity
  • Present and future vaue annuities
  • Factors required to maintain good credit control


  • Revision Weeks 8-13
16 -18Assessment 2 - Final Exam - 70%

Final Exam-70%


Learning Resources

Prescribed Texts


Anandarajah, Aseervatham, Reid (2005), Prepare and manage budgets and financial plans, 3rd edition, eds Pearson, Prentice Hall.
C Bear, P Blythe, D Flanders, (2005),Introduction to budgeting, 4th edition, Cengage Learning
J Birt, K Chalmers, S Byrne, A Brooks, Judy Oliver, (2008), Accounting business reporting for decision making, 3rd edition, eds John Wiley and Sons Inc.
R Clift, (1990), Australian Financial Accounting, eds Harper & Raw Publishers.
G Dickman, (2000), Business mathematics, 2nd edition, eds Nelson Thompson Learning.
J Hoggett, L Edwards, (1990), Accounting in Australia, 2nd edition, eds. john Wiley and sons Inc.
Horngren, G Foster, (1991), Cost accounting – a managerial emphasis, 7th edition, eds Prentice Hall, International Editions
R Jopling, P Lucas, G Norton, (2007), Accounting for business A non-acountant’s guide, 2nd edition, eds McGraw Hill.

Other Resources

Overview of Assessment

Assessment for this module will consist of the following:
 1 x written examination at the completion of the course.
 2 x written assignments provided throughout the program.

Assessment Tasks

Assessment 1 - Financial Report of chosen organisation -30%

Assessment 2 - Final Exam - 70%

Assessment Matrix

1 Financial Report
2 Exam
 x x x x x xxxxxxx

Other Information

Study and learning Support:

Study and Learning Centre (SLC) provides free learning and academic development advice to all RMIT students.
Services offered by SLC to support numeracy and literacy skills of the students are:
- Assignment writing, thesis writing and study skills advice
- Maths and science developmental support and advice
- English language development

Please refer to find more information about Study and Learning Support.

Disability Liaison Unit:

Students with disability or long-term medical condition should contact Disability Liaison Unit to seek advice and support to complete their studies.
Please refer to find more information about services offered by Disability Liaison Unit.

Late submission:

Students requiring extensions for 7 calendar days or less (from the original due date) must complete and lodge an Application for Extension of Submittable Work (7 Calendar Days or less) form and lodge it with the Senior Educator/ Program Manager.
The application must be lodged no later than one working day before the official due date. The student will be notified within no more than 2 working days of the date of lodgment as to whether the extension has been granted.

Students seeking an extension of more than 7 calendar days (from the original due date) must lodge an Application for Special Consideration form under the provisions of the Special Consideration Policy, preferably prior to, but no later than 2 working days after the official due date.

Assignments submitted late without approval of an extension will not be accepted or marked.

Special consideration:

Please refer;ID=riderwtscifm to find more information about special consideration.


Plagiarism may occur in oral or written presentations. Plagiarism is the presentation of another person’s woprk, idea or creation as one’s own; without appropriate referencing. Plagiarism is not acceptable. The use of another person’s work or ideas must be acknowledged. Failure to do so may result in charges of academic misconduct, which may result in cancellation of results and exclusion from our course.

Please refer: to find more information about plagiarism.

Email Communication:

All email communications will be sent to your RMIT email address and you must regularly check your RMIT emails.

Course Overview: Access Course Overview