Study Guide

Learning objectives

The students will understand the role of management accounting in the decision making process. They will understand that a business process is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers. The students will plan and make decisions concerning typical operational processes like purchasing, manufacturing, advertising and marketing and sales. The students will understand and make calculations and analyses how operational decisions will affect profitability, liquidity and solvency, and draw up income statements, balance sheets and cash budgets.

Content

The role of accounting in the decision-making process
Marketing process of products and services, decisions on market segmentation
Pricing, cost-volume-profit analysis
Production decisions, logistics
Financial analysis, cash
Financial statement analysis: profitability, liquidity and solvency
Income statement, balance sheet and cash budget
Challenges faced by companies operating in an international environment