Accounting for Decision Making
3-4 hours per week
In any given organisation, the information generated by accounting systems is of paramount importance to both internal and external stakeholders. Hence, a strong understanding of accounting information is vital to personnel in managerial positions for them to be able to effectively perform their role. Having a good understanding of accounting concepts enables managers to communicate effectively with the finance department, bankers, suppliers, tax authorities, and other stakeholders. It also helps them make wise and informed decisions.
The IIMBx MOOC on Accounting for Decision Making is designed for graduates, entry-level managers, and personnel already serving in managerial positions to provide them with the necessary foundational knowledge in Accounting as their roles might demand.
In this MOOC, you will familiarise yourself with the relevant terms and concepts, learn to read and understand financial statements as well as develop the capability to analyse business performance through financial statements. You will be able to observe how the performance of any organisation is impacted by four fundamental drivers of profitability: Asset Management, Cost Management, Leverage Management, and Tax Management.
The second part of the MOOC will cover main concepts related to managing costs such as product costing, budgeting, budgetary control, and cost analysis for decision making.
Successfully completing this course will transform you into a confident manager can ably discuss and handle accounting and financial matters in the workplace. For the ones already holding managerial positions, this course can help to move forward in their managerial career and take on senior roles.
Week 1: Mechanics of Financial Accounting
Introduction to financial accounting; Generally Accepted Accounting Principles; Fundamental accounting equation; Recording of financial transactions and preparation of accounting statements through accounting equation
Week 2: Reading Financial Statements
Reading and understanding balance sheet, income statement and cash flow statement; Familiarizing all accounting terms that normally appear in financial statements
Week 3: Financial Statement Analysis
Ratio analysis; Understanding relationship between four profitability drivers; Assessing financial health through credit scoring model
Week 4: Product Costing
Preparation of Cost Sheet in manufacturing and service industry; Job and process costing; Activity-based costing.
Week 5: Cost Analysis for Decision Making
Behaviour of costs; Break-even analysis; Relevant costing approach for different decision-making scenarios
Week 6: Budgeting and variance analysis
Preparation of operational and financial budgets; Comparing actual performance against budgets; Price and quantity variance; Controllable and non-controllable variance; Revenue and contribution variances
By the end of this course you will be able to:
- Read and explain the contents of financial statements
- Analyse the financial statements
- Prepare operational and financial budgets
- Apply accounting information to plan and control your business and make decisions
Executives, Students pursuing post graduate and people who are aspiring to develop their skills in the field of managerial accounting.
Concepts are explained in a very interesting and simplified manner. Worth the time and effort for people who wish to further their career in management accounting