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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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Instructor’s Contact Info
Instructor:
Office Hours:
Email:
Phone:
Office:
Dr. Karndee Prichanont
Wednesday 9 a.m.-12 p.m. or by
appointment
karndee@siit.tu.ac.th
karndee@gmail.com
02-986-9009 ext 2109
IE Office, room 316
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Course Material
Main Textbook:
Blocher, Chen, Cokins, and Lin, Cost
Management: A Strategic Emphasis, McGrawHill/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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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Course Webpage
www.siit.tu.ac.th/karndee/course/ies342.html
Class web page contains:
–
–
–
–
–
–
–
–
If you wish not to have your
grades and scores appear
on the web, please let me
know now.
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
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Grading Policies
Tentative score distribution
Pop Quiz
Midterm Exam
Final Exam
Participation / Attendance / Professional
Conduct
10%
40%
40%
10%
Tentative grading criterion
Final Grade
Cumulative score
A
B+, B, C+, C, D+, D
F
>= 90
Subject to score distribution
< 40
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
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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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Class Policies
Pop 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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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
General Course Info
Part 1
Basic Financial Accounting
Part 2
Cost Behavior and Cost System
Part 3
Product Costing
Part 4
Budgeting
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Accounting System
Costs and Benefits
Benefits
Costs
Benefits
Costs
Obtain
system
Costs
Seek
alternatives
Benefits
>
<
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Accounting:
Information Process
Identification
of Users
User
Information
Needs
Economic Data
and Activities
Accounting
System
Reports
User
Decisions
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Part 1:
Financial Accounting
NetSolutions
Trial Balance
November 30, 2002
Understand and develop
financial statements
Textbooks:
• Warren, Reeve, and
Fess, Financial
Accounting, SouthWestern College, ed
8/2002.
• Chapters 1, 2, 3
11
14
17
21
31
32
41
51
52
54
55
59
Cash
Supplies
Land
Accounts Payable
Chris Clark, Capital
Chris Clark, Drawing
Fees Earned
Wages Expense
Rent Expense
Utilities Expense
Supplies Expense
Miscellaneous Expense
5,900
550
20,000
400
25,000
2,000
7,500
2,125
800
450
800
275
32,900
32,900
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Textbook:
Blocher, Chen, Cokins,
and Lin, Cost
Management: A
Strategic Emphasis,
McGraw-Hill/Irwin,
3/2005.
Dollars (thousands)
Part 2:
Cost Behavior and
Cost System
Break even sales point
8,000 units or $40,000
$ 50
$ 40
$ 30
$ 20
Fixed expense line
$ 10
Chapters 3, 6, and 7
$0
0
2
4
6
8
10
12
Units (thousands)
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Part 3:
Product Costing
Cost Drivers
• Activity-Based Costing
(ch 5)
• Job Costing (ch 4)
• Process Costing (ch 11)
• Cost Allocation (ch 12)
Product
A
Textbook:
Blocher, Chen, Cokins, and Lin, Cost
Management: A Strategic Emphasis,
McGraw-Hill/Irwin, 3/2005.
Product
B
Product
C
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Part 4:
Budgeting
Sales
summarizes the
planned activities
of all subunits of
an organization.
Textbook:
Blocher, Chen, Cokins, and Lin, Cost
Management: A Strategic Emphasis,
McGraw-Hill/Irwin, 3/2005.
Chapters 8 & 13
Production
Distribution
Finance
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
The uses of cost
management information
Information managers need to
effectively manage an organization.
Financial
information
about costs
and revenues.
Nonfinancial
information
about productivity
and quality.
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Strategic Management
vs
Strategic Cost Management
IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Who are we?
Strategic management
requires:
Define the goal
Anticipating changes.
 Understanding the business
and competitive environment.
 Ability to make changes
quickly.
 Ability to identify and solve
problems
from a cross-functional view.
Explore the environment

Allocate resource
Integrate sub-goals to
achieve ultimate goal
Strategic cost management is the development of cost
management information to facilitate strategic management.
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
Competitive Strategy
Cost Leadership
Product Differentiation
DISCUSSION:
Give example of products and/or companies that are
evidences of these competitive strategies.
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IES 342 Industrial Cost Analysis & Control | Dr. Karndee Prichanont, SIIT
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?
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