Cost, Economic, and Financial Analysis for Operating Executives
About the Program: The economic decision making skills of operating executives need to be developed so that all decisions taken by them, in designing, purchasing, manufacturing, marketing, maintenance and various other service activities are economically right and rational. They require knowledge in economic decision making approaches and methods and require knowledge in the recording and summarizing processes used by financial accountants and cost accountants, so that they interact with accounting system and access the required data for various decisions.
Objectives: The participants will equipped to :
· recognize opportunities to make economical decisions in their operating departments,
· use economic decision making frameworks in various decisions
· understand the basics of accounting processes
· appreciate the ability of accounting systems to provide information to facilitate their decision making in operating decisions.
· appreciate the need for making operating decision after considering the economic consequences
Coverage and links to knols covering the topic:
· Planning and budgeting decisions in operating departments
· Cost and budgetary control
· Investment decision making – Project appraisal through Payback period, NPV and IRR.
· Inventory investment decisions
· Capacity utilization decisions
· Basics of accounting entries – Journal & Ledger
· Preparation of profit and loss account and balance sheet.
· Accessing information from ledger
· Summarising information from ledger
· Analysing balance sheets for decision making
· Journal and Ledger entries in cost accounting system
· Job costing, process costing and cost sheets
· Concept of cost objective and accessing cost accounting system for information for decision making
Links are to be changed from Knols to new Blog posts