This course is designed especially for students planning a career in financial analysis or investment banking. Applications of these accounting techniques to analyze financial statements of companies is emphasized. The primary focus of the second half is on equity valuation based on accounting information and the use of accounting information in forecasting. The focus on valuation an forecasting is intended to integrate students' knowledge of accounting and finance. This course focuses on managerial control.
Control involves influencing means to achieve an objective.
Regardless of the functional area, managers face constraints and information and incentive problems when attempting to achieve both personal and organizational goals. Individuals who understand the nature of such problems and the implications of possible solutions are equipped to achieve their goals. Emphasis is given to predicting behavior as a response to managerial control policies, and topics include optimal cost system design, decentralization policies, and performance measurement systems. When individuals attempt to control organizations, they face both information and incentive problems. In particular, it emphasizes their decision-facilitating aspects.