BIK 2911 Basic Business Economics

BIK 2911 Basic Business Economics

Course code: 
BIK 2911
Department: 
Accounting, Auditing and Business Analytics
Credits: 
7.5
Course coordinator: 
Knut Eikre Larsen
Product category: 
Executive
Portfolio: 
Special Course
Semester: 
2018 Autumn
Active status: 
Active
Teaching language: 
Norwegian
Course type: 
One semester
Introduction

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.

Learning outcomes - Knowledge

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.
Learning outcomes - Skills

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
Learning Outcome - Reflection

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.

Course content

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
Cost theory
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.)

Learning process and requirements to students

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. 

E-learning 

The netbased teaching platform It's learning is used by the E-learning centre in combination with study sessions. The e-learning teacher publishes course material, assignments (including hand-in assignments with the teacher's comments), cases and digital learning resources. The students are given the possibility of communicating with the e-learning teacher and fellow students. The e-learning students are also offered an educational guide to the course syllabus.  

Course participants should use spreadsheets (e.g. Excel) when solving assignments when this is appropriate.

Software tools
No specified computer-based tools are required.
Additional information

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.

Qualifications

Higher Education Entrance Qualification

Required prerequisite knowledge

No particular prerequisites are required, but an interest in number processing is necessary.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
BIK 29111
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination when next scheduled course
100Yes3 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
  • Interest table
Individual A three-hour individual written exam completes the course.
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
  • Interest table
Duration:3 Hour(s)
Comment:A three-hour individual written exam completes the course.
Exam code: BIK 29111
Grading scale:ECTS
Resit:Examination when next scheduled course
Exam organisation: 
Ordinary examination
Total weight: 
100
Talis literature

Obligatorisk/Compulsory

Book
Authors/Editors År Tittel Edition Publisher StudentNote
Berg, Terje 2018 Grunnleggende økonomistyring 2. utg Cappelen Damm Akademisk