AE201306 - Cost Accounting and Budgeting


Examination arrangement

Examination arrangement: School exam
Grade: Letter grades

Evaluation Weighting Duration Grade deviation Examination aids
School exam 100/100 4 hours D

Course content

  • Models of cost accounting: normal and standard cost according to the variable and absorption costing
  • Business decision making problems (relevant costs and revenues for decision making)
  • Bottleneck decsions
  • Activity-based costing (ABC) as an alternative to traditional costing
  • Profitability analysis
  • Different types of budgets and the budgeting process
  • Basic estimation of cost functions
  • Basic cost allocation
  • Decentralization and performance measurement

Learning outcome


  • Have an understanding and knowledge of management accounting based on normal cost and standard cost (based on the variable and absorption costing) with variance analysis
  • Have knowledge of flexible budgets
  • Have knowledge of Activity-based costing (ABC)
  • Have knowledge of business decision-making problems
  • Have knowledge of bottleneck decsions
  • Have knowledge of the budgeting process
  • Have knowledge of different types of budgets
  • Have knowledge of responsibility centers and make transfer pricing
  • Have knowledge of basic cost estimation
  • Have knowledge of basic cost allocation
  • Have knowledge of the performance measurement


  • Be able to prepare normal cost accounting and standard cost accounting according to the variable and absorption costing principles
  • Be able to conduct variance analysis
  • Be able to prepare calculation with Activity-based costing
  • Be able to distinguish between decision-relevant and decision-irrelevant incomes and costs, and apply these in various decision-making situations
  • Be able to prepare budgets, especially cash budget, result budget and balance sheet budget
  • Understand the purpose of dividing an organization into responsibility centers, as well as calculating transfer prices
  • Have insight into performance measurement

General competence:

  • Be able to see the subject in a broader economic context
  • Be able to use cost accounting and budgeting in corporate financial management
  • Critically assess whether different methods and techniques should be apllied in different contexts, including asess whether the methods promote or inhibit long-term orientation and responsible use of resources
  • Be able to acquire updated knowledge within the above mentioned knowledge and skills in the subject areas.

Learning methods and activities

Teaching methods:

Lectures (can be both digital and physical) and group work (including the use of spreadsheets). Digital learning platform will be used to some extent in the exchange of information.

Compulsory assignments

  • Obligatorisk forkrav

Further on evaluation

Supporting material allowed on exams: Approved calculator regarding NTNUs support material code B-D "specific basic calculator". Other calculators that are allowed in the course are: Casio FC-100V and Texas Instruments - BAII Plus.

Mandatory assignments to be announced at the course start. Minimum attendance of 80 % at exercise sessions may be required. Mandatory work requirement (s) must be approved in order to take the exam. Students who have previously taken an examination in the course are exempted from mandatory work requirements in subsequent attempts at the examination.

Specific conditions

Compulsory activities from previous semester may be approved by the department.

Admission to a programme of study is required:
Business Administration (BØA)
Business Administration (ØA369)
Business Administration and Management (BØKLED)
Marketing, Innovation and Management (359ML)

Course materials


Berg, T. Grunnleggende økonomistyring. Tredje utgave, Cappelen Damm Akademisk.

Helbæk, M. & Olsen, B.A. Excel for økonomistudenter, 2019, Universitetsforlaget.

Supplementary readings:

Kjell Gunnar Hoff, Trond Bjørnenak, Morten Helbæk (2020 eller 2021) Økonomistyring 2: Driftsregnskap og budsjettering. 7. utgave, Universitetsforlaget.

Hoff, K. G. & Helbæk, M. Arbeidsbok til Økonomistyring 2. Siste utgave, Universitetsforlaget.

Sending, Aa. Økonomistyring 1. Siste utgave, Fagbokforlaget. Sending, Aa. Økonomistyring 2. Siste utgave, Fagbokforlaget. More information at the start of the semester.

Credit reductions

Course code Reduction From To
BØA2100 7.5 SPRING 2017
SMF2293 7.5 AUTUMN 2021
SMF2293F 7.5 AUTUMN 2021
More on the course



Version: 1
Credits:  7.5 SP
Study level: Intermediate course, level II


Term no.: 1
Teaching semester:  AUTUMN 2022

Language of instruction: Norwegian

Location: Ålesund

Subject area(s)
  • Economics and Administration
Contact information
Course coordinator: Lecturer(s):

Department with academic responsibility
Department of International Business


Examination arrangement: School exam

Term Status code Evaluation Weighting Examination aids Date Time Examination system Room *
Autumn ORD School exam 100/100 D 2022-12-06 09:00 INSPERA
Room Building Number of candidates
Summer UTS School exam 100/100 D INSPERA
Room Building Number of candidates
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

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