BIK 2911 Basic Business Economics
BIK 2911 Basic Business Economics
The course gives an introduction to theories, methods and models within the field of business economics. Furthermore, the course will demonstrate how these theories, methods and models can be used in practical business economic planning and control.
After taking the course, participants shall be capable of explaining vital concepts and give an account of the tools used in analyses of business economics problems. Tools include methods, techniques, models, theories etc. used in the field.
- Examples of concepts that students shall be able to explain: fixed costs, variable costs, sunk cost, alternative cost, present value, future value, sales budget, annuity, contribution margin, return on total assets, short term liabilities, cash flow and cost of capital.
- Examples from the toolbox: contribution margin costing, full costing, income statement, cash budget, investment budget, break-even analysis, profit maximization and financial ratios.
After taking the course, the course participants shall be able to (a) apply knowledge (i.e. concepts and skills) in analyses and discussions on business economics problems, (b) distinguish between relevant and irrelevant information, and (c) give written answers to questions so that the readers understand the applied method and the conclusion. Examples:
- When the tool is given, be able to apply the tool correctly
- Based on simple situation descriptions, choose the right tools and apply them correctly
- Based on more complex situation descriptions, be able to produce relevant information, link it to the suitable tool and apply the tool correctly
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.
Part 1: Investment and financing
Introduction to the course
Discounting and interest rate calculations
How can we measure the profitability of investment projects?
How can we measure the costs of various financing alternatives?
Part 2: Cost and income analysis
Income theory and market equilibrium
Cost- volume-profit analysis
Product selection with scarce resources
What costs and revenues are relevant in the short term?
Costing models: Contribution margin method and full cost method
Cost estimates and actual cost calculations
Variance analysis of costs and revenues
Part 3: Accounting and budgeting
The main financial statements (the income statement and the balance sheet)
How are financial statements prepared (basic registration techniques)?
How can financial statements be used (financial statement analysis)?
Budgeting and financial management
Preparation of the main budgets (income statement budgets, cash budgets and balance sheet budgets) and their relationships
Budgeting for various industries (manufacturing industry, trade, services, cultural institutions, etc.)
The course consists of 48 teaching hours, consisting of a combination of lectures and exercises. It is expected that students complete assignments in accordance with lecturer’s instruction. Self-guided activities (reading literature, working with exercises and the use of applicable learning elements) and the final exams will add up to approximately 150 hours. In total, the course has a work-load of approximately 200 hours.
Course participants should use spreadsheets (e.g. Excel) when solving assignments when this is appropriate.
Kurset er et innføringskurs i økonomistyring. BIK 2998 Økonomistyring og salg i varehandelen og BIK 2997 Økonomistyring i varehandel er overlappende på en del temaer og studentene velger derfor ikke flere enn ett av disse 3 kursene i samme grad.
Higher Education Entrance Qualification
No particular prerequisites are required, but an interest in number processing is necessary.
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination when next scheduled course
|100||Yes||3 Hour(s)||Individual||A three-hour individual written exam completes the course.|
|Form of assessment:||Written submission|
|Support materials:|| |
|Comment:||A three-hour individual written exam completes the course.|
|Exam code:||BIK 29111|
|Resit:||Examination when next scheduled course|
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.