Managerial Decisions and Capital Budgeting

Target Audience
Expected Duration
Lesson Objectives
Course Number

Business decisions involve choosing between alternative courses of action and developing formal plans for future action. This course explains several methods of analysis that can help business managers to choose alternatives that offer the highest rate of return on investment or the greatest reduction in costs. In this course, topics such as capital budgeting and managerial decisions provide you with the concepts, procedures, and analytical skills you need to make informed decisions in today's complex business environment.

Target Audience
This course is targeted specifically for business managers, financial professionals, and other internal decision makers at all levels of an organization who need to understand managerial accounting.

Expected Duration (hours)

Lesson Objectives

Decision Making and Managerial Accounting

  • identify the benefits of knowing how to use specific accounting results to make managerial decisions.
  • sequence the steps in the make or buy analysis.
  • perform a make or buy analysis for a specified component part.
  • identify examples of the factors that affect a decision to lease or buy.
  • identify examples of the steps in the scrap or rework decision.
  • determine whether to scrap or rework a specified product, based on an analysis of a business scenario.
  • sequence the steps for making an elimination of segment analysis.
  • perform an elimination of segment analysis, given a segment of a specified company.
  • Capital Budgeting

  • recognize the benefits of knowing how to evaluate capital investments using the payback period and the accounting rate of return.
  • match information about various investments with the corresponding type of net cash flow.
  • calculate the payback period for a specified investment, given the expected cash flow information.
  • identify examples of the information that is required to calculate the accounting rate of return.
  • calculate the accounting rate of return for a given investment opportunity.
  • Capital Budgeting Using Time Value of Money

  • recognize the benefits of knowing how to evaluate capital investments using the time value of money.
  • identify the process for deciding whether to acquire a given investment.
  • decide whether to acquire a given investment.
  • sequence the steps for determining whether an investment is acceptable, based on a company's internal rate of return.
  • determine if a given investment is acceptable based on the internal rate of return.
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