Management AccountingLaajuus (5 cr)

Objective

This course provides students with knowledge of management accounting and with the ability to carry out and use calculations related to finance and profitability.

Content

A company's financial process and operational planning
Profitability calculations
Pricing
VAT in tourism and catering
Budgeting
Profitability of investments
Activity-based accounting

Assessment criteria, excellent (5)

The students are able to calculate profit margins and related key figures. They know how to use contribution/profit margin calculations for profitability planning and management. They know how to plan profitability and to compile an income statement (budget), as well as how to plan liquidity and to compile a cash budget, plan solvency and compile a balance forecast. They are able to use job-order costing when calculating the units costs of the output of a manufacturing company, retail store and service company. The students will be able to use activity-based accounting to calculate the costs of the company's functions and accounting targets (outputs, customers). They know how to use the pay-back time method, annuity method, current value method and internal interest rate method when analysing investment profitability.

Assessment criteria, good (3)

The students are proficient in the principles of profit margin calculation and related key figures. They know how to use contribution/profit margin calculations for profitability, liquidity and solvency planning. They are able to use job-order costing, division, and activity-based accounting for different accounting targets. They are able to assess investment profitability using a certain investment pay-back method.

Assessment criteria, satisfactory (1)

The students are proficient in the basics of profit margin calculation and related key figures. They know the principles of contribution/profit margin calculations for planning and managing a company's profitability. They are proficient in novice profitability planning and compiling a statement of profit, as well as novice-level liquidity and solvency planning. They are able to use the basics of job-order costing and division accounting for different accounting targets and are proficient in investment profitability assessment basics.