Objective: Demonstrate practical knowledge of managerial and financial accounting, the underlying economic principles, and the ability to compare and contrast these with TOC Throughput Accounting. > Understand the structure, rules, and terminology of Traditional Accounting financial statements. > Understand Contribution / Direct Costing financial statements. > Create financial statements from a common data set using: : Standard costing / gross margin (including proper placement of variances) : Direct costing / contribution margin > Explain timing differences in balance sheet recognition vs. statement of cash flows. > Understand and contrast full absorption accounting. > Compare Traditional Accounting, Activity-Based Costing, Direct / Variable Costing, and Throughput Accounting. > Analyze product profitability and prepare financial reporting using: : Full absorption costing with various drivers : Direct costing vs. TOC product profitability : Lean Accounting vs. TOC Accounting > Compare and contrast the logic and implications of 3 bullet pointed methodologies above. > Understand sources of distortion caused by each method, including: : Standard cost allocation approaches : Impacts on unit costs : Impacts on product profitability : Impacts on capital budgeting and investment decisions

Objective: Demonstrate the ability to analyze any organization's finance, measures, and decision-making system using the four fundamental questions of the Thinking Processes. Why Change? > Explain UDE linkages created by external accounting requirements and how they interfere with internal decision-making systems. > Understand the interdependencies of ROI building blocks and the dysfunctions that occur when they are used as KPIs. What to Change? > Understand and explain the core conflicts in finance and measures through cloud analysis. >Surface the erroneous assumptions underlying these conflicts. What to Change To? > Link ROI components to a decision-making system synchronized with the a constraint focus. > Create injections that: : Overcome erroneous assumptions in finance / measure systems : Build clear logical connections to predicted effects : Include additional injections to mitigate risk and create buy-in. How to Cause the Change? > Create injection maps, IO Maps, PreRequisite Trees, and Transition Trees to design a realistic, time sequenced implementation plan. > Understand and communicate predictable obstacles and intermediate objectives that arise from changing finance and measure across the organization or supply chain.

Objective: Demonstrate the ability to design and apply the measures and decision-making system needed to support a Process of Ongoing Improvement using TOC logistical solutions. Finance & Logistical Solutions > Understand the finance and metric requirements needed to support Supply Chain Logistics (Drum-Buffer-Rope and Replenishment. > Demonstrate the TOC methodology for designing buffer management reporting systems (for stock, time, and capacity buffers). > Understand how measures align all levels of the organization with long-term goals. > Contrast traditional accounting rules and measures that reinforce "push" vs "pull" environments. > Understand buffer management reporting for planning, improvement, and investment decisions. > Understand the role of budgeting in a TOC environment. > Know how TO measures function across the organization / supply chain. Critical Chain Project Management (CCPM) > Demonstrate the TOC methodology for designing buffer management reporting systems (project and feeding buffers). > Understand how measures align the organization with long-term goals in project environments. > Contrast traditional project accounting rules and planning practices with TOC / CCPM. > Demonstrate the ability to use Portfolio Management to prioritize projects and investments. > Contrast traditional project risk measures with TOC buffer management. > Understand the role of Earned Value Analysis in traditional and TOC environments. > Understand how DBR, Replenishment, and CCPM integrate to create an enterprise-wide decision-making model that aligns tactics, investment, and strategy. Objective: Demonstrate the ability to synthesize information, analyze options, make decisions, design implementation, and identity / mitigate risks across the full system.