Introduction to Business Economics and Management Accounting

BED1 Introduction to Business Economics and Management Accounting

Spring 2021

  • Topics

    This is an introductory course in business economics and accounting. The course is intended to give students an introduction to basic methods and techniques in the discipline of business economics and accounting. The course forms the basis for subsequent BED courses, particularly BED5 Management Control Systems. 

    The first part of the course covers basic cost theory, including relevant costs, volume and profit analysis. An introduction is also provided to investment analysis. 

    The second part of the course addresses information and the use of information from the operating accounts, both for cost calculation and for decision-making and control purposes. Important topics include preparing standard cost accounts, variance analyses and budgets.

  • Learning outcome

    After completing the course, students are expected to have achieved the following learning outcomes


    • Good knowledge of the cost concept (accrual) and a good understanding of the variability of costs.
    • Good knowledge of the allocation of costs from cost category to cost centre.
    • Understands the basic assumptions for and weaknesses of traditional cost calculation.


    • Is capable of identifying costs and revenues that are relevant to decisions, and solving different decision-making problems
    • Is capable of preparing cost calculations based on the full cost, contribution and ABC method.
    • Is capable of preparing management accounts
    • Is capable of carrying out variance analyses and proposing the implementation of measures
    • Is capable of preparing profit/loss budgets, cash flow budgets and balance sheet budgets
    • Is capable of carrying out investment analyses using the present value method
    • Is capable of carrying out profitability assessments on the basis of the internal rate of return method.

    General competence

    • Is capable of communicating the above-mentioned elements relating to knowledge and skills
    • Is capable of applying this insight to practical problems

  • Teaching

    - Plenary lectures

    - Digital lectures

    - Group lectures (solving problems/tasks)

  • Required prerequisites

    No particular

  • Credit reduction due to overlap

    The course coresponds to BED011 Driftsregnskap og budsjettering.

  • Requirements for course approval

    Compulsory participation in at least 4 out 6 rounds of group lectures

    Note: there may be compulsory activities in the course before the formal deadline for course-registration

  • Assessment

    4-hour written school exam


    UPDATED 13 October 2020:

    In the autumn of 2020, the school exam will be converted to a: 4-hour individual home exam at the same time as the originally planned exam.


    Grading Scale: A-F

  • Grading Scale


  • Literature

    Note that there are is a new book from fall 2020

    Kjell Gunnar Hoff (med bidrag fra Trond Bjørnenak), BED1 Grunnleggende Bedriftsøkonomi - en sammenstilt lærebok for NHH, 2020

    Consists of relevant articles from the following books:

    • Hoff, Økonomistyring 1. Grunnleggende bedriftsøkonomisk analyse, (GBA), 8. utgave, Universitetsforlaget.
    • Hoff (med bidrag av Bjørnenak), Økonomistyring 2. Driftsregnskap og budsjettering (DB), 7. utgave, Universitetsforlaget.

    Kjell Gunnar Hoff og Jan Erik Hoff, BED1 Grunnleggende Bedriftsøkonomi - en sammenstilt arbeidsbok for NHH, 2020

    Contains of problem sets from:

    • Hoff, Arbeidsbok til Økonomistyring 1. Grunnleggende bedriftsøkonomisk analyse, 8. utgave, Universitetsforlaget.
    • Hoff, Arbeidsbok til  Økonomistyring 2. Driftsregnskap og budsjettering, 7. utgave, Universitetsforlaget


ECTS Credits
Teaching language

Autumn. Offered autumn 2020.

Written school exams are held each semester, cf. Regulations on full-time studies at the Norwegian School of Economics, NHH, §4-5 and Supplementary provisions to these regulations, section 4.5.


UPDATED 13 October 2020: The assessment form was revised due to the ongoing corona pandemic. See assessment section for details.

Course responsible

Associate Professor Lars Ivar Oppedal Berge, Department of Accounting, Auditing and Law

Professor Øystein Foros, Department of Business and Management Science