Fundamentals of financial and management accounting
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Fundamentals of financial and management accounting
Instructor: Deborah Agostino
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What you'll learn
Learn how to read and analyze financial statements and understand basic techniques to manage costs and capital investment decisions.
Skills you'll gain
Details to know
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There are 5 modules in this course
This is an introductory course on financial and management accounting.
The first part of this course will introduce the basic accounting principles and accounting terminology to understand how a company keeps control of financial events and provides information on how it is performing. These basic concepts will support the analysis of financial reports companies prepare. We will go through balance sheet, income statement, financial statement, learning how to read and analyze them. The course will also provide the basis of management accounting introducing some techniques (e.g. break- even analysis or NPV) to support managers in making short-term and long-term decisions, such as "Is it convenient to dispose a production machine and buy a new one?" or "How many products should the company sell in order to break-even?" The course will bring examples and case studies that will help students better understand the practical applications of the basic accounting principles and techniques. At the end of the course, students will be able to read, understand and analyze financial documents and to apply simple techniques to analyse costs and evaluate capital investment decisions.
Within this week we will define what is an enterprise, what is accounting and we will discuss the distinction between financial and management accounting.
What's included
5 videos2 assignments
5 videos•Total 43 minutes
- What is a company: shareholders and stakeholders•6 minutes
- NPV Calculation•12 minutes
- What is accounting•9 minutes
- Introduction to financial accounting•8 minutes
- Accrual and cash principles•8 minutes
2 assignments•Total 60 minutes
- Week 1 - Quiz 1•30 minutes
- Week 1 - Quiz 2•30 minutes
Within this week we will learn what is the "Annual report" and its components: balance sheet, income statement, cash flow statement.
What's included
9 videos1 reading2 assignments
9 videos•Total 68 minutes
- Balance sheet: general overview•7 minutes
- Non current assets and depreciation•8 minutes
- Example on recognition of non current assets•9 minutes
- Inventories•7 minutes
- Equity and liabilities•7 minutes
- Income statement: general overview•10 minutes
- The impact of inventories on profit•6 minutes
- Solution to the inventories exercise•9 minutes
- Cash flow statement•6 minutes
1 reading•Total 10 minutes
- Exercise on inventories•10 minutes
2 assignments•Total 60 minutes
- Week 2 - Quiz 1•30 minutes
- Week 2 - Quiz 2•30 minutes
Within this week we will learn the definition of management accounting, the definition of costs and their classification and the reference schema for cost allocation (proportional vs causal allocation).
What's included
8 videos2 readings2 assignments
8 videos•Total 81 minutes
- What are costs•4 minutes
- Costs classification•13 minutes
- Costs configuration: direct vs full costs•8 minutes
- Cost tracing vs cost allocation•8 minutes
- JOC•11 minutes
- Solution to the JOC exercise•13 minutes
- ABC•14 minutes
- Solution to the ABC exercise•10 minutes
2 readings•Total 20 minutes
- Exercise on JOC•10 minutes
- Exercise on ABC•10 minutes
2 assignments•Total 60 minutes
- Week 3 - Quiz 1•30 minutes
- Week 3 - Quiz 2•30 minutes
Within this week we will learn the definition of decision making and the classification of the different types of decisions. We will introduce the concept of investment appraisal and explain the NPV formula for investment appraisal. We will furthermore solve small example of NPV application.
What's included
6 videos1 reading2 assignments
6 videos•Total 67 minutes
- What is an investment decision•9 minutes
- Steps to investment appraisal•9 minutes
- NPV method: general formula•14 minutes
- NPV calculation: taxes•8 minutes
- NPV calculation: external financing•12 minutes
- Solution to the Investment appraisal exercise•14 minutes
1 reading•Total 10 minutes
- New Reading•10 minutes
2 assignments•Total 60 minutes
- Week 4 - Quiz 1•30 minutes
- Week 4 - Quiz 2•30 minutes
Within this week we will introduce the basic concepts of short-term decision making: contribution margin, fixed costs, variable costs and avoidable costs. We will approach cost-volume-profit analysis and discuss examples of it.
What's included
9 videos4 readings3 assignments
9 videos•Total 66 minutes
- What are short-term decisions•7 minutes
- Evaluating short-term decisions•8 minutes
- Solution to the Contribution Margin exercise•6 minutes
- Break even point•8 minutes
- Solution to the Break Even Point exercise•6 minutes
- Production mix•7 minutes
- Solution to the Production Mix exercise•9 minutes
- Evaluating alternatives•8 minutes
- Solution to the alternatives evaluation exercise•7 minutes
4 readings•Total 40 minutes
- Exercise on calculation of Contribution Margin•10 minutes
- Exercise on Break Even Point•10 minutes
- Exercise on production mix•10 minutes
- New Reading•10 minutes
3 assignments•Total 90 minutes
- Week 5 - Quiz 1•30 minutes
- Week 5 - Quiz 2•30 minutes
- Final Quiz•30 minutes
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Reviewed on Jan 5, 2022
Thank you so much for the opportunity to improve my skills. I found the course to be very well presented and I really am motivated to do as many courses as I possibly can!Thank you once again x
Reviewed on Oct 27, 2020
This course was very much useful for my career and I came to know much about cost and financial accounting.The videos and the explanation were clearly explained .Thankyou mam.
Reviewed on Feb 17, 2021
Excellent lectures and well prepared videos. Glad I could keep watching over and over to understand the same concept
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