Introduction

Managerial accounting is an activity that provides financial and nonfinancial information to business managers and other internal decision-makers of an organization. This course examines how managerial accounting information is gathered, and how it is used by business professionals to make effective plans & decisions. Lessons such as fundamentals of managerial accounting cost accounting concepts, and managerial accounting approaches will provide you with the concepts, procedures, and analytical skills you'll need to make informed decisions in today's challenging business world.

Managerial accounting is not as widely used as other forms of accounting, nor is it as known. While companies concern themselves with financial accounting methods like audits, budgets, and financial statements, they often completely ignore the forward-thinking methods of managerial accounting.

Key points include:

• Managerial vs. financial accounting

• Cost-Volume-Profit analysis for decision making

• Make vs. buy decisions for planning

• Fixed vs. variable vs. mixed costs for control

• Capital budgeting that makes a difference

Objectives

This course will help you learn how to:

• Cost terms and Concepts

• Cost Behavior: Analysis and Use

• Direct vs. Absorption Costing

• Overhead Costing for Planning and Control

• Standard Costs & Variance Analysis

• Relevant Costs for Decision Making

• Financial Statement Analysis

Target Audience

• Financial managers, accountants, and controllers involved in internal reporting and decision support
• Management accountants and cost accountants responsible for planning, budgeting, and performance analysis
• Business analysts and finance professionals engaged in operational and strategic decision-making
• Department heads and supervisors who use financial and non-financial data for planning and control
• Professionals working in budgeting, forecasting, and performance evaluation functions
• Individuals in manufacturing, services, and corporate environments seeking to strengthen cost and managerial accounting skills
• Junior accountants and graduates aiming to build a strong foundation in managerial accounting and financial analysis
• Anyone responsible for evaluating costs, improving efficiency, and supporting managerial decisions within an organization

Outlines

Day 1: 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

Day 2: Cost Concepts, Terms & Classifications

• Diff cost s 4 diff purposes

• Cost classifications

• Cost by function

• Product vs. period costs

• FC, VC & Mixed costs

• Costs for planning, control & decision making

Day 3: 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

Day 4: Cost-Volume-Profit & Break Even

• Cost-Volume-Profit & Break-Even defined

• Cost-Volume-Profit analysis

• Target income calculations

• The margin of safety calculations

• Sales mix analysis

• Break-Even analysis

Day 5: Standard Costs

• Responsibility accounting defined

• Responsibility centers

• Standard costs & Variance Analysis

• Fixed overhead variances

• VA for factory overhead

• Absorption vs. direct costing

Day 6: 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

Day 7: Capital Budgeting

• Capital Budgeting decisions defined

• Capital Budgeting techniques demonstrated

• Mutually exclusive projects

• Capital rationing & decision making

• Investment decisions

• Decision-making tools

Day 8: Performance Evaluation

• Division evaluation

• Return On Investment (ROI)

• Profit planning

• Residual income (RI)

• Controlling results using ROI

• Controlling results using RI

Day 9: Financial Statement Analysis

• Ratio overview

• Liquidity ratios

• Activity ratios

• Leverage ratios

• Profitability ratios

• Market ratios

Day 10: 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