Budjeting as a Management Tool (4cr)

Objective

The student is able to plan and monitor financial performance as part of management. The student can prepare income, balance sheet, and cash flow budgets, as well as various sub-budgets, such as a sales budget. The student can also calculate the effects of economic phenomena, such as changes in demand and costs, on the company’s financial performance. The student is able to prepare calculations on the impact of pricing changes on the financial situation. The student knows the key concepts of the course in English and can assess the importance of comprehensive budgeting for a company operating in both domestic and international markets.

Content

- budgeting process, planning, and control of budgets
- the content of primary budgets, income statement, balance sheet, and cash flow
- content of secondary budgets, e.g., sales, purchasing
- practical implementation of budgets
- reading and reviewing a journal article concerning budgeting

Qualifications

- Analysis and development of business operations
- Financial management of the company

Assessment criteria, satisfactory (1)

The student is able to prepare simple income, balance sheet, and cash flow budgets. They can identify the main budgets. The student is able to take into account the effects of clear economic phenomena on the company’s financial performance.

Assessment criteria, good (3)

The student is able to prepare income, balance sheet, and cash flow budgets based on diverse materials, as well as various sub-budgets, such as a sales budget. The student can identify and take into account the effects of clear economic phenomena on the company’s financial performance.

Assessment criteria, excellent (5)

The student is able to prepare income, balance sheet, and cash flow budgets based on complex materials, as well as various sub-budgets, such as a sales budget. The student can analyze the effects of complex economic phenomena on the company’s financial performance.

Materials

Ikäheimo, Malmi, Walden: Yrityksen laskentatoimi; Pellinen: Talousjohtaminen.

Further information

As part of the course, the student must attend the financial administration case clinic in the autumn semester.