Budgeting (3 cr)

Evaluation scale

0-5

Content scheduling

Webinars (wk 12-15)
Exam (wk 16)
Exam resit 1 (wk 17)
Exam resit 2 (wk 18)

Objective

The object of the course
Budgeting is a key process in goal-oriented operations and managerial accounting. This course will provide you with the key knowledge and capabilities for budgeting and managerial accounting.

Course competences
Ethics
Business competence

The learning objectives of the course
During this course, you will learn about the significance, logic, principles, processes and methods of budgeting. You know how to draw up operating and master budgets as part of operational and financial management. You are able to draw up a budget comparison and analyze the differences from the budget monitoring point of view. You are able to identify and examine development targets from the budgeting point of view. You are able to review and analyze processes related to budgeting and put forward development proposals for them.

Content

During the course, the definition of and the tasks involved in budgeting, the relationship between budgeting and strategy, the budgeting system and process, budgeting methods, budget preparation, budget monitoring and budgeting problems and solutions will be discussed.

Materials

Jormakka, R., Koivusalo, K., Lappalainen, J. & Niskanen, M. (2015). Laskentatoimi. Helsinki : Edita. ISBN 978-951-37-6782-2 (verkkoaineisto) ja ISBN 978-951-37-6622-1 (nidottu). Budjetointia käsittelevät luvut. (HUOM! Myös muut painokset ovat soveltuvia.)

Järvenpää, M., Länsiluoto, A., Partanen, V. & Pellinen, J. (2013). Talousohjaus ja kustannuslaskenta (2. uud. painos). Helsinki : Sanoma Pro. ISBN 978-952-63-2005-2 (nidottu). Budjetointia käsittelevät luvut. (HUOM! Myös muut painokset ovat soveltuvia.)

Neilimo, K. & Uusi-Rauva, E. (2005). Johdon laskentatoimi. (6. uud. painos). Helsinki : Edita. ISBN 978-951-37-4109-9 (nidottu). Budjetointia käsittelevät luvut. (HUOM! Myös muut painokset ovat soveltuvia.)

Åkerberg, P. (2017). Budjetointi 2020-luvulla (1. painos). Helsinki: Alma Media Pro. ISBN 978-952-14-3161-6 verkkoaineisto (e-kirja) ja ISBN 978-952-14-3159-3 (sidottu).

Teaching methods

Webinars
Literature
Video material
Independent assignments
Guidance and feedback

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

Exam week 18. The resit exams will be held in Exam.

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

Allocation of time on various tasks and student work load in total 81 h
Lectures and exercises 20 h
Independent study and independent learning assignments 35 h
Other assignments 80 h

Assessment criteria, satisfactory (1)

Adequate 1
You are able to name processes related to budgeting and know which processes affect budget preparation. You understand the basic principles of the budget and are able to draw up the operating budgets of the example company according to ready-made templates. You are able to explain in your own words the basic principles and significance of budgeting. You recognize control mechanisms related to budgeting and are familiar with key factors related to budgeting and the budget. You understand the significance of budgeting, operational planning and budget monitoring.

Satisfactory 2
You are able to present processes related to budgeting from the managerial accounting point of view and recognize factors related to budget control. You are able to prepare the operating and master budgets of the example company under guidance. You recognize factors affecting budget control mechanisms in the example company and are able to name key factors in budgeting in companies operating in different industry sectors.

Assessment criteria, good (3)

Good 3
You are able to 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 are able to (independently) prepare the operating and master budgets and apply budgeting methods in support of managerial accounting. You are able to prepare a budget-based analysis. You are able to define factors affecting budget control in the example company and are able to define key factors in budgeting in companies operating in different industry sectors.

Very Good 4
You are able to assess the basic processes of budgeting from the managerial accounting point of view. You are able to develop profitability analyses based on operating and master budgets. You are able to define the effects of budgeting in the example company and the significance of budgeting in companies operating in different industry sectors. You understand the connection between the budget and the action plan.

Assessment criteria, excellent (5)

Excellent 5
You are able to plan the basic processes of budgeting from the managerial accounting point of view. You are able to plan active measures based on operating and master budgets that influence the management of operations and managerial accounting. You are able to 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 operating in different industry sectors.

Qualifications

Basics of financial and management accounting.

Further information

The course is included in financial management specialization (Talousjohtaminen).
The assessment of the course is based on the following credits:
1) exercises and assignments (50%, 1,5 ECTS)
2) exam (50%, 1,5 ECTS)