course-details-portlet

AE302010

Business economics

Credits 7.5
Level Third-year courses, level III
Course start Autumn 2025
Duration 1 semester
Language of instruction Norwegian
Location Ålesund
Examination arrangement School exam

About

About the course

Course content

- Cost-Volume-Profit analysis

- Job costing /costing techniques (also Activity-based costing)

- Budgets, flexible budgets with direct-cost variances and overhead cost variances

- Inventory costing and capacity analysis

- Estimation of cost functions using quantitative methods

- Decision making and relevant information

- Strategy, balanced scorecard and strategic profitability analysis

- Price decisions and cost management

- Cost allocation

- Customer-profitability analysis and further analysis of sales-volume variance

- An introduction to process costing

- Inventory management focusing on EOQ model

- Capital budgeting and performance measurement

- Transfer pricing and Management control systems

Learning outcome

Knowledge:

- have knowledge of Cost-Volume-Profit analysis

- have knowledge of various costing methods with emphasis on Activity-based costing (ABC)

- have knowledge of static budget, flexible budget and variance analysis

- have knowledge of absorption and variable costing for computing income

- have knowledge of various methods of cost estimation

- have knowledge of relevant information in decision situations

- have knowledge of Balanced Scorecard and strategic profitability analysis

- have knowledge of factors that affect pricing decisions and various methods of long-run pricing decisions

- have knowledge of methods of cost allocation in various situations

- have knowledge of customer-profitability analysis and further analysis of sales-volume variance

- have insight into process costing

- have knowledge of EOQ model for inventory management

- have knowledge of capital budgeting, transfer pricing and various performance measures

Skills:

- perform various calculations in connection with Cost-Volume-Profit analysis

- perform cost calculations focusing on Activity-based costing, as well as evaluate benefits and disadvantages of Activity-based costing systems

- develop flexible budget as well as calculate and analyze direct-cost variances and overhead cost variances

- compute income under absorption costing and variable costing, explain the difference in income, as well as carrying out appropriate analysis

- discuss the appropriateness of various cost allocation bases

- determine appropriate cost drivers, also by means of the regression analysis

- be able to distinguish relevant from irrelevant information in decision situations

- analyze the impact of various strategic choices

- be able to apply methods for long-run pricing decisions, as well as discuss different pricing strategies including internal pricing

- conduct various cost- and revenue allocation between units/departments, products and customers

- be able to conduct customer-profitability analysis

- be able to carry out inventory calculations within the EOQ decision model

- discuss the properties of different performance measures (financial and non-financial), as well as calculate and analyze financial performance measures

General competence:

- acquire updated knowledge in the subject

- communicate about issues relevant to the subject and be able to conduct appropriate analyses and to draw conclusions on relevant issues

- have insight into how the subject matter can be used in the sustainable development of organizations.

Learning methods and activities

Teaching methods: Lectures and problem solving. The learning management system Blackboard will be used to some extent in the exchange of information. Mandatory Assignments: One compulsory paper (consists of several tasks) must be handed in for assessment. This paper must achieve a pass in order for a candidate to take the exam. Students who had approved mandatory assignments earlier are exempt from mandatory work requirements for later continuation exams.

Compulsory assignments

  • Mandatory assignment

Further on evaluation

Supporting material allowed on exams: Calculator (none programable and without the ability to wirelessly communicate). Approved calculator regarding NTNUs support material code D "specific basic calculator". Other calculators that are allowed in the course are: Casio FC-100V and Texas Instruments - BAII Plus.

Required previous knowledge

None

Course materials

Mandatory: Datar S. M. & Rajan M. V.: Horngrens's Cost Accounting - A MANAGERIAL EMPHASIS (17th Ed), Pearson Education Limited (2021), ISBN: 9781292363073. Except chapters 11 and 20. The final information is given at the start of the semester.

Subject areas

  • Economics and Administration

Contact information

Course coordinator

Department with academic responsibility

NTNU School of International Business

Examination

Examination

Examination arrangement: School exam
Grade: Letter grades

Ordinary examination - Autumn 2025

School exam
Weighting 100/100 Examination aids Code D Date 2025-12-08 Time 09:00 Duration 4 hours Exam system Inspera Assessment
Place and room for school exam

The specified room can be changed and the final location will be ready no later than 3 days before the exam. You can find your room location on Studentweb.

Gnisten/Fagskolen
Room G326
30 candidates

Re-sit examination - Spring 2026

School exam
Weighting 100/100 Examination aids Code D Duration 4 hours Exam system Inspera Assessment Place and room Not specified yet.