For the financial executive, coming to grips with the challenges of business and profitability have never been greater. However, traditional financial statements provide only minimal guidance to the investment, financial and accounting professionals to assist in understanding operations and risks.
Course ID: RADM
Revolutionizing Accounting for Decision Making – Deciphering Financial Statements
Learning Objectives
At the completion of the course, the student will:
- Recall the principles of Activity Based Costing.
- Identify cost drivers in the business model
- Recognize the link between activity based costing and lean operations
- Implement a step by step conversion method to convert from standard GAAP statements to Activity Based Costing Systems
- Develop an income statement based upon activities
- Develop a balance sheet based upon activities
- Identify segment profitability
- Identify costs not allocated to any business segment for analysis and review
- Identify the cost of capital and cost gap associated with each business
- Make logical business decisions with accurate segment information in an unstable economic climate.
Major Topics
- Develop an understanding of Activity Based Costing for decision making
- Develop an accurate conversion model from existing statements to decision based
- Financials
- Develop cost gaps for management action for each business segment
- Develop a process to accurately make financial decisions.
Fields of Study
AccountingPrerequisites
None