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ME1301 Industrial Management, Advanced Course 6.0 credits

The aim of the course is to provide you with the ability to understand, design and handle methods in the area of management control for industrial organisations.

Course offering missing for current semester as well as for previous and coming semesters
Headings with content from the Course syllabus ME1301 (Autumn 2009–) are denoted with an asterisk ( )

Content and learning outcomes

Course contents

The course consists of lectures with theoretical concepts, practical examples and excersises in the following fields:

1. Product and period costs, and their use in costing systems. Different costs for different purposes. Cost allocation

2. Order costing (job shop & batch) and process costing

3. Absorption costing, variable costing, and throughput costing.

4. Activity-Based Management: The concept of activities and processes. Includes methods such as Activity-Based Costing and Activity-Based Budgeting

5. Planning and Decision Making. How information is used for decisions. Cost-volume-profit analysis, budgeting, investment analysis, and cost estimations are explained.

6. Evaluating and Managing Performance. Standard cost analysis, "The Balanced Scoread card" and Kaizen costing. The importance of time, quality, and customer profitability is stressed.

Intended learning outcomes

The aim of the course is to provide you with the ability to understand, design and handle methods in the area of management control for industrial organisations. This means that after the course you should be able to:

1. Understand the construction of and the use of a job shop and a process-costing system, as well as the difference between product and period costs.

2. Define the content of and understand the use of the major tools in the following areas: cost management, value chain analysis, activity-based management (costing, budgeting and accounting), customer profitability analysis, quality management, time management, cost estimation and cost-volume-profit analysis, kaizen costing, standard cost analysis, budgeting, investment analysis, and performance evaluation, and measurment and process control.

3. Describe and understand the meaning of the different types of management control systems that exist.

4. Choose (and argue for the choice) between different management control systems.

5. Understand how information in different types of management control systems are used for decision-making.

6. Apply the theoretical concepts of management control systems to companies in different types of industries.

7. Implement different tools for management control in a spreadsheet tool, building on the theoretical concepts.

8. Critically evaluate and compare management control systems used by companies in different types of industries.

Course disposition

No information inserted

Literature and preparations

Specific prerequisites

Only for CINEK2

Industrial Management, Basic course

Recommended prerequisites

No information inserted


No information inserted


”Den nya ekonomistyrningen”. Ax, Johansson and Kullvén. Liber ekonomi, latest edition.

Examination and completion

If the course is discontinued, students may request to be examined during the following two academic years.

Grading scale

A, B, C, D, E, FX, F


  • SEM3 - Seminar, 2,0 hp, betygsskala: A, B, C, D, E, FX, F
  • TEN2 - Examination, 4,0 hp, betygsskala: A, B, C, D, E, FX, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Opportunity to complete the requirements via supplementary examination

No information inserted

Opportunity to raise an approved grade via renewed examination

No information inserted


Profile picture Thomas Westin

Ethical approach

  • All members of a group are responsible for the group's work.
  • In any assessment, every student shall honestly disclose any help received and sources used.
  • In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.

Further information

Course web

Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

Course web ME1301

Offered by

ITM/Industrial Economics and Management

Main field of study

Industrial Management, Technology

Education cycle

First cycle

Add-on studies

The second level course ME2028 Behavioural management control” follows directly from this course.


Bo Karlson, (

Supplementary information

Established 2001—11-01.

Ersätter 4D1124.