BUD1 Introduction to Business Administration

• Topics

  BUD1 Introduction to Business Administration is taught in the first semester, where an overall aim is to give the student an introduction to the firm and the role of technology in business. BUD1 gives a basic understanding of what a firm is, as well as an introduction to central managerial concepts and tools, and how to use these when making business decisions. Addressing the concept of sustainability, the course introduces the student to the triple bottom-line (People Planet and Profit). BUD1 is an important steppingstone for later BUD-courses in accounting and finance. BUD1 will also be relevant for other BEDS courses taught in the first semester. 

  Some of the questions we ask in BUD1, are:

  How does the firm earn money? Which products or services drives the profitability of the firm?

  What are the relevant costs and incomes that needs to be considered, when making decisions regarding production and pricing? How can new technologies influence the firms’ costs and revenues?

  To investigate such questions, we introduce basic concepts from cost-theory and accounting, using a combination of lectures, flipped classroom and workshops.

  BUD1 is structured around 5 modules:

  Module 1: Introduction to the firm and management accounting for business

  Module 2: Information for decision-making

  Module 3: Cost assignment

  Module 4: Information for planning, control and performance measurement

  Module 5: Strategic performance and cost management, value creation and future challenges

• Learning outcome

  After completing the course, the student will be able to:

  Knowledge

  • Explain different cost concepts.
  • Discuss the importance of cost variability.
  • Explain reasons for allocation of costs from cost category to cost centre.
  • Describe and discuss various decision-making problems in business including sustainability considerations related to the triple bottom line concept.
  • Explain the value of data and information for making decisions.

  Skills

  • Identify costs and revenues that are relevant to decisions and solve different decision-making problems.
  • Prepare cost calculations based on full cost, contribution, and ABC method.
  • Prepare profit & loss budgets, cash flow budgets and balance sheet budgets.
  • Carry out investment analyses using the present value method.

  General competence

  • Communicate about how management accounting techniques and methods may support problem-solving in business  
  • Apply management accounting insight to solve practical problems in business (cases)

• Teaching

  • Plenary lectures
  • Flipped classroom
  • Workshops (Solving problems/tasks)

• Required prerequisites

  None.

• Compulsory Activity

  • Two approved assignments (1-2 students in groups)
  • Participation in two workshops (2-4 students in groups)

• Assessment

  4-hour written digital school exam. The exam answer must be written in English.

• Grading Scale

  A-F

• Literature

  Drury, Colin; Tayles, Mike, 2021. Management Accounting for Business, 8th edition. Cengage learning.

• 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/