APPLIES TO ACADEMIC YEAR 2015/2016 Norwegian version

BØK 3422 Managerial Accounting

Responsible for the course
Rolf Gunnar Strand, Knut Eikre Larsen

Department
Department of Accounting - Auditing and Law

Term
According to study plan

ECTS Credits
7,5

Language of instruction
Norwegian

Introduction
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.

Reflection

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.

Prerequisites
No particular prerequisites are required.

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

Recommended reading
Books:
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

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

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

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).

E-learning
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