Abstract:

The article aims to reveal that financial planning can be efficiently used in advanced microeconomics and managerial economics classes. The typical issue of the relationship between costs and price, income and profit is combined with the annual financial plan as a time series, a monthly time series in this case. Financial planning is an important topic that is ignored in microeconomics and managerial economics teachings. It allows companies to recognise which funds they can use to realise their intentions in the real sector of the economy, provides information about probable costs of these operations, and allows the analysis of the impact of alternative activities on companies’ financial results. In order to solve the problem described, a modern approach is used, namely computer simulation software MANSI 1.0. The article presents its computational and teaching potential. As a starting point, a numerical example from the popular handbook Managerial Economics by A. Samuelson and S. Marks is used. The combination of managerial economics and computer simulations in MANSI 1.0 is a meaningful and needful complement to the classic set of tools for analysing microeconomic and financial issues. Thanks to MANSI 1.0, students, but also managers, will be able to focus on interpreting obtained results and on drawing conclusions rather than on painstaking mathematical calculations.

Keywords:

Financial planning, managerial economics.