Spring 2014 MBA Course

B8007-002: Financial Planning & Analysis

TR - B Term, 10:45AM to 12:15PM

Location: WJW 310

Instructor: Fabrizio Ferri

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This course introduces students to modern tools and techniques designed to generate performance measures used for decision-making, management and control purposes.  Accounting based performance measures are used for a variety of managerial decisions such as product pricing, and profitability analysis (e.g., activity-based costing for customer lifetime value).  This course further illustrates how performance measures are integrated into incentive systems so as to align the objectives of (division) managers with those of the shareholders.  Key building blocks of such incentive systems are cost allocations, transfer pricing and compensation schemes.  At a time where performance measurement is one of the fastest-growth areas for consulting firms, this course illustrates the strengths and weaknesses of commonly-used performance metrics, e.g., Economic Value Added (EVA), Balanced Scorecard.  It serves as an important background for a variety of electives in management and accounting as well as for consulting-related courses.
Concepts taught in this course:

  • Product costing and pricing
  • Activity based costing/management (ABC/ABM)
  • Profitability and variance analysis
  • Transfer pricing including tax considerations for international transactions
  • Performance measurement and incentives
  • ROI, EVA, and other performance metrics
  • Non-financial performance measures (“Balanced Scorecard”)


Fabrizio Ferri

Associate ProfessorFabrizio Ferri joined Columbia Business School's faculty in 2011. He teaches the Financial Planning and Analysis course in the MBA as well as Ph.D. seminars on executive pay and corporate governance. Professor Ferri's research interests focus primarily on corporate governance issues, with particular emphasis on shareholder activism and executive compensation. His research has been published in the Journal of Financial Economics, the Journal of Accounting...

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