Accounting II

COURSE OBJECTIVE
This course focuses on the use and analysis of accounting information. It conveys knowledge and skills about how specific financial and
management accounting methods and techniques are used in practice, and how this information is used in decision-making processes both within and outside corporations. Specifically, after completing the course, you are able to:
- use a commonly applied framework for analyzing and valuing companies;
- explain much-used methods and techniques for decision-making, planning and control. You will apply this knowledge on the basis of case
assignments and relevant examples (Bridging theory and practice – knowledge; Bridging theory and practice – application).
- critically assess specific accounting information, particularly about functioning of an organization and parts thereof, and the role that
this information plays in decision-making and management of companies (Broadening your horizon; Academic and Research skills).

COURSE CONTENT
The knowledge that you gained in the first year of the BSc Economics and Business Economics, specifically Accounting I, will be broadened and deepened. While Accounting I introduced you to specific methods and techniques in accounting from a preparer’s perspective, Accounting II takes the perspective of a user of accounting information. After completing this course, you will thus be able to critically analyze and interpret accounting information.

In accounting, one can broadly distinguish financial and management accounting. In financial accounting, the course emphasizes the
perspective of financial statement analysis. This means that there will be a focus on financial statements, particularly how the different
choices and decisions that are made when preparing these statements, and methods and techniques to analyze these choices. Specifically, after completing the course, you are able to:
- identify and analyze an organization’s strategy;
- analyze an organization’s financial accounting information;
- conduct financial analysis;
- conduct prospective analysis.

In management accounting, the course reviews the most important methods and techniques in this area, such as cost allocation, the analysis of cost behavior for decision-making, budgeting, variance analysis, transfer pricing and performance measurement. This course makes intensive use of cases to practice and apply course contents.
Specifically, after completing the course, you are able to:
- explain the most important types of cost;
- explain job-costing and process-costing systems and the relevant issues surrounding these systems;
- explain the most important methods and techniques in the area of cost allocation and know how to apply these;
- analyze cost and revenue behavior;
- explain which information is relevant for different decision-making purposes;
- explain the most important methods and techniques in the area of budgeting and know how to apply these;
- analyze and interpret variances;
- explain the most important methods in the area of transfer pricing;
- explain the most important principles behind methods and techniques in the area of performance measurement.

Accounting II builds on the knowledge gained in Accounting I, so it is highly recommended to have completed that course before taking
Accounting II.

TEACHING METHODS
Lectures
Tutorials

TYPE OF ASSESSMENT
Case assignments – Group assessment
In-class quizzes – Individual assessment
Written exam – Individual assessment

ENTRY REQUIREMENTS
Accounting I