Kannattava liiketoiminta (5 cr)

Evaluation scale

0-5

Objective

The object of the course
The object of the course is to provide you with the basics, basic concepts, principles, and methods of management accounting. You will learn to use various calculation models and methods to analyze the company's financial situation and to forecast the future.

Course competences
Learning to learn - Student assesses and develops competence and learning methods in different learning environments.
Business competence - Student has a broad understanding of business and management accounting.

The learning objectives of the course
You learn how to prepare cost-volume-profit calculations to determine profitability. You also learn to look at costs and analyze factors related to pricing and discounts as well as put forward suggestions for improvement.
During the course, your understanding of the profitability of different business areas increases and you understand their effects on the company's overall profitability. You are able to identify and examine factors impacting profitability.
In this course you familiarize yourself with operational and financial planning. You understand the significance of budgeting as well as its logic, principles, processes, and methods. You know how to prepare operating and master budgets as part of operational and financial management. You can identify and examine development targets from the perspective of budgeting by analyzing the differences from the perspective of budget monitoring. You are also able to plan the company's profitable business operations, taking financial aspects into account.

Content

The goal of the course is to increase your understanding of profitable business and to develop skills for analyzing and interpreting financial information. The course covers the company's most important management accounting concepts, including pricing, cost-volume-profit thinking, profitability, and budgeting. You familiarize yourself with pricing strategies and methods as well as cost-volume-profit thinking and cost concepts. The course also covers different areas of budgeting, such as profit budget, cash budget and balance sheet forecast.

Materials

Jormakka, R., Koivusalo, K. Lappalainen, J. & Niskanen, M. 2021. Laskentatoimi. Helsinki: Edita. Luvut 7–9 ja 11.

Teaching methods

Traditional classroom teaching which is arranged in a classroom in Rajakatu campus. During the teaching and guidance contacts you familiarize yourself with the contents of the course, and you do and check learning assignments alone and in groups. You do learning assignments also on you own time. During the teaching and guidance contacts you have a possibility to get support and guidance for your studying and learning.

Exam schedules

Exam in a classroom on week 17 (21.-25.4.2025), first resit exam on week 18 (28.4.-2.5.2025) and second resit exams on week 19 (5.-9.5.2025).

Completion alternatives

A corresponding course completed at 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 independent learning assignments 115 h

Assessment criteria, satisfactory (1)

Sufficient 1
You name concepts of profitability from the management accounting point of view and know which factors affect profitability. You understand the basic principles of cost-volume-profit analysis and are able to prepare a basic cost-volume-profit calculation. You explain the basic principles of pricing in your own words. You recognize the concepts and processes related to budgeting and you know which processes affect budget preparation. You prepare the operating budgets of the example company according to ready-made templates. You need additional guidance, support and clarification to complete the assignments.

Satisfactory 2
You present factors affecting to profitability from the management accounting point of view and recognize the factors related to the management of profitability. You prepare cost-volume-profit and pricing calculations for an example company under guidance. You explain the principles of cost-volume-profit approach and its application in practice. You recognize factors affecting the pricing in the example company and name key factors in pricing in companies operating in different industry sectors. You interpret the budget of an example company and you understand the purpose of different budgeting areas and their role in managing the company's finances. You prepare the operating and master budgets of the example company under guidance.

Assessment criteria, good (3)

Good 3
You outline cost-volume-profit analysis and calculations, itemize the process steps from the management accounting point of view and describe the impact of cost-volume-profit based analytical profit calculation factors on profitability. You prepare error-free cost-volume-profit and pricing calculations as well as apply these methods for decision making. You apply different pricing strategies and methods in practice and justify your chosen strategy. You prepare a profitability analysis based on cost-volume-profit calculations and pricing calculations. You outline the basic processes of budgeting, itemize the process steps from the managerial accounting point of view and describe the impact of processes on the management of operations. You prepare master budgets and budget comparison and define the factors affecting budgeting in the example company. You take responsibility for your own work.

Very good 4
You assess the impact of cost-volume-profit analysis from the management accounting point of view. You develop profitability analysis as an analytical profit calculation based on cost-volume-profit and pricing calculations. You analyze the effects of pricing on the company's profitability. You define the impact of budgeting in the example company. You develop profitability analyses based on operating and master budgets. You understand the connection between the budget and the action plan. You take responsibility for your own work.

Assessment criteria, excellent (5)

Excellent 5
You plan cost-volume-profit analysis and sensitivity analysis for alternative action plans from the management accounting point of view. You plan active measures related to cost-volume-profit and pricing calculations to influence the company’s profitability. You evaluate different pricing strategies and their long-term effects on the company's financial performance. You assess the impact of budget control on the example company and report the actions taken based on it and the impact of budgeting in companies. You plan the basic processes of budgeting from the managerial accounting point of view. You take responsibility for your own work.

Qualifications

-

Further information

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