Financial Analysis of Scenarios and Decisions from Coursera

This course focuses on adopting and implementing a financially analytic mindset when engaged in organizational decision-making and scenario analysis.

The course begins with an overview of the "internal" perspective of the organization, in which you will learn fundamental concepts, including the importance of how cost information is organized for different decision scenarios. You will then learn about scenario analysis, including cost-volume-profit analysis and other fundamental concepts that help facilitate financial organizational decision-making.

Next, you will learn about planning and budgeting, a key function that allows organizations to identify and allocate resources necessary to achieve organizational goals. You will then learn how to assess actual performance against these budgets using variance analysis.

Finally, you will learn about the organization’s performance measurement, evaluation, and compensation system. Specifically, you will learn about the advantages and disadvantages of common financial performance measures and understand how an organization uses non-financial performance measures within its strategic performance measurement system to complement the financial perspective.

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Syllabus

Course Introduction and Module 1: Accounting Using an Internal Perspective

In this module, you will become familiar with the course, your instructor, your classmates, and our learning environment. Then, you will be introduced to Managerial Accounting and Costing Concepts. Next, you will explore cost-volume-profit (CVP) analysis. CVP analysis is a tool that managers can use to better understand the answers to "what-if" questions in order to make better decisions for their companies. You will also explore the nature and role of relevant information in common business decisions, two key related concepts, and how to avoid common decision-making "pitfalls."

Module 2: Planning and Budgeting

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.

Module 3: 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.

Module 4: 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.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Develops skills that are essential for a business professional

Offers hands-on labs to enhance practical understanding

Taught by instructors from a recognized business school

Covers essential financial analytics concepts for decision-making

Provides a comprehensive understanding of financial planning and budgeting

Course requires a strong foundation in accounting principles

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 Financial Analysis of Scenarios and Decisions with these activities:

Review Key Concepts from Introductory Accounting and Finance Courses

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Refreshing your knowledge of fundamental accounting and finance principles will provide a solid foundation for understanding the more advanced concepts covered in this course.

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Review your notes from previous accounting and finance courses.
Complete practice problems or exercises to reinforce your understanding.

Follow LinkedIn Learning Tutorials on Financial Performance Measurement

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These tutorials will provide you with a structured approach to understanding the various methods and tools used in financial performance measurement, enhancing your ability to evaluate business performance effectively.

Browse courses on Financial Performance Measurement

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Create a LinkedIn Learning account.
Search for and enroll in the relevant tutorials.
Complete the tutorials, taking notes and completing any quizzes or exercises.

Create a Comprehensive Course Resource Binder or Digital Folder

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Organizing all course materials, including notes, assignments, quizzes, and exams, will help you stay organized, review material more efficiently, and prepare for assessments more effectively.

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Gather all relevant course materials.
Create a binder or digital folder to store the materials.
Organize the materials into logical sections.
Review and update the materials regularly.

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Review 'Managerial Accounting' by Garrison, Noreen, and Brewer

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Reviewing this comprehensive textbook will provide you with a solid foundation in accounting principles, essential for understanding the course materials.

View Introduction to Managerial Accounting: 2024... on Amazon

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Read the assigned chapters thoroughly, taking notes on key concepts.
Complete the end-of-chapter exercises to reinforce your understanding.

Complete a Series of Practice Problems on Variance Analysis

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Solving practice problems will strengthen your ability to perform variance analysis accurately and interpret its implications for business decision-making.

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Review the concepts of variance analysis.
Access online resources or textbooks for practice problems.
Solve the practice problems, checking your answers against provided solutions.

Organize a Study Group with Peers to Discuss Key Concepts

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Collaborating with peers through regular study sessions will enable you to clarify concepts, share insights, and gain diverse perspectives on the course material, improving your overall understanding.

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Identify interested peers who are committed to forming a study group.
Establish a regular meeting schedule and location.
Take turns leading discussions on different topics.
Actively participate in discussions, asking clarifying questions and sharing your own insights.

Create an Explanatory Video on Cost-Volume-Profit (CVP) Analysis

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Creating a video will help you solidify your understanding of CVP analysis and its practical applications in business decision-making.

Browse courses on Cost-Volume-Profit Analysis

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Review the concepts of CVP analysis.
Develop a clear and concise script.
Use video editing software to create your video.
Share your video with others for feedback and discussion.

Develop a Comprehensive Business Plan for a New Product Launch

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This project will allow you to apply the concepts of planning, budgeting, and performance measurement to a real-world scenario, enhancing your understanding of these critical business functions.

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Identify a new product idea and conduct market research.
Develop a detailed marketing plan, including target audience, pricing strategy, and distribution channels.
Create a comprehensive financial plan, including revenue projections, cost estimates, and profitability analysis.
Identify key performance indicators (KPIs) to track progress and measure success.
Present your business plan to a group of peers or industry professionals for feedback.

Career center

Learners who complete Financial Analysis of Scenarios and Decisions will develop knowledge and skills that may be useful to these careers:

Performance Analyst

Performance analysts measure and improve the performance of individuals and organizations. This course may be particularly useful to performance analysts as it teaches about planning and budgeting, variance analysis, and performance measurement.

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Budget Analyst

Budget analysts help organizations track their financial performance and ensure that they are meeting their financial goals. This course may be useful to budget analysts as it teaches about planning and budgeting, variance analysis, and performance measurement.

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Portfolio Manager

Portfolio managers manage investments for clients. This course may be useful to portfolio managers as it teaches about scenario analysis, cost-volume-profit analysis, and performance measurement.

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Risk Manager

Risk managers identify and manage risks for organizations. This course may be useful to risk managers as it teaches about scenario analysis, cost-volume-profit analysis, and performance measurement.

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Venture Capitalist

Venture capitalists provide financing to early-stage companies. This course may be useful to venture capitalists as it teaches about scenario analysis, cost-volume-profit analysis, and performance measurement.

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Management Consultant

Management consultants help organizations improve their performance. This course may be useful to management consultants as it teaches about scenario analysis, cost-volume-profit analysis, and performance measurement.

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Operations Research Analyst

Operations research analysts use mathematical and analytical techniques to improve the efficiency of operations. This course may be useful to operations research analysts as it teaches about scenario analysis, cost-volume-profit analysis, and performance measurement.

See salaries and explore the career path for Operations Research Analyst

Strategy Consultant

Strategy consultants help organizations develop and implement strategies. This course may be useful to strategy consultants as it teaches about scenario analysis, cost-volume-profit analysis, and performance measurement.

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Treasurer

Treasurers manage the financial resources of organizations. This course may be useful to treasurers as it teaches about planning and budgeting, variance analysis, and performance measurement.

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Securities Analyst

Securities analysts provide investment advice to clients. This course may be useful to securities analysts as it teaches about scenario analysis, cost-volume-profit analysis, and performance measurement.

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Investment Analyst

Investment analysts provide investment advice to clients. This course may be useful to investment analysts as it teaches about scenario analysis, cost-volume-profit analysis, and performance measurement.

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Financial Manager

Financial managers oversee the financial health of an organization. This course may be useful to financial managers as it teaches about planning and budgeting, variance analysis, and performance measurement.

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Financial Analyst

Financial analysts make complex financial decisions and recommendations. The skills needed to succeed include organizing and interpreting financial data. This course helps build a foundation in these skills via its emphasis on financially analytic mindsets.

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Accountant

Accountants manage finances, prepare financial statements, and ensure compliance with regulations. This course may be useful to accountants as it teaches about cost-volume-profit analysis, budgeting, and variance analysis.

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Auditor

Auditors ensure the proper flow of funds within a company. This course may be useful to auditors as it teaches about planning and budgeting, variance analysis, and performance measurement.

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Financial Analysis of Scenarios and Decisions

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