The objective of the course is to provide the students with an insight into various management accounting models, to understand these models and apply them in practice, including a variety of valuation problems. Emphasis will be given to Chinese practice with presentation of the Chinese accounting system and the legal requirements set for the annual report and accounts.

The students shall be given an introduction to the budgeting process, the various budgets and their interconnection (total- and sub-budgets). A thorough understanding of the link between budgets and accounting reports as a system for management control is vital, as well as understanding the importance of cost and income variation analysis. It is also important to be able to extract information from the managerial accounting system that is relevant for decision-making. It is vital to understand how the information in financial statements can be used to evaluate the activities and financial status of businesses (ratio analysis).