Topic outline
MBA 8101 Financial and Managerial Accounting by Mr. Geoffrey Injeni/ Dr. Caesar Mwangi
Recommended text:Title: Accounting and Finance for Non-Specialists
Introduction, recording transactions, accounting process and regulatory framework
Learning Outcomes - To
- Describe nature and purpose of accounting
- Record accounting transactions
- Describe accounting process, principles and regulatory framework
Preparing basic financial statements- Income statement, statement of financial position (balance sheet) and statement of cash flows.
Learning Outcomes- To prepare:
- An income statement
- A statement of financial position
- A statement of cash flows
Preparing basic financial statements (application)
Reference to companies quoted on the NSE – Kenol Kobil, Jubiliee, Sasini, Nation Media Group, National Bank, Centum, Safaricom, Kengen - Syndicate presentations
Analyzing and interpreting financial statements by use of ratios and other techniques – Introduction and application
Case study- Uchumi Supermarket, Costco Wholesale Corporation Financial Statements Analysis
Learning Outcomes- To:
- Describe the activities in analyzing financial statements
- Analyze financial statements using various techniques with major focus on financial ratios
Preparing forecast financial statements- Income statement and statement of financial position.
Learning Outcomes – To prepare a forecast:
- Income statement
- Statement of financial position
Nature, purpose and role of cost accounting and management accounting, classification of costs in different types of businesses, costing and pricing different types of products.
Case Study :Nissan Motor Company, Ltd: Target Costing Systems
Learning Outcomes- To:
- Examine purpose of cost and management accounting
- Classify costs
- Price products (goods and services –including Activity Based costing and target costing)
Break even analysis
Learning Outcome- To:
- Explain the importance of break even analysis
- Compute the breakeven point
- Apply break even analysis in decision making
Budgetary planning and control
Note : Who needs Budgets? Jeremy Hope and Robin Fraser
Learning Outcomes- To:- Describe the nature of budgeting, planning and controlling
- Prepare budgets
- Identify and explain the causes of variances
Performance measurement and evaluation
Case Study : Mobil USM&R (A1)
Learning Outcomes: To
- Identify financial and non financial measures of performance
- Evaluate the performance of divisions
- Analyze performance using models such as the balanced score card
Management Accounting and Strategy (including decision making) – Choosing products and product mix, make or buy, special orders and shut down decisions
Case study: Resina: Managing Operations in China
Learning Outcomes: To:
- Describe how management accounting contributes to strategy(Strategic Management accounting)
- Choose products and product mix
- Decide on whether to make or by or carry out a special order
- Decide on whether to continue or shut down a product line/ department