An understanding of the fundamental concepts of accounting and financial analysis is essential for effective decision-making. Topics include the role of the financial manager in the organization, concepts and principles underlying accounting practices, financial statement reading and analysis, budgeting, accounting, time value of money, risk, and macro and micro economics.
Purchase required textbook and class reading materials from the BCIT Bookstore. Log onto www.bcit.ca/bookstore/ Pre-reading of first 2 text chapters required before first class. Internet course except the final exam to be taken at BCIT campus. If you do not reside in Vancouver area contact instructor about alternate invigilation locations. Students will be e-mailed prior to course start up with instructions. Please be sure your BCIT contact information is up to date.
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Upon successful completion of this course, the student will be able to:
Discuss the basic concepts of accounting.
Explain the function of annual reports, balance sheets, income statements, and cash flow statements.
Describe the sections of balance sheets, income statements, and cash flow statements:
Describe the common entries in financial statements.
Describe the entries in financial statements typically used by construction companies.
Carry out ratio analysis:
Compare company ratios.
Develop construction specific ratios.
Describe the basic principles of full cycle accounting:
Carry out a simple full cycle accounting example.
Describe the relationship between example accounts and financial statement entries.
Explain the basic function of management accounting:
Identify costs as fixed or variable.
Calculate basic budget variances.
Determine what costs are committed and calculate committed costs.
Explain the concept of time value of money:
Solve basic time value problems.
Describe how risk is relevant in financial transactions:
Illustrate how tolerance to risk varies with the amount of money risked, the amount of the return, and the number of times the transaction will take place.
Illustrate how risk affects required rate of return.
Describe how projects can be assessed using simple payback, NPV, and IRR.
Explain the significance of micro and macro economics to the construction industry.
Analyse pricing decisions and responses to competitor's pricing using business and financial concepts.
Analyse projects to determine whether they are profitable.
Choose between projects using financial criteria.
Construct a budget.
Forecast cash flows for a construction company.
Effective as of Fall 2014
CMGT 7330 is offered as a part of the following programs:
Cmgt 7330 Finance For Construction Managers Readings (Sept 2007)
Construction Accounting & Financial Management (3rd Edition)
Steven J. Peterson MBA PE
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