Financial Analysis Techniques for Managerial Decision Making: Learning Outcomes and Pass Attainment

Purpose and Nature of Financial Statements

Learning outcomes and pass attainment level:

1.Explain the nature and purpose of the three major financial statements, demonstrating their ability to analyse, interpret and apply this financial information to enhance managerial decision making  

2.Evaluate the impacts of the various approaches towards costs on financial statements and their application

3.Demonstrate an ability to construct budgets and interpret budget information, and to evaluate the contribution of budgets to managerial decision making

4.Assess the contribution of alternative sources for financing a business and apply appropriate techniques for evaluating capital investment decisions  

A lack of breadth and depth of financial analysis techniques accompanied by incorrect formulae or calculation without appropriate explanation.

Poor layout or presentation in anything other than business report style. Inadequate grammar and lacking in overall knowledgeable synthesis.

Evidence of some financial analysis techniques but with errors of formulae and calculation with insufficient explanation and adequate presentation.

Attempt at a business report format with some supportive appendices. Mainly descriptive with some attempt at synthesis. Grammar and structure being adequate.

Wide range of financial analysis techniques evident and supported by full disclosure of formulae and accurate calculation in a clear format.

Presented in business report format and coherently structured. Supported by referenced appendices. Effective and well-reasoned narrative discussion.  An excellent range of financial analysis techniques which are supported by full disclosure of formulae and accurate calculation in a clear format.

Excellent business report format and well structured. Supported by fully referenced appendices. Excellent analytical and justified explanations showing synthesis and application.

Question 2

A lack of understanding of short term marginal costing techniques evident. Unable to successfully distinguish between different cost behaviours or employ a range of techniques to support a conclusion. Limited or no narrative.

Some use of appropriate decision making techniques correctly applied. Limited identification and discussion of the key non-financial factors related to the decisions.

A good use of appropriate decision making techniques applied. Good analysis of financial and non-financial factors which support a clear and well explained conclusion.

Excellent understanding of short and long term decision making demonstrated through the use of marginal costing and limiting factor analysis. Thorough and detailed critical discussion surrounding the decisions which extensively consider both financial and non-financial issues.

Question 3

Failure to engage with the topic and lacking credible academic argument. No evidence of research other than internet sites of dubious quality. Only one of the two statements discussed. Poorly structured with inadequate grammar.

Partial engagement with the topic with some limited evidence of research. Some analysis of both statements. Grammar, structure and layout adequate. Identification and conclusion of arguments surrounding the topic with reference to credible academic citations that are fully referenced in a bibliography. Well-structured and coherent narrative employing above average grammar and evidencing significant student research.

Thoroughly developed arguments with well referenced credible academic sources. Well-structured and presented evidencing excellent grammar and extensive student research and analysis of the topic area.  

Required:

Prepare a business report for the board of directors which analyses the performance of Next Plc over the financial years 2015 to 2019 and recommend any action the board should take.

Your report should utilise key ratios, horizontal and vertical analysis and make reference to relevant developments within the group.