AU kursuskatalog arkiv

G COST Costing theory and Capital Budgeting ( efterår 2011 - 5 ECTS )

Rammer for udbud

• Uddannelsessprog: engelsk
• Niveau: Bachelor of arts - business administration
• Semester/kvarter: 1 st semester
• Timer per uge: 2 lectures per week for 13 weeks, 2 tutorials per week for 8 weeks
• Deltagerbegrænsning: None
• Undervisningssted: Herning
• Hovedområde: Det Samfundsvidenskabelige Fakultet
• Udbud ID: 28853

Formål

The course consists of two modules:
-Costing theory and decision making
-Capital Budgeting

COSTING THEORY AND DECISION MAKING

BACKGROUND OF THE MODULE
In general cost is defined as a sacrifice or giving up of resources for a particular purpose, measured by the monetary units that the company must pay for goods and services. Interest in costs stems from a company's wish to carry out actions or activities (ex. producing a given volume of a product, supplying a given service etc.) using the fewest amount of resources and thereby the fewest costs. Understanding the cost structure of a company and being able to formulate relevant cost calculations is therefore essential when choosing among different alternative actions.
The purpose of the module is to give students an introduction to cost theory and make them able to perform cost calculations relevant for short term decisions and to bring insight in the accounting basis of costing.

CAPITAL BUDGETING

BACKGROUND OF THE MODULE
An investment may be described as a series of payments that will be due at different future points of time. The future payments may relate to a proposal to produce and sell a new product, a proposal to purchase new production facilities etc. The investment theory deals with problems and methods used to determine the profitability of a single investment and methods used to choose the best among alternative investments
The purpose of this module is to make the students able to perform relevant investment analysis when choosing among alternatives having a longer time horizon. At the same time it is the aim of the module that students will be familiar with implementing and using investment models in Excel.

Indhold

THE CENTRAL ISSUES OF THE COURSE:
COSTING THEORY AND DECISION MAKING

MAIN TOPICS:

• Costs and cost behavior
• Measurement of cost behavior
• Costs and activities
• Cost calculations and decision making
• Productions decisions

• Marketing decisions

CAPITAL BUDGETING

MAIN TOPICS:

• Investments and cash flow
• The time value of money
• Methods used to determine the profitability of a single investment.
• Methods used to compare mutually exclusive investments
• Methods used to find the optimal lifetime of an investment
• Investments and the effect of taxes

•Sensitivity analysis.

Faglige forudsætninger

None

Underviser

Kristian Møller

Undervisnings- og arbejdsform

Lectures supplemented with tutorials

Litteratur

COSTING THEORY AND DECISION MAKING

Prentice-Hall: Introduction to Management Accounting by Horngren, Sundem and Stratton, latest ed.

CAPITAL BUDGETING

McGraw-Hill: Corporate finance - European edition by David Hillier, Stephen Ross, Randolph Westerfield, Jeffrey Jaffe and Bradford Jordan, latest ed.

Studieordning og bedømmelse

HA international management

• PC-eksamen, bedømt efter 7-skala med ekstern censur