In a two-phase flow analysis, the interfacial area concentration (IAC) is a dominant factor governing the interfacial transfer of the momentum or energy. For a dynamic analysis with the implementation of IAC transport equation, a multi-dimensional computational fluid dynamics code was developed. The code is based on the two-fluid model and the simplified marker and cell algorithm by using the finite volume method, where the conventional approach for a single-phase flow has been modified in order to consider the term for a phase change. As benchmark problems of a single-phase flow and two-phase flow, a natural convection in a rectangular cavity and a subcooled boiling in an annulus channel were selected, respectively. In the calculation for the single-phase flow, the developed code predicted a reasonable behavior for a buoyancy-driven flow depending on the Rayleigh number. In the analysis of the subcooled boiling, the calculation results showed the robustness of code for the analysis of the boiling phenomena and void propagation, where they represented limitations of the one-dimensional IAC model. To conduct a multi-dimensional analysis for the two-phase flow, it is confirmed that the implementation of an IAC transport equation into the code is essential.