Course Code & Number
IE 222
Course Title
Engineering Economy & Cost Analysis
Credit Hours/ ECTS Credits
(3+0+0) 3 TEDU Credits, 6 ECTS Credits
Type of Course:
Compulsory
Mode of Delivery:
Face-to-face
Language of Instruction:
English
Pre-requisite / Co-requisite::
Pre-requisites: NONE
Co-requisites: NONE
Catalog Description
Basics of financial accounting. Preparation of balance sheet, income statement and flow of funds statement. Definition of costs and cost analysis. Economic analysis for engineering decisions. Interest, time value of money, and methods for evaluation of alternatives. Techniques for evaluating the worth of investment opportunities. Sensitivity and risk analysis. After tax economic analysis, and methods of financing.
Course Objectives
The course aims to provide a general introduction to fundamental concepts of financial accounting and economic analysis for engineering and managerial decision making. The goal is to teach techniques for evaluating the worth of investment alternatives. The course also aims to teach methods to support engineering economic decisions as well as the replacement decisions incorporating depreciation, income taxes and inflation factors.
Course Learning Outcomes
Upon succesful completion of this course, a student will be able to
1. Apply the basic concepts in financial accounting and financial reporting systems. [a2,b2] [B3]
2. Use fundamental cost concepts and costing techniques for engineering and managerial decision making. [a2] [B3]
3. Describe time value of money and economic equivalence. [b2] [B1]
4. Apply the techniques for evaluating the worth of investment alternatives, project proposals and design choices.[b2, e] [B3]
5. Analyze the effects of depreciation, inflation, tax and accounting concepts on engineering economic decisions. [a2] [B4]
6. Apply the techniques for replacement decisions. [e] [B3]
Learning Activities and Teaching Methods:
Telling/Explaining
Discussion/Debate
Questioning
Reading
Problem Solving
Inquiry
Collaborating
Hands-on Activities
Assessment Methods and Criteria:
Test / Exam
Quiz
Assessment Methods and Criteria Others:
Recommended Reading
1. Gray, J. C., Ricketts, D. (1982), Cost and Managerial Accounting, McGraw-Hill
2. Cashin, J., Polimeni, R., Handy, S. (1994), Schaum's Outline of Cost Accounting (3rd edition), McGraw-Hill
3. Siegel, J. G., Shim, J. J. (1999), Schaum's Financial Accounting (2nd edition), McGraw-Hill
Required Reading
1. Horngren, C.T., Datar, S.M., Rajan M. (2011), Cost Accounting: A Managerial Emphasis, Prentice Hall
2. Park, C. S. (2007), Contemporary Engineering Economics (4th edition), Pearson Prentice Hall
Learning Activities and Teaching Methods Others:
Student Workload:
| Workload |
Hrs |
| Course Readings |
30 |
| Hands-on Work |
10 |
| Exams/Quizzes |
48 |
Course & Program Learning Outcome Matching:
