Realterm – Revolutionizing Accounting for Decision Making – Deciphering Financial Statements
Description
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.
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.
