Live support chatABCs of the Business Behind Engineering
In ABCs of the Business Behind Engineering, you'll learn ...
- The various parts of the income statement, including revenue, direct labor, indirect labor, interest expense, depreciation, and amortization
- The various parts of the balance sheet, including accounts receivable, unbilled revenue, and goodwill
- How key performance indicators relate to engineering business operations
Overview
Preview a portion of this course before purchasing it.
Credit: 3 PDH
Length: 32 pages
Do you want to be CEO, start your own engineering firm, run a project team or division, or just understand what your manager means when they say “utilization is up, but there is too much WIP”? If so, this is the course for you. Often times engineers are so focused in the business of engineering – designing, building, and solving problems – that they never expand to focus on the business too. For engineers, technical skills are what got them to where they are today, but an understanding of financial statements and the metrics that drive our industry will be what gets them to where they are going.
In this course, the student will be introduced to two financial statements – the income statement and the balance sheet. The course will walk the student through the various parts of each financial statement, relating each back to our industry through examples. Then, students will learn how to leverage these financial statements to calculate key performance indicators (“KPIs”), metrics that communicate how effectively key objectives are being achieved. Finally, the course will outline how each KPI relates to engineering business operations, grounding each KPI in the day-to-day, and allowing students to quickly evaluate business performance.
After completing this course, students will have an understanding of the income statement and balance sheet, be able to identify and calculate the KPIs that drive our industry and understand how those KPIs relate to engineering business operations.
Specific Knowledge or Skill Obtained
This course teaches the following specific knowledge and skills:
- The purpose of an income statement and balance sheet
- Items contained within an income statement and balance sheet
- How to calculate key performance indicators leveraging the income statement, including multiplier, utilization, revenue factor, overhead, margin
- How to calculate key performance indicators leveraging the balance sheet, including accounts receivable days sales outstanding and current ratio
- How each key performance indicator relates to engineering business operations
Certificate of Completion
You will be able to immediately print a certificate of completion after passing a multiple-choice quiz consisting of 20 questions. PDH credits are not awarded until the course is completed and quiz is passed.
| This course is applicable to professional engineers in: | ||
| Alabama (P.E.) | Alaska (P.E.) | Arkansas (P.E.) |
| Delaware (P.E.) | Florida (P.E. Other Topics) | Georgia (P.E.) |
| Idaho (P.E.) | Indiana (P.E.) | Iowa (P.E.) |
| Kansas (P.E.) | Kentucky (P.E.) | Louisiana (P.E.) |
| Maine (P.E.) | Minnesota (P.E.) | Mississippi (P.E.) |
| Missouri (P.E.) | Montana (P.E.) | Nevada (P.E.) |
| New Hampshire (P.E.) | New Jersey (P.E.) | New Mexico (P.E.) |
| North Dakota (P.E.) | Ohio (P.E. Self-Paced) | Oklahoma (P.E.) |
| Oregon (P.E.) | Pennsylvania (P.E.) | South Carolina (P.E.) |
| South Dakota (P.E.) | Tennessee (P.E.) | Texas (P.E.) |
| Utah (P.E.) | Vermont (P.E.) | Virginia (P.E.) |
| West Virginia (P.E.) | Wisconsin (P.E.) | Wyoming (P.E.) |
Preview a portion of this course before purchasing it.
Credit: 3 PDH
Length: 32 pages
