BØK 3422 Managerial Accounting

Norwegian version

BØK 3422 Managerial Accounting

Responsible for the course
Rolf Gunnar Strand, Knut Eikre Larsen

Department of Accounting - Auditing and Law

According to study plan

ECTS Credits

Language of instruction

The aim of this first course in managerial accounting is to give students essential basic knowledge and skills so that they can take part in discussions on problems in managerial accounting and carry out simple analyses within this field, make correct decisions and communicate the results of the analyses in a comprehensible manner.

Learning outcome
Acquired learning

After having completed the course, the students shall be capable of explaining concepts and give an account of important tools used in analyses of managerial accounting problems (tools include connections, methods, techniques, models, theories, etc. that are applied in the subject area).

  • Examples of concepts that students must be able to explain: fixed costs, variable costs, sunk cost, alternative cost, income statement, gross margin, return on total assets, current liabilities, cash flow.
  • Examples from the toolbox: contribution margin calculations, full costing, income statement, cash budget, break-even turnover, profit maximization, ratios and variance analyses.

Acquired skills

After having completed the course, the students shall be able to (a) apply acquired knowledge (concepts and tools) in analyses and discussions of managerial accounting problems, (b) distinguish between relevant and irrelevant information, and (c) give written answers to questions so that the readers understand applied method and conclusions. Examples:

  • When the tool is given, be able to apply the tool correctly
  • Based on a simple situation description, be able to choose the correct tool and apply it correctly
  • Based on a more complex situation description, be able to seek out relevant information, link it to the correct tool and apply the tool correctly.


After having completed the course, the students shall be able to ask critical questions and reflect on crucial presumptions and assumptions within the business economics field.

No particular prerequisites are required.

Compulsory reading
Sending, Aage. 2013. Økonomistyring 1. 2. utg. Fagbokforlaget
Sending, Aage. 2014. Økonomistyring 2. 2. utg. Fagbokforlaget

Recommended reading
Sending, Aage. 2013. Arbeidshefte til Økonomistyring 1. 2. utg. Fagbokforlaget
Sending, Aage. 2014. Arbeidshefte til Økonomistyring 2. 3. utg. Fagbokforlaget

Course outline
The course consists of the following three parts:

Part 1: Accounting and budgeting

  • The main financial statements (income statement and balance sheet)
  • Principles and key valuation rules in the financial statements
  • How can financial statements be used (financial statement analysis)
  • Budgetary planning and control
- Budgeted profit and loss account, budgeted balance sheet and cash budget

Part 2: Cost and income analysis

  • Costs
  • Calculation: contribution and full cost
  • Cost-volume-profit analyses
  • Income theory and market adaptation
  • Some particular decision problems
- Decision-relevant costs and income
- Free capacity
- Profitability analyses of marketing campaigns and discounts
- Choice of product when resources are limited

Part 3: Management Accounts Models

  • Traditional calculation and forms of management accounts
  • Standard cost calculations and standard cost accounts
  • Variance analysis for costs and income

Computer-based tools
No particular tools are required in this course.

Learning process and workload
The course consists of lectures, assignment reviews by the lecturer and self-tuition (reading the syllabus and doing assignments).

Recommended workload:

Attendance at lectures
Preparation for assignment reviews, work on syllabus and coursework requirements
Exam preparations
Total recommended workload

The recommended workload for coursework requirements will depend on how much the students have worked on the syllabus before the coursework requirements are made accessible. Some of the coursework requirements may require a considerable effort if the students are lagging behind the progress plan for the course.

The teaching will consist of lectures covering part of the syllabus and assignment reviews. Students are expected to study the parts of the syllabus that are not covered by lectures or assignment reviews on their own. The lectures are based on students being prepared (i.e. that they have read the syllabus and done the assignments before the lectures).

The e-learning platform itslearning is used to publish relevant syllabus, assignments and digital learning resources, and the students are given the opportunity to communicate with the e-learning teacher and fellow students. Intensive teaching is given in modules at the beginning of the semester and before the exam. The e-learning students are also offered a study guide to the syllabus which includes a reading plan, relevant exercises, references and comments to the course syllabus.

Recommended workload

Attendance at lectures (weekend sessions)
Preparation for assignment reviews
Work on syllabus, study guide, assignments and coursework requirements
Exam preparations
Total recommended workload

    Coursework requirements
    Eight coursework assignments are published per semester. Five of these must be approved in order to be able to take the exam. In order for the coursework assignments to be approved they must meet certain minimum requirements (e.g. a certain number of questions must be answered correctly). Further information is given at lectures and itslearning.

    A five-hour, individual written exam concludes the course.
    Examination code(s)
    BØK 34221 – Written exam, which accounts for 100% of the grade in the course BØK 3422 Managerial Accounting.

    Examination support materials
    Interest tables and BI approved exam calculator. Examination support materials at written examinations are explained under examination information in the student portal @bi. Please note use of calculator and dictionary in the section on support materials (https://at.bi.no/EN/Pages/Exa_Hjelpemidler-til-eksamen.aspx).

    Re-sit examination
    A re-sit exam is held every term.

    Additional information