Information for Planning, Decision Making and Control

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

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 2: 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

• The margin of safety calculations

• Sales mix analysis

• Break-Even analysis

Day 3: 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

Day 4: 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

Day 5: 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