Understanding the Impact of Logistics on Financial Performance

This course covers both financial and managerial accounting. Financial accounting primarily focuses on providing information to external stakeholders (such as shareholders and debt holders for for-profit firms and donors and stakeholders in non-profit organizations). Managerial accounting primarily focuses on providing information to internal parties, such as managers and executives.

The first part of this course will focus on financial accounting, which is often referred to as the language of business. Students will gain experience with the basic terminology and tools to prepare and read a set of financial statements from both for profit and non-profit providers. Financial accounting is like a language; students become more fluent with practice. The second part of the course explores the use of accounting information for internal planning and decision-making.



The main objective of the course is to equip you with the knowledge to understand, evaluate, and act upon the financial and non-financial reports used in managing modern firms. The emphasis in this course is very much on interpretation, evaluation, and decision making.

Understand the mechanics of financial accounting.

Acquire the basic language and tools to assess and communicate the impact of logistics on a firm’s financial performance.

Understand the various links between operating variables and financial performance.

Be able to obtain relevant information from financial statements.

Understand the difference between the various types of costs involved when assessing the impact of a decision.



Introduction to Financial Reporting and Analysis: how cash accounting works; what is accrual accounting; understanding the Balance Sheet; understanding the Income Statement.

Cash Flow Statement & Analysis: Introduction to the Cash Flow Statement; How does it differ from the Income Statement.

Financial and Inventory Related Ratios.

Working Capital Requirements.

Profit vs Cash Flow. Sustainable Growth.

Financials in the Value Chain

Introduction to Investment Decisions. Net Present Value.

Decisions at Capacity.