BØK 3422 Managerial Accounting
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.
Since the toolbox is of a general nature, the learning outcomes also apply in international settings.
After taking the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the business economics field, and thus be able to contribute to profitable and sustainable business activity.
The course consists of the following three parts:
Part 1: Accounting
- Financial statements main reports (income statement and balance sheet)
- The balance sheet equation (basic accounting relationships)
- Transactions (effect on income statement and balance sheet)
- Basic accounting principles (including depreciation and accruals in general)
- Basic accounting analysis (liquidity, solvency, profitability and efficiency)
Part 2: Cost and revenue analysis
- Cost theory (including variable and fixed costs, direct and indirect costs)
- Cost distribution (including cost object, cost center and additional calculation)
- Calculation (including cost and contribution calculations)
- Zero point analyzes (including safety margin)
- Short-term decision problems (including special orders, promotions and outsourcing)
Part 3: Budgeting
- Performance budget
- Balance budget
- Liquidity budget
- Budgeting of working capital
The course consists of a combination of lectures, assignment reviews by the lecturer, digital learning-elements and self-tuition (reading the syllabus and doing assignments).
During the course, each student must solve and deliver 8 compulsory work requirements. Submissions must be made electronically. 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 lecturer assisted assignment reviews on their own. The lectures are based on students being prepared (i.e. that they have read the syllabus, used applicable digital learning elements and done the assignments before the lectures), since this will enhance the learning outcome.
Course participants should use spreadsheets when solving assignments when this is appropriate (for example in connection with financial statement analysis and budgeting).
In course delivery as online courses, lecturer will, in collaboration with the student administration, organize an appropriate course implementation, combining different learning activities and digital elements on the learning platform. Online students are also offered a study guide that will contribute to progression and overview. Total recommended time spent for completing the course also applies here.
Students that have not gotten approved the coursework requirements, must re-take the exercises during the next scheduled course.
Students that have not passed the written examination or who wish to improve their grade may re-take the examination in connection with the next scheduled examination.
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
No particular prerequisites are required.
|Mandatory coursework||Courseworks given||Courseworks required||Comment coursework|
|Mandatory||8||4||Ten 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.|
|Comment coursework:||Ten 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.|
|Exam category||Weight||Invigilation||Duration||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination every semester
|100||No||5 Hour(s)||Individual||Home Exam|
|Form of assessment:||Written submission|
|Resit:||Examination every semester|
Prepare for teaching
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.