Budgeting as a Management Tool (4cr)

Objective

Students can plan and control the financial situation of a firm as part of the management process. Students can create and calculate different budgets such as income statement, balance sheet and cash flows. Students are also capable of creating different sub-budgets e.g. for sales, purchasing. Students can evaluate how the changing demand, costs and pricing affect the success of a firm. Student knows the key concepts of the course also in English. They can evaluate the significance of budgeting for firms in the domestic and foreign markets.

Content

- budgeting process, planning and control of budgets
- 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

- Basics of Accounting
- Financial management of the company

Assessment criteria, satisfactory (1)

Student can complete the targets of the course at a satisfactory level. Student is able to implement primary and secondary budgets at a satisfactory level. Student also knows that different changes affect the firm financial position in primary budgets.

Assessment criteria, good (3)

Student can complete the targets of course at a good level. Student is able to implement primary and secondary budgets at a good level. Student also is able to simulate how different changes affect the firm financial position at good level.

Assessment criteria, excellent (5)

Student can complete the targets of course at an excellent level. Student is able to implement primary and secondary budgets at an excellent level. Student also is able to simulate how different changes affect the firm financial position at excellent level.

Materials

- Järvenpää M., Länsiluoto A., Partanen V., Pellinen J. Talousohjaus ja kustannuslaskenta, WSOYpro. Specified chapters.
- Länsiluoto A. Lecture and practice handouts.
- Additional material provided by a lecturer.
- Additional material searched by students (e.g. journal article).