APPLIES TO ACADEMIC YEAR 2016/2017
BØK 3422 Managerial Accounting
Responsible for the course
Knut Eikre Larsen
Department of Accounting - Auditing and Business Analytics
According to study plan
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.
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.
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.
Sending, Aage. 2013. Økonomistyring 1. 2. utg. Fagbokforlaget
Sending, Aage. 2014. Økonomistyring 2. 2. utg. Fagbokforlaget
Sending, Aage. 2013. Arbeidshefte til Økonomistyring 1. 2. utg. Fagbokforlaget
Sending, Aage. 2014. Arbeidshefte til Økonomistyring 2. 3. utg. Fagbokforlaget
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
- 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
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).
|Attendance at lectures
|Preparation for assignment reviews, work on syllabus and coursework requirements
|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).
In course delivery as online courses or evening classes, will lecturer, in collaboration with the Academic Services Network and evening studies, organize an appropriate combination of digital and class room teaching. Online students are also offered a study guide, which will help progression and overview. Total recommended amount of time for completion of the course also applies here.
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.
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).
A makeup exam is held every term.