Course: An Introduction to Financial Management in Construction

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Thank you for joining us. We hope that you enjoyed the learning experience. This course is part of the online MSc Construction Project and Cost Management offered by Coventry University …

Congratulations on completing this course, An Introduction to Financial Management in Construction. At the beginning of the course, we explored the idea of why construction companies are so closely linked …

Ethical rules can be considered as moral code or principles expected to be adopted in the preparation of accounts. There are four rules, as described below. Prudence Prudence rules that …

In small firms, financial information can be obtained from the business owner. In a large organisation, this is often impractical, so a more formal way of reporting back to the …

Measurement rules decide how data ought to be recorded. There are six vital rules to consider. Money measurement Money measurement requests that accounting transactions should only be recorded if they …

In Week 1, we took a broad view of business accounting, but let’s delve deeper into what this really means for construction projects. Accounting is a vital discipline that is …

Looking back at Week 1, think about the question we asked: Why are construction companies often linked with insolvency? A business becomes insolvent when it is unable to pay its …

Congratulations on completing this week and thank you for joining us. We hope you have enjoyed this look at the introduction to financial management in construction. This week we have: …

Some of the terms used in accounting may be unfamiliar. In this step, we’ll look at some definitions. Defining key terms Assets are regarded as being something that will result …

As we saw in the previous step, there is a lot of responsibility attached to the management of finances on construction projects. This is because there is a high level …

The management of finance is concerned with the procurement and utilisation of funds. Effective procurement and efficient use of funds can result in proper utilisation of finance by the business. …

Profit maximisation is a process business firms undergo to ensure the best output and price levels are achieved in order to maximise its returns. Influential factors such as sale price, …

As you may have noticed from the previous task, financial management has diverse implications for companies and individuals. Financial management is a method for planning and organising the activities of …

As a starting point, let’s look at a simple example to understand the concept of financial management and risk. Imagine a family and how they might manage their income. Mark …