IES 342: Course Overview

1
IES 342 Course Overview

• Chapter 1 (Blocher et al.)
• Objectives
• Get consensus on class policies
• Preview of course contents
• Case Study The Cappuccino Express

2
Instructors Contact Info

• Instructor Dr. Karndee Prichanont
• Office Hours Wednesday 9 a.m.-12 p.m. or by
  appointment
• Email karndee_at_siit.tu.ac.th
• karndee_at_gmail.com
• Phone [phone] ext 2109
• Office IE Office, room 316

3
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.
5
Grading Policies
Tentative score distribution
Tentative grading criterion
6
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

7
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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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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Accounting SystemCosts and Benefits
Benefits
Costs
Obtain system
Benefits
Costs
gt
Seek alternatives
Benefits
lt
Costs
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Accounting Information Process
Identification of Users
User Information Needs
Economic Data and Activities
Accounting System
Reports
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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

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Part 2 Cost Behavior and Cost System
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
Cost Drivers

• Activity-Based Costing (ch 5)
• Job Costing (ch 4)
• Process Costing (ch 11)
• Cost Allocation (ch 12)

Product A
Product B
Product C
Textbook Blocher, Chen, Cokins, and Lin, Cost
Management A Strategic Emphasis,
McGraw-Hill/Irwin, 3/2005.
14
Part 4 Budgeting
Sales
Production
summarizes the planned activities of all subunits
of an organization.
Distribution
Finance
Textbook Blocher, Chen, Cokins, and Lin, Cost
Management A Strategic Emphasis,
McGraw-Hill/Irwin, 3/2005. Chapters 8 13
15
The uses of cost management information
Information managers need toeffectively manage
an organization.
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Strategic Managementvs Strategic Cost Management
Who are we?

• 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.
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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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CASECappuccino 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?