课程大纲：

Financial Tool Kit for Managers

Training duration：2days

Target Group

• Associate FG V or above

objective

• Understanding the basic principle of financial control at BBA
• Handling the main reporting instrument (Balance Sheet,P&L,Cash Flow)
• Understanding the budget control and the function of responsibility center
• Getting to know the KPIs relevant to business management in the BBA and how they impact on each other
• Learning to evaluate the project profitability and how every variable impact the return
• Understanding the cost structure and making business decision based on cost report

 

Outline

Part 1：Financial management fundamental

• Stakeholder and financial report

• Enterprise’s stakeholder
• Difference between financial report and management report
• The importance of management report

• What’s real profitability?

• Profit and return
• Turnover and return
• ROE and Du Pont Pyramid

• Understanding the Financial report

• Balance Sheet
• P&L
• Cash Flow Report

• Financial Management and Control

• Revenue and Profit
• Profit and Cash
• Gross margin and business scale
• CAPEX and OPEX
• ROA, ROCE, EVA

Part 2：Budget control and responsibility center

• Process of budgeting

• The start point：sale budget
• Budget of production
• Budget of Overhead
• Operating budget and Financial budget
• Variance analysis

• Static budget and Flexible budget
• Responsibility and KPI

• Difference between invest center and profit center
• Profit center
• Revenue center
• Cost center and expense center
• KPI for responsibility center
• Allocation of overhead

Part 3：Cost analysis and business decision

• Cost concept

• Opportunity cost
• Sunk cost
• Relevant cost

• Contribution margin

• Variable cost and fixed cost
• Marginal contribution
• Difference between marginal contribution and gross margin
• Price strategy and marginal contribution

• Cost-Volume-Profit analysis

• What is CVP
• Breakeven point, Safety Margin、Business risk
• Make or buy (outsourcing decision)
• Sensitivity analysis
• Multiple choice

Part 4：Project analysis and decision

• Money’s time value
• Deciding target rate of return of project

• Capital cost
• Premium
• Risk factor

• Project analysis tools ―― NPV

• The calculation of NPV
• How to debrief NPV
• NPV sensitivity analysis
• Pros and cons of NPV

• Project analysis tools ―― IRR

• The calculation of IRR
• Pros and cons of IRR
• Comparison between IRR and NPV

• Project analysis tools ―― Pay Back Period

• The calculation of PBP
• Comparison between PBP and NPV