Company Profitability Analysis and Cost CalculationLaajuus (3 ECTS)

Objective

Student has a grip of the basic concepts of cost accounting
and is able to apply these as a basis of price-setting.

Student understands the fundaments and use
of contribution-margin in monitoring company profitability.

Student is familiar with investment appraisal methods and
financing alternatives.

Student understands the importance of capital employed
for company profitability.

Content

1. Basic concepts of cost accounting
2. Marginal costing and break-even analysis
3. Absorption costing and pricing
4. Capital investment appraisal

Assessment criteria, satisfactory (1)

Student realizes the purpose for accounting.

Student is capable to perform simple marginal costing
problem-solving.

Student is familiar with basics of investment appraisal.

Assessment criteria, good (3)

In relatively simple assignments student is able to utilize accounting information.

Student can make comparisons based on marginal costing.

Student can gather relevant information and analyze it when it comes to small-scale investments.

Student is capable to utilize absorption costing in pricing.

Assessment criteria, excellent (5)

Student can diversely utilize accounting information when making management decisions.

Student can distinguish restrictions related to accounting information.

He/she is also aware of risks related to individual projects and investments.

Student has widely comprehensive understanding and ability to carry out even demanding assignments requiring significant amounts of resources.