Nord University (Norway) и БГТУ «ВОЕНМЕХ» им. Д.Ф. Устинова (Россия)


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Cost accounting II


Objectives of the course

The course lasts for two years. The aim of the course is to acquaint the students with the cost accounting itself, with the criteria of manager decision-making preparation. The main goal of the course is to teach students to think as managers not as arithmeticians.

During the second year the students are taught the multivariate schemes, budgeting and the long-termed costs control and cost accounting under uncertainty as well.

The theoretical part is mostly given on the base of the book of Maher & Deakin “Cost Accounting”. During the lectures, lasting in the form of discussions, the students have the possibility to talk over different situations when the decision-making on the base of cost accounting is in need.

The practical work of the students is under the special attention. During the lectures the students solve many problems as from the book as also from the rich author’s experience.

The lectures are taught by the teachers of the Baltic State Technical University and Business School in Bodo (Norway).

The valuation on the second year consists of three parts: 40% for the written exam, 40% for the oral exam, 20 % for the activity during the lectures.

1. Cost-volume-profit analysis.

The relation between costs, volume and profit. CPV-analysis as a planning and decision-making aid.


2. Differential cost analysis.

Concept of differential cost analysis. Effect of short-term special order on costs. Cost analysis for pricing decisions. Make-or-buy decisions.


3. Multiple product decisions.

Choice among alternative products using accounting data. Linear programming for cost based decisions.


4. Inventory management costs.

Economic order quantity for purchasing and production. Safety stock of inventory.


5. The master budget.

The role of budgets in overall organization plans. Production and cost budgets. Ethical issues in budgeting.


6. Using the budget for performance evaluation and control.

Using budgets for performance evaluation. Flexible budget. Sales activity variance. Profit variance analysis.


7. Production cost variances.

Variable cost variances. Variances from activity-based costs. Fixed cost variances. Comprehensive cost variance analysis.


8. Standard costing.

Advantages of standard costing. Prorating of variances to inventories and cost of goods sold. Product costs under variable and full-absorption costing. Product costs under actual costing, normal costing and standard costing.


9. Decentralization and performance evaluation.

Advantages and disadvantages of decentralization. Relation between organizational structure and responsibilities centers. Return on investment and residual income. Using current values and using historical costs in ROI calculations.


10. Transfer pricing.

Transfer of goods and services across divisions. Economic transfer pricing rule. Negotiated transfer price, cost-based and market-based transfer prices.


Total amount of working hours


  • 22/07/2014 - 09:37 Enrollment to HHB 2013

    We would like to inform that the following students have been selected for study at Master of Science in Business program at Nordland University: