Course code BUS316

BUS316 Activity Based Costing (ABC); Management and Cost Accounting

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Showing course contents for the educational year 2022 - 2023 .

Course responsible: Øystein Dahl
Teachers: Stig Aleksander Aune
ECTS credits: 5
Faculty: School of Economics and Business
Teaching language: NO
(NO=norsk, EN=Engelsk)
Limits of class size:
Teaching exam periods:
This course starts in the August block period. Teaching/evaluation in the August block period.
Course frequency: Annually
First time: Study year 2020-2021
Course contents:
  • Key concepts in traditional and strategic financial management
  • Basics of calculations and calculation in financial management
  • Historical development of various methods within financial management
  • What is ABC, how and why, and for whom?
  • Different philosophies for Activity Based Costing
  • Organization of an ABC project, how to carry it out in practice
  • In-depth study of the main steps in an ABC analysis, including:
    • Understanding of cost objects - customers, products, services, orders, projects
    • Activity studies and activity analysis
    • Resource analysis
    • How to select relevant cost drivers for analysis
    • Revision of estimated contribution margin and direct cost.
    • Compilation of results
  • How to use results from the analysis - financial business management with ABC
Learning outcome:
After completion of the course, students will:
  • know the principles and method of Activity Based Costing
  • understand the principles of good and value-creating financial business management
  • calculate real profitability, especially from customers and products
  • be able to perform an ABC analysis
Learning activities:
Lectures at campus. 2 days with lectures - case work - 1 day work with cases and recap. 
Selected professional articles. Presented before course start.
General understanding and knowledge of accounting and management accounting, and business administration like BUS110 and BUS210
Recommended prerequisites:
The students should have basic knowledge of excel in order to create simple ABC-models. 
Mandatory activity:

The students must work with a case that will be presented on the final lecture day.

The case work will be done in groups and every student must participate in a case work in order to take the exam

Final written exam, 3.5 hours, which counts 100%.
Nominal workload:
125 hours.
Type of course:
Teaching for three weeks. Full day two days beginning of course, case study, final full day,
External examiner ensures the quality of the syllabus, exam assignments and principles for evaluation and answers.
Allowed examination aids: C3 All types of calculators, all other aids – including digital aids
Examination details: Written exam: Letter grades