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ISE 304 Principles of Industrial Costing
(3-0-3)
King Fahd University of Petroleum and Minerals
Fall semester 2008
Instructor
Dr Muhammad Al-Salamah,
office 22-436, phone 1627, email alias salamah
Office hours
Sundays and Tuesdays from 10 to 11 and Saturdays from 1 to 2.
Catalog Description
Introduction to basic costing
concepts and
behavior,
with emphasis on manufacturing optimization through
labor and materials
cost analysis, operation and
overhead cost
calculations, product cost estimating, and finally setting product
selling price. Study of
the principles of costing systems and techniques of analysis and cost
control. Emphasis on interpretation and use of costing principles for
decision making.
Prerequisites
Calculus I, Junior Standing
Textbook
Fundamentals of Cost Accounting, 2nd edition, by M.
Maher, W. Lanen, M. Rajan, McGraw
Hill, 2008
Reference
Ostwald, Phillip F, McLaren, Timothy S.
Cost Analysis and Estimating for Engineering and Management.
Pearson Education,
2004.
Objective and Outcomes
- The Objective of ISE 304 is to introduce students to
costing principles through an exploration of concepts, tools, and
techniques from an engineering perspective so as to: a) gain the
necessary knowledge about the manufacturing economics principles and
concepts;
b) understand and apply different methods of product pricing; and
c) work in teams and communicate effectively through class
discussions and presentations.
- The Outcomes expected from ISE 304 are: 1. an
understanding of the common terms which comprise the language of
costing;
2. an understanding of how costing components are recorded,
classified, and summarized;
3. an understanding and applying different methods of manufacturing
labor and material cost analysis;
4. know different ways for calculating the manufacturing overhead
cost and know how to use them;
5. Gain the necessary knowledge about the
process
costing and
job costing and apply various operation and product cost
estimating techniques;
6. an ability to understand, interpret, and use costing as a base
for managerial information support and decision-making.
7. understand production
budgeting and
know how to write production budgeting and performance reports; and
8. understand engineering
contracts and
know how to write engineering contracts
Method Of Instruction
Two 75-minute lectures will be presented each
week. Class sessions
will be used to (1) present text concepts, (2) provide insights into
their use, and (3) answer questions regarding text material and/or
homework assignments.
Two one-hour majors, as well as a
two-hour comprehensive final examination will be given. Homework will
be assigned most class periods.
A team-based term project is required.
A team-based term paper is also required. For the term paper, a group
of 3 to 5 students will research and develop an overview of a specific
topic related to the course. At the end of the semester, each student in
the course will be provided a copy of all the groups' term papers for
future reference.
Grading
A student's course grade will be weighted based on total points
accumulated as defined by the following table.
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Two hour exams @ 20 points each (Nov 16 and Dec 28) |
40 |
|
Final Exam |
20 |
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Homework |
10 |
|
Project |
20 |
|
Quiz |
10 |
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Total Points Available |
100 |
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