FINANCIAL TECHNIQUES FOR STRATEGIC DECISION-MAKING

Syllabus

4.2.1: Financial Techniques for Strategic Decision Making

Module 1                                                                                                                      6 Hours

Techniques of Risk Analysis in Capital Budgeting Decision: Risk Analysis in Capital Budgeting – Measuring and Managing Capital Budgeting Risks – Sensitivity Analysis, Scenario Analysis, Simulation, Standard Deviation and Co-efficient of Variation, Risk-Adjusted Discount Rate Method, Certainty Equivalent Co-efficient Method, Decision Tree Analysis and Probability Distribution Method.

Module 2                                                                                                            12 Hours

Cost Management Techniques: Target Costing, Value Analysis/Value Engineering, Pareto Analysis, Life Cycle Costing, Environmental Management Accounting.  

Module 3                                                                                                            10 Hours

Pricing Strategies and Decisions: Theory and Principles of Product Pricing, Pricing – New Product, Finished Products and Pricing of Services, Sensitivity Analysis in Pricing Decisions, Pricing Decision Under Special Circumstances, Pricing Strategies.

Module 4                                                                                                               6 Hours

Performance Measurement and Evaluation: Responsibility Accounting, Linking Critical Success Factors (CSFs) to Key Performance Indicators (KPIs) and Corporate Strategy. Performance Measurement Models – Balanced Scorecard, the Performance Pyramid, the Performance Prism and the Building Block Model.

Module 5                                                                                                            10 Hours

Strategic Decision Making and Managerial Control Decision Making Using

·         CVP Analysis

·         Relevant Cost Concepts

·         Activity Based Costing

·         Ethical and Non-Financial Consideration Relevant to Decision-Making.

Module 6                                                                                                               8 Hours

Financial Modelling: Excel Functions – IF, Sum, SUMIF, SUMIFS, Average, AverageIF, AverageIFS, Index and Match, V-lookup, Rank, Min and Max Common Errors in Excel – Value, Name, Div/0, Ref, Num, N/A, etc.