Business Economics

Core themes in the course are main principles of bookkeeping and accounting with balance sheet and profit and loss statement. Regulations and laws regarding financial accounting are reviewed. Analysing and interpreting financial statements. Management accounting with relevant costs for decision making, cost-volume-profit analysis, cost allocation, full costing versus marginal cost, contribution, activity based costing, pricing and Balanced Scorecard. Budgeting and flexible budgets are shown as a tool for cost control. Investment analysis and valuation. How macroeconomic conditions affects the firm decisions. Analysis of macroeconomic challenges and the influence on business sectors. How globalization have led to great fluctuations in central macroeconomic measures such as employment, trade economics, currency rates, interest rates and inflation. .

The position and function of the course: The course is obligatory for students at MTIØT and is positioned in the 2th semester. It is designed to give an introduction to concepts and methods within economics, including management accounting and financial accounting. It gives an introduction on how various macroeconomic variables influence the business sector. Knowledge and skills developed in this course: - Understand how central the accounting system is as a source of information in order to manage companies - Learn basic concepts such as costs, expenses, incomes and payments - Learn how to analyse accounting information in order to understand the economic situation of the company - Learn how to make calculations and budgets - Learn how to use acounting information as a basis for planning and decision-making activities - Introduce basic themes within economics, and particularly within the areas of managerial accounting, budgeting and investment analysis. - Give an introduction to valuation of companies. - Understand how the macroeconomic environment sets the conditions for the firm

Lectures, assignments and self-studies are main activities. Assignments may be computer based. Assignments are normally in groups of three persons. 8 of 12 assignments must be completed and accepted.