Financial Calculations (5 cr)

Evaluation scale

H-5

Objective

You are able make different calculations of management accounting. You understand basics of business bookkeeping and the content of the financial statements as well as principles of budgeting. Furthermore you are able to connect business operations to a company's profitability, solvency and liquidity.

You will have an understanding of the role of accounting in a company, the basis of management accounting and the content of financial statements.

You are able to produce calculations for the purpose of comparisons and decision-making and read the information of financial statements. You are able to make managerial accounting and financial calculations and understand business operations and their connection with profitability.

Content

- Concepts of corporate calculations
- Financial calculations and corporate planning functions
- Management accounting
- Budgeting system and budgets
- What is management accounting?
- What is financial accounting?
- What do different cost terms mean?
- What is profitability?
- What is traditional product costing?
- What is the content of financial statements?
- The role of accounting
- Basic concepts of business economy and accounting
- Costs and profitability of a product and a service
- Basics of investment calculations
- Business bookkeeping and financial statements
- Decision making using economic calculations and basics of budgeting

Location and time

Autumn, Wärtsilä-campus

Materials

Study material in the Moodle-platform during the course. Supplementary material: Horngren, C., Foster G. & Datar, S. M.: Cost Accounting - a managerial emphasis.

Teaching methods

Learning outcomes: You are able to make different calculations of management accounting. You understand basics of business bookkeeping and the content of the financial statements, company taxation and value-added taxation as well as principles of budgeting. Furthermore the student is able to connect business operations to a company's profitability, solvency and liquidity.
Core content: The role of accounting, basic concepts of business economy and accounting, costs and profitability of a product and a service, basics of investment calculations, business bookkeeping and financial statements, company taxation and value-added taxation and decision making using economic calculations and basics of budgeting.
Teaching methods: lectures, exercises, assignments, self-study and exam.

Exam schedules

Exam will take place at the end of the course.

Student workload

Lectures and exercises 30 hours, independent study 74 hours.