Syllabus for AF6010
Financial Decision Making
Course Dates: August 13, 2018 at 00:00 UTC
to October 7, 2018 at 23:59 UTC
Course Description
In this first Micro-Masters in Accounting and Financial Management course, you will gain knowledge of the fundamental concepts of financial accounting, finance, and managerial decision making. This course investigates financial decision making in business, government, and not-for-profit organizations. Emphasis is on the application of financial and nonfinancial information to a wide range of managerial decisions, including the time value of money, financial analysis, budgeting, incremental analysis, long-term planning and cost-volume-profit analysis. A variety of decision-making tools (such as break-even analysis, activity-based costing procedures, and discounted cash flow techniques) are studied. Contemporary managerial practices are explored.
Course Learning Outcomes
Upon successful completion of this course, students will be expected to learn:
- How to perform basic financial analyses to support decision-making
- The role financial decisions play in the overall management function
- Methods for applying financial and non-financial information to management decisions
- The relationship between risk and return in publicly-traded corporations
- How to apply discounted cash flow techniques to compare projects costs
Course Information
This is an Instructor-Led online course. All course materials are presented in English. Learners new to edX are recommended to take the DemoX course, which is designed to show new students how to take a course on edx.org.
When to Use a “?” Question Mark
To be successful in any online course, you must be proactive about asking for help. This course has an instructor and one or more teaching assistants. We are here to help you learn the content and pass the course. Please DO ASK QUESTIONS as often as needed to fully understand the course content. Place a question mark “?” in front of all questions for a faster response. We look for “?” marks throughout the day, every day!
Course Materials
All materials are freely available within the course. Additional resources, and optional readings can be easily accessed and downloaded from the References, Resources, and Optional Readings sections of this course.
Grading Criteria:
|
Assignment |
Frequency |
% Weight of Final Grade |
|
Discussions |
2 or more per week |
10% |
|
Homework |
1 per week; Total = 8 |
56%* |
|
Final Exam |
1 in week 8 |
34% |
|
Total = |
100% |
|
* The lowest homework grade will be dropped for a total of 7 assignments at 8% each
Discussions (10%):
Assessment Goal: to improve students' communication skills including the use of accounting terminology:
· By demonstrating the correct, clear, and concise use of English,
· Using critical thinking skills to synthesize substantive postings, and
· By engaging in a substantial dialogue with other students.
You are expected to participate actively in all 8 class discussions. For Discussions, note that thoughtful, substantive contributions to the discussions are highly desired; quantity is not the main focus. Responses reflecting additional research from trusted sources such as the Wall Street Journal, Strategic Finance, Journal of Accountancy, etc. are particularly valued to enrich our graduate-level learning experiences.
In preparing your posts, it is important to tie examples to theory and offer support for your opinions; not to simply copy from books, journals, or Web resources and paste into edX. You should synthesize your research with your thoughts and supplemental research.
To earn credit for participating in the discussion questions, you must:
a) post your initial response by Wednesday night of each week by 11:59 PM Eastern time (Maryland, USA),
b) answer questions other students and instructors have asked about your initial response throughout the week, and
c) respond to at least 1 classmate’s post by 11:59 PM Eastern time (Maryland, USA) the Sunday night of the same week.
Active participation in discussions provides us with an incredible resource of viewpoints, and we want to take full advantage of this diversity in our discussions. Course instructors and staff will not reply to every discussion post. They will monitor the discussions, highlight important posts and clarify concepts as needed. The instructors will be following the same schedule for due dates of discussions.
Please consider the following guidelines when you post:
· Active participation is critical. We are all learning together. The more you put in, the more you will get out of the discussions.
· Discussing the questions with your classmates adds value to the discussion experience and enhances your learning.
· Assume the best intentions from your classmates. If in doubt, please contact your course facilitator or course instructor about specific concerns.
· To avoid plagiarism, all posts should be written in your own words. If you include a quote or reference, also provide a citation (book, URL, etc.) using APA formatting guidelines.
· If you are new to APA formatting guidelines, UMUC offers two excellent resources. You can visit UMUC Library APA Examples Page or view the the YouTube video: UMUC Library: APA Tutorial. Source: The UMUC Library: APA Examples page and APA Tutorial.
· Before posting, search the discussion for similar questions or comments. Repeating what other students posted does not add to the value of the discussions.
· Use evidence instead of personal attacks when you respond to a post with which you disagree. You can choose to support good posts and ideas if you click on the green plus button to UpVote a post.
· Please limit your posts/responses to a maximum of 400 words (by request of edX).
· A blue star on a post means a member of the course staff has endorsed it.
· If you see an inappropriate post, flag it instead of adding your own commentary.
Weekly Homework (56%):
Assessment Goal: Assess students' competency level to solve complex problems.
Financial decision making requires a substantial amount of practice. There are 8 homework assignments in this course; one at the end of each week. Seven of the eight homework assignments will count toward your final grade. Your lowest grade will be automatically dropped. Combined, the homework assignments account for 56% of your final course grade. The homework assignments may include several types of questions including multiple choice, drag and drop, checkboxes, and text or numeric input.
You are strongly encouraged to submit homework at the end of each week. To provide flexibility, you are allowed to submit homework any time before the course ends, which is October 7, 2018 at 23:59 UTC.
Important Note:
During the first 3 weeks of class, homework assignments will be the same for Audit and Verified students. The deadline to convert from an Audit to a Verified student is the end of Week 3. Starting in Week 4 and through to the end of the course, Audit and Verified students will have different homework assignments and a different Final Exam.
Final Exam (34%):
Assessment Goal: to assess students’ knowledge and competencies.
At the end of Week 8, you will take a Final Exam, which accounts for 34% of your final grade in the course.
The Final assessment for:
§ Audit students
o contains 25 randomly generated multiple choice questions worth 4 points each and based on the topics covered in Weeks 1 through 8.
§ Verified students
o contains 25 questions that may include multiple choice, matching, and fill-in-the-blank questions; quantitative calculations; financial decision making among various opportunities; and other question types.
You are strongly advised to study before taking the Final Exam.
Verified Learners must earn a final course grade of 80% to be awarded a Verified Certificate. Please be sure to note the due date in Week 8 is posted in UTC to avoid missing the edX deadline.
Important Note:
It is important to note that all students are welcome to take this course. Some students taking the course are pursuing the edX MicroMasters (MM) credential in Accounting and Financial Management. Earning a verified certificate in all four courses in this MM is the equivalent of earning 12 graduate credits in accounting and financial management. Thus, this course is taught at the graduate level and assumes students have prior education in managerial decision making, accounting, financial management, and or sufficient work experience in these fields to perform at the graduate level.
EdX Policies:
Instructors in this course will follow and enforce all EdX Terms of Service. You are advised to review the edX Terms of Services at: https://www.edX.org/edX-terms-service. Students suspected of having multiple edX courses will be reported to edX.
Verified edX Certificate:
To be eligible for certification, verified students must meet all certification requirements. For those Verified students who receive an edX certificate, it will appear on your edX dashboard 2-5 days after the course ends. Note: as of December 7, 2015, edX no longer offers certificates for students who audit a course.
Coordinated Universal Time (UTC):
EdX uses the UTC time exclusively. Please be aware that 23:59 UTC is NOT 23:59 in your time zone.
With the exception of week 8, all deadlines in this course are stated using the Eastern Standard/Daylight Time (EST / EDT), which is the time zone of the UMUC home campus in Maryland, USA. In week 8, the final edX deadline to submit all homework assignments and the Final Exam is 23:59 UTC.
DO NOT use the Eastern time zone in week 8 because edX will automatically stop accepting assignments based on the edX course end time, which is 23:59 UTC.
Important note: EdX start and end dates and times are set in Coordinated Universal Time (UTC). You might want to verify that you have specified the time that you intend by using a time zone converter such as Time and Date Time Zone Converter which can be found online at various sites, including: https://www.timeanddate.com/time/aboututc.html
MicroMasters in Accounting and Financial Management
Verified students who successfully pass all four courses in the MicroMaters in Accounting and Financial Management may apply to the UMUC graduate program’s MS in Accounting and Financial Management. Upon acceptance, your four edX Verified Certificates will be counted as 12 graduate credits. Thus, this MicroMasters program provides a substantial cost savings. The time to graduation is also considerably less.
To learn more about this master’s degree, go to: https://www.umuc.edu/academic-programs/masters-degrees/accounting-and-financial-management.cfm.
Verified Learners must earn a final course grade of 80% to be awarded a Verified Certificate. Please be sure to note the due date in Week 8 is posted in UTC to avoid missing the edX deadline.
Course Schedule
This eight-week course will start August 13, 2018 at 00:00 UTC and end October 7, 2018 at 23:59 UTC. This is an instructor-led course. The content will be released two weeks at a time. To successfully complete this course, students must complete all requirements listed under the Required Activities column in the table below by October 7, 2018, 23:59 UTC.
Students should plan to spend between 10-15 hours each week to fully complete each module.
|
Week |
Topics |
Description |
Required Activities |
|
1 |
Foundations of Financial Decision Making for Managers Financial Statements and Accounting Principles Overview How Managers Make Financial Decisions on Behalf of their Employers |
An introduction to the role of financial management in corporations. Learn how management selects the best type of business formation and ownership, identifies tactical and strategic goals, and balances profits vs. shareholder value. |
· Complete readings · View videos · Answer Knowledge Checks · Post at least twice to the weekly discussions · Submit Homework |
|
2 |
Financial Statements Income Statement Balance Sheet Statement of Cash Flows |
Learn how managers use financial information to assist in the management decision-making process, including the relationship between financial statements. |
· Complete readings · View videos · Answer Knowledge Checks · Post at least twice to the weekly discussions · Submit Homework |
|
3 |
Financial Analysis Financial Statement Analysis Financial Ratio Analysis |
Perform financial ratio analysis, financial statement analysis, and other financial metrics to improve managerial decision making. |
· Complete readings · View videos · Answer Knowledge Checks · Post at least twice to the weekly discussions · Submit Homework |
|
4 |
Risk and Return Time Value of Money Risk and Return |
Learn how managers use discount rates to estimate the risk and return on investments, and compare investment risks and returns to analyze financial challenges and opportunities. In the role of a manager, you will develop an understanding of how the passage of time affects the value of a dollar, investment, assets and liabilities for making investment, divestiture, and other operational business decisions. |
· Complete readings · View videos · Answer Knowledge Checks · Post at least twice to the weekly discussions · Submit Homework |
|
5 |
Overview of Management Accounting The Manager, Management Accounting, and an Introduction to Cost Terms |
Managers use managerial reports to operate more effectively their unit of responsibility. Learn how managerial accounting assists management in making more informed operational decisions to maximize shareholder wealth, maintain a competitive market position, and ensure a safe working environment. Learn the difference between accounting and economic profit, when to consider opportunity costs, use management control systems, understand the value chain, and make decisions from management reports. |
· Complete readings · View videos · Answer Knowledge Checks · Post at least twice to the weekly discussions · Submit Homework |
|
6 |
Cost-Volume-Profit Analysis Activity-Based Costing Cost-Volume-Profit Analysis |
Learn how managers use activity-based costing to promote business activities that result in higher profits. Learn to make pricing decisions using various methods, including customer behavior in response to price changes and pricing changes in the competitive market. Learn to compute the cost and volume of sales necessary to break even or achieve a desired profit level. Use cost-volume-profit analysis to make pricing, marketing, and other operational decisions, such as quality control. |
· Complete readings · View videos · Answer Knowledge Checks · Post at least twice to the weekly discussions · Submit Homework |
|
7 |
Budgeting Static, Flexible, and Master Budgeting Benchmarking |
Learn how to create a master, static, and flexible budget based on historical operational information and desired or projected results in the future. Use your budgets and other financial information for forecasting future economic and financial trends. You will also learn how to create pro forma financial statements. |
· Complete readings · View videos · Answer Knowledge Checks · Post at least twice to the weekly discussions · Submit Homework |
|
8 |
Capital Budgeting Differential Analysis Final Exam |
Learn how managers prepare capital budgets to assist in making better long-term investment decisions. You will perform differential analysis to compare alternative capital improvement projects to make financial decisions such as whether to accept or reject individual projects and make outsourcing decisions. |
· Complete readings · View videos · Answer Knowledge Checks by 23:59 UTC · Post at least twice to the weekly discussions by 23:59 UTC · Submit Homework by 23:59 UTC · Submit Final Exam by 23:59 UTC |
Syllabus Changes
All items on this syllabus are subject to change at the discretion of the Instructor.
Please review and print the syllabus for future reference throughout the course.
Last page of syllabus