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BUS316 Activity Based Costing (ABC); Management and Cost Accounting

Credits (ECTS):5

Course responsible:Øystein Dahl

Campus / Online:Taught campus Ås

Teaching language:Norsk

Course frequency:Annually

Nominal workload:125 hours.

Teaching and exam period:This course starts in the August block period. Teaching/evaluation in the August block period.

About this course

  • Key concepts in traditional and strategic financial management
  • Basics of calculations and calculation in financial management
  • Historical development of various methods within financial management
  • What is ABC, how and why, and for whom?
  • Different philosophies for Activity Based Costing
  • Organization of an ABC project, how to carry it out in practice

  • In-depth study of the main steps in an ABC analysis, including:

    • Understanding of cost objects - customers, products, services, orders, projects
    • Activity studies and activity analysis
    • Resource analysis
    • How to select relevant cost drivers for analysis
    • Revision of estimated contribution margin and direct cost.
    • Compilation of results
  • How to use results from the analysis - financial business management with ABC

Learning outcome

After completion of the course, students will:

  • know the principles and method of Activity Based Costing
  • understand the principles of good and value-creating financial business management
  • calculate real profitability, especially from customers and products
  • be able to perform an ABC analysis
  • Learning activities
    Lectures at campus. 2 days with lectures - case work - 1 day work with cases and recap.
  • Prerequisites
    General understanding and knowledge of accounting and management accounting, and business administration like BUS110 and BUS210
  • Recommended prerequisites
    The students should have basic knowledge of excel in order to create simple ABC-models.
  • Assessment method
    Final written exam, 3.5 hours, which counts 100%.

    Written exam Grading: Letter grades
  • Examiner scheme
    External examiner ensures the quality of the syllabus, exam assignments and principles for evaluation and answers.
  • Mandatory activity

    The students must work with a case that will be presented on the final lecture day.

    The case work will be done in groups and every student must participate in a case work in order to take the exam

  • Teaching hours
    Teaching for three weeks. Full day two days beginning of course, case study, final full day,
  • Reduction of credits
    BUS316F - digital version
  • Admission requirements
    The course is open for master students at NMBU and 3rd year bachelor students in Business Administration.