BED1 Introduction to Business Economics and Management Accounting

• 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

   Knowledge

  • 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.

  Skills

  • 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.

• Compulsory Activity

  Compulsory participation in at least 4 out 6 rounds of group lectures. There will both be ordinary group sessions as well as digital groups on zoom.

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

  NB: Passing the exam in the fall of 2020 or the spring of 2021 will also count as valid compulsory activites (work requirements).

• Assessment

  4-hour digital school exam.

  An assessment will be organised in the the non-teaching semester (spring) for students with a valid course approval.

• Grading Scale

  A-F

• 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