UE Performances and decisions - 3GUC1801

Goal(s)

• assess the importance of finance and management in decision making
• estimate the profitability and risks of investment projects taking into account time and funding constraints.
• understand the behavior of costs in order to manage them with a view to continuous improvement
• understand the adaptation of management control systems to their changing environment

Content(s)

Part 1- Introduction to finance-management
Finance and management are essential to assess the feasibility (financing need, cost analysis to be expected) and the viability of an activity / product development project (profitability over time) but also to measure and analyze the performance of existing business activities.
Keywords: cost - income statement - financing plan - cash flow - return on investment - break-even point

Part 2 - Profitability and risks of investments
Before any investment decision, the financial needs of a project must be studied in order to measure the profitability and the risks in financial terms, taking into account, where applicable, the profitability requirement by the shareholders. This study must also anticipate cash imbalances.
keywords: flow - discount - TIR - VAN - payback - profitability - risk - financing plan

Part 3 - Continuous improvement in a perspective of ecological transition by cost management (measurement and analysis)
A sharp increase in production and non-production costs degrades the company's financial performance; their reduction or at least their control requires cost management.
Steering consists of measuring costs and understanding their behavior related to events both internal and external to the company. However, biases in cost calculations may exist; tools to predict and moderate them with a view to continuous improvement must be put in place. Management control can also help support the ecological transition.
Keywords: management control - cost analysis - continuous improvement - cost structure - steering

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