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Learning outcomes
 After this course students will:

• Understand and apply basic concepts of costs and profitability
• Understand and apply basic and advanced cost tracing and assignment methods (job costing, process costing, traditional costing, ABC) to accurately determine profitability
• Understand and apply tools for profitable operational and strategic decision making (cost volume profit analysis, pricing and product mix decisions, customer analysis)

Content
Managing costs (understood as capacity and material inputs to the implementation of organizational strategy) is essential for achieving product and service profitability and ultimately organizational profitability. Understanding what gives rise to costs is hence essential for the survival of any kind of organization. This course focuses on developing an actionable understanding of profitability from the costing perspective.

Students will gain an intermediate-level understanding of profitability and profitability management from the costing perspective. They will also explore various cost assignment and tracing techniques, and discuss their applications, as well as their strengths and weaknesses. After arriving at a basic understanding on costing we explore uses of cost information for profitable decision making performance management.

Teacher
David Derichs, PhD 

Study material
Required: Rajan Datar Horngren (2021). Cost Accounting: A Managerial Emphasis 17th Edition, Global Edition

Alternative (please check chapter mapping provided in MyCourses – students take responsibility for assuring content fit of all chapters): Rajan Datar Horngren (2015). Cost Accounting, Global Edition.

Online learning environment for the course & Activating Aalto ID

MyCourses online learning environment is a tool for both students and teachers for communication and managing everyday course work. You need an Aalto User ID to log in to the course's MyCourses workspace and participate in teaching. You can activate your Aalto User ID the day after the registration and you should activate it no later than the day before the start of the course. Instructions for activating your Aalto User IDDigital workspace of the course:
More details on completing the course will be available at MyCourses closer to the start of the course.

Workload
Pre-recorded lectures: 18 h
Case work (group (intended) or individual (if necessary)): 18 h
Individual home assignments (about 60% more individual work): 30 h
Independent study: 86 h
Exam: 2 h - booked through the EXAM system and taken in EXAM facilities

Prerequisites
22A00110 Laskentatoimen perusteet / ABL-A1300 Yrityksen talouden johtaminen ja raportointi or similar course

Evaluation
Exam
Cases (group work)
Exercises
Oppotunity to earn bonus points - detailed info provided on the course page

To pass the course the student has to get: (a) at least 50% of the exam and (b) + cases / exercises of at least 50%

Teaching time and location
The course time is 5.5.-19.6.2025. The course is independent self-learning course and can be completed online. There are weekly case works and individual assignments. Please notice that the exams are at Aalto University campus in Otaniemi.

Exams
The exams for this course are conducted as electronic EXAM room exams at Otaniemi campus. The teacher will provide more detailed instructions for the exam.

Exam completion period: 9.-19.6.2025. Students book their exam time themselves through the system. The teacher will provide more detailed instructions for the exam.

Retake exam completion period: 18.-29.8.2025. Please, remember to register for the retake in Sisu on 11.8.2025. at the latest.  

Exam instructions at the Open University

Registration and course fee

Registration for Open University courses is done via the link below:

Registration for this course starts on 17.3.2025 at 9.00  
Registration for this course ends on 7.5.2025 at 23.59
 

It is not possible to register before the registration period has started or after it has ended.


The course fee is paid upon registration for each course at a time and it is binding. Familiarize yourself with registration and payment rules as well as other guidelines for students:
Registration, payments and rules

If you are an attending degree student at Aalto University, it is possible for you to complete this course for free of charge during summer 2025. Registration is done normally in Sisu. Please make sure that you have the correct course code in your study plan before registering to the course. You can check the course code from the top of this page.
Instructions for course registration (for Aalto degree students)For this course, free spots are available for Aalto University staff. Staff registration is open 3.3.-14.3.2025 via. Read further information on the registration from the page Lifewide Learning study offering for staff.

This course is organized by the Aalto University Open University.

Access Token on Aalto University Campus

To be able to enter campus premises and classrooms you need the student access token of Aalto University. You can get the student access token from campus lobby services. The access token need to be activated with your Aalto account and password before you can use it. Please, arrive the campus well in advance before your first class so that you can make the access token work. Please, see the instructions how to get and activate the access token: How to get an access tokenOtaniemi Campus, Espoo: Campus map

Individual study arrangements

If you need individual study arrangements in order to attend a course, contact the Open University in good time, at least 14 days before the start date of the course or the examination date. Further information and instructions for applying individual study arrangements can be found here:Individual study arrangements at Open University