Managerial Accounting: Tools for Facilitating and Guiding Business Decisions from Coursera

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/.

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.

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

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"

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:

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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