Finance, Accounting and Engineering Economics for Engineers and Technical Managers, By S. Bobby Rauf, P.E., C.E.M, CMT, MBA.

Credit: 8 – PDH; presented over two 4-hour sessions.

Course Description

One way to view the value of this course is to see it as a “Crash MBA” Course for Engineers, Professionals, and Managers. This course is themed after a book published by the instructor, Prof. Rauf, titled: "Finance and Accounting for Energy Engineers," published through River Publishers.

What will you learn in this live class?

• In this course, you learn about finance, accounting, corporate reporting requirements, and engineering economics.
• Learn about fundamental bookkeeping or accounting methods: The Income Statement and the Balance Sheet. Learn about the widely used and accepted capital investment performance metrics, such as financial ratios, payback period, breakeven, NPV, etc.
• You learn how to perform time value of money calculations using equations or financial factor tables.
• You learn asset depreciation methods and their influence on net profit and taxes. Get a better appreciation of the role played by inventory systems in the control of net income, net profits, and tax liability.
• Learn about life cycle cost and other cost classifications in industrial and commercial organizations. This course is designed for engineers, professional engineers, energy professionals, engineering managers, technical professionals, facilities managers, and other professionals who are not intimately familiar with or current on electrical engineering principles and practices. Participants are kept engaged through questions and answers, discussions, and classwork.

Course Outline:

• Accounting and Finance Concepts: Definitions, Discussion, and Examples of Calculations.
• Economics and engineering economics Common Organizational Structures - Role of Financial Analysts, Accountants, Controllers, and CFOs.
• Income Statements and Balance Sheets. Cash Flow and Working Capital Concepts.
• Financial Reporting Requirements.
• Financial Metrics and Ratios: Payback Period, FV, PV, Time Value of Money Conversions. IRR, ROI, NPV, ROE, ROR, Current Ratio, Acid Test Ratio, and Plant Turnover Ratio.
• Depreciation Alternatives: S/L, Prod. Based, on SOY Digits.
• Inventory Concepts: FIFO, LIFO, EOQ, Inv. Turnover Ratio, WIP Inv., Inv. Carrying Costs.
• Lease vs. Buy Decisions. Repair vs. Replace Decision.
• Costs: Life Cycle Cost. Period Costs, Direct and Indirect Costs.

Take Away: After participating in the seminar, you will:

• Understand accounting and finance concepts through explanation of definitions and examples of calculations.
• Understand basic economics principles and engineering economics-related analyses.
• Know more about common organizational structures and understand the role of Financial Analysts, Accountants, Controllers, and CFOs.
• Understand income statements, balance sheets, concepts of cash flow, and working capital better.
• Have a better appreciation of different types of financial reports and financial reporting requirements.
• Have a better understanding of financial metrics and financial ratios, including Payback Period, FV, PV, and Time Value of Money Conversions. IRR, ROI, NPV, ROE, ROR, Current Ratio, Acid Test Ratio, and Plant Turnover Ratio.
• Know more about depreciation alternatives such as S/L and Prod. Based, on SOY Digits.
• Understand inventory concepts such as FIFO, LIFO, EOQ, and Inv. Turnover Ratio, WIP Inv., and Inv. Carrying Costs.
• Have a better understanding of Lease vs. Buy Decisions, and Repair vs. Replace Decisions.
• Know more about different types of costs, including Life Cycle Costs, Period Costs, Direct, and Indirect Costs.

Who Should take this live class?

• Engineers.
• Manufacturing Managers.
• Facility Managers.
• Project and Program Managers.
• Maintenance Managers.
• Energy Engineers and other Energy Professionals.
• Engineering Managers.
• Construction Managers.
• Other professionals who lack finance and accounting skills.

Optional Reference Material:

Finance and Accounting for Energy Engineers, By S. Bobby Rauf, River Publishers.