Advanced Managerial Accounting

Catalog description

This course follows the Managerial Accounting course and covers the internal accounting tools crucial for managerial decisions. It covers four themes: cost analysis, investment evaluation, incentives, and interdependencies. Cost analysis will cover non-linear costs, activity-based costing, and value chain analysis. Investment evaluation will cover various value metrics, ROI, KPIs, and real options. Incentives will cover designing pay for performance and advanced budgeting. Interdependencies will tackle joint costs, bundled products, and transfer pricing. Topics covered: Cost analysis - Non-linear costs - Activity-based costing (ABC) and management (ABM), time-driven ABC - Target costing, life cycle costing, value chain analysis Investment evaluation - NPV, IRR, ROI, residual income, and EVATM - Financial and non-financial KPIs - Real options Incentives - Designing pay for performance - Flexible budgeting, zero-based budgeting - Advanced variance decomposition Interdependencies - Joint costs - Bundled products and their pricing - Transfer pricing and its international tax implications