Guidance on Profitable Operation (5 cr)

Evaluation scale

0-5

Objective

The student knows principles and methods for running profitable business and operations. The student is capable of making calculations related to costs and profitability of business. The student has skills for examining business, operations, activity, accounting processes as well as profitability and providing development ideas for improvement. The student is capable of building a simple balanced scorecard and a set of performance metrics.

Content

- accounting processes
- cost-volume-profit analysis and sensitivity analysis
- activity-based costing
- activity-based management
- enterprice resource management
- job costing and pricing
- management information systems and ratios
- performance measurement and metrics

Materials

Neilimo K. & Uusi-Rauva E. Johdon laskentatoimi. 2014. Helsinki. EDITA: luvut 1-7, 9 ja 12-14 (previous editions also possible)).

Additional material:
Järvenpää M., Länsiluoto A., Partanen V. & Pellinen J. Talousohjaus ja kustannuslaskenta. WSOYpro, Helsinki, 2017 (other editions also possible).

Teaching methods

Face-to-face learning, learning assignments made independently and in pairs.

Employer connections

More exact information on the work placements linked to the course shall be provided by the teacher during the first contact lessons of the course.

Exam schedules

The exam will be held in a classroom during week 15 (12.–16.4.2021). The resit exams will be held during the weeks 17 and 19 either in a classroom or in Exam-studio.

Completion alternatives

A corresponding course completed in another university may be accredited partially or completely. Competence acquired through informal learning may be recognized and accredited on the basis of competence test. More precise instructions can be found in Degree Regulations and in Study Guide.

Student workload

Lectures and exercises 20 h, independent study and learning assignments 115 h

Assessment criteria, satisfactory (1)

1 (Sufficient) : The student has a theoretical understanding of accounting processes. The student is not capable of using cost-volume-profit method for calculations without guidance. The student has a slight theoretical understanding of activity analysis and activity-based costing and he/she is not capable of examine the subject area independently without guidance. The student understands some basics of resource management, but practical examination is inadequate. The student is capable of identifying some of a whole complex of issues, but practical application is challenging.

2 (Satisfactory) : The student has a theoretical understanding of accounting processes. The student requires plenty of guidance at cost-volume-profit method. The student has a sufficient understanding of activity-based management and activity-based costing and he/she can write about the subject at a general level - calculations can be made with some supportive guidance. The student understands the basics of resource management ja is capable of examining the process, but development ideas are limited. The student knows the basics of balanced scorecard and he/she is capable of building a balanced scorecard and performance metrics based on theory.

Assessment criteria, good (3)

3 (Good) : The student has a versatile understanding of accounting processes and he/she can present independent interpretations of the subject. The student is capable of utilizing cost-volume-profit with guidance. The student has a good understanding of activity-based management and activity-based costing and he/she is capable of compiling a simple activity analysis and activity-based costing. The student understands theory of activity-based management and is capable of applying information for assessment of the current state of resource management process and presenting some development ideas. The student has a capability of building a simple balanced scorecard and performance metrics.

4 (Very Good) : The student has a comprehensive understanding of accounting processes in running profitable business and he/she is capable of examining processes and discussing critically about the subject. The student can independently calculate and apply cost-volume-profit method as a accounting and management tool. The student has a preparedness for applying activity-based management and activity-based costing methods. The student is capable of compiling a report on the current state of enterprise resource management (business) process, identify development needs and represent applicable development proposals.

Assessment criteria, excellent (5)

5 (Excellent) : The student has a deep understanding of accounting processes in running profitable business and he/she is capable of exploring processes in a developing way. The student can fully independently calculate and apply cost-volume-profit method as a accounting and management tool. The student has an independent preparedness to apply activity-based management and activity-based costing methods and accordingly capability of representing justified development ideas. The student knows how to formulate a comprehensive report on enterprise resource management (business) process, identify development needs and represent justified development proposals. The student is capable of building comprehensively compiled and argumented balanced scorecard and performance metrics.

Qualifications

Cost-volume-profit accounting, cost accounting, budgeting.

Further information

The assessment in the course is based on the competence demonstrated in the exam (40 %, 2 ECTS credits) and in learning assignments made in pairs (60 %, 3 ECTS credits).