BØK 9430 Fundamentals of Accounting and Finance
BØK 9430 Fundamentals of Accounting and Finance
The aim of this first course in the field of managerial accounting is to give students basic elementary knowledge and skills, so that they can take part in discussions on managerial accounting problems, carry out simple managerial accounting analyses, make correct decisions in managerial accounting and communicate the results of the analyses in an understandable 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, present value, internal rate of return, alternative cost, income statement, gross margin, return on total assets, cash flow.
- Examples from the toolbox: Margin calculations, cost calculations, profit and loss account, liquidity budget, break-even turnover, ratios and deviation analyses, simple multi-period project analysis and measurement of profitability.
After completing the course, students should be able to:
- Apply acquired knowledge (i.e. concepts and tools) in analyzes and discussions of business economic issues,
- Distinguish between relevant and irrelevant information, and
- Give written answers to questions that enable the readers to understand the method used and the answer that emerges. Examples:
- When the tool is specified, be able to use the tool in a correct way.
- Based on simple situation descriptions, choose the right tool and use the tool correctly.
- Based on more unclear situation descriptions, be able to find relevant information, connect this with the right tool and use the tool correctly.
As the business economics toolbox is universally valid, the skill targets will also be relevant in international settings.
After completing 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 three parts:
Part 1: Accounting and budgeting
- The financial accounts' main reports (the profit and loss account and the balance sheet)
- The balance equation (basic accounting relationships)
- Transactions (effect on profit and loss account and balance sheet)
- Basic accounting principles (including depreciation and accruals in general)
- Basic accounting analysis (liquidity, solvency, profitability and efficiency)
- The main budgets (profit, balance sheet and liquidity) and the relationship between them
Part 2: Cost and income analysis
- Cost theory (including variable and fixed costs, direct and indirect costs)
- Cost allocation (including cost object, cost center and additional calculation)
- Calculation (including self-cost, contribution and ABC calculations)
- Zero point analyzes (including safety margin)
- Short-term decision problems (including special orders, campaigns, outsourcing and cost/income relevance)
Part 3: Finance: Analysis of investment projects
- Cash flow budgeting (including working capital requirements)
- Time value of money (future value, present value and the importance of interest-interest effects)
- Effective interest calculation and measurement of return on investments (internal rate of return)
- Measuring profitability in investment projects (net present value)
As part of a full-time study, the course is carried out through a combination of lectures, lecturer-led assignment review, digital learning elements and self-study (reading literature and solving assignments).
The teaching will consist of lectures on parts of the syllabus and review of assignments. The parts of the syllabus that are not covered through lectures or through a lecturer-led review of assignments, it is assumed that the students work on them on their own. The lectures assume that the students are prepared for the classes (i.e. that the students have read the syllabus, utilized any digital learning elements and solved tasks before the lectures start), as this will give the greatest learning benefit.
Excel will be used in connection with solving tasks where it is appropriate, but will explicitly be an integrated part of the lectures related to ABC (subject 2) and cash flow budgeting (subject 3), for example in connection with accounting analysis, budgeting and profitability analyses.
Completion
The course is carried out very intensively over 3 - 4 weeks and ends with an exam shortly after the last lecture.
Re-sit exam
Students who do not pass the written exam, or wish to improve their grade, are offered a re-sit exam in spring 2025 and last time autumn 2025.
After autumn 2025 students who do not pass the written exam need to attend the course BØK 3430. This means they have to retake the entire course, including mandatory coursework.
Higher Education Entrance Qualification.
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
| Assessments |
|---|
Exam category: School Exam Form of assessment: Written School Exam - pen and paper Exam/hand-in semester: First Semester Weight: 100 Grouping: Individual Support materials:
Duration: 3 Hour(s) Exam code: BØK 94301 Grading scale: ECTS Resit: Examination every semester |
| Activity | Duration | Comment |
|---|---|---|
Teaching | 57 Hour(s) | |
Prepare for teaching | 113 Hour(s) | |
Examination | 30 Hour(s) | Including preparations |
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.