In this course, participants learn to analyze the performance of projects, and even entire departments, from a financial perspective; gain a deeper understanding of how resources are allocated throughout an organization; and understand how to leverage cost analysis to position a particular project or department for success.
Strategic Cost Analysis for Managers
Certificate Track:
Technology, Operations, and Value Chain Management
Location:
Cambridge, Massachusetts
Tuition:
2018: $3,500 (excluding accommodations)
2019: $3,700 (excluding accommodations)
Program Days (for ACE Credit) 2
This cost analysis course offers a unique opportunity for program and project managers to learn cost accounting-based management practices and strategies for making smart business decisions that justify outcomes and create value. Whereas financial accounting is used primarily to communicate the overall results for an entire organization to external parties, strategic cost analysis helps you answer the granular, day-to-day questions: How much does this product cost to make? How should I price this service? How do I use the budget process to help me plan better in the first place? How do I evaluate the performance of my employees? Program material is drawn from our popular and highly rated MBA course on managerial accounting, and topics include product costing, activity based management, flexible budgeting, variance analysis, and performance measurement systems.
“I came
to this program with the goal of better understanding how businesses make
financial decisions about the projects they invest in. The program met my
expectations in every respect. Both the content and the instructor interaction
helped me understand the bottom line.” – Peter N., Past Participant
“Excellent course for managers to better understand cost
accounting and how to build up strategies using cost accounting tools.”– Nawaf
A. Past Participant
“As a chartered accountant and a finance practitioner, I
came with the mindset that it was going to be a refresher. I was wrong! Plus,
the networking opportunities I gained from this class still serve me today.” – Segun
O. Past Participant
The program offers a series of interactive lectures, cases, and small group exercises that will help participants better understand:
This program has been developed for senior program and project managers from a wide range of consumer and business-to-business industries, including:
Christopher Noe is a Senior Lecturer in Accounting at the Sloan School of Management.
Noe specializes in the fields of financial accounting and corporate finance. Immediately prior to joining the faculty at MIT Sloan, Noe was a vice president at Charles River Associates, an economics consulting firm. His work at CRA included valuation of business enterprises, financial securities, and specific assets/liabilities; financial statement analysis; examination of accounting restatements; solvency assessment; and damages estimation. Noe has published on topics such as voluntary disclosures and insider transactions, analyst specialization and stock breakups, and stock return volatility.
Noe holds a BA in economics from Emory University, an MS in applied economics and a PhD in business administration from the University of Rochester.
John E. Core is the Nanyang Technological University Professor and a Professor of Accounting at the MIT Sloan School of Management.
Core has broad research interests in executive compensation and executive stock and option incentives, corporate governance, nonprofit governance, and disclosure and the cost of capital. His research has been published in the Accounting Review, the Journal of Accounting & Economics, the Journal of Accounting Research, the Journal of Finance, and the Journal of Financial Economics. When not conducting research, Core teaches the core Financial Accounting class to first-year MBA students at MIT Sloan. Prior to entering academia, he worked in investment banking for PaineWebber and in compensation consulting for Ernst & Young.
Core holds a BA from Yale University and a PhD from The Wharton School.
| DAY 1 SAMPLE | |
| 7:45AM - 8:30AM | Registration and Continental Breakfast |
| 8:30AM - 12:30PM | Introduction to Cost Accounting for Decision Making and In-Class Group Work |
| 12:30PM - 01:30PM | Networking Lunch |
| 1:30PM - 5:00PM | Cost Accounting for Decision Making Case Studies |
| 5:00PM - 6:30PM | Reception |
| DAY 2 SAMPLE | |
| 7:45AM - 8:30AM | Continental Breakfast |
| 8:30AM - 12:00PM | Introduction to Cost Accounting for Performance Evaluation and In-Class Group Work |
| 12:00PM - 1:00PM | Networking Lunch |
| 1:00PM - 3:30PM | Cost Accounting for Performance Evaluation Case Studies and Wrap-Up |
John Core and Christopher Noe focus on how to use internal accounting information for decision making.
VIEWBack in 1976, when eight-year-old Christopher Noe pocketed his first $2 dollar bill, little did he know the impact it would have on his professional career.
VIEWFair-value accounting lesson at MIT has a starring role in upcoming documentary film.
VIEWThe acceleration of globalization combined with rapid advances in technology and the growing importance of the Internet have led many researchers and practitioners to suggest that a "New Economy" has evolved in which equity valuation is different than in previous periods. We examine the explanatory power and stability of a regression model of equity value on traditional financial variables for a broad sample of firms over the past 25 years and investigate how equity valuation has changed in the recent New Economy sub-period.
VIEWWe derive a measure of diluted EPS that incorporates economic implications of the dilutive effects of employee stock options. We show that the existing FASB treasury-stock method of accounting for the dilutive effects of outstanding options systematically understates the dilutive effect of stock options, and thereby overstates reported EPS.
VIEWWe investigate Gompers, Ishii, and Metrick's (2003) finding that firms with weak shareholder rights exhibit significant stock market underperformance. If the relation between poor governance and poor returns is causal, we expect that the market is negatively surprised by the poor operating performance of weak governance firms. We find that firms with weak shareholder rights exhibit significant operating underperformance.
VIEWIn this paper, we review Pay Without Performance by Professors Lucian Bebchuk and Jesse Fried. The book develops and summarizes the leading critiques of current executive compensation practices in the U.S., and offers a negative, if mainstream, assessment of the state of U.S. executive compensation: U.S. executive compensation practices are failing, and systemic reform is needed. This review summarizes the book in some detail and offers some counter-arguments.
VIEWThe costs associated with compiling data on employee stock option portfolios is a substantial obstacle in investigating the impact of stock options on managerial incentives, accounting choice, financing decisions, and the valuation of equity.
VIEWStock and option compensation and the level of managerial equity incentives are aspects of corporate governance that are especially controversial to shareholders, institutional activists, and governmental regulators.
VIEWBelal A: Course is useful for people who are interested in understanding cost analysis and gives high level review for how to evaluate financial situation for organizations also shows motivation strategies.
Arthur T: The course was information and well delivered by the professors. The case effectively demonstrated key concepts and their real world application. Day 1 was particularly effective.
Shawn H: Professors Noe and Core provided an excellent overview of cost analysis. Clearly highlighted key knowledge area that are applicable to managers. Their approach provided managers with the knowledge to ask “why” and assess importance of the data presented in business management. A well-presented lesson!
Toronata T: I expect each course in MIT is like this : To be inundated by the in depth and intensity of details and simplified frameworks. Professors Noe and Core were committed fully and very well prepared with cases and the answers during the class. They found way to bridge the lack of exposure in accounting among the participants by walking through the case step by step. This is What I expect from a course held by MIT professors. Thank you.
Jessica G: A great course to help understand important issues - and what to look at more closely when talking numbers... many good and illuminating examples.
Mario M: Excellent content and application. Course uses a lot of the manufacturing examples and processes to illustrate the importance of accounting.
Alberto V: I really liked this coursed based on the challenges my company is facing. Really enjoyed
Julio V: You will be exposed to concepts in innovation, best practices with world class professors and will learn people's experiences from different industries and countries.
Vanessa Uvidia C: It is important to analyze the information, to make better decisions. These program helped me select from a vast database those indicators best suited for evaluating a particular strategy.
Giovanni R: I think it's a good course where you can learn a practical approach to managing the costs of an organization. I really like the development of case studies and the level of networking that I could do during the course.
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"This two-day program helped me understand the strategic management of financial objectives. While I have managed $100 million in CAPEx and OPEx for more than a decade—this program will make me a better manager for the next decade!" ~Sam G., Past Participant
Christopher Noe is a Senior Lecturer in Accounting at the Sloan School of Management.Noe specializes in the fields of financial accounting and... more
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