Cost management.

Cover
Brief Contents
Tools for Progressively Learning, Understanding, and Applying Cost Concepts
Key Changes to This Edition
Technology
Acknowledgments
About the Authors
Contents
Chapter 1: Introduction to Cost Management
	Financial Accounting versus Cost Management: A Systems Framework
	Factors Affecting the Use of Cost Management
	The Role of the Management Accountant
	Accounting and Ethical Conduct
	Certification
Chapter 2: Basic Cost Management Concepts
	A Systems Framework
	The Growing Importance of Data Analytics within Cost Management
	Cost Assignment: Direct Tracing, Driver Tracing, and Allocation
	Product and Service Costs
	External Financial Statements
	Traditional and Activity-Based Cost Management Systems
Chapter 3: Cost Behavior and Forecasting
	Basics of Cost Behavior
	Resources, Activities, and Cost Behavior
	Methods of Determining Cost Behavior
	Quantitative Methods for Separating Mixed Costs into Fixed and Variable Components
	Reliability of Cost Formulas
	Multiple Regression
	Nonlinear Cost Behavior and the Learning Curve
	Managerial Judgment
Chapter 4: Activity-Based Costing
	Unit-Level Product Costing
	Limitations of Plantwide and Departmental Rates
	Activity-Based Costing System
	Making the Connection: Integrative Exercise Part 1 (Chapters 1-4)
Chapter 5: Product and Service Costing: Job-Order System
	Characteristics of the Production Process
	Setting Up the Cost Accounting System
	The Job-Order Costing System: General Description
	Job-Order Costing: Specific Cost Flow Description
	Job-Order Costing with Activity-Based Costing
	Accounting for Spoiled Units in a Traditional Job-Order Costing System
Chapter 6: Process Costing
	Basic Operational and Cost Concepts
	Process Costing with No Work-in-Process Inventories
	Process Costing with Ending Work-in-Process Inventories
	FIFO Costing Method
	Weighted Average Costing Method
	Treatment of Transferred-in Goods
	Operation Costing
Chapter 7: Allocating Costs of Support Departments and Joint Products
	An Overview of Cost Allocation
	Allocating One Department's Costs to Other Departments
	Choosing a Support Department Cost Allocation Method
	Departmental Overhead Rates and Product Costing
	Accounting for Joint Production Processes
Chapter 8: Budgeting for Planning and Control
	The Role of Budgeting in Planning and Control
	Preparing the Operating Budget
	Preparing the Financial Budget
	Flexible Budgets for Planning and Control
	Activity-Based Budgets
	The Behavioral Dimension of Budgeting
Chapter 9: Standard Costing: A Functional-Based Control Approach
	Developing Unit Input Standards
	Standard Cost Sheets
	Variance Analysis and Accounting: Direct Materials and Direct Labor
	Variance Analysis: Overhead Costs
	Mix and Yield Variances: Materials and Labor
Chapter 10: Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing
	Responsibility Accounting
	Decentralization
	Measuring the Performance of Investment Centers
	Measuring and Rewarding the Performance of Managers
	Transfer Pricing
	Setting Transfer Prices
	Making the Connection: Integrative Exercise Part 2 (Chapters 5-10)
Chapter 11: Strategic Cost Management
	Strategic Cost Management: Basic Concepts
	Enterprise Risk Management
	Value-Chain Analysis
	Life-Cycle Cost Management
	Just-in-Time (JIT) Manufacturing and Purchasing
	JIT and Its Effect on the Cost Management System
Chapter 12: Activity-Based Management
	The Relationship of Activity-Based Costing and Activity-Based Management
	Process Value Analysis
	Financial Measures of Activity Efficiency
	Implementing Activity-Based Management
	Financial-Based versus Activity-Based Responsibility Accounting
Chapter 13: Strategic-Based Control Systems and the Balanced Scorecard
	Strategic-Based Control Systems
	Basic Concepts of the Balanced Scorecard
	Linking Measures to Strategy
	Strategic Alignment
Chapter 14: Quality and Environmental Cost Management
	Costs of Quality
	Reporting Quality Costs
	Quality Cost Information and Decision Making
	Controlling Quality Costs
	Defining, Measuring, and Controlling Environmental Costs
	Environmental Costing
Chapter 15: Lean Accounting and Productivity Measurement
	Lean Manufacturing
	Lean Accounting
	Productive Efficiency
	Total Productivity Measurement
	Making the Connection: Integrative Exercise Part 3 (Chapters 11-15)
Chapter 16: Cost-Volume-Profit Analysis
	The Break-Even Point and Target Profit in Units and Sales Revenue
	After-Tax Profit Targets
	Multiple-Product Analysis
	Graphical Representation of CVP Relationships
	Changes in the CVP Variables
	CVP Analysis and Non-Unit Cost Drivers
Chapter 17: Activity Resource Usage Model and Tactical Decision Making
	Tactical Decision Making
	Relevant Costs and Revenues
	Relevancy, Cost Behavior, and the Activity Resource Usage Model
	Illustrative Examples of Tactical Decision Making
Chapter 18: Pricing and Profitability Analysis
	Basic Pricing Concepts
	Cost and Pricing Policies
	The Legal System and Pricing
	Measuring Profit
	Analysis of Profit-Related Variances
	The Product Life Cycle
	Limitations of Profit Measurement
Chapter 19: Capital Investment
	Capital Investment Decisions
	Payback and Accounting Rate of Return: Nondiscounting Methods
	The Net Present Value Method
	Internal Rate of Return
	NPV versus IRR: Mutually Exclusive Projects
	Computing After-Tax Cash Flows
	Capital Investment: Advanced Technology and Environmental Considerations
Chapter 20: Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints
	Just-in-Case Inventory Management
	JIT Inventory Management
	Basic Concepts of Constrained Optimization
	Theory of Constraints
Chapter 21: International Issues in Cost Management
	Cost Accounting in the International Environment
	Levels of Involvement in International Trade
	Foreign Currency Exchange
	Decentralization and Performance Evaluation in the Multinational Firm
	Transfer Pricing and the Multinational Firm
	Ethics in the International Environment
	Making the Connection: Integrative Exercise Part 4 (Chapters 16-21)
Glossary
Check Figures
Subject Index
Company Index
Examples