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Managerial Accounting

Tools for Facilitating and Guiding Business Decisions

Gary Hecht, Ph.D.

In this course, you will explore how to use accounting to allocate resources and incentivize manager and employee behaviors with these resources. You will also learn how financial and non-financial accounting information facilitates strategic performance measurement and how to integrate this information to continuously improve strategy.

You will be able to:

• Understand the role of managerial accounting information and use it to avoid common pitfalls in business decisions

Read more

In this course, you will explore how to use accounting to allocate resources and incentivize manager and employee behaviors with these resources. You will also learn how financial and non-financial accounting information facilitates strategic performance measurement and how to integrate this information to continuously improve strategy.

You will be able to:

• Understand the role of managerial accounting information and use it to avoid common pitfalls in business decisions

• Understand the iterative and interrelated nature of budgeting and apply the key components to preparing a master budget

• Evaluate capital investments via a variety of measures

• Calculate, interpret, and investigate variances

• Understand decentralization and its advantages and disadvantages

• Communicate the role of non-financial measures and strategic performance measurement systems

• Compute and interpret financial performance measures and identify associate issues

This course is part of Gies College of Business’ suite of online programs, including the iMBA and iMSM. Learn more about admission into these programs and explore how your Coursera work can be leveraged if accepted into a degree program at https://degrees.giesbusiness.illinois.edu/idegrees/.

Enroll now

What's inside

Syllabus

Course Overview and Relevant Information for Decision Making
In this module, you will become familiar with the course, your instructor, your classmates, and our learning environment. Decisions are at the heart of all organizations. In this module, you will also explore the nature and role of relevant information in common business decisions, and how such information facilitates these decisions and helps managers and employees avoid common pitfalls. You will also consider how the financial perspective adopted by accountants complements other, qualitative perspectives.
Read more
Standard Costing and Variance Analysis
After establishing goals, setting targets, and the budget, upper management uses variance analysis to compare, assess, and investigate differences between actual and expected performance. In this module, you will learn how upper management uses variance analysis to motivate and monitor managers and employees, how to perform variance analysis on any aspect of the organization, and ultimately understand the power of this important tool for planning and control.
Performance Measurement and Evaluation
Accountants help implement, communicate, and evolve organizational strategy via the information they provide to owners, managers, and employees. Specifically, they help plan, monitor, and control decisions via the performance measurement, evaluation, and compensation system. In this module, you will explore many aspects of this important system, including decentralization, financial and non-financial performance measurement, strategic performance measurement systems, and subjective performance evaluation.
Budgeting for Planning and Control
At the heart of an organization’s planning and control function is its budget. In this module, you will explore the purpose of budgeting, the role of managers and employees in budgeting, and related implications. You will also develop an organization’s budget, ultimately understanding the iterative nature among the budget’s key components: the operations, financing, and capital investments budgets.

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Provides valuable insights into managerial accounting to aid in effective business decision-making
Emphasizes the crucial role of relevant accounting information in avoiding common pitfalls in business decisions
In-depth exploration of budgeting processes for planning and control, addressing the iterative nature and key components of budget development
Covers standard costing and variance analysis techniques, equipping learners with tools to evaluate and monitor performance
Provides comprehensive guidance on performance measurement and evaluation systems, including financial and non-financial measures
Led by Dr. Gary Hecht, a respected academic in the field of accounting

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Reviews summary

Well-received managerial accounting course

Learners say this well-received Managerial Accounting course provides useful and engaging content that is relevant to the business world. The practical insights and real-world examples make the course especially valuable. Students highlight the course instructor as knowledgeable and engaging, and they appreciate the active support provided through office hours and forums. Overall, learners find the course well-organized, informative, and beneficial for improving their understanding of managerial accounting. However, some students mention that the course can be challenging, especially for those without a strong accounting background.
Active support through office hours and forums
"professor office hours, CA help, and all are very active on the forums"
"A little tougher than the first part of the course"
"professor is very great person"
Knowledgeable and engaging instructor
"Excellent depth was covered in this course"
"I have thorourouly enjoyed this course"
"Amazing Course. Professor Gary is awesome."
Provides practical knowledge and real-world examples
"very practical and useful on real life and job"
"practical insights which I believe would excelled my skills"
"approach used through the course was really helpful to see operation from different point of view"
Challenging for those without a strong accounting background
"its too hard"
"It was honestly very challenging for me"
"A very boring and dull course"

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Managerial Accounting: Tools for Facilitating and Guiding Business Decisions with these activities:
Refresh your Excel skills for financial analysis
Ensure you have a solid foundation in Excel skills, which are essential for financial analysis.
Browse courses on Microsoft Excel
Show steps
  • Review basic Excel functions and formulas.
  • Complete online tutorials or exercises on financial analysis using Excel.
  • Practice creating charts, graphs, and dashboards to visualize financial data.
Attend a workshop on managerial accounting best practices
Gain practical insights and learn about the latest best practices in managerial accounting by attending a workshop.
Browse courses on Managerial Accounting
Show steps
  • Research and identify relevant workshops in your area or online.
  • Register for and attend the workshop.
  • Take notes and actively participate in the discussions.
Review textbook: Managerial Accounting, 14th edition
Review the key concepts of managerial accounting, including cost allocation, budgeting, and performance measurement.
View Financial Accounting, eBook, Global Edition on Amazon
Show steps
  • Read chapters 1-4 to understand the role of managerial accounting, cost behavior, and cost-volume-profit analysis.
  • Complete the end-of-chapter questions and exercises to test your understanding.
  • Attend online discussion forums to discuss the material with your classmates.
Six other activities
Expand to see all activities and additional details
Show all nine activities
Complete practice problems on budgeting and variance analysis
To enhance your understanding and ability to apply budgeting and variance analysis techniques, practice solving problems.
Browse courses on Budgeting
Show steps
  • Access the practice problems provided in the course materials or textbooks.
  • Solve the problems independently, following the steps taught in the course.
  • Check your answers and identify any areas where you need further clarification.
Follow tutorials on capital budgeting techniques
Expand your knowledge of capital budgeting by following guided tutorials that cover various techniques and applications.
Browse courses on Capital Budgeting
Show steps
  • Search for online tutorials or resources on capital budgeting.
  • Follow the tutorials step-by-step, taking notes and completing any exercises.
  • Apply the techniques learned in the tutorials to real-world scenarios.
Participate in peer group discussions on strategic performance measurement
Engage with your peers to exchange perspectives and deepen your understanding of strategic performance measurement.
Show steps
  • Join a peer group discussion forum.
  • Contribute to the discussions by sharing your insights and asking questions.
  • Reflect on the discussions and apply the learnings to your own decision-making.
Develop a budgeting plan for a hypothetical business
Put your budgeting skills to the test by creating a comprehensive budgeting plan for a hypothetical business.
Browse courses on Budgeting
Show steps
  • Define the scope and objectives of the budgeting plan.
  • Gather data on the business's operations, revenue, and expenses.
  • Develop assumptions and forecasts for future performance.
  • Create a detailed budget, including revenue projections, expense estimates, and capital expenditure plans.
  • Present your budgeting plan to a panel or group for feedback.
Develop a case study analysis on a real-world financial performance
Apply your knowledge of financial performance measurement by conducting an in-depth analysis of a real-world case study.
Browse courses on Financial Performance
Show steps
  • Identify a publicly traded company and gather its financial statements.
  • Analyze the company's financial performance using financial ratios and other relevant metrics.
  • Write a report summarizing your findings and providing recommendations for improvement.
Contribute to an open-source accounting project
Gain practical experience and contribute to the accounting community by contributing to an open-source accounting project.
Browse courses on Open Source
Show steps
  • Review the project's documentation and codebase.
  • Identify an open-source accounting project to contribute to.
  • Make contributions, such as fixing bugs, adding features, or improving documentation.

Career center

Learners who complete Managerial Accounting: Tools for Facilitating and Guiding Business Decisions will develop knowledge and skills that may be useful to these careers:
Controller
Controllers oversee financial activities within a business organization, including planning, financial reporting, and ensuring that their organization follows accounting rules and regulations. A background in managerial accounting is a common and highly valuable skill for Controllers, as it provides them with the expertise and knowledge they need to perform the critical duties of their role. This course teaches budgeting, variance analysis, financial and non-financial performance measurement, skills that are central to the day-to-day duties of a Controller.
See salaries and explore the career path for Controller
Accounting Manager
Accounting Managers monitor and manage their organization's accounting practices, helping to ensure the accuracy of their organization's financial records. They also perform financial analysis to guide decision making and oversee their staff and other accounting-related functions. The combination of managerial accounting, budgeting, variance analysis, and financial performance measurement in this course prepares students with the tools needed to be successful as Accounting Managers.
See salaries and explore the career path for Accounting Manager
Financial Analyst
Financial Analysts assess an organization's financial position and help evaluate potential investments. They create financial models and projections, and communicate their findings and recommendations to clients and other stakeholders. This course provides Financial Analysts with training in managerial accounting, financial analysis, and financial performance measurement, all of which are critical skills for their role.
See salaries and explore the career path for Financial Analyst
Cost Accountant
Cost Accountants analyze and report on the financial implications of business decisions, working closely with different departments to evaluate projects and identify cost-saving opportunities. This course provides students with a comprehensive understanding of budgeting, variance analysis, and financial performance measurement, all of which are crucial skills for Cost Accountants.
See salaries and explore the career path for Cost Accountant
Business Analyst
Business Analysts analyze business operations and make recommendations for improvements. They work with stakeholders to gather requirements, identify problems, and develop solutions. As Business Analysts rely on understanding and analyzing financial data, this course can provide them with valuable knowledge in managerial accounting and financial performance measurement, which they can apply to their core responsibilities.
See salaries and explore the career path for Business Analyst
Data Analyst
Data Analysts collect, analyze, interpret, and present data to help organizations make informed decisions. Many Data Analysts specialize in financial data, and this course's in-depth coverage of managerial accounting, budgeting, and financial performance measurement can help prepare them to tackle financial data-related challenges.
See salaries and explore the career path for Data Analyst
Budget Analyst
Budget Analysts plan, prepare, and monitor budgets for organizations, helping them allocate resources effectively. This course's focus on budgeting and financial management makes it an excellent choice for those looking to enter or advance in this field, equipping them with the skills and knowledge necessary to succeed.
See salaries and explore the career path for Budget Analyst
Management Consultant
Management Consultants analyze businesses and develop solutions to improve their performance. To do this, they draw on a variety of disciplines, including managerial accounting, budgeting, and financial analysis, which are all covered in this course, making it a valuable choice for those seeking to enter this field.
See salaries and explore the career path for Management Consultant
Internal Auditor
Internal Auditors evaluate and report on an organization's financial and operational controls, helping to ensure that they are operating efficiently and in compliance with regulations. This course provides a solid foundation in managerial accounting, budgeting, and financial analysis, giving students the skills needed to build a successful career in internal auditing.
See salaries and explore the career path for Internal Auditor
Financial Planner
Financial Planners help individuals and families plan for their financial future, providing guidance on investments, retirement planning, and other financial matters. While this course may not be directly related to the day-to-day duties of a Financial Planner, its coverage of managerial accounting and financial performance measurement can provide them with a broader understanding of financial principles, which can be applied to their work.
See salaries and explore the career path for Financial Planner
Tax Accountant
Tax Accountants specialize in preparing and filing tax returns for individuals and businesses. While this course does not focus specifically on tax accounting, the knowledge of managerial accounting, budgeting, and financial analysis can be helpful for those looking to enter or advance in this field, preparing them to understand the financial implications of tax decisions.
See salaries and explore the career path for Tax Accountant
Auditor
Auditors examine and verify financial records to ensure accuracy and compliance with regulations. This course's focus on managerial accounting, budgeting, and financial analysis provides a strong foundation for those looking to enter or advance in this field, giving them the knowledge necessary to succeed.
See salaries and explore the career path for Auditor
Investment Analyst
Investment Analysts evaluate potential investments and make recommendations to clients. They rely on financial analysis to determine the risk and return of different investments. While managerial accounting is not a typical focus for Investment Analysts, its inclusion in this course can provide them with a broader understanding of financial principles, which can be helpful in their work.
See salaries and explore the career path for Investment Analyst
Risk Manager
Risk Managers identify and assess risks that could affect an organization and develop strategies to mitigate those risks. This course's coverage of budgeting and financial analysis can provide Risk Managers with the knowledge they need to understand the financial implications of different risks and develop effective risk management strategies.
See salaries and explore the career path for Risk Manager
Operations Manager
Operations Managers oversee the day-to-day operations of an organization, including production, logistics, and customer service. While managerial accounting may not be a primary focus for Operations Managers, the budgeting and financial analysis covered in this course can provide them with a better understanding of the financial implications of their decisions and help them improve the efficiency of their operations.
See salaries and explore the career path for Operations Manager

Reading list

We've selected ten books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Managerial Accounting: Tools for Facilitating and Guiding Business Decisions.
Cover image
Managerial Accounting
Save
Hilton and Vander Weele's text highly-regarded exposition of advanced managerial accounting in business, suited for senior students who are studying the subject of Managerial Accounting at the undergraduate level. This textbook will serve as an excellent companion to the course, offering both greater depth and theoretical grounding.
Financial and Managerial Accounting
Loose Leaf
$$$
Managerial Accounting: Tools for Business Decision...
Loose Leaf
$$$$
Financial and Managerial Accounting
Kindle Edition
$$$$
Financial and Managerial Accounting, WileyPLUS...
Ring-bound
$$$$
Financial and Managerial Accounting, WileyPLUS...
Ring-bound
$$$$
Cover image
Introduction to Management Accounting
Save
Financial Accounting provides a comprehensive and practical overview of managerial accounting at the undergraduate level.
Introduction to Management Accounting
Kindle Edition
$$$
Introduction to Management Accounting with...
Paperback
$$
Introduction to Management Accounting Global Edition
Save
Provides a strong foundation in the basic concepts of managerial accounting. [newline]It commonly used textbook in academic institutions and by industry professionals.
Introduction to Management Accounting Global Edition
Paperback
Check
Introduction to Management Accounting Global Edition
Kindle Edition
Check
Cover image
Management Accounting in a Dynamic Environment
Save
Provides a comprehensive overview of performance measurement systems.
Management Accounting in a Dynamic Environment
Paperback
$$$
Management Accounting in a Dynamic Environment
Kindle Edition
$$$
Cover image
Accounting
Save
Provides more in-depth coverage of advanced topics in managerial accounting, such as capital budgeting, cost allocation, and performance evaluation.
Accounting: Texts and Cases
Paperback
$$$$
Cover image
Financial Accounting
Save
Provides a comprehensive overview of cost accounting concepts and techniques.
Financial Accounting, 10th Edition
Hardcover
$$
Financial Accounting
Hardcover
$$
Financial Accounting, Global Edition
Paperback
$$$
NEW MyLab Accounting with Pearson eText -- Access...
Printed Access Code
$$$$
Financial Accounting, Fifth Canadian Edition (5th...
Hardcover
$$
Financial Accounting
Paperback
$$$$
Financial Accounting plus MyAccountingLab with...
Paperback
$$
Financial Accounting, Fifth Canadian Edition Plus...
Paperback
$$
MANAGERIAL ACCOUNTING, 18TH EDITION.
Save
Provides a comprehensive overview of managerial accounting concepts and techniques. [newline]It commonly used textbook in academic institutions and by industry professionals.
Loose-Leaf for Managerial Accounting
Loose Leaf
$$$
Cover image
Accounting Principles
Save
Provides a comprehensive overview of both financial and managerial accounting concepts and techniques.
Accounting Principles
Paperback
Check
Accounting Principles
Kindle Edition
Check
Cover image
Auditing and Assurance Services, Global Edition
Save
Provides a comprehensive overview of auditing and assurance services. [newline]It commonly used textbook in academic institutions and by industry professionals.
Auditing and Assurance Services, Global Edition
Paperback
$$
Auditing and Assurance Services, Global Edition
Paperback
$$$$
Auditing and Assurance Services plus Pearson MyLab...
Paperback
$$$$
Management and Cost Accounting
Save
Provides a comprehensive overview of cost and managerial accounting concepts and techniques. [newline]It is commonly used as a textbook at academic institutions and by industry professionals.
Management and Cost Accounting
Paperback
Check
Management and Cost Accounting
Kindle Edition
Check

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Effort
4 weeks of study, 6-8 hours/week
Level
Intermediate
Via
Coursera
Institution
University of Illinois at Urbana-Champaign
Instructor
Gary Hecht, Ph.D.
Language
English
Transcripts
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Managerial Accounting: Tools for Facilitating and Guiding Business Decisions belongs to the following collections:
  1. Value Chain Management
  2. Value Chain Management
Good to know
Provides valuable insights into managerial accounting to aid in effective business decision-making
Emphasizes the crucial role of relevant accounting information in avoiding common pitfalls in business decisions
In-depth exploration of budgeting processes for planning and control, addressing the iterative nature and key components of budget development
Covers standard costing and variance analysis techniques, equipping learners with tools to evaluate and monitor performance
Provides comprehensive guidance on performance measurement and evaluation systems, including financial and non-financial measures
Led by Dr. Gary Hecht, a respected academic in the field of accounting
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