Cost and Revenue Management (MHR108)

This course provides students with the knowledge and tools to understand the relationships between production costs, market demand and revenue management. These factors are key determinants of business profit and, consequently, the sustainable development of any business. Modern leaders are expected to understand business processes designed to optimize financial performance across various market conditions. They must anticipate and react to market demand to maximize the business's revenues while controlling costs.


Course description for study year 2025-2026. Please note that changes may occur.

Facts

Course code

MHR108

Version

1

Credits (ECTS)

10

Semester tution start

Spring

Number of semesters

1

Exam semester

Spring

Language of instruction

English

Offered by
Time table

View course schedule

Content

The course has the following primary learning objectives:

  1. To understand the key cost elements in a standard financial statement for any business.
  2. To stimulate demand from different segments and maximize revenue in the service sector. The essence of this discipline is to understand customers’ value perceptions and align the right products with each customer segment.
  3. To review the economic principles of pricing and understand the importance of price differentiation for various market segments, as well as dynamic pricing in response to time-varying demand in the service sector.
  4. To understand how different pricing and revenue strategies can simultaneously affect both revenue and cost, and how to balance these to optimize profit.

Learning outcome

After completing the course, students should achieve the following learning outcomes, defined in terms of knowledge, skills, and general competence:

Knowledge

  • Understand the key indicators for measuring the economic performance of a business
  • Understand the essential cost elements within a business
  • Understand market complexities, including perishable and constrained inventory in the service sector.
  • Understand the various customer needs and willingness to pay across different market segments.
  • Understand the main pricing theories and strategies, including price discrimination, dynamic pricing, and package pricing.
  • Understand how different product development and pricing strategies can affect total revenue.
  • Understand how various market and revenue strategies can affect costs and how to balance revenue and costs.

Skills

  • Can read and interpret standard financial statements.
  • Can demonstrate basic business analytical skills
  • Can exchange views and experiences with professionals in the field of revenue management and cost control.
  • Can contribute to the development of best practices in revenue management.

General competence

  • Can apply theories to practical pricing strategies for a business
  • Are capable of presenting their findings and business insights to diverse audiences.
  • Can write a business analysis report in the field of cost and revenue management.

Required prerequisite knowledge

None

Recommended prerequisites

Some previous background in economics, markting and analytical skills are recommended.

Exam

Term paper and oral exam

Form of assessment Weight Duration Marks Aid
Term paper 2 3/5 Letter grades
Oral exam 2/5 Letter grades

The graded exam consists of two components: 60% written Term Paper 2 and 40% oral examination. Term Paper 2 builds upon Term Paper 1, expanding on its topics and providing more in-depth analysis. The oral exam evaluates students based on the content and analysis presented in Term Paper 2. Students are allowed to bring any materials, including both Term Papers, to the oral exam.

Coursework requirements

Term paper 1, Oral group presentation

One Term Paper (called Term Paper 1) and one oral presentation based on Term Paper 1.

In the course, there are two compulsory group assignments. The first is Term Paper 1, a written group assignment, and the second is an oral group presentation of a project related to Term Paper 1, conducted with the same group. Both Term Paper 1 and the oral presentation are evaluated on a pass/fail basis and are not graded.

Course teacher(s)

Course coordinator:

Jinghua Xie

Method of work

Expectations regarding hours of work:

MHR 108 is a 10 ECTS course, and the total expected workload is 280 hours broken down as follows (approximately):

  • Classes: 50 hours
  • Group projects: 100 hours
  • Independent study: 130 hours
  • Divided over 16 weeks = 17.5 hours per week"

Open for

Master students in Service leadership in International Business program. Master students on incoming exchange, and other master students from UiS when vacant places.

Course assessment

There must be an early dialogue between the course supervisor, the student union representative and the students. The purpose is feedback from the students for changes and adjustments in the course for the current semester.In addition, a digital course evaluation must be carried out at least every three years. Its purpose is to gather the students experiences with the course.

Literature

Search for literature in Leganto