Reference no: EM132946425

Financial Management Essential Content

LO4 Evaluate ways in which financial decision-making supports sustainable performance

Using information from financial ratios to inform decisions:

Building on a fundamental understanding of how financial ratios are used and the data they provide, the use of this information to inform decisions is strategically and operationally important to all organizations.

Using investment appraisal to inform decisions:

Determine how the outcomes of investment appraisal techniques, such as NPV, IRR, ROCE and Payback periods, are used to inform the most appropriate action to maximize ROI.

Appreciate the value of cash flow statements, trial balances and break even to financial decision-making:

Each of these techniques are evaluated to determine their value as informants of decision-making.

Question:

D3 Make justified recommendations on how the role of management accountants and accounting control systems can be improved to support financial decision-making in order to achieve long term financial sustainability.