Online | 8 weeks | 1.5 Credit Hours
The interpretation of financial data requires looking beyond what's in a spreadsheet. Within financial reports, a wealth of information exists that can help you make decisions regarding your organization's operations, planning, strategies, and future direction. In this course, you'll begin to understand how to interpret financial reports to move your enterprise forward.
The basic functions of management include planning, organizing, controlling, and evaluating the results of operations. Each of these functions relies on information expressed in specific financial terms.
After reviewing the basic concepts of financial reporting, you'll explore cost classifications and income statement formats. You'll see how costs are applied to inventory, how overhead costs are considered, and how schedules of Cost of Goods Manufactured and Cost of Goods Sold are organized. Profits will change with fluctuations in selling prices, sales volumes, and costs, and you'll gain insight into Cost-Volume-Profit (C-V-P) analysis as well as the concept of operating leverage.
Your ability to interpret current financial information is as vital as understanding budgeting. You'll examine how financial plans are created, what is included in a master budget, and how activity and spending variances are accounted for.
As you consider how to measure an organization's performance against its financial plan, you'll learn how profit, investment, and cost centers are each evaluated. You'll become familiar with classic types of decisions made using financial information, including outsourcing, dropping or retaining a segment, and evaluating special orders.