Business Finance Fundamentals
Business Finance Fundamentals
OBJECTIVES
- Need for risk assessment in estimating
- Estimation techniques: regression, Delphi , moving averages
- Pareto’s rule
- Data collection
- Financial concepts (e.g., capital budgeting, sunk costs)
- Analyzing cost data
- Benefit-cost analysis
WHO SHOULD ATTEND?
- Financial professionals, finance controllers treasurers and inventory professionals
- Senior professionals with a direct responsibility for financial management and control
- Accountants, planners, & cost professionals
- Any professional who has responsibility for any portion of the planning process
- Any professional, at a medium and senior level, who is a part of the financial decision making team
- New interns and trainees with finance related responsibilities
COURSE OUTLINE
DAY 1
Introduction – Finance versus Accounting
- Identify the major differences and similarities between financial and managerial accounting
- Understand the role of management accountants in an organization
- Understand the basic concepts underlying just-in-time (JIT), total quality management (TQM), process reengineering, and the theory of constraints (TOC)
- Discuss the impact of international competition on businesses and on managerial accounting
- Explain the importance of upholding ethical standards
DAY 2
Long-term planning
- What is a budget
- Budgeting basics
- Various types of budgets
- The budgeting process
- Budget preparation
- Identify the characteristics of well-designed management accounting and control systems (MACS)
- Describe total-life-cycle costing
- Understand target costing
- Understand Kaizen costing
DAY 3
Costing basics
- What is costing
- Defining costs
- Cost behavior
- Breakeven models
- The Equation Method
- Target Net Profit Analysis
- Costing models
- Incorrect assumptions
- Activity Based Costing
DAY 4
Control for success – Performance measurement
- Strategic planning measures
- Accounting-based performance measures
- Company versus division performance
- Financial performance measures
- Problems with financial measures
- Value of financial performance measures
- Indicators for managers
- Balanced scorecard
- Not-for-profit organizations
DAY 5
Bringing it all together
- Discuss the design and use of responsibility centers in an organization
- Understand the issues and basic tools related to assessing the performance of a responsibility center
- Recognize common forms of responsibility centers
- Understand two commonly-used planning and control methods used to evaluate responsibility center performance
- Discuss transfer pricing alternatives in organizations
- Understand the use of return on investment and economic value added as financial control tools
- Identify the limitations of using financial controls