Course code Ekon3123

Credit points 1.50

Accounting I

Total Hours in Course60

Number of hours for lectures8

Number of hours for seminars and practical classes16

Independent study hours36

Date of course confirmation02.02.2016

Responsible UnitInstitute of Finance and Accounting

Course developer

author Finanšu un grāmatvedības institūts

Laila Kelmere

Mg. oec.

Prior knowledge

Ekon1001, Theory of Economics

Mate3012, Mathematics

Course abstract

This course provides basic knowledge of cost-setting, classification, cost accounting and analysis methods, cost calculation methods, pricing methods, planning and control, as well as theoretical knowledge for assessing the various cost-related risks in order to take qualitative decisions for efficient business management.

Learning outcomes and their assessment

Knowledge – in cost accounting, cost management, cost calculation (selecting the most appropriate methods and techniques), cost control, risk assessment and decision-making, financial planning; Assessment method: test with calculations, discussions in classes. Skills – understanding the main tasks of management accounting, identifying and classifying costs and on the basis of which costs are calculated, calculating the bid price, analysing the results obtained, understanding the conditions under which a company can work with or without losses, identifying the causes and developing proposals for tackling problems or improving the situation taking into account the changing market situation; Assessment method: practical assignments, test with calculations, discussions in classes. Competencies - can use the acquired knowledge for the company's productions, service provisions, and sales process evaluation. Can manage costs and prepare proposals for cost reduction, is able to plan profit and use it. Assessment method: tests, practical assignments.

Course Content(Calendar)

1. Accounting tasks and objectives of the management accounting. Comparative characteristics of financial and management accounting. 2. Cost accounting tasks and targets. Basic concepts for cost and return calculations. 3. Classification of costs according to their functions and nature. 4. Classification of costs in cost analysis and cost estimates. 5. Cost accounting per cost location. Methods for allocating general costs. 6. Cost carrier unit cost estimates (full cost calculation). 7. Full cost calculation techniques: calculation with division. 8. Full cost calculation techniques: calculation with addition rates. 9. Cost dividing into constant and variable costs. 10. Calculation of variable cost. 11. Calculation of the cost of the process and use of it. 12. Contribution margin and its analysis. 13. Break-even point and its analysis. 14. Setting the profit or loss threshold by an equation and graphical method. 15. Price calculation. Basic principles for pricing. Trade discounts and their application. 16. Discounts for food groups and services, pricing techniques at catering companies.

Requirements for awarding credit points

Test with mark - the average score in the balls, which consists of successfully completed 2 tests: 1) costs, their classification, the full cost calculation, also using the addition rates, the calculation of variable costs and the presentation of the obtained results with a graphical method and their analysis; 2) variable cost calculation, process cost calculation, break-even point, profit or loss threshold, price calculation and final test, consisting of test, open questions and tasks related to the courses and solved tasks discussed at the course, and successfully completed practical work.

Description of the organization and tasks of students’ independent work

Learning and strengthening the theory material by solving tasks and tests. Preparing for tests.

Criteria for Evaluating Learning Outcomes

Test with mark – average score in balls.

Compulsory reading

1. Alsiņa R., Marinska K., Bojarenko J. Vadības grāmatvedība: teorija un prakse. Rīga: SIA KIF „Biznesa komplekss”, 2011, 239 lpp. 2. Benze J. Izmaksu uzskaite un pašizmaksas kalkulācija. Auditorfirma “Grāmatvedis”, Rīga 1996, 134 lpp. 3. Pelšs A. Vadības grāmatvedība. KIF Biznesa komplekss, Rīga 2001: 1. daļa – Izmaksu uzskaite un pašizmaksas kalkulācija. 2. daļa – Izmaksu analīze lēmumu pieņemšanai. 4. Forands I. Viesnīcas menedžments. Rīga: Latvijas Izglītības fonds, 2011, 230 lpp. 5. Ministru kabineta 22.12.2015. noteikumi Nr. 775 “Gada pārskatu un konsolidēto gada pārskatu likuma piemērošanas noteikumi”. Stājas spēkā: 01.01.2016. Pieejams: 6. Jiambalvo J. Managerial Accounting: International Student Version. Hoboken: John Wiley & Sons. Inc., 2010. 572 p.

Further reading

1. Gada pārskatu un konsolidēto gada pārskatu likums. Pieņemts: 22.10.2015. Stājas spēkā: 01.01.2016. Pieejams:
2. Garrison Ray H. Managerial accounting : concepts for planning, control, decision making (6th ed.). Homewood(IL); Boston (MA): Irwin, 1991. 810 p.
3. Horngren C.T., Sundem G.I. Introduction to Management Accounting (7th ed.). USA: Prentice Hall, 2002. 762 p

Periodicals and other sources

1. Bilance: grāmatvedība, likumdošana, finanses: žurnāls par grāmatvedību, likumdošanu un finansēm. Rīga: Lietišķās informācijas dienests. 2005- ISSN 14075709
2. iFinanses. Rīga: Izdevniecība iŽurnāli. ISSN 2255-985X


Professional specialisation course at the Faculty of Food Technology in the study programme “Catering and Hotel Management” for the professional higher education bachelor’s degree programme during the 5th semester in full and part-time studies.