Making financial decisions based on financial information. You will need to use an example either from your present employer, or you can use the published financial statements of companies such as British Airways, which are published on the internet.
You will need to:
- analyse budgets and make appropriate decisions
You will need to analyse a budget period of at least 6 months, and comment on the performance, the behaviour, over that period, and give your views on what action should have / could have been taken.
- explain the calculation of unit costs and make pricing decisions using relevant information
Unit costs are calculated in a similar way in most business sectors, as are pricing decisions - you will need to give the formula and explain the link between Unit Cost and Selling Price, and the importance of information on Fixed Costs, Variable Costs, and Break-Even Point.
- assess the viability of a project using investment appraisal techniques
From the finance point of view, projects need to be assessed for viability, to ensure that the project is properly funded and that it will be profitable. You need to (briefly) describe techniques such as NPV, DFC, Rate of Return, and IRR - and give a simple example of one of these being used.
*www.businesslink.gov.uk - Finance and Grants pages are an excellent source of information for this