Mini-MBA in Management Accounting
About This Class
- 10 – 12 June 2024
- Live Online Training
- 18 Lessons
Management accounting has undergone significant changes in recent times, driven by advancements in technology and changes in the business environment. The role of management accountants has evolved from a focus on traditional reporting and compliance to a more strategic one, where they provide valuable insights to help drive business decisions. An understanding of Management Accounting is essential to build a picture of the importance it has for planning and control of an organisation.
This course begins with an introduction to the developments which have transformed and fundamentally changed the nature of business operations and the role of management accountants. One major shift in recent times has been the integration of technology, specifically in the form of cloud-based systems and big data analytics, providing management accountants with real-time information and the ability to quickly analyse large amounts of data, therefore freeing up time for more strategic activities.
In addition, the course will consider the problems of performance measures and suggestions as to how to approach it, focusing on the technically superior investment appraisal method known as Net Present value (NPV) and its related concept IRR. Don’t miss this opportunity to discover the wealth of techniques that are used by managers to inform their decisions, and accelerate your own business and finance acumen. Note: This three-day course is case study driven.
Local Fee
R 17,999
International Fee
$ 1,300
Download Brochure
Why You Should Attend
You will learn:
- How to use cost management, quality and process management and value management to provide organisations with cost advantage
- Advanced Performance Measurement: Appreciate how to use various tools and techniques to evaluate the performance of an organisation, including cost-volume-profit analysis, activity-based costing and balanced scorecards
- Financial Decision Making: Understand the process of evaluating various alternatives and choosing the most appropriate course of action based on the information and data available
- Ethics and Sustainability: Be acquainted with the ethical considerations involved in management accounting and how management accounting can be used to support sustainable business practices
- Cost-Benefit Analysis: Discover how to evaluate the costs and benefits of a particular course of action in order to determine whether it is worth pursuing or not
- Variance Analysis: Compare actual results with budgeted or planned results in order to understand why there are differences, and to take corrective action if necessary
- Strategic Cost Management: Learn to use cost information to support the organisation’s long-term goals and objectives, and to make decisions about investments, pricing and operations
- Leadership and Communication Skills: Develop the skills required to communicate and present complex financial information to stakeholders, including executives, managers and boards
Day 1
MANAGING THE COST OF CREATING VALUE
• Revision of ABC Costing
• ABC Cost Hierarchy
• Strengths / Weaknesses of ABC Costing
• Activity based management
• Activity Based Management Principles – in practice
• Customer Profitability Analysis
• Modern Manufacturing
• Just In Time (JIT)
• Supply Chain Management
• Quality
• Conformance Costs
• Non- conformance Costs
• Total Quality Management (TQM)
• Business Process Engineering (BPR)
• Theory of Constraints and Throughput
• Target costing
• The use of the target cost – Target Gap
• Suggestions to close the Target Cost Gap?
• Kaizen Costing
• Using technology to reduce costs
• Value Analysis / Value Engineering
• Functional Analysis
• Lifecycle Costing
• The product life cycle
• Lifecycle cost calculation
• Maximising Revenue using Lifecycle Model
• Benefits of Lifecycle costing
• Customer Life cycles
Day 2
MANAGING AND CONTROLLING THE PERFORMANCE OF ORGANISATIONAL UNITS
• Divisionalised structures
• Divisional performance measurements for control purposes
• Responsibility Centres & performance measures
• Investment centres
• Return on Investment (ROI)
• Residual Income
• ROI vs RI
• Economic Value Added
• What is a transfer price?
• Why have a transfer price?
• Cost-plus transfer pricing
• Goal congruence
• “Sensible” transfer pricing to achieve goal congruence
• The ‘rule’ for sensible transfer pricing
• The Dupont relationship
• Performance Measurements – Benchmarking & TQM
• Limitations of ratio analysis
• Non-financial performance indicators
• Kaplan and Norton’s Balanced Scorecard
• Problems with performance measurement
• Value for money
Day 3
CAPITAL INVESTMENT DECISION MAKING
• Capital Investment Decisions
• Investment Appraisal Techniques
• Basic Appraisal technique – ARR
• Strengths and Weaknesses of ARR
• Basic Appraisal technique – Payback
• Strengths and Weaknesses of Payback
• Discounted Cash Flow – Net Present Value
• Internal Rate of Return (IRR)
• Discounted Cash Flow Techniques (Annuity and Perpetuities)
• Relevant costs
• Non–relevant costs
• Working capital
• Taxation
• Inflation
• Inflation – Fisher Equation
• Capital Rationing
• Replacement
• Real Options
• Factors influencing selling price
• ‘Cost’ plus pricing
• Pricing – Economists viewpoint
• Profit Maximising Price / Output level
• Price elasticity of demand
• Pricing strategies
Day 4
RISK AND CONTROL
• Sensitivity analysis
• Monte Carlo Simulation
• Expected values
• Standard Deviation – NPV
• Value at Risk (VAR)
• Risk-adjusted discount rate
• Risk Vs Uncertainty
• Risk profiles
• Decision Making Techniques (Risk and Uncertainty)
• Expected values
• Decision Rules
• Decision Trees
• Sensitivity Analysis
• Why incur risk?
• Risk management responsibilities
• Risk Management Process
• Types of risk
• Risk Assessment
• Stress Testing
• Ethical Threats
• Safeguards from within
• Business intelligence tools
• Risks of Information
• Data Protection Legislation
• Big Data
• Evaluation of Information systems
*Note: This Course is Case study driven with group exercises*
Who should attend
This course has been specifically designed for the benefit of:
- Management Accountants
- Professional Accountants
- Financial Controllers
- Finance Managers
- Cost Accountants
- Auditors – external and internal
- Directors of important areas, business units, profit centres
- Marketing and sales personnel who require a better understanding of pricing
- Project Managers and Product Managers
- Anyone else wanting to improve their knowledge of management accounting
Marc A. Cannizzo
Marc draws on more than 30 years of banking and general business experience in designing and delivering training courses to corporate clients covering a variety of sectors (including banking and insurance). He has extensive training experience across Southeast Europe (Romania, Hungary, Serbia, Greece and Turkey), the Mideast (UAE, Saudi Arabia, Oman), Africa (South Africa and Nigeria) and Asia (Brunei, Sri Lanka), where he has delivered tailored / open courses as well as (non-audit) papers for various professional qualifications (ACCA and CIMA). His areas of focus include Management Accounting, treasury, business valuations, strategic, financial and performance management, corporate governance and credit / financial analysis.
Marc earned his BA (magna cum laude) at Brown University (USA) and is a member of the Phi Beta Kappa society. He has an MSc from the London School of Economics and an MBA from INSEAD (Fontainebleau). In 2018, he met the requirements for the “Certified Treasury Professional” certification of the The Association for Financial Professionals (USA).
He worked for 10 years at Citibank/Citicorp in Switzerland in various capacities: credit analyst, corporate relationship manager, and risk manager in private banking. He moved to Romania where he was an in-house advisor in the Ion Tiriac Group (negotiating the investment of the European Bank for Reconstruction and Development in the Ion Tiriac Bank, the first private sector bank established in Romania after the fall of communism); he subsequently managed the Deloitte consulting group in Bucharest, worked on a private equity fund project with Credit Anstalt Investment Bank (Austria), and then was engaged by Raiffeisen Investment AG in leading sell-side privatization mandates for the Romanian state. He also provides general business consulting, valuation and advisory services to private business owners in Romania, Hungary and Switzerland.
His training activities have been delivered both on a free-lance basis and under contracts with training firms, both privately-owned and publicly-listed.
‘’As the founder and CEO of an IT company observed about one of Marc’s programs: The simplicity and clarity with which a complex theory was brought to life… Easily the best I have experienced in finance during my long career.’’
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