Prerequisites to taking this course include the ability to read financial report, as well as the ability to use basic Microsoft Excel.
- To get the full benefit of this course, there's a few things that you'll want to be familiar with. First of all, you need to have at least a basic understanding of the mechanics of the company's financial performance and how a PNL works. You can watch my course, Financial Literacy: Reading Financial Reports. You'll get up to speed on the financials of companies and how they work. You'll also need a basic understanding of how Microsoft Excel works. For that, you can take any of the many courses on fundamental Excel training on this site.
That's pretty much it from a technical standpoint. This course can be used to understand the possibility of both product and service offerings. I'm using many physical product examples throughout the course for their clarity and simplicity, but it's all just as applicable to services. This course is a step-by-step methodology. So, it is best followed in the order laid out on the site.
- Identify the purpose of cost-accounting.
- Define product profitability.
- Determine your baseline.
- Gather revenue and cost information for your analysis.
- Connect targets with profitability.
- Build your target baseline.
- Analyze pricing.
- Calculate probable product profitability.