Basic Management Accounting Course

Transform the accounting process into an opportunity to protect, improve, expand and optimise your business.

All businesspeople know that management accounting sits importantly at the heart of any business. But fewer businesspeople fully understand that accounting represents so much more than recording profit and loss. Management accounting presents business owners and staff with an enormously powerful set of information and tools with which to make critical decisions that protect, improve, expand and even revolutionise the business.

 

The key lies in unlocking this potential and turning accounting from a chore into an opportunity, and Lita Epstein has a superb record in doing just this. Allow her to give you the ability to use costing, pricing and cash-flow information, internal reports, risk calculations, budgets, financial statements and ratios to perform analysis and make decisions that will ensure your business is in optimum condition both in the present and future.

 

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Course Content

Course Content

Course Content

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Syllabus

 

Section 1: Introduction to Management Accounting and Costing

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Unit 1.1 - Goals of Management Accounting

1. How management accounting differs from financial accounting  2. Planning  2. Control  3. Decision Making

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Unit 1.2 - Decisions and How to Implement Them

1. Decision Making Process 2. Information Gathering and Evaluating 3. Developing KPIs 4. Using KPIs to Manange Your Business, Role of Management Accounting and KPIs

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Unit 1.3 - Language of Costs

1. Variable vs. Fixed Costs  2. Sunk Costs  3. Opportunity Costs  4. Direct and Indirect Costs  5. Controllable and Non-Controllable Costs

Section 2: Costing Methods and Decision Making

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Unit 2.1 - Job-Order and Process Costing

1. Job-order Costing and Manufacturing 2. Job-order Costing for Service Companies 3. Steps in Process Costing 4. Product and Cost Flows 5. Calculating Unit Costs, Making Business Decisions

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Unit 2.2 - Cost-Volume-Profit Analysis

1. Cost Behavior Patterns  2. Cost Estimation Methods  3. Break Even Point

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Unit 2.3 - Variable Costing

1. Full vs. Variable Costing  2. Variable Costing Income Statement  3. Benefits of Variable Costing for Internal Reporting

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Unit 2.4 - Cost Allocation and Activity-Based Costing

1. Purpose of Cost Allocation  2. Process of Cost allocation  3. Allocating Department Costs  4. Problems with Cost Allocation  5. Activity-Based Costing  6. Making Business Decisions

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Unit 2.5 - Using Cost Information to Make Decisions

1. Incremental Analysis  2. Key Management Decisions: Make or buy; Drop a product line; Additional processing 3. Qualitative Considerations

Section 3: Risks, Pricing and Capital Budgeting

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Unit 3.1 - Uncertainty and Risk

1. Types of Business Risk 2. Measuring Risk 3. Cost-Benefit Analysis 4. Managing Risks

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Unit 3.2 - Pricing Decisions

1. Profit Maximizing Price  2. Pricing Special Orders  3. Cost-plus Pricing  4. Target Costing  5. Analyzing Customer Profitability  6. Activity-based pricing

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Unit 3.3 - Capital-Budgeting Decisions

1. Overview of Capital Budgeting Decisions  2. Evaluating Investment  3. Estimating Rate of Return  4. Cash Flows, Taxes and Depreciation  5. Payback Period Method  6. Accounting Rate of Return  7. Making Business Decisions

Section 4: Financial Statement Analysis

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Unit 4.1 - Analysing Financial Statements from a Management Perspective

1. Review of the Basic Financial Statements  2. Types of Analysis  3. Key Sources in Addition to Financial Statements

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Unit 4.2 - Horizontal and Vertical Analysis

1. How to Prepare Analysis  2. Balance Sheet Analysis  3. Income Statement Analysis

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Unit 4.3 - Ratio Analysis

1. Profitability Ratios  2. Liquidity Ratios  3. Activity Ratios

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Unit 4.4 - Cash Flow Management

1. How to Prepare a Cash Flow Budget  2. Using Budget vs. Actual Statements for Cash Management  3. Correcting the Red Flags

Section 1: Introduction to Management Accounting and Costing

directright

Unit 1.1 - Goals of Management Accounting

1. How management accounting differs from financial accounting  2. Planning  2. Control  3. Decision Making

directright

Unit 1.2 - Decisions and How to Implement Them

1. Decision Making Process 2. Information Gathering and Evaluating 3. Developing KPIs 4. Using KPIs to Manange Your Business, Role of Management Accounting and KPIs

directright

Unit 1.3 - Language of Costs

1. Variable vs. Fixed Costs  2. Sunk Costs  3. Opportunity Costs  4. Direct and Indirect Costs  5. Controllable and Non-Controllable Costs

Section 2: Costing Methods and Decision Making

directright

Unit 2.1 - Job-Order and Process Costing

1. Job-order Costing and Manufacturing 2. Job-order Costing for Service Companies 3. Steps in Process Costing 4. Product and Cost Flows 5. Calculating Unit Costs, Making Business Decisions

directright

Unit 2.2 - Cost-Volume-Profit Analysis

1. Cost Behavior Patterns  2. Cost Estimation Methods  3. Break Even Point

directright

Unit 2.3 - Variable Costing

1. Full vs. Variable Costing  2. Variable Costing Income Statement  3. Benefits of Variable Costing for Internal Reporting

directright

Unit 2.4 - Cost Allocation and Activity-Based Costing

1. Purpose of Cost Allocation  2. Process of Cost allocation  3. Allocating Department Costs  4. Problems with Cost Allocation  5. Activity-Based Costing  6. Making Business Decisions

directright

Unit 2.5 - Using Cost Information to Make Decisions

1. Incremental Analysis  2. Key Management Decisions: Make or buy; Drop a product line; Additional processing 3. Qualitative Considerations

Section 3: Risks, Pricing and Capital Budgeting

directright

Unit 3.1 - Uncertainty and Risk

1. Types of Business Risk 2. Measuring Risk 3. Cost-Benefit Analysis 4. Managing Risks

directright

Unit 3.2 - Pricing Decisions

1. Profit Maximizing Price  2. Pricing Special Orders  3. Cost-plus Pricing  4. Target Costing  5. Analyzing Customer Profitability    6. Activity-based pricing

directright

Unit 3.3 - Capital-Budgeting Decisions

1. Overview of Capital Budgeting Decisions  2. Evaluating Investment  3. Estimating Rate of Return  4. Cash Flows, Taxes and Depreciation  5. Payback Period Method  6. Accounting Rate of Return  7. Making Business Decisions

Section 4: Financial Statement Analysis

directright

Unit 4.1 - Analysing Financial Statements from a Management Perspective

1. Review of the Basic Financial Statements  2. Types of Analysis  3. Key Sources in Addition to Financial Statements

directright

Unit 4.2 - Horizontal and Vertical Analysis

1. How to Prepare Analysis  2. Balance Sheet Analysis  3. Income Statement Analysis

directright

Unit 4.3 - Ratio Analysis

1. Profitability Ratios  2. Liquidity Ratios  3. Activity Ratios

directright

Unit 4.4 - Cash Flow Management

1. How to Prepare a Cash Flow Budget  2. Using Budget vs. Actual Statements for Cash Management  3. Correcting the Red Flags

Pricing

Pricing is for 12 months access.

*The AUD price shown above is an estimate. Actual charges are based on the current exchange rate from GBP

Requirements

Software:

  • Required: None
  • Suggested: Microsoft Excel, Numbers or equivalent. Google Docs or Microsoft Web Apps could also be used.

Completion Time: 12 hours (average)

About the Author

Lita Epstein, MBA

 

Our author, Lita, has an outstanding reputation for explaining essential management accounting concepts clearly to student and business audiences respectively. A co-author of our Accounting & Business (US) course, she has written this course with a practical focus explicitly in mind.