LibGuides: Business: MBA 6666: Financial Management

Introduction

This course examines the theoretical framework and practical concepts of financial principles and policies. Particular attention will be given to the understanding of financial statement analysis from a business decision-making perspective. Learning components integrate standard accounting and financial analysis with emphasis on business activities of day-to-day operations. Students will learn to analyze cost flow and to construct cost flow statements.

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Cost Flow - Meaning & Definition
Cost Flow refers to the method in which expenses or costs move from beginning to end a firm.
Flow of Costs
Flow of costs refers to the manner or path in which costs move through a firm. Typically, the flow of costs is relevant with manufacturing companies whereby accountants must quantify what costs are in raw materials, work in process, finished goods inventory, and cost of goods sold.
What are cost flow assumptions?
The term cost flow assumptions refers to the manner in which costs are removed from a company's inventory and are reported as the cost of goods sold. In the U.S. the cost flow assumptions include FIFO, LIFO, and average. (If specific identification is used, there is no need to make an assumption.)