BØA2100 - Cost Accounting and Budgeting


Examination arrangement

Examination arrangement: Home examination
Grade: Letters

Evaluation form Weighting Duration Examination aids Grade deviation
Home examination 100/100 4 hours

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)

- Activity-based costing (ABC) as an alternative to traditional costing – Profitability analysis

- Different types of budgets and the budgeting process

- Basic inventory management

- 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 the budgeting process;

– Have knowledge of different types of budgets;

- Have knowledge of responsibility centers and make transfer pricing;

- Have knowledge of basic inventory management;

- 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 costs and apply it 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;

- Be able to acquire updated knowledge within the above mentioned knowledge and skills in the subject areas.

Learning methods and activities

Teaching methods:

Lectures and group work. The learning management system Blackboard will be used to some extent in the exchange of information.


Mandatory assignment:

Mandatory assignments to be announced at course start. Completion of the compulsory paper requires the use of ICT tools. Minimum attendance of 80 % at exercise sessions may be required. Mandatory assignement(s) must be approved before exam. Students who had approved mandatory assignment earlier are exempt from mandatory work requirements for later continuation exams.

Compulsory assignments

  • Mandatory requirement

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.


Previously approved mandatory assignments do not need to be handed in again for later exams. Minimum attendance of 80 % at exercise sessions may be required. Mandatory assignments to be announced at the course start.

Specific conditions

Exam registration requires that class registration is approved in the same semester. 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 (ØABACHELOR)
Marketing, Innovation and Management (359ML)

Required previous knowledge

The course is only available to students who have the right to study at the bachelor program at the Economic Faculty

Course materials


The course textbook: Kjell Gunnar Hoff, Trond Bjørnenak, Morten Helbæk (2015) Økonomistyring 2: Driftsregnskap og budsjettering. 6th edition, Universitetsforlaget, ISBN: 9788215025568.


Supplementary readings:

Hoff, K. G. & Helbæk, M. (2015) Arbeidsbok til Økonomistyring 2. 6th edition, Universitetsforlaget, ISBN: 9788215025575.


Berg, T. (2018) Grunnleggende økonomistyring. 2nd edition, Cappelen Damm Akademisk, ISBN: 978-82-02-59247-9.


Sending, Aage (2013) Økonomistyring 1. 2nd edition, Fagbokforlaget, ISBN: 9788245014969.


Sending, Aage (2013) Økonomistyring 2, 2nd edition, Fagbokforlaget, ISBN: 9788245015645.


More information at the start of the semester.

Credit reductions

Course code Reduction From To
BØA1001 5.0 01.08.2008
BØA2001 2.5 01.08.2008
BØA8002 7.5 01.08.2008
AE201306 7.5 01.08.2017
TIØ4295 2.5 01.08.2017
TIØ4105 2.5 01.08.2017
More on the course



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


Term no.: 1
Teaching semester:  AUTUMN 2020

Language of instruction: Norwegian

Location: Trondheim

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

Department with academic responsibility
NTNU Business School



Examination arrangement: Home examination

Term Status code Evaluation form Weighting Examination aids Date Time Digital exam Room *
Autumn ORD Home examination 100/100

Release 2020-12-17

Submission 2020-12-17

Release 09:00

Submission 13:00

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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