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Budget and Responsibility Accounting

Budget and Responsibility Accounting

Code: ACC3LF006
Extent: 6 ECTS (162 h)
Timing: Semester 5 - 7
Language: English
Level: Professional Specialization Studies
Type: Compulsory to those who have chosen ACC1LF Financial Management for Global Business as their specialisation.

Prerequisites

The student has successfully completed the GloBBA Basic and Joint Professional Studies. The course is part of the module of Financial Management for Global Business.

Learning outcomes

Upon successfull completion of the course, the student

  • understands budgeting as an integral part of a  company´s  strategy
  • learns the steps in developing an operating budget and timing of the process
  • is able to create functional budgets, a budgeted profit and loss account, balance sheet and cash flow forecast
  • understands responsibility accounting in the international companies
  • learns issues about setting standards, flexible budgets and limitations of budgets
  • is able to use EXCEL for budgeting
  • the student has enhanced his/her skills in the area of HH3S competences.

Course contents

  • The basic theory of budgetary control systems
  • Difference between fixed and flexible budgets and between incremental and zero-based budgeting
  • Scheduling  the budgeting process
  • Variances between actual and budgeted performance levels in different functional budgets
  • Balanced scorecard from the budgeting point of view
  • Budget responsible manager  in the global environment (ex. area key account)

Cooperation with the business community

Real business-based examples and cases, guest speakers, company visits as appropriate.

International dimension

International and global business approach to course themes and topics, contributions by multinational student groups and company cooperation.

Teaching and learning methods

Contact lessons 64 h
Assignments
Team work for a project company
The assessment of one’s own learning 1 h

Accreditation of prior learning

Accreditation of prior learning (APL) is observed on the course according to separate instructions.

Teachers with the main responsibility for the course

Jaana Melamies
Anne Arkima

Course materials

Braun, K., Tietz, W. 2013 Managerial Accounting. Pearson Education.
Other material provided by the teacher

Assessment criteria

Grade/Learning outcomes

1 (Min. 40% competence level) 3 (Min. 70% competence level) 5 (Min. 90% competence level)
Knowledge The student knows the steps in developing budgets and understands the process. He/she knows the basic theory and accounting tools of budgetary control. The student understands the linkage between Master Budgets and operating budgets, Flexible budgets and Standard costs. He/she is able to explain variances. The student fully understands responsibility accounting and budgeting as an integral part of a company`s strategy. He/she is able to create Master Budgets and schedule the budgeting process. He/she is able to interpret sales volume, flexible budget and standard cost variances.
Skills The student knows how to use budgeting reports and how to follow the schedule in this process. The student is mostly able to interpret budgeting reports and variances. He/she understand Standard costing, Flexible budgets and Balanced Scorecard. The student is fully capable to apply and interpret Master Budgets and operating budget, Flexible budgets, Standard Costing and Balanced Scorecard in the real business environment.
Competence The student is able to complete tasks with the help of a supervisor and team members. He/she is participating in team meetings during the project work and attending the project presentations. The student shows  service and sales orientation as required by the HH3S policy. The student is mostly able to complete the tasks according to the agreed work plan and capable of actively working on a multicultural team.
He/she shows verbal communication skills in the presentations. The student shows well service and sales orientation as required by the HH3S policy.
The student communicates professionally with the tutor, project company and multicultural team members and completes independently the tasks according to the agreed work plan. He/she shows a positive attitude and well verbal communication skills in the project presentations. The student shows excellently service and sales orientation as required by the HH3S policy.

Modes of assessment and their weights

Individually done assignments 20%
Project work and diary, project report and presentation 40%
Exam 40%

The assessment of one's own learning does not influence the course grade. The assignment is the same for all courses/modules and the answers will also be used for course/module development. The assignment is completed on an E-form.