| (L) determine relevant costs in make-or-buy and accept-or-reject
decisions;
(M) evaluate make-or-buy and accept-or-reject decisions
to identify the best solutions for a business;
(N) prepare written recommendations that identify make-or-buy
and accept-or-reject solutions using empirical data to support and
justify conclusions;
(O) perform cost allocation functions; and
(P) prepare cost of production reports.
(6) The student maintains, monitors, controls, and
plans the use of financial resources to ensure business stability.
The student is expected to:
(A) describe fundamental financial concepts involved
in the management of corporate finances, including the nature of depreciation
and cash flows;
(B) analyze the need for efficient capital markets
in corporate finance;
(C) explore the capital budgeting process;
(D) perform calculations necessary for capital budget
decision making, including:
(i) calculating the initial investment associated with
a proposed capital expenditure;
(ii) determining operating cash inflows; and
(iii) determining terminal cash flow;
(E) conduct cash-flow analysis to select an acceptable
capital expenditure, including:
(i) interpreting the nature of relevant cash flow-analysis;
(ii) explaining the nature of the payback period;
(iii) calculating the payback period;
(iv) explaining the relationship between the internal
rate of return and net present value;
(v) calculating the net present value and future value;
and
(vi) calculating the internal rate of return;
(F) explain the role of financial planning in corporate
finance, including the financial planning process, short-term operating,
and long-term strategic planning;
(G) conduct cash planning, including:
(i) explaining the use of cash budgets;
(ii) coping with uncertainty in cash budgets;
(iii) preparing a cash budget; and
(iv) evaluating a cash budget;
(H) conduct profit planning, including pro forma income
statements and balance sheets;
(I) define and describe the nature of short-term financial
management;
(J) explain the role of valuation in making appropriate
financial decisions for a company, including:
(i) discussing the role of project valuation in capital
allocation decisions;
(ii) comparing methods for valuing flexibility; and
(iii) discussing the valuation implications in business
finance;
(K) use capital market securities to secure financing
for a company, including:
(i) analyzing models and methods to determine the best
financing option for a company;
(ii) analyzing the nature of corporate bonds;
(iii) analyzing and determining the cost of long-term
debt;
(iv) describing the issuance of stock from a corporation;
(v) comparing and contrasting preferred stock and common
stock;
(vi) calculating the cost of preferred stock and common
stock; and
(vii) computing leverage and debt to equity ratios;
(L) explain the role of dividends in corporate finance,
including forms of dividends and reinvestment plans;
(M) describe the effect of a firm's dividend decisions
on its external financing requirements;
(N) illustrate the residual theory of dividends;
(O) describe the impact of dividends on the value of
the firm;
(P) explain the nature of a dividend policy;
(Q) explain factors to consider when deciding on the
form of dividend distribution; and
(R) analyze ownership change transactions, including:
(i) comparing mergers and acquisitions;
(ii) explaining the nature of hostile takeovers;
(iii) discussing issues that arise from mergers and
acquisitions;
(iv) explaining methods for evaluating potential merger/acquisition
targets;
(v) evaluating potential merger and acquisition targets;
and
(vi) analyzing the nature of restructurings.
(7) The student describes laws and regulations in order
to manage business operations and transactions in accounting. The
student is expected to:
(A) describe and discuss regulation of accounting,
including:
(i) the impact of the Sarbanes-Oxley Act of 2002 on
accounting;
(ii) the role of the Securities and Exchange Commission
in regulating the accounting industry;
(iii) the state regulation of the accounting industry;
and
(iv) the impact of International Financial Reporting
Standards (IFRS) versus Generally Accepted Accounting Principles (GAAP);
and
(B) identify and research a case study involving a
fraud, compliance, or regulatory issue or possible scenario, including:
(i) formulating questions to analyze the issue;
(ii) gathering relevant sources;
(iii) evaluating the validity and reliability of those
sources;
(iv) identifying and communicating which laws and regulations
apply;
(v) gathering data that supports evidence of fraud
or non-compliance with regulations; and
(vi) creating a clear and coherent presentation, including
the use of correct grammar, spelling, punctuation, and citation of
resource materials.
(8) The student accesses, processes, maintains, evaluates,
and disseminates financial information to assist business decision
making. The student is expected to:
(A) use technology to acquire information such as the
use of data mining and automated financial programs into accounting;
and
(B) create a clear and coherent oral and written presentation
that includes the use of correct grammar, spelling, punctuation, and
citation of resource materials on a current topic in accounting using
concepts learned in this course.
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