BØK 3551 Practical Managerial Accounting and Control


BØK 3551 Practical Managerial Accounting and Control

Responsible for the course
Tor Tangenes

Department of Accounting - Auditing and Law

According to study plan

ECTS Credits

Language of instruction

This course builds on BØK 3411 Finance and Managerial Accounting Iand is structured according to a generic management cycle. Course theme is conformed this cycle and is also rooted in business issues from a variety of cases. The course focuses on a management regime where the balanced scorecard integrates with budgeting and decision-making rooted in the value chain and activity understanding.

Learning outcome
Acquired knowledge
The students shall acquire knowledge of:

  • How the field of management accounting and control relates to value creation, and how the strategic process can be managed by means of the balanced scorecard.
  • The resource-based and the positioning-based view as main explanations of value-creation and competitive advantage.
  • Value chain descriptions of the firm as the basis for process and activity analyses.
  • Activity-based costing.
  • Business planning by means of budgets.
  • Financial performace metrics and the measurement of value creation.

Acquired skills
The students shall acquire skills about:
  • The causality and suitability of objectives and measures in a balanced scorecard model, and be able to elaborate strategy maps in concrete cases.
  • The allocation and analysis of costs in an activity structure.
  • The preparation of budgets and analysis of budget information with respect to the financial implications of intended activities.
  • The preparation and assessment of profitability analyses.
  • The adjustment of financial accounting data for effectiveness and performance measurements, and the assessment of the firm’s effectiveness.
After taking the course, the students shall acknowledge management control as a contextual field, where conflicts of interest and ethical norms affect management actions .

Finance and Managerial Accounting I or equivalent.

Compulsory reading
Gjønnes, Svein H. og Tor Tangenes. 2013. Arbeidsbok til Økonomi- og virksomhetsstyring. 2. utg. Fagbokforlaget
Gjønnes, Svein H. og Tor Tangenes. 2013. Økonomi- og virksomhetsstyring : strategistøtte ved prestasjonsstyring, ressursstyring og beslutningstøtte. Fagbokforlaget

Recommended reading

Course outline
Part 1: Planning and management of value creation process
About economics and business management
Strategic objectives and critical success factors
Strategy Map and strategic issues
Performance metrics, validity and reliability
Budget purposes and managerial qualities
The budget as a tool to test the financial and capacity impacts of possible measures

Part 2: Decision Support for the creation
Value drivers, cost drivers and value chain analysis
Resource and cost concepts
Income and expense relevance
Calculation of weight on ABC

Part 3: Practical issues
Special budgetary problems
Special cost problems

Computer-based tools
Students are expected to use spreadsheets (e.g. Excel) when solving and submitting assignments. Students must use It's learning to submit mini-exercises.

Learning process and workload
The course consists of lectures, assignment reviews by the lecturer and self-tuition (reading the syllabus and doing exercises/assignments that are both mandatory and voluntary). Each student must hand in seven mandatory assignments.

Throughout the course, the students shall discuss and solve a number of case–oriented business problems from the private and public sectors.

Recommended workload in hours:
Participation in theory-based lectures
Participation in assignment reviews by lecturer
Participation in case discussions and solutions
Preparations for case solutions, individually and team-based, organized by the students
Preparations for lectures (approx. 1.5 hours per hour of lectures or assignment reviews by lecturer)
Work on mandatory mini-exercises (approx. 1,5 hours per mini-exercise)
Preparation for exams
Recommended total use of hours

The plenary sessions will consist of lectures on parts of the syllabus and review of assignments. Students are expected to work on those parts of the syllabus that are not covered by the lectures or the assignment reviews. The lectures and assignment reviews are based on students having prepared for the lectures (i.e. that the students have read the syllabus and have solved the assignments before the lectures start).

Required work (mandatory mini-exercises)
There are 7 mandatory exercises during the semester, of which students must get approved 5. The mini-exercises are short, limited exercises that the students should be able to answer in about 1,5 hours if they have followed the recommended work schedule. If the students are not prepared, more time must be allowed. The mini-exercises are to be submitted through It's learning.

A minimum level of performance is required for the exercises to be approved (e.g. a minimum number of questions must be correctly answered). Further information will be given in the lectures and through It's learning. The students will be allowed to take the tests repeatedly before the deadline of each test. Information about the time period for the tests to be taken, will be given in the lectures and through It's learning.

Feedback to the students during the semester will be given in the following ways:
    1. During the lectures the students will be told which assignments are to be solved for the next lecture. The lecturer will review some of these assignments in class. The feedback will consist of the students comparing their solutions with the one that is explained by the lecturer.
    2. Feedback on achieved score on the mini-exercises will be given automatically through It’s learning. In addition a recommended solution will be made available.

    The e-learning platform It’s learning is used by the e-learning centre to administrate the mandatory exercises, and make students able to communicate with each other ant the Lecturer. Module sessions are carried out at the beginning of the semester and before exams. The e-learning students are also offered a study guide which is an educational guide to the syllabus.

    Recommended workload in hours:
    Participation in theory-based lectures
    Preparations for case solutions, individually and team-based, organized by the students
    Work with litterature, mandatory mini-exercises and Actitvities at It's learning-
    Preparation for exams
    Recommended total use of hours

      Coursework requirements
      To obtain a grade in the course, the students must get approved five of the seven mini-exercises in order to sit for the exam. Se learning process and workload.

      A five-hour written exam concludes the course, which counts for 100 % of the grade.

      Examination code(s)
      BØK 35511 - Written exam, counts for 100 % of the grade in the course BØK 3551.

      Examination support materials
      Interest tables and a BI-defined exam calculator are allowed. TEXAS INSTRUMENTS BA II Plus™
      Examination support materials at written examinations are specifies under exam information in our web-based Student handbook. Please, note the use of calculator and dictionary. http://www.bi.edu/studenthandbook/examaids

      Re-sit examination
      Re-sit examination is offered every term.
      Students that have not got approved five of the mandatory seven mini-exercises must re-take the exercises in connection with the next scheduled course and must pass five of the eight submitted mini-exercises.
      Students that have not passed the written examination or who wish to improve their grade must re-take the examination in connection with the next scheduled examination.

      Additional information