Business Accounting, Finance, and Economics

Course Overview

This course equips manufacturing professionals with a clear understanding of business accounting principles, managerial finance, and macro/microeconomic fundamentals, enabling them to interpret financial statements, make sound financial decisions, and understand the economic environment affecting manufacturing businesses. It links financial acumen with operational decisions to improve business outcomes in the manufacturing industry.

Learning Outcomes

By the end of this course, learners will be able to:

  • Understand and interpret key financial statements of manufacturing companies.
  • Apply fundamental accounting concepts to business decisions.
  • Analyze cost structures and conduct break-even analysis.
  • Utilize managerial finance tools for budgeting, working capital management, and investment analysis.
  • Understand macro and microeconomic principles influencing manufacturing industries.
  • Link economic indicators to business strategy and operational decision-making.

Modules & Topics

Module 1: Fundamentals of Accounting for Manufacturing (0.75 ECTS)

  • Introduction to financial and management accounting
  • The accounting cycle and double-entry system
  • Understanding and interpreting:
    • Balance Sheet
    • Income Statement (P&L)
    • Cash Flow Statement
  • Depreciation and asset management in manufacturing
  • Inventory valuation methods (FIFO, LIFO, Weighted Average)

Module 2: Managerial Finance (1 ECTS)

  • Cost classification: fixed, variable, semi-variable
  • Cost-volume-profit and break-even analysis
  • Budgeting and variance analysis
  • Working capital management in manufacturing
  • Capital budgeting techniques (NPV, IRR, Payback Period)
  • Financing options for manufacturing firms (debt, equity, internal financing)

Module 3: Business Economics (0.75 ECTS)

  • Microeconomics:
    • Demand and supply analysis in manufacturing
    • Cost structures and economies of scale
    • Market structures and pricing strategies
  • Macroeconomics:
    • Inflation, interest rates, and exchange rates
    • GDP and industrial production indices
    • Economic policies and their impact on manufacturing
    • Global trade dynamics and their impact on the manufacturing industry

Module 4: Financial Decision-Making and Performance Analysis (0.5 ECTS)

  • Ratio analysis for manufacturing companies
  • Cash flow management
  • Linking financial analysis with operational and strategic decisions
  • ESG and sustainability considerations in financial planning

Project: Investment decisions for a manufacturing expansion

Pedagogy

  • Case studies from the manufacturing sector
  • Hands-on exercises using financial statements of manufacturing firms
  • Interactive simulations on cost analysis and budgeting
  • Peer learning discussions on economic changes impacting manufacturing
  • Guest lectures by IIM faculty and industry CFOs on financial decision-making

Assessment Structure

Component Weightage
Participation and reflections10%
Financial statement analysis assignment20%
Budgeting and break-even analysis task20%
Economics case study analysis20%
Final examination / presentation30%

Capstone Alignment

Learners will prepare a Financial and Economic Impact Analysis Report for their manufacturing unit (or a case company), demonstrating:

  • Financial health analysis using ratio and cash flow analysis
  • Cost structure analysis with suggestions for optimization
  • Assessment of economic factors impacting business strategy

Certification

On successful completion, learners will receive: “Business accounting, finance and economics for Manufacturing Industry Leaders” module completion certificate with 3 ECTS credits under Mentogram’s Global TEMBA program, accredited under European Standards.

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