Management Decision Making

Make financial decisions based on management reports



Competency Area

Business Management


Compile data for management accounting purposes

Apply breakeven analysis

Identify relevant cash flows and their use in short-term decision- making

Identify opptions for decision making

Review management information for presentation to the organisation's management team

Analyse information for decision-making including consideration of tax, inflation and other factors

Identify and integrate non-financial factors in long term decisions

Ensure accuracy of application rules, norms and guidlines

Evaluate management reports for decision-making

Explain marginal and full cost recovery as bases for pricing decisions in the short and long term

Identify and explain relevant costs and revenues in decision making and their relation to accounting concepts

Analyse product mix decisions to identify optimal solutions

Drive management decision- making based on financial information

Articulate the financial consequences of dealing with long-run projects in particular importance of time value of money

Evaluate investment appraisal techniques and explain their results

Discuss pricing strategies and their consequences