Profitability of Technology BusinessLaajuus (3 ECTS)

Objective

The student will know the financial statements of a company (the income statement, the balance sheet, the statement of source and application of funds) and the cash flow statement. He or she will be able to analyze the financial situation of a company based on financial statements and financial ratios. The student will understand the basic concepts of cost accounting and knows how to calculate costs of a product utilizing traditional costing and activity-based costing. The student will know the basics of marginal costing, budgeting and pricing.

Content

- Financial statements (the income statement, the balance sheet, the statement of sources and application of funds) and cash flow statement
- Ratio analysis (key ratios)
- Key terminology of cost accounting (variable costs, fixed costs, direct costs, indirect costs...)
- Cost accounting (traditional costing, activity-based costing)
- The marginal costing
- Budgeting
- Pricing

Qualifications

No pre-requisite studies.

Assessment criteria, satisfactory (1)

Financial statements (the income statement, the balance sheet, the statement of sources and application of funds) and cash flow statement:
- Understands the purpose and main contents of calculations

Ratio analysis (key ratios):
- Is able to calculate key ratios

Key terminology of cost accounting (variable costs, fixed costs, direct costs, indirect costs...):
- Is able to explain the key terminology of cost accounting

Cost accounting (traditional costing, activity-based costing):
- Understands the basic methods of cost accounting

The marginal costing:
- Is able to calculate the gross margin

Budgeting:
- Knows the basics of budgeting

Pricing:
- Understands the basic principles of setting the price of a product based on costs

Assessment criteria, good (3)

Financial statements (the income statement, the balance sheet, the statement of sources and application of funds) and cash flow statement:
- Understands the purpose and main contents of calculations, understands connections between them

Ratio analysis (key ratios):
- Is able to calculate key ratios and analyse the financial situation of a company on the basis of them

Key terminology of cost accounting (variable costs, fixed costs, direct costs, indirect costs...):
- Is able to explain the key terminology of cost accounting and give examples of different kinds of costs

Cost accounting (traditional costing, activity-based costing):
- Understands the basic methods of cost accounting, is able to calculate costs

The marginal costing:
- Is able to calculate the gross margin and evaluate the impact of changes in components affecting the gross margin

Budgeting:
- Knows the basics of budgeting, is able to make a simple budget

Pricing:
- Understands the basic principles of setting the price of a product based on costs, understands also other facts affecting the price

Assessment criteria, excellent (5)

Financial statements (the income statement, the balance sheet, the statement of sources and application of funds) and cash flow statement:
- Understands the purpose and main contents of calculations, understands connections between them, is able to prepare calculations

Ratio analysis (key ratios):
- Is able to calculate key ratios and analyse the financial situation of a company on the basis of them, understands connections between ratios

Key terminology of cost accounting (variable costs, fixed costs, direct costs, indirect costs...):
- Is able to explain the key terminology of cost accounting and give examples of
different kinds of costs, understands the bahaviour of different costs

Cost accounting (traditional costing, activity-based costing):
- Understands the basic methods of cost accounting, is able to calculate costs and interpret the results of calculations

The marginal costing:
- Is able to calculate the gross margin and evaluate the impact of changes in components affecting the gross margin, is able to utilise marginal costing

Budgeting:
- Knows the basics of budgeting, is able to make a simple budget, understands the connections between partial and main budgets

Pricing:
- Is able to set the price of a product based on costs, is able to take into account also other facts affecting the price