Module 1: Trading on Equity
This module is an introduction to the principles of Marginal Costing. It begins with an example of the impact that the pattern of funding has on an organization’s profitability. It emphasizes the need for business leaders and key executives to possess the ability to understand a firm's bottom line merely by knowing its topline, without waiting for an accountant’s assistance, and the technique to do so.
Module 2: Marginal Costing - Break-even Analysis
The session helps participants to work out Break-even Points for their businesses/ projects, set targets for achieving sales, determine pricing policy, take marketing-related decisions, understand the impact on the profitability of decisions pertaining to credit given to customers, discounts offered, etc.
Module 3: Cost=Volume-Profit Analysis
Marginal costing also involves the study of the effect on profit of changes in volumes or types of output. Sales increased by one percent, Profit has increased by three percent. This is part and parcel of the study of the subject of marginal costing.
Module 4: Marginal Costing - Cases I
In this session, Dr. Lamba solves a few cases applying marginal costing principles.
This session helps to differentiate between organizations that survive recessions and those that fold up during recessions.
Module 5: Marginal Costing - Cases II
Many many decisions which we take, on a daily basis, can become financially more intelligent, if we start applying the principles of break-even analysis, marginal costing, and incremental costing.
Dr. Lamba solves some more cases emphasizing the importance of these principles.
Module 6: Leverage Analysis
Leverages, in the context of finance management, devote a disproportionate impact on the bottom line due to a certain change in topline. Dr. Lamba explains how fixed cost assets or funds can be used to magnify returns to owners, how to calculate the leverage multiple, and how to use Leverage Analysis to gauge the risk profile of any entity.
Course Package
What will you learn in this course?
This course will help learners to understand the importance of costing principles and how these will help to take financially intelligent decisions in a simplified manner.