BØK 3551 Practical Managerial Accounting and Control

BØK 3551 Practical Managerial Accounting and Control

Course code: 
BØK 3551
Accounting and Operations Management
Course coordinator: 
Tor Olav Nordtømme
Course name in Norwegian: 
Praktisk økonomi og virksomhetsstyring
Product category: 
Bachelor - Common Courses
2018 Spring
Active status: 
Level of study: 
Teaching language: 
Course type: 
One semester

This course is split in two parts.  In the first part we build upon BØK 3434 Managerial accouning and finance and focus on accounting structures, cost behavior and budgeting models.  In the second part we concentrate on more contemporary management control systems with The Balanced Scorecard and Strategic Cost Analysis, where value drivers, cost drivers and activity analyses are covered.

Learning outcomes - Knowledge

The students shall acquire knowledge of:

  • How various actions and activities within an organization create accounting transactions that are reported in the income statements, balance sheet and cash flow statements
  • Methods for financial statement analysis
  • Business planning by means of budgets.
  • How the concept of value creation is relevant also in managerial accounting systems and how the strategic process can be operationalized by The Balance 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.
  • ABC-costing.
Learning outcomes - Skills

The students shall acquire skills about:

  • The preparation of budgets and analysis of budget information with respect to the financial implications of intended activities.
  • The causality and suitability of objectives and measures in a balanced scorecard model, and be able to elaborate strategy maps in concrete cases.
  • The preparation and assessment of profitability analyses
  • The allocation and analysis of costs in an activity structure.
Learning Outcome - Reflection

After taking the course, the students shall acknowledge management control as a contextual field, where where also industry and company specific factors affect management actions.

Course content

Part 1: Understanding accounting and budgeting (50%)

  • Financial accounting structures and how actions turn into accounting transactions
  • Cost concepts and cost allocation dilemmas
  • Methods of financial statement analyses
  • The link between strategy, activity plans and budgets
  • Cash flow budgets
  • Balance sheet budgets

Part 2: Control and measurement of the value creation processes (50%

  • Making strategy operational and executable, critical success factors, KPIs and strategy mapping
  • Using Balanced Scorecards to evaluate strategy implementation and as tool to allocate opeational resources
  • The value chain
  • Generic and activity specific cost drivers
  • Competetive advantages, The Positioning School and The Resource Based View
  • Decision-relevant costs
  • The analysis of activity, activity costing and calculation costs of excess capacity


Learning process and requirements to students

The course consists of lectures, assignment reviews by the lecturer and self-tuition (reading the syllabus and doing exercises/assignments). Each student must hand in three assignments.

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

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).

For students to receive feedback on their progress and to enable them to gain experience in solving exam relevant tasks, there will be posted automatically tests on Itslearning during the course.

When course is delivered online, lecturer, in cooperation with the Academic Servises Network, will organize an appropriate combination of digital teaching and lectures. Online students are also offered a study guide to contribute to progression and overview. Total recommended time spent for completing the course also applies here.

Software tools
No specified computer-based tools are required.

Higher Education Entrance Qualification.

Required prerequisite knowledge

BØK 3434 Managerial Accountng and Finance, or equivalent.

Exam category: 
Form of assessment: 
Written submission
Support materials: 
  • BI-approved exam calculator
  • Simple calculator
  • Interest table
5 Hour(s)
Exam code: 
Grading scale: 
Examination every semester
Exam organisation: 
Ordinary examination
Total weight: 
Student workload
14 Hour(s)
Participation in theory-based lectures
Other in classroom
14 Hour(s)
Participation in assignment reviews by lecturer
Other in classroom
14 Hour(s)
Participation in case discussions and solutions
Group work / Assignments
48 Hour(s)
Preparations for case solutions, individually and team-based, organized by the students
Prepare for teaching
63 Hour(s)
Preparations for lectures (approx. 1.5 hours per hour of lectures or assignment reviews by lecturer)
Group work / Assignments
12 Hour(s)
Work on It's Learning assignments (approx. 3,5 hours per assigment)
35 Hour(s)
Preparation for exams incl. examiniation
Sum workload: 

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.