BED5 Management Accounting

• Topics

  BED5 is an intermediate course in management accounting and control that builds on knowledge from several bachelor’s level courses, including BED1 Introduction to business administration, BED2 Financial accounting and SOL3 Organisational theory. It is also related to SOL4 Strategic management.

  The course focuses on how decisions and management control systems can increase value creation in different enterprises. The course is divided into two main parts covering the following topics:

  Part 1 Costing and decision-making

  • Estimation of cost functions
  • Allocation of revenues and costs
  • Different costing methods (full cost, ABC, contribution margin, target costing)
  • Use of costing information in pricing decisions
  • Use of costing information for other types of business decisions

  Part 2 Management control systems

  • Integrated corporate governance
  • Budget control
  • Organisational structure and management controls
  • Multidimensional non-financial performance measures (balanced scorecard, quality management)
  • Productivity measurement
  • Analyses of budget variance
  • Transfer pricing
  • Financial performance measurement

• Learning outcome

  Knowledge

  • Has thorough knowledge of how to estimate cost functions
  • Has thorough knowledge of costing systems for decision-making purposes
  • Has thorough knowledge of the different parts of a management control system
  • Has thorough knowledge of how productivity can be measured
  • Has knowledge of important financial and non-financial performance measures
  • Has thorough knowledge of transfer pricing systems

  Skills

  • Can estimate cost functions
  • Can design and use costing systems for decision-making purposes
  • Can design a control package
  • Can measure and evaluate productivity
  • Can design and use a transfer pricing system

  General competence

  • Can communicate the above-mentioned elements relating to knowledge and skills
  • Can apply this insight to practical problems (cases)

• Teaching

  Teaching will primarily take place in the form of ordinary lectures on campus, supplemented by assignments for submission, supervised group assignments, and individual supervision by student assistants. 

• Compulsory Activity

  Approved two of three assignments for submission.

• Assessment

  Four-hour written digital school exam. 

  An assessment in BED5 will be organised in the autumn semester of 2024 for students with a valid course approval. As of autumn 2023, only mandatory bachelor courses with an individual assessment will have an assessment in the non-teaching semester. This only applies to students with a valid course approval. The retake options that apply at all times are decided by the dean for the bachelor program and will be published in the course description.

• Grading Scale

  Grade scale A-F.

• Computer tools

  Excel

• Literature

  Datar, S. M. og Rajan, M. V. (2021). Horngren's Cost Accounting - A Managerial Emphasis, Pearson.17. utgave

• Permitted Support Material

  Calculator 

  One bilingual dictionary (Category I) 

  All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material https://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/ and https://www.nhh.no/en/for-students/examinations/examination-support-materials/https://www.nhh.no/en/for-students/examinations/examination-support-materials/