MSE 608C - SEMINAR IN ENGINEERING FINANCIAL AND …



MSE 608C - SEMINAR IN ENGINEERING FINANCIAL AND COST ANALYSIS

Tuesday, 7:00 - 9:45 pm, Ticket 14734, Spring 2009, Sagebrush Hall SG101

Instructor Scott Wainess

Department of Manufacturing Systems Engineering and Management

Daytime telephone (805) 581-5900;

Email: swainess@csun.edu

Office Hours: Room JD3312; Tuesday and Thursday 5:45 - 6:45 pm

MSEM Department Office: JD4510; (818) 677-2167

MSEM Homepage:

Text Henry E. Riggs, Financial and Economic Analysis for Engineering and Technology Management. John Wiley& Sons, Inc., Second Edition 2004 (ISBN 0-471-22717-X)

Supplements Articles and Workbooks:

• David Henry, Fuzzy Numbers, BusinessWeek October 4. 2004.



• William G. Droms, Finance and Accounting for Nonfinancial Managers. Perseus Books, 1997



• Schaum’s Outlines (or similar workbooks for more problem solving)

o Bookkeeping and Accounting (ISBN 0-07-146458-1)

o Cost Accounting (ISBN 0-07-011026-3)

o Managerial Accounting (ISBN 0-07-058041-3)

Course Description (CSUN Catalog):

Fundamental concepts and methods of engineering financial and cost analysis. Understanding the relevance of financial and managerial accounting to the effective management of engineering and technology projects.

Purpose:

The learning experiences in this course are intended to enhance your knowledge of basic accounting, managerial accounting, cost accounting, budgeting and financial analysis, to facilitate the development of your managerial decision-making abilities in situations in which funding is one of the criteria.

Evaluation Components:

5% Participation

15% Weekly Quizzes

20% Accounting team project

20% Test #1 - Midterm

20% Financial Analysis team project

20% Test #2 – Final Exam

100%

Letter Grade Scale (points are not rounded up or down for final score:

A ≥92 78 ≤ B- < 80 F < 60

89 ≤ A- < 92 75 ≤ C+ < 78

85 ≤ B+ < 89 70 ≤ C < 75

80 ≤ B < 85 60 ≤ D < 70

|Wk |Date |Chapter |Lecture Topics |This Week’s Assignment |

|1 |1/20 |1-2 |Why should engineers and engineering managers study accounting? |Read |

| | | |Accounting definitions |Chapters 1, 2, 3 |

| | | |The Fundamental Accounting Equation and Owner’s Equity |“Fuzzy Numbers” handout |

| | | |Valuing tangible and intangible assets |Exercises: |

| | | | |Chapter 1; #1, 4, 7, 9 |

| | | | |Chapter 2; #19, 20 |

|2 |1/27 |3 |Review Chapter 1 & 2 homework |Read |

| | | |Financial Accounting |Chapters 4 (note Chart of Account examples on pg |

| | | |Discuss “Fuzzy Numbers” |73, 74, 118, 119) |

| | | |The Balance Sheet |Accounting Team Project handout |

| | | |Double-entry bookkeeping |Exercises: |

| | | | |Chapter 3; #2, 8, 15, 16, 18, 19 |

|3 |2/3 |4 |Review Chapter 3 homework |Read |

| | | |The Income Statement |Chapters 5 in Riggs |

| | | |Revenues and Expenses |Exercises: |

| | | |Accrual vs Cash Basis accounting |Chapter 4; #5, 6, 12, 15, 18 |

| | | |The accounting period | |

| | | |Handout for Accounting group project | |

|4 |2/10 |5 |Review Chapter 4 homework |Read |

| | | |The Cash Flow Statement |Chapters 6 in Riggs |

| | | |Sources and Uses of Cash |Exercises: |

| | | |Formatting a Cash Flow Statement |Chapter 5; #3, 13, 15 |

| | | |What does the Cash Flow Statement show? | |

| | | |Practice example(s) | |

|5 |2/17 |6 |Review Chapter 5 homework |Read |

| | | |Basic Assumptions of Accounting |Chapters 7 & 8 |

| | | |Where do specific rules come from? |Exercises: |

| | | |Special Income Tax rules |Chapter 6; #1, 5 |

| | | |Bookkeeping systems and procedures | |

| | | |The accounting cycle | |

|6 |2/24 |7 & 8 |Review Chapter 6 homework |Read |

| | | |Special accounting procedures |Chapter 9 |

| | | |Prepaids and accruals |Complete financial accounting team project |

| | | |Prompt payment discounts |Exercises: |

| | | |Inventory |Chapter 7; #18, 20, 22* |

| | | |Price level changes |Chapter 8; #18, 23 |

| | | |Disposition of Fixed Assets |*Make end-of-period adjusting entries in T-account |

| | | |Income taxes |format |

| | | |Long-term assets | |

| | | |End of period adjusting entries | |

|7 |3/3 |9 |Review Chapter 7 & 8 homework |Read Chapter 10 and 11 (Do not read “Introduction to|

| | | |Submit Accounting project |the Cost of Capital”, pg 240) |

| | | |Ratio analysis |Exercises: |

| | | |Discuss Financial Analysis Case Study team project |Chapter 9; #15, 16 (has error) |

|8 |3/10 |10 |Review Chapter 9 homework |Study for Midterm Exam |

| | | |Review Accounting project | |

| | | |Equity financing |Exercises: |

| | | |Debt financing |Chapter 10; #19 |

| | | |Leverage |Chapter 11; #7, 9, 10, 12, 15, 17, 20 |

| | | |Analysis of financial statements | |

| | | |“Cooking the Books” | |

|9 |3/17 | |MIDTERM – Chapters 1 thru 9 |Read Chapter 13 |

|10 |3/24 |11 |Review Test #1 |Exercises |

| | | |Review Chapter 10 and 11 homework |Chapter 13; #1, 2, 4, 6 |

| | | |Cost accounting |Read |

| | | |Historical development of cost accounting |Chapters 13A and 13B (note text errors are posted) |

| | | |Manufacturing and Non-manufacturing costs | |

| | | |Product vs. Period costs | |

| | | |Collecting Costs | |

| | | |Non-manufacturing overhead | |

| | | |Standards vs actuals | |

|11 |3/31 | |Ceasar Chavez Holiday |Work on Financial Analysis Project |

|12 |4/7 | |Spring Break |Work on Financial Analysis Project |

|13 |4/14 |13 |Review Chapter 13 homework |Read |

| | | |Applying overhead |Chapter 14 (exclude pg 355 thru 362) |

| | | |Accounting for Overhead |Exercises: |

| | | |Variable costing vs. Full absorption |Chapter 13; #14, 15 |

|14 |4/21 |14 |Review Chapter 13 homework |Read |

| | | |Managerial accounting |Chapter 15 |

| | | |CPV curves |Handout on Variance Analysis |

| | | |Breakeven analysis |Droms Supplement (see link) |

| | | |Operating Leverage |Exercises: |

| | | |Introduction to Budgeting |Chapter 14 Handout |

|15 |4/28 |15 |Review Chapter 14 homework |Complete Financial Analysis Project. |

| | | |Budget process | |

| | | |Flexible vs. Fixed Budgets |Read |

| | | |Analyzing performance to budget |Review Chapter 13A and 13B |

| | | |Variance analysis |(Note: errors on page 329) |

| | | | |Exercises: |

| | | | |Appendix 13A; #5 |

| | | | |Appendix 13B; #4,5 + |

| | | | |Chapter 13 Handout |

| | | | |Chapter 15; # 14* |

| | | | |*Note errors pg 411 |

|16 |5/5 | |Submit Financial Analysis Project |Study for FINAL EXAM |

| | | |Review Chapter 13A & B, 13 Handout and 15 | |

| | | |Submit and discussion Financial Analysis team projects | |

| | | |Review Chapter 13A and 13B homework | |

| | | |Review Chapter 15 homework | |

| | | |Control of Expenses | |

| | | |Zero-based budgeting | |

| | | |The Cash Budget | |

|17 |5/12 Exams |---- |FINAL EXAM – Chapters 10, 11, 13, 13A, 13B, 14, 15 + all handouts | |

| | | |(does not include excluded reading) 8:00 to 10:00 PM | |

Text Errata: (corrections to be supplied by Instructor on website)

|Chapter 5, Page 104, Problem 5-13 |Chapter 13A, Page 329 |

|Chapter 7, Page 160, Problem 22 |Chapter 14, Page 365 |

|Chapter 9, Page 199 |Chapter 15, Page 411, Problem 14 |

|Chapter 9, Page 219, Problem 16 | |

Weekly Quizzes:

Each week you should be prepared for a quiz but they will be given at the discretion of the Instructor. The quiz will be administered after reviewing the homework. It will cover the homework just reviewed and the lecture from the previous week. It will usually be 1 to 2 questions.

To do well you must come prepared. This includes having attempted all the homework so you are familiar with the subject matter and reviewing the previous week’s lecture. The homework review will allow you to correct any misunderstandings you may have prior to the quiz.

Make up quizzes are at the Instructors discretion and only under extraordinary circumstances. To qualify you must have notified the Instructor well in advance of the absence (not the same day) and have a critical reason for not attending class.

Participation Grade:

This primarily consists of the student submitting the required Peer Reviews for the two projects and for the level of participation in the projects. For example, if it is determined to the Instructors satisfaction that the student did not fully participate in team meetings and/or provide useable, quality work then there may be a deduction in this grade.

Projects:

There are two assigned team projects. Students will be divided into 4-member teams and remain together for the two projects. Each student is required to fully participate in the work on both projects. Failure to do so will result in either a deduction in your Participation grade or a lower grade for the offending student on the project (the choice will be at the Instructor discretion).

Keep electronic copies of all your work. You may be required to show this to the Instructor to support your participation in the project.

Occasionally students find team participation difficult. It is critical that this be brought to the Instructors attention as early as possible. This will allow the Instructor the opportunity to get involved and try to help the team to get the best possible grade. Once the project is submitted there is nothing that can be done to improve the grade.

Remember that group projects are an important part of the Engineering Management program and critical to your professional success.

Classroom Protocol:

□ Conductor yourself courteously and professionally during class.

□ Do not interrupt the Instructor or class if you are late. Take a seat by the door.

□ Return on time from the break. If you are late then take a seat by the door.

□ The use of computers during lecture is not allowed.

□ Silence all cell phones and similar devices. Notify the Instructor in advance if you may be receiving a critical call during class and take a seat by the door to minimize distractions if you leave

□ Be prepared to discuss the reading assigned for the week. This is a Graduate seminar class.

□ Complete the homework assigned for the week.

□ Do not conduct personal discussions during class but you are encouraged to discuss the lecture and related topics with the Instructor and class. This is a Graduate seminar class.

STANDARD OPERATING PROCEDURES

1. Class members are encouraged to maintain personal and professional standards consistent with The Fundamental Principles of the Code of Ethics of the Accreditation Board for Engineering and Technology; i.e.,

Engineers uphold and advance the Integrity, honor and dignity of the engineering profession by:

o using their knowledge and skill for the enhancement of human welfare;

o being honest and impartial, and serving with fidelity the public, their employers and clients;

o striving to increase the competence and prestige of the engineering profession; and

o supporting the professional technical societies of their disciplines.

2. Withdrawing from (dropping) this course should be accomplished during the first two weeks

of instruction. Please note that failure to officially drop any course results in a grade of U, which

is the equivalent of an F for your transcript and grade point average. For additional information

regarding withdrawals, see FAQs at .

3. Class members are expected to attend all class sessions and to be prompt.

4. Class members are expected to be considerate and respectful of one another.

5. Budgeting 4-5 hours per week for this course, in addition to class attendance, is not

unreasonable. You should plan for 2 to 3 hours of reading; 2 hours of homework and other time for team projects and preparing for exams.

6. All projects submitted for evaluation must be typed and have a professional appearance.

7. Professionalism dictates timely submission of assignments. Tardy assignments are

unacceptable to the instructor and unfair to other class members.

8. All graduate students majoring in MSEM Department programs (i.e.. Automation Engineering, Engineering Management, Materials Engineering) have a CSUN email account. This is the account that will be used by the Instructor. This listing is used for special notifications (e.g., course scheduling changes, academic advisement notices, social events, and emergencies). You may add a “pointer” to your CSUN account to direct email to a different email server of your choosing.

Please be aware of this email regarding academic dishonesty distributed to all faculty. I consider this to be a serious matter and will comply with the responsibilities expected by the University.

Subject:  Reporting Academic Dishonesty

Dear Faculty,

We would like to again remind you of campus policy regarding student academic dishonesty and inform you of CSU reporting requirements.  Campus policy describing the options that are available when you believe that a student has committed an act of cheating, plagiarism, or fabrication, or has facilitated such an act, is contained in the Faculty Policy of Academic Dishonesty.  This policy can be found at   .  Further according to CSU Executive Order 969, Student Activities, faculty are required to complete a form that identifies students who are alleged to be responsible for academic dishonesty.  On it faculty, staff, and administrators can recommend whether judicial action should be considered, in addition to any academic penalties.   Please use the Student Misconduct Complaint Form, which is available at , to report and transmit materials documenting incidents of academic dishonesty.

Assistance in assessing and reporting academic dishonesty is available. To do so, contact the Office of the Vice President for Student Affairs at (818) 677-2391.

Sincerely,

Harry Hellenbrand,

Provost and Vice President for Academic Affairs

Terry Piper,

Vice President for Student Affairs

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