By the end of this course, students should be able to:
· Distinguish Between Bookkeeping, Accounting, And Finance.
· Read And Interpret The Three Main Financial Statements: Income Statement, Balance Sheet, And Cash Flow Statement. Define and understand different accounts in the statements. Calculate Gross Profit, Operating Profit, and Net Profit. Differentiate between current and non-current accounts. Define Assets, Liabilities, and Equity. Understand the three main sections in a cash flow statement: operating, investing, and financing activities.
· Classify Cost Based On Production And Behaviour. Distinguish between Fixed, Variable, Stepped Fixed, and Semi Variable costs. Differentiate between direct and indirect costs.
· Calculate And Interpret Contribution, Break Even Point, and Margin of Safety. Use the break-even analysis as a tool for making business decisions. Learn how to handle special orders with discounted prices.
· Understand pricing methods and strategies. Calculate price under Cost plus and Margin pricing methods. Define price skimming strategy and price penetration strategy.
· Understand “Time Value For Money” Concept, and Calculate And Interpret Present Value And Future Value. Calculate the Discount Factor (DF) for multiple years and interest rates. Utilise DF to calculate discounted future cash flows.
· Evaluate Investment Opportunities Using: Payback Period, Discounted Payback Period, Net Present Value (NPV), And Internal Rate Of Return Techniques (IRR).