April 7, 2015

Finance for Non-Finance Managers

In all MBA programs, financial accounting, cost accounting and management accounting are taught under various names. Financial management is also taught. Many times persons who want to specialize in non-finance subjects neglect finance related subjects. But it is not right. First of all, every subject included in the MBA curriculum has to be learned during the MBA education period with adequate attention. No subject must be neglected. One can create two categories of subjects. If one gives 120 hours per semester for category A subjects and gives only 80 hours to category B subjects it is ok. Total neglect and later on telling, I ignored the subject are not appropriate.

Financial analysis is required in marketing, operations, supply chain management and even human resource management.  Pricing decision is an important decision in marketing and it has relation to financial analysis. In operations and SCM facility decisions require investment and investment analysis is an important finance topic. Human resource accounting is a popular topic now as human resources decisions like training budgets have financial analysis as the basis. Hence in each non-financial management area, finance is involved. Learn finance subject adequately when it is taught to you during MBA. In this blog, I created summaries of chapters of all subjects in MBA curriculum. Do visit and read them to refresh your knowledge at your convenience. 

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