BØK 3430 Fundamentals of Accounting and Finance
BØK 3430 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: contribution margin calculations, full costing, income statement, cash budget, break-even turnover, ratios, variance analyses, simple multiperiod investment analysis and profitability measurements.
After having completed the course, the students shall be able to:
- Apply acquired knowledge (concepts and tools) in analyses and discussions of managerial accounting problems.
- Distinguish between relevant and irrelevant information
- Give written answers to questions so that the readers understand applied method and conclusions.
Examples:- When the tool is given, be able to apply the tool correctly
- Based on a simple situation description, be able to choose the correct tool and apply it correctly
- Based on more complex situation descriptions, be able to seek out relevant information, link it to the correct tool and apply the tool correctly.
Since the toolbox is of a general nature, the learning outcomes also apply in international settings and in sustainability discussions.
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 main financial statements (the income statement and the balance sheet)
- How financial statements are prepared (basic registration techniques)
- How financial statements can 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.
Part 2: Cost and income analysis
- Cost theory
- Cost allocation
- Cost accounting methods (contribution margin, full cost and activity based counting)
- Cost-volume-profit analysis
- Short-term decision problem areas
Part 3: Finance: Analysis of investment projects
- Cash flow budgeting (including working capital requirements)
- Time value of money (forward and backward interest calculation)
- Measuring profitability (present value and internal rate of return)
The course consists of a combination of lectures, assignment reviews by the lecturer, digital learning-elements and self-tuition (reading the syllabus and doing assignments).
The recommended workload for coursework requirements will depend on how much the students have worked on the syllabus before the coursework requirements are made accessible. Some of the coursework requirements may require a considerable effort if the students are lagging behind the progress plan for the course.
The teaching will consist of lectures covering part of the syllabus and assignment reviews. Students are expected to study the parts of the syllabus that are not covered by lectures or lecturer assisted assignment reviews on their own. The lectures are based on students being prepared (i.e. that they have read the syllabus, used applicable digital learning elements and done the assignments before the lectures), since this will enhance the learning outcome.
Course participants should use spreadsheets when solving assignments when this is appropriate (for example in connection with financial statement analysis and budgeting).
Completion as an online course
In the implementation of the course as an online study, the lecturer, in collaboration with the study administration, will organize an appropriate course implementation, with a combination of various learning activities (compulsory work requirements and voluntary submission tasks) and digital elements (introductory videos and webinars) on the learning platform. Online students are also offered a study guide that will contribute to progression and an overview. The total recommended time consumption for completing the course also applies here.
Softwear tools
Spreadsheets (Excel) are used in the course where appropriate.
Re-sit exam
Students who do not get the work requirement approved in the course are not allowed to take the exam. This means that they must take the entire course again when completing it later.
Students who do not pass the written exam or who wish to improve their grade can take a new continuation exam when the exam is completed later.
| Mandatory coursework | Courseworks given | Courseworks required | Comment coursework |
|---|---|---|---|
| Mandatory | 8 | 4 | Eight coursework assignments are published per semester. Four of these must be approved in order to be able to take the exam. In order for the coursework assignments to be approved they must meet certain minimum requirements (e.g. a certain number of questions must be answered correctly). Further information is given at lectures and Itslearning. |
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 100 Grouping: Individual Support materials:
Duration: 3 Hour(s) Comment: Written school exam (pen and paper) Exam code: BØK 34301 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.