Management Control

BUS400E Management Control

  • Learning outcome

    Learning outcome

    When companies reach a certain size it will become difficult for owners or leaders to give all employees detailed instructions on how to perform certain tasks. Management control mechanisms are then important to guide the managers in the company, so that they contribute in the best possible way to the total value creation of the company. In this course we discuss, for example, what responsibilities each unit in the organization should have, what goals to set for the units, how to measure the value creation of the units, how to use incentives in the organization, principles of transfer pricing, and different tools such as budgeting, rolling forecasts and balanced scorecard.

    After completing the course the students should:

    • Understand the basic mechanisms for management control in large companies and how the companies could be organized to increase value creation
    • Be able to use different performance measures, with the weighted average cost of capital as base line, and understand the limitations of the measures
    • Understand the consequences of alternative incentive systems and be able to select appropriate ones for a particular company
    • Master various methods for planning and control, such as traditional budgeting, rolling forecasts and balanced scorecards
    • Understand the motivation for transfer pricing and the consequences of different schemes.
    • Understand how the different management tools may work together (or against each other) in a company

  • Teaching


    Two lectures a week of 2x45 minutes.

  • Required prerequisites

    Required prerequisites

    Students are expected to have followed basic courses in microeconomics and management accounting at the bachelor level.

  • Credit reduction due to overlap

    Credit reduction due to overlap

    The course cannot be combined with the course BUS400N "Styring av større foretak", which is a very similar course in Norwegian.

  • Requirements for course approval

    Requirements for course approval

    1 group assignments (approved/not approved). Note: There might be compulsory activities in the course prior to the registration deadline.

  • Assessment


    4 hour written examination.The exam can only be written in English.

  • Grading Scale

    Grading Scale

    Gradingscale A - F.

  • Computer tools

    Computer tools

    None in particular.

  • Semester



  • Literature


    To be announced.


ECTS Credits
Teaching language

Course responsible

Steffen Juranek, Department of Business and Management Science.