IIMBx: Accounting for Decision-Making

by Indian Institute of Management Bangalore

Accounting and Finance for Managers

Course Description

This comprehensive finance course, "Accounting and Finance for Managers," is designed to equip managers with essential accounting and financial knowledge crucial for effective business management. The course provides a deep dive into financial statements, accounting principles, and cost management techniques, transforming participants into confident leaders capable of handling financial matters in the workplace.

What students will learn

Reading and interpreting financial statements (balance sheet, income statement, and cash flow statement)
Understanding key accounting terminology and concepts
Analyzing business performance through financial statement analysis
Mastering the four fundamental drivers of profitability: asset management, cost management, leverage management, and tax management
Cost management techniques, including product costing, budgeting, and budgetary control
Decision-making skills using cost analysis

Prerequisites

An overall understanding of the business environment is required. This intermediate-level course is suitable for managers who have some basic knowledge of business operations but want to enhance their financial acumen.

Course Content

Mechanics of Financial Accounting
Reading and Understanding Financial Statements
Financial Statement Analysis and Ratio Analysis
Product Costing Methods
Cost Analysis for Decision Making
Budgeting and Variance Analysis
Generally Accepted Accounting Principles (GAAP)
Cash Flow Management
Break-even Analysis
Activity-based Costing

Who this course is for

Managers seeking to improve their financial literacy
Professionals aiming to advance their careers into senior management roles
Business owners who want to better understand their company's financial health
Anyone interested in gaining a solid foundation in accounting and finance for managerial purposes

Real-world Applications

Communicating effectively with finance departments, bankers, suppliers, and tax authorities
Making informed business decisions based on financial data
Evaluating the financial health of a company or potential business partners
Developing and managing budgets more efficiently
Identifying areas for cost reduction and profit improvement
Assessing the financial impact of strategic business decisions
Presenting financial information to stakeholders with confidence

Syllabus

Week 1: Mechanics of Financial Accounting

Introduction to financial accounting
Generally Accepted Accounting Principles
Fundamental accounting equation
Recording financial transactions
Preparation of accounting statements

Week 2: Reading Financial Statements

Understanding balance sheets, income statements, and cash flow statements
Familiarizing with common accounting terms in financial statements

Week 3: Financial Statement Analysis

Ratio analysis
Understanding the relationship between four profitability drivers
Assessing financial health through credit scoring models

Week 4: Product Costing

Preparation of Cost Sheets in manufacturing and service industries
Job and process costing
Activity-based costing

Week 5: Cost Analysis for Decision Making

Behavior of costs
Break-even analysis
Relevant costing approach for various 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

This course offers a transformative experience that will empower managers to confidently navigate the complex world of accounting and finance, setting them up for success in their current roles and future career advancements.

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