Jul 05, 2022  
2020-2021 Undergraduate Academic Catalog 
2020-2021 Undergraduate Academic Catalog [ARCHIVED CATALOG]

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IE 4810 - Engineering Accounting

3 lecture hours 0 lab hours 3 credits
Course Description
An overview of basic topics in financial and managerial accounting as applied to manufacturing companies and engineering projects is presented with a focus on helping engineers understand the meaning of financial metrics and how they are used in business planning and decision making. The basics of financial and managerial accounting are taught along with inventory valuation and depreciation methods in the context of the engineering business environment. The focus of the course is on information for cost management, budgetary control, and short-term and long-term financial decision making. Students will work in teams to prepare an in-depth financial analysis of an engineering project. (prereq: BA 2510 )
Course Learning Outcomes
Upon successful completion of this course, the student will be able to:
  • Understand the underlying concepts of financial and managerial accounting and the roles of profit, cash, and cost in decision making related to engineering projects
  • Allocate overhead in manufacturing, service, and other engineering-oriented organizations
  • Explain the underlying concepts of accounting as they apply to manufacturing enterprises and the specific roles that depreciation, inventory valuation, and time offsetting play in their operations
  • Knowledgeably use managerial accounting information for decision-making in manufacturing and engineering related businesses
  • Create cost estimates for engineering projects and properly price engineering services
  • Accumulate and record financial data in accordance with Generally Accepted Accounting Principles (GAAP) applied to engineering-related businesses and projects
  • Recognize and understand some of the ethical and legal issues related to the practice of accounting

Prerequisites by Topic
  • Introduction to accounting

Course Topics
  • Role of accounting in engineering
  • Ledgers and transactions
  • Equity, assets, and liabilities
  • Balance sheets, income statements
  • Project expensing, accounting cycle for projects
  • Adjusting financial statements, cash flow analysis
  • Engineering payroll considerations, managerial accounting
  • Revenue reporting, receivables and collections, operating income
  • Cost drivers and estimation, product costing and pricing
  • Inventory allocation, writing down inventory, inventory disclosures
  • Income taxes, operational and capital budgeting, earned value analysis
  • Planning, organizing, and control cycle
  • Ethical and corporate responsibility
  • Performance reporting and scorecards

Dr. Aaron Armstrong

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