48250 Engineering Economics and Finance
Warning: The information on this page is indicative. The subject outline for a
particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2018 is available in the Archives.
Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): ((48110 Engineering Experience 1 OR 48120 Review of Engineering Practice 1 OR 41036 Engineering Professional Experience 1)) OR ((87 credit points of completed study in spk(s): C10063 Bachelor of Engineering Bachelor of Arts International Studies OR 87 credit points of completed study in spk(s): C10073 Bachelor of Engineering Bachelor of Science OR 87 credit points of completed study in spk(s): C10075 Bachelor of Engineering Bachelor of Medical Science OR 87 credit points of completed study in spk(s): C10078 Bachelor of Engineering Bachelor of Biotechnology OR 72 credit points of completed study in spk(s): C10067 Bachelor of Engineering OR 87 credit points of completed study in spk(s): C09068 Bachelor of Engineering (Honours) Bachelor of Arts International Studies OR 87 credit points of completed study in spk(s): C09072 Bachelor of Engineering (Honours) Bachelor of Science OR 87 credit points of completed study in spk(s): C09074 Bachelor of Engineering (Honours) Bachelor of Medical Science OR 72 credit points of completed study in spk(s): C09066 Bachelor of Engineering (Honours) OR 72 credit points of completed study in spk(s): C10136 Bachelor of Engineering Science Bachelor of Laws OR 87 credit points of completed study in spk(s): C10339 Bachelor of Engineering Bachelor of Creative Intelligence and Innovation OR 87 credit points of completed study in spk(s): C09076 Bachelor of Engineering (Honours) Bachelor of Creative Intelligence and Innovation OR 72 credit points of completed study in spk(s): C10066 Bachelor of Engineering Science) AND 48230 Engineering Communication AND 48240 Design and Innovation Fundamentals)
Description
In this subject students develop the ability to cost, manage and value complex engineering projects through engagement with the commercial side of projects and businesses. In the UTS model of global practice-oriented learning, students learn and apply the economic and financial techniques of engineering economy, such as cash flow, valuation and costing, and develop confidence in the language of finance and general management in the engineering domain by analysing financial reports to propose new financial and operating strategies.
Subject learning objectives (SLOs)
Upon successful completion of this subject students should be able to:
| 1. | Apply economic principles to prices and quantities in competitive supply and demand for goods and for money |
|---|---|
| 2. | Apply financial accounting, management accounting and engineering economy principles in operating a project or business |
| 3. | Communicate with finance and general management professionals using financial and management reporting |
Course intended learning outcomes (CILOs)
This subject also contributes specifically to the development of the following faculty Course Intended Learning Outcomes (CILOs) and Engineers Australia (EA) Stage 1 competencies:
- Problem solving and design - Engineering practice focuses on problem solving and design where artifacts are conceived, created, used, modified, maintained and retired. (B.0)
- Abstraction and modelling - Abstraction, modelling, simulation and visualisation inform decision-making, and are underpinned by mathematics, as well as basic discipline sciences (C.0)
- Communication and coordination - Engineering practice involves the coordination of a range of disciplinary and interdisciplinary activities to arrive at problem and design solutions. (E.0)
Teaching and learning strategies
The Subject's Learning Outcomes accord to both the UTS Model of Global Practice-Oriented Learning, principles of Flipped Learning & Weekly Feedback through Formative Assessment and the University's Summative Assessment policies.
UTS Model of Learning
The Subject provides both disciplinary content and direct experience in activities and language of Australian and global professional practice. Research continulally informs disciplinary content, for example the emergence of Social Innovation within progressive political economy and new forms of valuation in social media.
In professional practice experience, students collaborate in a global simulation deciding upon strategies for the labour force, R&D, marketing, finance and competition in an dynamic business simulation that closely mirrors a complex, real world of global business. Student's analysis and decisions draw upon their existing knowledge and the new theories and ways of thinking presented in the video lectures and classes. The simulation requires weekly research, testing, selection of strategies and monitoring of performance. It is possible for many of the simulated businesses to become industry leaders. The students managing these industry leading businesses are invited to a global invitational to compete with students from universities around the world.
Flipped Learning & Weekly Feedback through Formative Assessment
This Subject is presented using flipped learning principles. Students are required to complete pre-work before attending lectures. This invloves viewing an online lecture video in UTSOnline and attempting formative problems provided in UTSOnline. At weekly lectures, students collaborate to readdress the formative problems in group mode and upload their considered answer to Spark. The class then considers the distribution of answers, following which the Lecturer provides formative insights to correct and incorrect solutions.
Summative Assessment
1. Simulation: a substantive, dynamic assessment authentic to professional practice and reflecting Faculty Graduate Attributes beyond knowledge of disciplinary content (see Globus Assignment Intent). There are weekly rounds in the simulation throughout the whole session.
2. Quizzes: There are two quizzes within and relevant to the simulation and financial accounting. The first of these quizzes has a low summative value and designed to introduce student to the simulation and provide early feedback on academic progress. In addition, there are two major quizzes covering other areas of disciplinary content. The Subject has no final exam.
Content (topics)
Topics addressed in this Subject include:
- Economic context: microeconomics and macroeconomics, interest rates, the circulation of money and goods, the system of national accounts, the budget and the economics of international trade
- Engineering economy: valuation of cash flow, interest, time value of money and net present value calculations
- Accounting: double-entry accounting, overview of company finance framework, introduction to cash and accrual accounting elements, accounting cycle and terminologies, balance sheets and profit and loss statements, cash flow statements, treatment of intangibles, key performance indicators (KPIs), good and bad financial signalsbalance sheets, profit and loss statements, and cash flow statements
- Management Accounting and Costing: cost categories, break even analysis, contribution margin calculations, budgets, standard and other costing
- Ethics: professional ethics based on the notion of the ‘service ideal’ and the public interest. Analytical tools to guide engineers in resolving complex ethical dilemmas are introduced, including a code of professional conduct, philosophical theories of ethics and ethical decision frameworks.
- Engineering and sustainability: the relationships between engineering practice, economics and sustainability
Assessment
Assessment task 1: Glo-Bus Simulation (Globus) including Quizzes 1 & 2
| Intent: | To immerse students in complex costing and project management through a global simulation experience. | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 2 and 3 This assessment task contributes to the development of the following course intended learning outcomes (CILOs): B.0, C.0 and E.0 | ||||||||||||||||
| Type: | Project | ||||||||||||||||
| Groupwork: | Group, group and individually assessed | ||||||||||||||||
| Weight: | 60% | ||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 2: Quiz 3 in UTSOnline (Microeconomics, Macroeconomics, Financial & Management Accounting & Cashflow)
| Intent: | To test understanding of topics in the subject | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 2 This assessment task contributes to the development of the following course intended learning outcomes (CILOs): B.0 | ||||||||
| Type: | Quiz/test | ||||||||
| Groupwork: | Individual | ||||||||
| Weight: | 20% | ||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 3: Quiz 4 in UTSOnline (Cashflow, Investment Mathematics & Costing)
| Intent: | To test understanding of topics in the subject | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 2 This assessment task contributes to the development of the following course intended learning outcomes (CILOs): B.0 | ||||||||
| Type: | Quiz/test | ||||||||
| Groupwork: | Individual | ||||||||
| Weight: | 20% | ||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Recommended texts
Gamble, Thompson, Peteraf (latest edition) "Essentials of Strategic Management: The Quest for Competitive Advantage".
- You must specifically ask at the Co-op bookshop for the package that includes a "one time" registration for the BCG/Globus game.
- The textbook and the game registration are bundled at a discounted price compared to buying each separately.
Sepulveda, J. A., Souder, W. and Gottfried, B. S. 'Theory & Problems of Engineering Economics' Schaum's Outline Series, McGraw Hill
References
- Supplementary Class Notes are available in UTSOnline Documents
- The following references will be useful:
- Penman, S. H, Financial statement analysis and security valuation, McGraw-Hill/Irwin 2013
- Duncan, S, Accounting For Non-Accountants, Thomson Learning
- Sullivan, William G, Engineering economy, Pearson 2015
- Newnan, Donald G, Engineering economic analysis, Oxford University Press 2014
- White, John A, Fundamentals of engineering economic analysis, Wiley 2014
- Blank, Leland T, Basics of engineering economy, McGraw-Hill 2014
- Park, Chan S, Fundamentals of engineering economics, Pearson 2013
- Prassas, Elena S, Engineering economics and finance for transportation infrastructure, Springer 2013
Other resources
The recommended textbook provides access to various electronic resources.
