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Fundamentals of financial and management accounting

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  • Week 1 - Introduction to accounting
    • Within this week we will define what is an enterprise, what is accounting and we will discuss the distinction between financial and management accounting.
  • Financial reports
    • Within this week we will learn what is the "Annual report" and its components: balance sheet, income statement, cash flow statement.
  • Management accounting
    • Within this week we will learn the definition of management accounting, the definition of costs and their classification and the reference schema for cost allocation (proportional vs causal allocation).
  • Long-term decision making
    • Within this week we will learn the definition of decision making and the classification of the different types of decisions. We will introduce the concept of investment appraisal and explain the NPV formula for investment appraisal. We will furthermore solve small example of NPV application.
  • Short term decision making
    • Within this week we will introduce the basic concepts of short-term decision making: contribution margin, fixed costs, variable costs and avoidable costs. We will approach cost-volume-profit analysis and discuss examples of it.