COST ANALYSIS

AIM

Industrial engineering studies define and apply a number of analyzes and methods based on the most effective evaluation of inputs and the most effective management of constraints. The cost of inputs is one of the most important constraints in these studies. In this course, the concept of cost is introduced in depth, and the financial and cost accounting activities carried out in organizations to make cost calculations are also introduced. In this way, the knowledge, skills and equipment to make cost analysis in feasibility studies, which is one of the main activities of industrial engineering, are provided.

CONTENT

This course contains; The importance of cost and cost analysis for industrial engineering tools and techniques,Introduction to cost and cost related concepts, different types of costs ,Managing cost, cost and financial accounting activities in organizations,Fundamentals of cost analysis methods,Understanding the concepts of cost, volume and profit and their relationship,Cost-profit-volume analysis,Cost estimation and feasibility analysis,Process and job costing,Activity-based-costing, customer profit analysis,Cost management and organizational strategy,Cost management and budgeting,Contemporary approaches to cost management: use of technology, database management and business analytics,Case Study Review,Case Study Review 2.

1. 1

   1. Defines cost and related concepts.

   Taught by: Discussion Method, Case Study Method, Self Study Method, Question - Answer Technique, Inquiry-Based Learning, Lecture Method · Assessed by: Traditional Written Exam, Homework, Quiz

2. 2

   2. Learns the concepts of cost-volume-profitability and understands the relationship between them.

   Taught by: Discussion Method, Problem Solving Method, Case Study Method, Self Study Method, Question - Answer Technique, Experiential Learning, Lecture Method · Assessed by: Traditional Written Exam, Homework, Quiz

3. 3

   3. Defines the basic principles and methods of cost analysis.

   Taught by: Discussion Method, Self Study Method, Question - Answer Technique, Lecture Method · Assessed by: Traditional Written Exam, Homework, Quiz

4. 4

   4. Defines cost estimation techniques and evaluates their importance in feasibility studies.

   Taught by: Problem Solving Method, Case Study Method, Question - Answer Technique, Brainstorming Technique, Project Based Learning Model, Experiential Learning, Lecture Method · Assessed by: Traditional Written Exam, Homework, Quiz

5. 5

   5. Understands the methods of product, service, process, and job costing.

   Taught by: Discussion Method, Case Study Method, Self Study Method, Question - Answer Technique, Inquiry-Based Learning, Experiential Learning, Lecture Method · Assessed by: Traditional Written Exam, Homework, Quiz

6. 6

   6. Evaluates cost management, planning and budgeting methods in general terms.

   Taught by: Discussion Method, Case Study Method, Self Study Method, Question - Answer Technique, Inquiry-Based Learning, Lecture Method · Assessed by: Traditional Written Exam, Quiz

7. 7

   7. Understands the fundamental concepts and applications of cost analysis in industrial engineering. Demonstrates awareness of inventory costing and control methods as part of cost analysis practices.

   Taught by: Discussion Method, Case Study Method, Self Study Method, Question - Answer Technique, Inquiry-Based Learning, Lecture Method · Assessed by: Traditional Written Exam, Homework, Quiz

WEEKLY PLAN

1. WEEK 1

   The importance of cost and cost analysis for industrial engineering tools and techniques

   Preparation: Lecture Notes

2. WEEK 2

   Introduction to cost and cost related concepts, different types of costs

   Preparation: Lecture Notes

3. WEEK 3

   Managing cost, cost and financial accounting activities in organizations

   Preparation: Lecture Notes

4. WEEK 4

   Fundamentals of cost analysis methods

   Preparation: Lecture Notes

5. WEEK 5

   Understanding the concepts of cost, volume and profit and their relationship

   Preparation: Lecture Notes

6. WEEK 6

   Cost-profit-volume analysis

   Preparation: Lecture Notes

7. WEEK 7

   Cost estimation and feasibility analysis

   Preparation: Lecture Notes

8. WEEK 8

   Process and job costing

   Preparation: Lecture Notes

9. WEEK 9

   Activity-based-costing, customer profit analysis

   Preparation: Lecture Notes

10. WEEK 10

    Cost management and organizational strategy

    Preparation: Lecture Notes

11. WEEK 11

    Cost management and budgeting

    Preparation: Lecture Notes

12. WEEK 12

    Contemporary approaches to cost management: use of technology, database management and business analytics

    Preparation: Lecture Notes

13. WEEK 13

    Case Study Review

    Preparation: Lecture Notes

14. WEEK 14

    Case Study Review 2

    Preparation: Lecture Notes

ASSESSMENT

• Rate of Midterm Exam to Success30%
• Rate of Final Exam to Success70%

WORKLOAD

READING

• Cost Management: A Strategic Emphasis, Blocher, 8th edition;, Fundamentals of Cost Accounting, Lanen, 6th edition, lecture notes, power point slides, case studies, sample question solutions

TEACHING STAFF

• Assist.Prof. Engin SANSARCICOORDINATOR
• Lect. Özgür EROL
• Assist.Prof. Engin SANSARCI