342_wk01_1_Course Overview.ppt

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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT

IES 342: Course Overview

Chapter 1 (Blocher et al.)

Objectives:• Get consensus on class policies• Preview of course contents• Case Study: The Cappuccino Express

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Instructor’s Contact Info

Instructor: Dr. Karndee Prichanont

Office Hours: Wednesday 9 a.m.-12 p.m. or by appointment

Email: [email protected]

[email protected]

Phone: 02-986-9009 ext 2109

Office: IE Office, room 316

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Course Material

Main Textbook: Blocher, Chen, Cokins, and Lin, Cost Management: A

Strategic Emphasis, McGraw-Hill/Irwin, 3/2005. Supplements:Blocher, Chen, Cokins, and Lin, Cases and Readings for Use

with Cost Management: A Strategic Emphasis, McGraw-Hill/Irwin, 3/2005.

Horngren, Datar, and Foster, Cost Accounting: A Managerial Emphasis, 12/2006

Warren, C. S., J. M. Reeve, and P. E. Fess, Financial

Accounting, South-Western College, ed 8/2002.

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Course Webpage

www.siit.tu.ac.th/karndee/course/ies342.html

Class web page contains:– Class announcement– Class presentations– Additional handout and case studies– Additional reading materials and links to related articles– FAQ to assignments and class material– Previous exams and exam practice problem– Individual grades and scores– Inform me ASAP if you have questions with current grade / grading

system

If you wish not to have your grades and scores appear on the web, please let me know now.

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Grading Policies

Tentative score distribution

Pop QuizMidterm ExamFinal ExamParticipation / Attendance / Professional Conduct

10%40%40%10%

Tentative grading criterion

Final Grade Cumulative score

AB+, B, C+, C, D+, D

F

>= 90Subject to score distribution

< 40

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Class Policies

Classroom Behavior• Turn-off your cell phone and pager• Be on time. The door may be locked after the class starts• Minimize class interruption• No bathroom break during class session• Food and drink are ok

Participation• Attendance is a minimum requirement for participation• Read and analyze the assigned case study before the class begins• Active participation in class discussion is anticipated• If participation is not active enough, I will call on your name to answer my question• Only quality and constructive comments/discussions will receive participation score

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Class PoliciesPop Quiz• Pop quiz is randomly scheduled. No advance notification.• Close book/note. Calculator may be needed.• Strictly no borrowing• Cheating will result a minus of full score of that quiz.

Exam Policies• Open book/note (tentatively)• Strictly no borrowing

Makeup Policy• Only for rare and extreme cases• Documented advance notification

Dress Code• Only in a sensible uniform is allowed to enter the class room

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General Course Info

Part 1Basic Financial Accounting

Part 2Cost Behavior and Cost

System

Part 3Product Costing

Part 4Budgeting

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Accounting SystemCosts and Benefits

Benefits Costs

Benefits Costs>

Benefits< Costs

Obtainsystem

Seekalternatives

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Accounting: Information Process

Identificationof Users

UserInformation

Needs

AccountingSystem

Reports

Economic Dataand Activities

UserDecisions

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Part 1: Financial Accounting

Understand and develop financial statements

Textbooks:• Warren, Reeve, and

Fess, Financial Accounting, South-Western College, ed 8/2002.

• Chapters 1, 2, 3

NetSolutionsTrial Balance

November 30, 2002

11 Cash 5,90014 Supplies 55017 Land 20,00021 Accounts Payable 40031 Chris Clark, Capital 25,00032 Chris Clark, Drawing 2,00041 Fees Earned 7,50051 Wages Expense 2,12552 Rent Expense 80054 Utilities Expense 45055 Supplies Expense 80059 Miscellaneous Expense 275

32,900 32,900

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Part 2: Cost Behavior and Cost System

$ 0

$ 10

$ 20

$ 30

$ 40

$ 50

0 2 4 6 8 10 12

Units (thousands)

Dollars

(th

ou

san

ds)

Break even sales point8,000 units or $40,000

Sales revenue lin

e

Total expense

Fixed expense line

Textbook:

Blocher, Chen, Cokins, and Lin, Cost Management: A Strategic Emphasis, McGraw-Hill/Irwin, 3/2005.

Chapters 3, 6, and 7

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Part 3: Product Costing

• Activity-Based Costing (ch 5)

• Job Costing (ch 4)• Process Costing (ch 11)• Cost Allocation (ch 12)

ProductA

ProductB

ProductC

Cost Drivers

Textbook:Blocher, Chen, Cokins, and Lin, Cost Management: A Strategic Emphasis, McGraw-Hill/Irwin, 3/2005.

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Part 4: Budgeting

summarizes theplanned activitiesof all subunits ofan organization.

Sales

Production

Distribution

FinanceTextbook:Blocher, Chen, Cokins, and Lin, Cost Management: A Strategic Emphasis, McGraw-Hill/Irwin, 3/2005.

Chapters 8 & 13

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The uses of cost management information

Information managers need toeffectively manage an organization.

Information managers need toeffectively manage an organization.

Financialinformationabout costs

and revenues.

Nonfinancialinformation

about productivityand quality.

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Strategic Managementvs

Strategic Cost Management

Strategic management requires: Anticipating changes. Understanding the business and competitive environment. Ability to make changes quickly. Ability to identify and solve problems from a cross-functional view.

Strategic management requires: Anticipating changes. Understanding the business and competitive environment. Ability to make changes quickly. Ability to identify and solve problems from a cross-functional view.

Strategic cost management is the development of costmanagement information to facilitate strategic management.

Strategic cost management is the development of costmanagement information to facilitate strategic management.

Who are we?

Define the goal

Explore the environment

Allocate resource

Integrate sub-goals to achieve ultimate goal

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Competitive Strategy

DISCUSSION:

Give example of products and/or companies that are evidences of these competitive strategies.

DISCUSSION:

Give example of products and/or companies that are evidences of these competitive strategies.

Cost LeadershipCost Leadership

Product DifferentiationProduct Differentiation

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CASE:Cappuccino Express

Discussion Topics• What factor(s) can be expected to have a major

impact of the success of The Cappuccino Express?

• What are the major costs of operating The Cappuccino Express?

• Vincent would like to monitor the performance of each site manager. What measure(s) of performance should he use?

342_wk01_1_Course Overview.ppt

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