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| Section | Weight | Objectives |
|---|---|---|
| Evaluating supplier financial stability | 20% | - Financial ratio calculation and interpretation - Profitability, liquidity and gearing ratios |
| Constructing the financial case | 20% | - Net Present Value (NPV) and Internal Rate of Return (IRR) - Cash flow and payback for a project - Cost of capital and present value - Return on investment (ROI) - Payback and risk analysis |
| Financing service delivery | 10% | - Leasing vs financing distinctions - Depreciation and financing investments - Outsourcing financial characteristics |
| Finance in the project lifecycle | 10% | - Distinction between cash and profit - The project lifecycle – a financial perspective - Income statement and cash flows - Statement of financial position (balance sheet) - Cash flow forecasting - Sources of finance and financial vocabulary |
| Developing the business case | 10% | - Categories of costs and benefits - Business case in the business change lifecycle - Contents of a business case - Options: benefits, costs, risks and impacts |
| Budgets and budgeting | 10% | - Responsibility accounting and capital vs revenue expenditure - Purpose and uses of budgeting - Flexed budgets and budgetary control |
| Costs and cost behaviour | 20% | - Activity-based costing and overhead allocation - Fixed vs variable costs - Breakeven analysis and margin of safety |
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