Cost Accounting and Budgeting

• Models of cost accounting: normal and standard cost according to the variable and absorption costing
• Business decision making problems (relevant costs and revenues for decision making)
• Bottleneck decsions
• Activity-based costing (ABC) as an alternative to traditional costing
• Profitability analysis
• Different types of budgets and the budgeting process
• Basic estimation of cost functions
• Basic cost allocation
• Decentralization and performance measurement

Knowledge:

• Have an understanding and knowledge of management accounting based on normal cost and standard cost (based on the variable and absorption costing) with variance analysis
• Have knowledge of flexible budgets
• Have knowledge of Activity-based costing (ABC)
• Have knowledge of business decision-making problems
• Have knowledge of bottleneck decsions
• Have knowledge of the budgeting process
• Have knowledge of different types of budgets
• Have knowledge of responsibility centers and make transfer pricing
• Have knowledge of basic cost estimation
• Have knowledge of basic cost allocation
• Have knowledge of the performance measurement

Skills:

• Be able to prepare normal cost accounting and standard cost accounting according to the variable and absorption costing principles
• Be able to conduct variance analysis
• Be able to prepare calculation with Activity-based costing
• Be able to distinguish between decision-relevant and decision-irrelevant incomes and costs, and apply these in various decision-making situations
• Be able to prepare budgets, especially cash budget, result budget and balance sheet budget
• Understand the purpose of dividing an organization into responsibility centers, as well as calculating transfer prices
• Have insight into performance measurement

General competence:

• Be able to see the subject in a broader economic context
• Be able to use cost accounting and budgeting in corporate financial management
• Critically assess whether different methods and techniques should be apllied in different contexts, including asess whether the methods promote or inhibit long-term orientation and responsible use of resources
• Be able to acquire updated knowledge within the above mentioned knowledge and skills in the subject areas.

Teaching methods:

Lectures (can be both digital and physical) and group work (including the use of spreadsheets). Digital learning platform will be used to some extent in the exchange of information.