Prerequisite/Recommended prerequisite for participation in the module

Content, progress and pedagogy of the module

To provide the student with an understanding of fundamentals of management accounting, business economics and finance in a manufacturing context.

Students who complete the module should understand the basics within management accounting, business economics and finance in a manufacturing context.

Learning objectives

Knowledge

• Must have knowledge about principles of manufacturing and service economy at business level
• Must have knowledge about main principles of management accounting and business economics
• Must have knowledge about financial ratios and profitability analysis (du-pont pyramid, ROI, ROA, financial leverage etc.)
• Must have knowledge about quoting and pricing calculations
• Must have knowledge about budgeting and cash-flow analysis
• Must have knowledge about investment-theory and pay back analysis, also be familiar with Monte carlo and sensitivity analysis
• Must have knowledge about make-buy analysis to guide in- versus outsourcing decisions in a short but also long term context
• Must have an understanding of business models
• Must have an understanding of the balance between demand-pull and push

Skills

• Must be able to understand and contribute to annual report and balance sheet for a “constructed” business setup
• Must be able to analyze profitability and economic performance of businesses through review of financial ratios and underlying assumptions
• Must be able to produce a viable quote or offer a price for a customer on a particular product / service offering
• Must be able to make simple budgeting and cash-flow analysis of investments
• Must be able to produce cost-benefit analysis of “hard” and “soft” investments and calculate Net present value for these, also make scenario based analysis of returns
• Must be able to examine profitability of make buy-decisions for manufacturing / logistics chains in a global context, examining both short and long term benefits

Competences

• Must have the competencies to apply management accounting and business economics to systematize economic decision at the manufacturing, value chain or business level
• Must have the competencies to make financial plans for start-ups, price new products / services from a cost based perspective etc, and this to enable successful entrepreneurial activities among students

Type of instruction

The teaching is organized in accordance with the general form of teaching. Please see the programme cirruculum §17.

Extent and expected workload

Since it is a 5 ECTS course module the expected workload is 150 hours for the student.

Exam

Exams