MANAGEMENT FOR

ENGINEER
Instructor: Lai Van Tai
CONTENT

Chapter 1: Introduction
Chapter 2: Decision making
Chapter 3: Finance and accounting
Chapter 4: Marketing management
Chapter 5: Organizational structure and HR Management
Chapter 6: Operation management
Chapter 7: Quality Management
Chapter 8: Project management
Chapter 3: ACCOUNTING AND FINANCE
Learning outcomes
1. Clarifying Financial accounting and managerial accounting
2. Understand Principles in financial accounting
3. Understanding goals of each accounting reports and account
details in each report
4. Understand Contents including in managerial accounting
5. Knowing Steps in budget planning process
6. Understand Functions, roles of finance management
7. Knowing basic principle in finance management
8. Knowing financial ratios
1. ACCOUNTING

1.1 Concept definition

1.2 Financial accounting
1.2.1. Financial reports
Balance sheet
Income statement
Cash flow report
1.2.2. Principle of financial accounting
1.3 Managerial accounting
1. ACCOUNTING

1.1 Concept definition

Process of realizing, measuring, recording, classifying, controlling,
analyzing, synthesizing, transferring financial information of
organizational performance

=> Objectives: Provide useful and correct information on time for

managers to make decision
1. ACCOUNTING
1.1 Concept definition
Account information
Financial accounting Managerial accounting
- Provide information for - Provide information for
external stakeholders internal use only
- 4 types of financial reports - Support in planning,
- Reliability of financial reports following, and controlling
activities
- Presented according to
requirement of managers
personally
1. ACCOUNTING
Financial accounting
Financial reports
o Balance sheet
1. ACCOUNTING
1. ACCOUNTING
1. ACCOUNTING

Financial accounting
Financial reports
o Balance sheet

o Income statement
1. Kế toán
Financial
KẾ accounting
TOÁN TÀI CHÍNH
Financial reports
Các loại báo cáo tài chính
o Balance
o Bảng cânsheet
đối kế toán
o Income
o Báo cáostatement
kết quả hoạt động sản xuất kinh doanh
1. Kế toán
Financial
KẾ accounting
TOÁN TÀI CHÍNH
Financial reports
Các loại báo cáo tài chính
o Balance
o Bảng cânsheet
đối kế toán
o Income
o Báo cáostatement
kết quả hoạt động sản xuất kinh doanh
1. ACCOUNTING
KẾ
Financial
TOÁN TÀI
accounting
CHÍNH
Các loại báo
Financial reports
cáo tài chính
o Balance
Bảng cânsheet
đối kế toán
o Income
Báo cáostatement
kết quả hoạt động sản xuất kinh doanh
o Cash
Báo cáo
flow
luân
statement
chuyển tiền mặt
1. ACCOUNTING
KẾFinancial
TOÁN TÀIaccounting
CHÍNH
Financial
Các reports
loại báo cáo tài chính
Balance
o Bảng
o cânsheet
đối kế toán
Income
o Báo
o cáo statement
kết quả hoạt động sản xuất kinh doanh
Cashcáo
o Báo
o flow statement
luân chuyển tiền mặt
1. ACCOUNTING
KẾFinancial
TOÁN TÀIaccounting
CHÍNH
Financial
Các reports
loại báo cáo tài chính
Balance
o Bảng
o cânsheet
đối kế toán
Income
o Báo
o cáo statement
kết quả hoạt động sản xuất kinh doanh
Cashcáo
o Báo
o flow statement
luân chuyển tiền mặt
1. ACCOUNTING
KẾFinancial
TOÁN TÀI accounting
CHÍNH
Các loại báo
Financial reports
cáo tài chính
o Balance
Bảng cânsheet
đối kế toán
o Income
Báo cáostatement
kết quả hoạt động sản xuất kinh doanh
o Cash
Báo cáo
flow
luân
statement
chuyển tiền mặt
o Explanation
Bản chú thíchforcho
financial
các báoreports
cáo tài chính
1. ACCOUNTING

1.1 Concept definition

1.2 Financial accounting
1.2.1. Financial report
1.2.2. Principles of financial accounting
1. ACCOUNTING

1.2.2. Principles of financial accounting

• Accounting equation
• Double entry
• Capital & Operating costs
• Nguyên tắc đáp ứng và kế toán dựa trên cơ sở nghiệp
vụ kinh tế phát sinh (Matching and Accrual Basis)
• Nguyên tắc tiếp tục (On-going)
• Others
1. ACCOUNTING

1.2.2. Principles of financial accounting

• Others
• Cẩn trọng (Prudence): dự báo lỗ & rủi ro
• Nhất quán (Consistency): PP khấu hao SL, FIFO/ LIFO
• Rõ ràng (Clarity)
• Có thể so sánh được (Comparability)
• Thời đoạn (Periodicity)
• Thích hợp (Relevance)
• Tin cậy (Reliability)
1. ACCOUNTING

1.1 Concept definition

1.2 Financial accounting
1.2.1. Financial report
1.2.2. Principles of financial accounting
1.3 Managerial accounting
1. ACCOUNTING
1.3 Managerial accounting
1. ACCOUNTING
1.3 Managerial accounting

MANAGERIAL FUNCTIONS MANAGERIAL ACCOUNTING

Determining objectives Managerial targets

Planning Budgets

Organizing & Leading Analyzing financial results

Controlling Financial reports

Roles of Managerial Accounting in decision making

1. ACCOUNTING

1.3 Managerial accounting

• Cost accounting
1. ACCOUNTING

1.3 Managerial accounting

• Cost accounting
1. ACCOUNTING
1.3 Managerial accounting
• Cost accounting
• Budget planning
Sales forcast
Estimate for cost of goods sold
Estimate sale expenses
GENERAL
Estimate management and overhead cost BUDGET
Estimate other costs
Pro-forma income statement (est.)
Pro-forma balance sheet (est.)
2. Financial mangement

2.1 Concepts definition

2.2 Decisions for investment
1.2.1. Expected Risk and Benefits
1.2.2. Money value through times
2.3 Finance resources (Short term vs Long term)
2.4 Financial Analysis
Financial Ratios
Financial comparison
Problems in Financial analysis
2. Financial mangement

2.1 Concepts definition

• Science and art of Cash flow management: IN/ OUT
• Roles of Financial Managers
2. Financial mangement

2.1 Concepts definition

2.2 Decisions for investment
2. Financial mangement

Decisions for investment

• Expected Risk and Benefits
• Money value through times
Decisions for Financing
• Short term
• Long term
2. Financial mangement

2.4 Financial analysis

Financial Ratios
2. Financial mangement

Financial ratios
Liquidity and Leverage ratios
•Tỷ số thanh toán nhanh (Quick ratio)
•Tỷ số thanh toán hiện thời (Current ratio)
•Tỷ số nợ (Debt ratio)
•Khả năng trả lãi (Time-interest earned ratio)
•Kỳ thu tiền bình quân (Days sales outstanding – DSO )
(DSO= receivables*360 / Sales)
2. Financial mangement

Financial ratios
Profitability ratios
• Tỷ lệ lợi tức trên doanh thu (Profit margin on sales)
• Tỷ lệ lợi tức trên tổng tài sản (Return On Assets - ROA)
• Tỷ lệ lợi tức trên vốn (Return on common equity - ROE)
2. Financial mangement

Financial ratio
Asset efficiency and utilizationratios
• Vòng quay tồn kho (Inventory turnover = sales/ inventory)
• Vòng quay tài sản (Total assets turnover = sales/ assets)
• Vòng quay tài sản cố định (Fixed assets turnover = sales/
fixed assets)
2. Financial mangement

Financial ratio
2. Financial mangement

2.1 Concepts definition

2.2 Decisions for investment
1.2.1. Expected Risk and Benefits
1.2.2. Money value through times
2.3 Finance resources (Short term vs Long term)
2.4 Financial Analysis
Financial Ratios
Financial comparison
Problems in Financial analysis
2. Financial mangement

Problems in financial analysis

• Not help in finding sth wrong in financial reports
• Could not help in determining the financial situation of a firm
without comparison
• Difficult in clarify clearly in case of multi-businesses enterprises