Learning objectives
The course offers a comprehensive overview on management issues in companies. It covers management issues in main functional areas of a company. Another main topic of this course is the quantitative analysis and the reporting of business activities. Therefore,appropriate systems and instruments of internal and external accounting and financial management are presented in general. Also, discounted cash flow techniques for investment appraisal are addressed.
KNOWLEDGE AND UNDERSTANDING: At the end of the course the student should know the main issues related to the business management area. Specifically, he should acquire knowledge on the main tools and techniques that can be adopted for accounts' analysis, costing and cost analysis, as well as capital budgeting.
APPLYING KNOWLEDGE AND UNDERSTANDING: The student should be able to draw up, read and analyze the main accounts documents, to determine the cost of a product and to evaluate the profitability of an investment.
MAKING JUDGEMENTS:The student should be able to evaluate with critical mind the trend of a company, and in particular to evaluate its accounts data, the profitability in realizing a product or an investment.
COMMUNICATION SKILLS: The student should be able to clearly present the results of the above mentioned analysis and evaluations.
Prerequisites
none
Course unit content
The course is structured in three parts, as follows:
PART I: BALANCE SHEET AND INCOME STATEMENT
PART II: COSTING
PART III: CAPITAL BUDGETING
Full programme
PART I: BALANCE SHEET AND INCOME STATEMENT
The balance: Financial accounting; Accounts documents (list of assets, financial state); Reading the statement of accounts
Analysis of accounts: Balance indicators (profitability, liquidity, solidity, efficiency)
PART II: COSTING
Cost classification systems: Variable/fixed costs; Product/Period costs; Direct/Indirect costs
Full costing: Cost allocation; Job costing; Process costing
Direct costing and Cost-Volume-Profit analysis: Direct costing; Cost-Volume-Profit analysis; Break-even point analysis for single-product organizations and for multiproduct organizations
PART III: CAPITAL BUDGETING
Basic concepts: Basic concepts of investment analysis
Cash flow and investment evaluation method: Discounted Cash Flow techniques; Net present value; Internal rate of return; Profitability Index; Pay-Back period
Bibliography
- "Economia e Organizzazione Aziendale" (A.A. 2015-16), Prof.ssa Barbara Bigliardi, Create McGrawHill
- Lectures slides.
- Text of previous exams
Teaching methods
The class will combine in-class explanation of the background material, problem solving and case discussions. The theory in-class explanationS will offers a comprehensive overview on management issues in companies. They will cover management issues in main functional areas of a company, quantitative analysis and the reporting of business activities. Therefore,appropriate systems and instruments of internal and external accounting and financial management will be presented in general. Also, discounted cash flow techniques for investment appraisal will be addressed.
During the problem solving and case discussions (on parts II, III and IV of the program), the student should apply the main concepts acquired during the in-class theory lectures.
Assessment methods and criteria
A written test and an optional spoken test. The written test covers the whole course program, include both theory questions (and specifically 10 questions) and 3 exercises. Only for the student that will attend lectures, it is possible to realize two written tests (the first on part I of the program, and the second on parts II and III of the program) during the course. (This written tests will be agreed with students at the beginning of the course, and will have the same structure of the final exam.)
Other information
Secondary books
- Anthony, R.N., Macrì, D.M., Pearlman, L.K, (2004), "Il bilancio: strumento di analisi per la gestione", McGraw-Hill, Milano, terza edizione.
- Anthony, R.N., Hawkins, D.F., Macrì, D.M., Merchant, K.A., (2004), “Sistemi di controllo: analisi economiche per le decisioni aziendali”, McGraw-Hill, Milano, seconda edizione.
- Anthony, R.N., Hawkins, D.F., Macrì, D.M., Merchant, K.A., (2005), “Analisi dei costi”, McGraw-Hill, Milano
