BØK 1113 Managerial Accounting - RE-SIT EXAM
The course was last completed in autumn 2022. A re-sit examination will be offered in autumn 2023 and last time in spring 2024. There will be no requirement for approved work requirements to be able to take the re-sit examination when the course is phased out.
The essence of business economics includes financial management (=income and cost analysis, managerial accounting, budgeting and control), finance (=investment and financing), financial accounting and financial statement analysis.
The aim of this first course within the field of business economics is to provide the students with essential basic knowledge and skills, so that they can take part in discussions on problems in business economics and carry out simple analyses within the field, make correct decisions and communicate the results of the analyses in a comprehensible manner.
This course in Managerial Accounting starts with investment analysis. By studying the main activities carried out in a company as an investment project spanning several periods, emphasis is placed on the necessity of considering all economic effects of the project and of taking a long-term perspective (over several years, until the project is completed).
After studying the overall perspective given by finance, the course discusses individual problems that provide more detailed knowledge on, and understanding of vital aspects for more short-term financial management and control. This is a practical approach to business economics, since it is easier to understand the various sub-themes of the field when you know why they are discussed and what part they play in the total picture.
After taking the course, the students shall be able to explain key concepts and give an account of the tools used in analyses of business economics problems (these tools include methods, techniques, models, theories, etc. applied in the subject area).
- Examples of concepts that students shall be able to explain:
Fixed costs, variable costs, sunk cost, alternative principle/cost, present value, future value, income statement, sales budget, annuity, contribution margin, return on total assets, short term liabilities, cash flow and risk-adjusted cost of capital.
- Examples from the toolbox:
Contribution margin calculations, full costing, income statement, cash budget, investment budget, the double-entry book-keeping principle, break-even analysis, profit maximization and financial ratios.
After taking the course, the students must 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 arrived at.
- When the tool is given, be able to apply the tool correctly
- Based on simple situation descriptions, choose the right tool and apply it correctly
- Based on more complex situation descriptions, be able to produce relevant information, link it to the suitable 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 four parts:
Part 1: Accounting
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)?
Part 2: Cost and income analysis
Cost accounting methods (contribution margin and full cost)
Cost- volume-profit analysis
Short-term decision problem areas
Part 3: Budgeting
Budgeting and financial management
Preparation of the main budgets (income statement budgets, cash budgets and balance sheet budgets) and their relationships
Part 4: Investment and financing
Introduction to finance calculator
Discounting and interest rate calculations
How can we measure the profitability of investment projects?
How can we measure the costs of various financing alternatives?
The course consists of a combination of lectures, assignment reviews by the lecturer, digital learning elements and self-tuition (reading the syllabus and doing exercises/assignments that are both mandatory and voluntary). Each student must hand in 10 mandatory assignments. These assignments are mini-exercises to be submitted electronically through It's Learning.
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, used applicable digital learning elements (i.e. that the students have read the relevant texts of the syllabus and have solved the assignments before the lectures start).
Course participants should use spreadsheets when solving assignments when this is appropriate (for example in connection with financial statement analysis and budgeting).
When the course is phased out there will be no requirement for approved work requirements to be able to take the re-sit examination.
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
No particular prerequisites.
|Exam category||Weight||Invigilation||Duration||Grouping||Comment exam|
Form of assessment:
|100||No||5 Hour(s)||Individual||Home Exam|
|Form of assessment:||Written submission|
Student's own work with learning resources
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.