Overview:
Every business should consider its business environment and competitive strategy in its decision-making. Strategic thinking is important to avoid decisions that might be best only in the short term. So, managers should be capable of analyzing quantitative and qualitative information using relevant techniques. The course provides decision-making skills in operational, financial, and strategic planning and implementation.
Learning Outcome:
| Apply the cost concepts and cost allocation in service costing for decision-making
Apply techniques of revenue forecasting, and cost estimation Make decisions related to operations management with strategic emphasis |
| Analyze the balance sheet and income statement
Analyze the statement of shareholders’ equity Discuss how common-size and comparative financial statements can be used to evaluate a firm’s financial position and results of operations over several years. |
| Analyze the cash flow statement
Generalize how operating statistics using physical or nonfinancial data can help management evaluate the results of the firm’s activities |
| Examine the working capital management and analyze capital budgeting decisions
Understand and apply pricing decisions Understand the enterprise risk management Ethical considerations in accounting and financial decision-making |
Outline:
Week 1 Financial Statement Analysis
Vertical Common-Size Statements
Horizontal Common-Size Statements
Liquidity Analysis Working Capital Analysis
Current Ratio Quick ratio Cash Ratio Cash Flow Ratio
Sensitivity analysis on liquidity Ratios
Capital Structure Analysis Leverage Ratios
Total debt to total capital Debt to Equity
Debt to Total Assets Interest Coverage
Off- Balance sheetFinancing Operating Activity Analysis
Receivable Turnover Inventory Turnover Fixed Assets Turnover
Measuring the ability to pay accounts payable
Week 2: Financial Statement Analysis- Contd
Profitability Analysis EPS Diluted EPS
Dividend Payout Sustainable Equity Growth
Return on Capital Invested DuPont Model for ROA
revenue Analysis Income Measurement Analysis
Limitations of Ratio Analysis
Week 3: Cost Analysis, Revenue Analysis, Short-Term Decision-Making and Pricing
Cost Analysis Cost Classifications
Direct and Indirect expenses
Fixed and Variable expenses
Cost/Volume/Profit Analysis Marginal Analysis
Accepting or rejecting Special Orders
Make Vs Buy Sell or Process further
Add or drop a segment Limiting factor analysis
Income Taxes and Marginal Analysis
Pricing Decisions Short-Run costing and Pricing
Long-Run Costing and Pricing
Market-Based Pricing Cost- Based Pricing
Target Pricing Target Costing Process
Life-Cycle Costing
Week 4: Capital structure decisions & Risk and Return
Risk and return Long-term financial decisions
Working capital management
Corporate restructuring
Week 5: Enterprize Risk Analysis
Enterprize Risk Value at risk, types of risk
Risk identification and assessment
Risk response, Risk management
Week 6: Enterprize Risk Analysis
Expected ethical behavior, Applying ethics in the corporate setting
Fraud Triangle
Practical ethical scenario
Masuring and improving ethical complianceCorporate Responsibility for Ethical conduct