BØK 3434 Managerial 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, profit maximization, ratios and variance analyses.
After having completed the course, the students shall be able to (a) apply acquired knowledge (concepts and tools) in analyses and discussions of managerial accounting problems, (b) distinguish between relevant and irrelevant information, and (c) 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.
After having completed the course, the students shall be able to ask critical questions and reflect on crucial presumptions and assumptions within the managerial accounting field.
The course consists of the following three parts:
Part 1: Accounting and budgeting
- The main financial statements (income statement and balance sheet)
- Principles and key valuation rules in the financial statements
- How can financial statements be used (financial statement analysis)
- Budgetary planning and control
- Budgeted profit and loss account, budgeted balance sheet and cash budget
Part 2: Cost and income analysis
- Calculation: contribution and full cost
- Cost-volume-profit analyses
- Income theory and market adaptation
- Some particular decision problems
- Decision-relevant costs and income
- Free capacity
- Profitability analyses of marketing campaigns and discounts
- Choice of product when resources are limited
Part 3 Capital investment appraisal
- Time value of money, interest calculation and discounting
- How to measure the profitability of investments?
- Capital requirements and financing
The course consists of lectures, assignment reviews by the lecturer 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 assignment reviews on their own. The lectures are based on students being prepared (i.e. that they have read the syllabus and done the assignments before the lectures).
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.
In order to support the students' learning process, BI organizes seminars and other guidance services at our Campus. Students are strongly encouraged to participate in these offers
Students that have not gotten approved the coursework requirements, must re-take the exercises during the next scheduled course.
Students that have not passed the written examination or who wish to improve their grade may re-take the examination in connection with the next scheduled examination.
Higher Education Entrance Qualification.
No particular prerequisites are required.
|Mandatory coursework||Courseworks given||Courseworks required||Comment coursework|
|Mandatory||8||5||Eight coursework assignments are published per semester. Five 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.|
|Comment coursework:||Eight coursework assignments are published per semester. Five 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.|
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination every semester
|Form of assessment:||Written submission|
|Support materials:|| |
|Resit:||Examination every semester|
Prepare for teaching
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.