Description: Information provided by external financial reporting (financial statements) is compiled too late and is too aggregated for managers to use in making strategic decisions. However, this same accounting information can be accessed, disaggregated and analyzed to get the information necessary for strategic planning. Purpose: The purpose of this class is to familiarize students with the language and techniques of managerial accounting and to develop and sharpen analytic abilities. This course focuses as much as possible on the practical application of managerial analysis. Students will learn the key analytical skills for both planning and evaluating past performance. This course relies heavily on performing calculations (number crunching) and interpreting the results. Material is presented in a combination of lecture and modeling cases. It is assumed that participants have a general knowledge of accounting as well as a basic knowledge of Excel. Format: The sessions each week are generally divided into two parts, lecture and a lab in which students implement managerial accounting techniques by developing models in Excel. Homework assignments will ask students to evaluate a business situation, make, and support their decision based on their analysis.
Learning Outcomes: Objectives of the course: • Master common managerial accounting techniques like Cost Volume Profit Analysis, Product and service costing and the impact on pricing, overhead allocation, Activity Based Costing, budgeting and performance analysis and long term Investment decision making.. • Make and communicate recommendations that are supported by relevant data. • Develop skills to build flexible financial models and to use sensitivity analysis to evaluate opportunities and deal with problems skillfully.
Prerequisites: 95-715 or 90-723