NVB001 Managerial Economics

Contents and structure

• Do you want better insight into and understanding of your company's finances?
• Would you like to know how to read and analyze financial statements?
• Are you wondering how to price the goods and services you offer?
• Do you need a tool to calculate the cost of an expansion?

This course provides fundamental knowledge of business economics. It begins with an understanding of how financial statements are structured. Next, it covers how accounting data is processed in operational accounting for use in various types of decision-making. Costing methods and techniques for economic decisions in both the short and long term are central to the course. Additionally, it offers insight into both theoretical and practical issues related to investments and financing (loans), with a special focus on methods for profitability calculations.

Learning Outcome

Learning Outcomes

Upon completing the course, the student will

• possess fundamental knowledge of the purpose of financial accounting.
• understand the concepts of expenses, costs, payments, revenues, and receipts.
• comprehend the effects of changes in inventory changes.
• be able to explain the relationships between transactions and their impact on profit, balance sheets, and equity.
• be capable of analyzing financial statements using basic key performance indicators.
• have knowledge of various costing methods and be able to prepare full-cost and contribution margin calculations.
• be able to assess pricing for goods and services.
• be proficient in conducting cost-volume-profit analyses.
• understand the budgeting process for income, balance sheet, and liquidity.
• be able to budget cash flows for investment projects and loans, and apply various methods to calculate the profitability of investment projects.
• account for inflation and financing when preparing cash flows and perform basic sensitivity analyses.
• be able to use Excel for business economic analysis and investment analysis.

Entry requirements

None

Teaching methods

Four weekend sessions with lectures and work on exercises.

Online teaching between the physical sessions as needed.

Compulsory learning activities

Two mandatory assignments must be approved to qualify for the exam.

Assessment

Three-day individual written home exam.

Grading scale: A-F, where F indicates a fail.

The exam may be conducted using a digital exam system.

Examination support material

All aids are permitted.

More about examination support material