This course was previously ACCT 127 at the ABSP and consists of the same content.

COURSE DESCRIPTION:
This highly practical and calculation-based course builds on the tools of basic financial accounting. It is designed to go beyond the recording of transactions into decision-making, planning and control from the perspective of a manager in a modern business context. We will emphasize the impact of behavioural matters and the international context of global business on the calculations involved.

Students who have studied financial accounting in other institutions should carefully check the syllabus of ACCT111 to ensure they are in compliance with the requirements of this course.

COURSE OBJECTIVES:
This course is structured into three themes (costing, decision-making and planning and control), the respective objectives of which are to show students:
- how Luca Pacioli's 15th century double-entry logic provides a contemporary language for judging performance of a business in areas such as profitability, liquidity and solvency in increasingly globalized and benchmarked markets;
- the increasing emphasis on cash flow rather than just profit and how to prepare the fourth of our four "financial statements" or accounts: the statement of cash flows (for income statement, balance sheet and statement of owner's equity see ACCT 111);
- those managers too will be benchmarked on their performance, and can learn to use accounting information to their advantage!

EXPECTED LEARNING OUTCOMES:
By the end of the class, the students should be able to understand:
- The significance of ratio analysis of financial statements
- Techniques for cash flow analysis using "indirect" and "direct" methods;
- Cost behaviour at different levels of activity as part of "cost-volume- profit analysis";
- Calculation of sales price based on cost and the notion of minimum acceptable sales price;
- Principles of budget and forecast information;
- Tools for judging actual performance in decentralized operations;
- Tools for measuring actual against target performance.

*Course content subject to change