Many managers and executives have heard that ‘accounting is the language of business;’ yet have not taken the opportunity to become basically literate. This course offers the accounting language in a structured process. Participants will gain access to the language in a variety of exercises that eventually link to the Annual Reports and to the budgets prepared and managed by the executives. No preparation is necessary except to bring an open mind and a budget document or other financial documents of interest.
By combining techniques, analysis, problems, and examples with real case studies the course provides delegates with key cost awareness and budgetary skills, which is essential in managing and controlling processes/projects in times of increasing global competition where the budgets are inextricably linked with both strategy formulation and cost analysis. This course not only presents the key financial tools generally used, but also explains the broader context of how and where they are applied to obtain meaningful answers. It provides a conceptual backdrop both for the financial/economic dimensions of systematic business management and for understanding the nature of financial statements, analyzing data, planning, and controlling.
By the end of this course, delegates will be able to:
- Use financial information for guiding decisions
- Understand how to optimize decisions through make vs. buy analysis
- Develop & critique plans that create results
- Control variances to industry standards
- Become comfortable conversing on accounting subjects
- Recognize the tools and techniques of financial analysis useful in decision Making
- Understand the use of the budgetary and Control Techniques
- Learn about Managerial VS Financial accounting
- Understand the Cost-Volume-Profit analysis for decision making
- Appreciate Fixed VS Variable VS Mixed costs for control
- Understand the capital budgeting that makes a difference
- Plan more accurately using managerial accounting
- Describe policies and company components that affect managerial accounting
Managerial Accounting: a Perspective:
- The role of Managerial Accounting
- Financial vs. Managerial Accounting
- Cost Accounting vs. Managerial Accounting
- The work of management
- The Organization aspects of Managerial Accounting
- Using Managerial Accounting for planning, decision-making & control
Cost Concepts, Terms & Classifications:
- Diff costs 4 diff purposes
- Cost classifications
- Cost by function
- Product vs. period costs
- FC, VC & Mixed costs
- Costs for planning, control & decision making
Cost Behavior Patterns:
- Analysis of cost behavior
- Fixed Costs-committed vs. discretionary
- Variable costs
- Semi-variable costs
- The Contribution Margin approach
- Comparing Gross Profit to The Contribution Margin
Cost-Volume-Profit & Break-Even:
- Cost-Volume-Profit & Break-Even defined
- Cost-Volume-Profit analysis
- Target income calculations
- Margin of safety calculations
- Sales mix analysis
- Break-Even analysis
Standard Costs:
- Responsibility accounting defined
- Responsibility centers
- Standard costs & Variance Analysis
- Fixed overhead variances
- VA for factory overhead
- Absorption VS Direct costing
Relevant Costs:
- Relevant costs defined
- Decision-making approaches
- Make VS Buy decisions
- Sell VS Process decision
- Lease VS Buy decision
- Adding or dropping a line decision
Capital Budgeting:
- Capital Budgeting decisions defined
- Capital Budgeting techniques demonstrated
- Mutually exclusive projects
- Capital rationing & decision making
- Investment decisions
- Decision-making tools
Performance Evaluation:
- Division evaluation
- Return On Investment (ROI)
- Profit planning
- Residual income (RI)
- Controlling results using ROI
- Controlling results using RI
Financial Statement Analysis:
- Ratio overview
- Liquidity ratios
- Activity ratios
- Leverage ratios
- Profitability ratios
- Market ratios
Statement of Cash Flows:
- P&L to Cash flow analysis
- Accrual basis of accounting
- Operations section explored
- Investing section explored
- Financing section explored
- Cash Flow statement to Balance Sheet connection
- Financial Officers
- Controllers
- Accountants
- Treasurers
- Corporate Planning
- Business Development Professionals
- Managers from any other non-financial areas willing to understand the financial aspects of Analysis, Planning, and Control
- Employees who want to get new knowledge to improve their career