Decision Making Using Financial Information (LDMF) 595

Decision Making Using Financial Information

LDMF 595

Delivery Mode: Online

Credits: 1

Prerequisites: None

Faculty: Faculty of Business

Program: Leadership and Management Development

Manager: Mark T. Morpurgo, DBA, FCPA, FCMA

This 4-week course is worth 1-credit of graduate-level study.

Course Overview

Relevant financial information is a critical input to all effective business decisions within manufacturing. Financial information can come from a variety of sources, including financial statements that are prepared using generally accepted accounting principles and internally produced financial information from an entity’s accounting information system.

This course will cover topics including financial statements and their elements, tools for financial statement analysis, calculation of interest, accounting for inventory, cost characteristics, contribution margin, cost/volume/product relationships, and break-even analysis.

Course Outline

  • Lesson 1: Accounting and Financial Statements
  • Lesson 2: Financial Statement Analysis
  • Lesson 3: Inventory and Cost Behaviour
  • Lesson 4: Contribution Margin, Cost-Volume-Profit, and Break-even Analysis

Course Objectives

After completing this course, learners will be able to:

  • explain the purpose of accounting, and outline the difference between financial and managerial accounting;
  • analyze and interpret financial statements including balance sheets, income statements, and statements of changes in equity;
  • analyze financial statements to assess solvency, quality of various assets, and performance using trend analysis and ratio analysis;
  • outline the different methods for inventory costing;
  • differentiate between fixed, variable, and mixed costs, and estimate mixed costs;
  • apply the contribution margin approach for internal manufacturing decisions;
  • convert common length, mass, and temperatures from imperial to metric measures.

Student Evaluation

Students will be evaluated based on their participation in weekly online discussions (50%) and one comprehensive assignment (50%). To pass the course, students must achieve 60% or more on each credit activity.

Athabasca University reserves the right to amend course outlines occasionally and without notice. Courses offered by other delivery methods may vary from their individualized-study counterparts.