Accounting

• Cost assessments for products and organizational units.
• Planning and budgeting methods.
• Budget follow-ups and performance evaluation related to managerial accounting.
• External stakeholders’ demand for and use of accounting information.
• Principles and methods of recognizing and measuring a number of specific items related to the firm’s annual report. 

To fulfill the purposes of the course the student must be able to: Demonstrate a basic knowledge about the course focus areas enabling them to:  

• Identify, describe and evaluate alternative accounting methods that might be used in specific situations in the annual reports, also involving considerations about relevance and reliability and management incentives.  
• List and describe relevant concepts and definitions.  •Explain and relate concepts and definitions to specific economic decision problems.  
• Relate the purposes and basic concepts of managerial accounting to the methods and procedures used in an accounting system.   

Demonstrate skills, such that the student is able to:  

• Initiate and make simple registrations in a bookkeeping system including such systems used in a production company.  
• Use the bookkeeping system as a basis for the annual closing of the books and drawing up of an income statement and ending balance sheet.  
• Calculate and demonstrate how the income statement and ending balance sheet is affected by various transactions and events.  
• Use simple methods to calculate product costs, costs of goods sold, and inventory values in job costing and process costing systems as well as other frequently used accounting systems such as Activity Based Costing systems.  
• Prepare a master budget and flexible budgets for a given period based upon known assumptions about resource consumption and business policies.  
• Calculate and analyze variances between actual and budgeted costs for a given period.  
• Utilize accounting based calculations in decisions on prices, product mix, processes and activities.  

Demonstrate competences, such that the student is able to:  

• Choose, describe and use appropriate accounting methods and models for specific items in the annual report; among others revenues, costs of goods sold, financial income and expenses, income taxes, fixed assets, inventories, equity and debt.  
• Utilize various accounting calculations to prepare financial statements for the external stakeholders of the firm. 
• Choose a suitable accounting system for a firm with known characteristics.  
• Utilize various accounting calculations and statements for the internal management of the firm as a decentralized organization, including among other things budgeting, motivation, control and performance evaluation.  

• Harrison, Walter T.; Horngren, Charles T.; Thomas, C. William; Tietz, Wendy M.; Suwardy, Themin: Financial Accounting, Global Edition, latest edition, Pearson.
• Horngren’s Cost Accounting – a managerial emphasis, Srikant M. Datar and Madhav V. Rajan, Pearson, latest edition, 
  

Scheduled classes:
2 hours weekly classes for 30 weeks equally spread across the autumn and spring semester plus 2 hours student teacher’s assistant classes (TA classes) every second week throughout the two semesters.

Workload:
Class hours: 60 hours. 
Preparation for classes: 78 hours. 
TA classes: 28 hours
Preparation for TA classes: 45 hours.
Solving asssignments including the provision of peer-feedback: 16 hours. 
Preparation for exams: 37 hours. 
Exams: 6 hours.

NOTE - This course is identical with the former course:
Sønderborg 8550801 Accounting 1
Odense 8032711 Accounting.