Cost Management: A Strategic Emphasis

Cover
Cost Management
Meet the Authors
Blocher/Stout/Juras/Smith
Helping Students Succeed Using Cost Management, 8e
What’s NEW about the Eighth Edition
Improving Student Success with Connect
Enhancements for This Edition
Acknowledgments
Brief Contents
Contents
PART ONE: Introduction to Strategy, Cost Management, and Cost Systems
	Chapter 1: Cost Management and Strategy
		Management Accounting and the Role of Cost Management
			The Four Functions of Management
			Strategic Management and the Strategic Emphasis in Cost Management
			Types of Organizations
		The Contemporary Business Environment
			The Global Business Environment
			Lean Manufacturing
			Use of Information Technology, the Internet, and Enterprise Resource Management
			Focus on the Customer
			Management Organization
			Social, Political, and Cultural Considerations
		The Strategic Focus of Cost Management
		Contemporary Management Techniques: The Management Accountant's Response to the Contemporary Business Environment
			The Balanced Scorecard (BSC) and Strategy Map
			The Value Chain
			Activity-Based Costing and Management
			Business Analytics
			Target Costing
			Life-Cycle Costing
			Benchmarking
			Business Process Improvement
			Total Quality Management
			Lean Accounting
			The Theory of Constraints
			Sustainability
			Enterprise Risk Management
		How a Firm Succeeds: The Competitive Strategy
		Developing a Competitive Strategy
			Cost Leadership
			Differentiation
			Other Strategic Issues
			The Five Steps of Strategic Decision Making
		The Professional Environment of Cost Management
			Professional Organizations
			Professional Certifications
			Professional Ethics
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
	Chapter 2: Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map
		Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis
		Execution
		Value-Chain Analysis
			Value-Chain Analysis in Computer Manufacturing
			The Five Steps of Strategic Decision Making for CIC Manufacturing
		The Balanced Scorecard, Strategy Map, and Sustainability
			The Balanced Scorecard (BSC)
			The Strategy Map
			Expanding the Balanced Scorecard and Strategy Map: Sustainability
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problems
		Questions
		Brief Exercises
		Exercises
		Problems
		Solutions to Self-Study Problems
	Chapter 3: Basic Cost Management Concepts
		Costs, Cost Drivers, Cost Objects, and Cost Assignment
			Cost Assignment and Cost Allocation: Direct and Indirect Costs
			Cost Drivers and Cost Behavior
			Activity-Based Cost Drivers
			Volume-Based Cost Drivers
			Structural and Executional Cost Drivers
			The Five Steps of Strategic Decision Making for Procter & Gamble
		Cost Concepts for Product and Service Costing
			Product Costs and Period Costs
			Manufacturing and Merchandising Costing
			Attributes of Cost Information
			Periodic and Perpetual Inventory Systems
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
	Chapter 4: Job Costing
		Costing Systems
			Cost Accumulation: Job or Process Costing?
			Cost Measurement: Actual, Normal, or Standard Costing?
			Overhead Application under Normal Costing: Volume-Based or Activity-Based?
		The Strategic Role of Costing
		Job Costing: The Cost Flows
			Direct and Indirect Materials Costs
			Direct and Indirect Labor Costs
			Factory Overhead Costs
		The Application of Factory Overhead in Normal Costing
			Cost Drivers for Factory Overhead Application
			Applying Factory Overhead Costs
			Departmental Overhead Rates
			Disposition of Underapplied and Overapplied Overhead
			Potential Errors in Overhead Application
		Job Costing in Service Industries; Project Costing
		Operation Costing
		Summary
		Appendix: Spoilage, Rework, and Scrap in Job Costing
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
	Chapter 5: Activity-Based Costing and Customer Profitability Analysis
		The Strategic Role of Activity-Based Costing
		Role of Volume-Based Costing
		Activity-Based Costing
			Resources, Activities, Resource Consumption Cost Drivers, and Activity Consumption Cost Drivers
			What Is Activity-Based Costing?
			The Two-Stage Cost Assignment Procedure
		Steps in Developing an Activity-Based Costing System
			Step 1: Identify Resource Costs and Activities
			Step 2: Assign Resource Costs to Activities
			Step 3: Assign Activity Costs to Cost Objects
		Benefits of Activity-Based Costing
		A Comparison of Volume-Based and Activity-Based Costing
			Volume-Based Costing
			Activity-Based Costing
			The Five Steps of Strategic Decision Making for Haymarket BioTech Inc.
		Calculating the Cost of Idle Capacity in ABC
		Activity-Based Management
			What Is Activity-Based Management?
			Activity Analysis
			Value-Added Analysis
			Real-World Activity-Based Costing/Management Applications
		Customer Profitability Analysis
			Customer Cost Analysis
			Customer Profitability Analysis
			Customer Lifetime Value
		Implementation Issues and Extensions
			Multistage Activity-Based Costing
			Resource Consumption Accounting (RCA)
			Time-Driven Activity-Based Costing (TDABC)
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
	Chapter 6: Process Costing
		Characteristics of Process Costing Systems
			Equivalent Units
			Flow of Costs in Process Costing
			Steps in Process Costing (The Production Cost Report)
			Process Costing Methods
		Illustration of Process Costing
			Weighted-Average Method
			First-In, First-Out (FIFO) Method
		Comparison of Weighted-Average and FIFO Methods
		Process Costing with Multiple Departments
			Transferred-in Costs
			Weighted-Average Method
			The FIFO Method
		Journal Entries for Process Costing
		Implementation and Enhancement of Process Costing
			Activity-Based Costing and the Theory of Constraints
			Just-in-Time Systems and Backflush Costing
			Normal and Standard Process Costing
		Summary
		Appendix: Spoilage in Process Costing
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problems
		Questions
		Brief Exercises
		Exercises
		Problems
		Solutions to Self-Study Problems
	Chapter 7: Cost Allocation: Departments, Joint Products, and By-Products
		The Strategic Role and Objectives of Cost Allocation
		The Ethical Issues of Cost Allocation
		Cost Allocation to Service and Production Departments
			First Phase: Trace Direct Costs and Allocate Indirect Costs to All Departments
			Allocation in Second and Third Phases
			Implementation Issues
		Cost Allocation in Service Industries
		Joint Product Costing
			Methods for Allocating Joint Costs to Joint Products
		Summary
		Appendix: By-Product Costing
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
PART TWO: Planning and Decision Making
	Chapter 8: Cost Estimation
		Strategic Role of Cost Estimation
			Using Cost Estimation to Predict Future Costs
			Using Cost Estimation to Identify Cost Drivers
		Six Steps of Cost Estimation
			Step 1: Define the Cost Object
			Step 2: Determine the Cost Drivers
			Step 3: Collect Consistent and Accurate Data
			Step 4: Graph the Data
			Step 5: Select and Employ the Estimation Method
			Step 6: Assess the Accuracy of the Cost Estimate
		Cost Estimation Methods
			An Illustration of Cost Estimation
			High-Low Method
			Regression Analysis
			An Example: Using Regression to Estimate Maintenance Costs
			A Second Example: Using Excel for Regression Analysis
		Illustration of the Use of Regression Analysis in the Gaming Industry
			The Five Steps of Strategic Decision Making for Harrah's
		Time-Series and Cross-Sectional Regression
		Implementation Problems: Nonlinearity
		Summary
		Appendix: Learning Curve Analysis
		Regression Analysis Supplement (available online only in Connect)
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problems
		Questions
		Brief Exercises
		Exercises
		Problems
		Solutions to Self-Study Problems
	Chapter 9: Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis
		Cost-Volume-Profit Analysis
			Contribution Margin and Contribution Income Statement
		Strategic Role of CVP Analysis
		CVP Analysis for Breakeven Planning
			Breakeven in Units, Q
			Breakeven in Dollars
			Short-Cut Formulas
			CVP Graph and the Profit-Volume Graph
		CVP Analysis for Profit Planning
			Revenue Planning
			Cost Planning
			Including Income Taxes in CVP Analysis
		CVP Analysis for Activity-Based Costing
		Dealing with Uncertainty
			What-If Analysis
			Decision Tables/Decision Trees/Expected Value Analysis
			Margin of Safety (MOS)
			Operating Leverage
			The Five Steps of Strategic Decision Making for CVP Analysis
		CVP Analysis with Two or More Products/Services
			Multiproduct Profit Planning Using the Weighted-Average Contribution Margin Ratio
			Multiproduct Profit Planning Using the Weighted-Average Contribution Margin per Unit
			Multiproduct Profit Planning Using the Sales Basket Approach
			Value Stream Accounting and CVP Analysis
		CVP Analysis for Not-for-Profit Organizations
		Assumptions and Limitations of Conventional CVP Analysis
			Linearity, the Relevant Range, and Step Costs
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
	Chapter 10: Strategy and the Master Budget
		Role of Budgets
		Strategy and the Master Budget
			Importance of Strategy in Budgeting
			Strategic Goals and Long-Term Objectives
			Short-Term Objectives and the Master Budget
		The Budgeting Process
			Budget Committee
			Budget Period
			Budget Guidelines
			Negotiation, Review, and Approval
			Revision
			Comprehensive Budgeting Example: Kerry Window Systems Inc.
			The Five Steps of Strategic Decision Making for Kerry Window Systems Inc.
		Master Budget
			Sales Budget
			Manufacturing Budgets
			Merchandise Purchases Budget
			Selling and Administrative Expense Budget
			Cash Receipts (Collections) Budget
			Cash Budget
			Budgeted Income Statement
			Budgeted Balance Sheet
		Uncertainty and the Budgeting Process
			What-If Analysis
			Sensitivity Analysis
			Scenario Analysis
		Budgeting in Service Companies
			Budgeting in Service Industries
		Alternative Budgeting Approaches
			Zero-Base Budgeting
			Activity-Based Budgeting
			Time-Driven Activity-Based Budgeting
			Kaizen (Continuous-Improvement) Budgeting
		Behavioral Issues in Budgeting
			Budgetary Slack
			Goal Congruence
			Authoritative or Participative Budgeting?
			Difficulty Level of the Budget Target
			Linkage of Compensation and Budgeted Performance
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problems
		Questions
		Brief Exercises
		Exercises
		Problems
		Solutions to Self-Study Problems
	Chapter 11: Decision Making with a Strategic Emphasis
		The Five Steps of the Decision-Making Process
		Relevant Cost Analysis
			Relevant Cost Information
			Batch-Level Cost Drivers
			Depreciation Expense: Relevant or Not?
			Other Relevant Information
		Strategic Analysis
		Special-Order Decisions
		Relevant Cost Analysis
		Strategic Analysis
			Is TTS Operating at Full Capacity?
			Excessive Relevant Cost Pricing
			Other Important Strategic Factors
		Value Stream Accounting and the Special-Order Decision
		Make-vs.-Buy and Lease-vs.-Buy Decisions
		Relevant Cost Analysis
			Make-vs.-Buy Decision
			Lease-vs.-Purchase (Buy) Decision
		Strategic Analysis
		Decisions to Sell before or after Additional Processing
		Relevant Cost Analysis
		Strategic Analysis
		Product- (or Service-) Line Profitability Analysis: Keep or Drop a Product (or Service) Line
			Relevant Cost Analysis
			Strategic Analysis
		Profitability Analysis: Service Offerings of Not-for-Profit Organizations
			Relevant Cost Analysis
			Strategic Analysis
		Constrained Optimization Analysis: Short-Term Product-Mix Decisions
		Case 1: One Production Constraint
		Case 2: Two or More Production Constraints
		Behavioral and Implementation Issues
		Consideration of Strategic Objectives
		Predatory Pricing Practices
		Replacement of Variable Costs with Fixed Costs
		Proper Identification of Relevant Factors
		Summary
		Appendix: Linear Programming and the Product-Mix Decision
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problems
		Questions
		Brief Exercises
		Exercises
		Problems
		Solutions to Self-Study Problems
	Chapter 12: Strategy and the Analysis of Capital Investments
		Strategy and the Analysis of Capital Expenditures
			Underlying Nature of Capital Expenditures
			Recent Developments: Foreign Capital Investment in the United States and Economic Protectionism
			Strategic Analysis
			Chapter OverviewÑWhere Are We Headed?
		The Role of Accounting in the Capital Budgeting Process
			Linkage to the Master Budget
			Linkage to Strategy and the Balanced Scorecard
			Generation of Relevant Financial Data for Decision-Making Purposes
			Conducting Post-Audits
			The Five Steps of Strategic Decision Making: Cost-Benefit Analysis of a Proposed Hospital Bar-Code Technology Investment
		Identification of Relevant Cash Flow Data for Capital Expenditure Analysis
			Why Focus on Cash Flows and the Timing of These Cash Flows?
			Cash Flows—A Framework for Analysis
			Sample Data Set: Mendoza Company-Equipment-Purchase Decision
			Determining After-Tax Cash Flows for Capital Investment Analysis
			RecapÑAfter-Tax Cash Flow Information for the Mendoza Company Investment Proposal
		Discounted Cash Flow Capital Budgeting Decision Models
			Types of Capital Budgeting Decision Models
			DCF Models: Specifying the Discount Rate
			Estimating the WACC
			Net Present Value Decision Model
			Internal Rate of Return Decision Model
			The Modified Internal Rate of Return
			Comparison of NPV and IRR Methods: Which to Use?
			Structuring an Asset-Replacement Decision Problem
		Uncertainty and the Capital Budgeting Process
			Sensitivity Analysis
			Real Options
		Other Capital Budgeting Decision Models
			Payback Period
			Accounting (Book) Rate of Return
		Behavioral Issues in Capital Budgeting
			Common Behavioral Problems: Cost Escalation, Incrementalism, and Uncertainty Intolerance
			Goal-Congruency Issues
			Addressing the Goal-Congruency Problem
		Summary
		Appendix A: Spreadsheet Templates for Conducting a DCF Analysis of an Asset-Replacement Decision
		Appendix B: DCF Models: Some Advanced Considerations
		Appendix C: Present Value Tables
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
	Chapter 13: Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing
		Target Costing
			Value Engineering
			Target Costing and Kaizen
			An Illustration: Target Costing in Health Product Manufacturing
			An Illustration Using Quality Function Deployment
			Benefits of Target Costing
		The Theory of Constraints
			The Use of the Theory of Constraints in Health Product Manufacturing
			Steps in the Theory of Constraints Analysis
			The Five Steps of Strategic Decision Making for Speed and Efficiency in the Fashion Industry
			Theory of Constraints Reports
			Activity-Based Costing and the Theory of Constraints
		Life-Cycle Costing
			The Importance of Design
		Strategic Pricing Using the Product Life Cycle
			Pricing Using the Cost Life Cycle
			Strategic Pricing for Phases of the Sales Life Cycle
			Strategic Pricing: Analytical and Peak Pricing Methods
		Summary
		Appendix: Using the Flow Diagram to Identify Constraints
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
PART THREE: Operational-Level Control
	Chapter 14: Operational Performance Measurement: Sales, Direct Cost Variances, and the Role of Nonfinancial Performance Measures
		The Schmidt Machinery Company
		Management Accounting and Control Systems
			Developing an Operational Control System: The Five Steps of Strategic Decision Making for Schmidt Machinery
		Short-Term Financial Control
		Flexible Budgets and Profit-Variance Analysis
			The Flexible Budget
			Sales Volume Variance and the Flexible-Budget Variances
			Further Analysis of the Direct Materials Flexible-Budget Variance
		Standard Costs
			Standard Costs vs. a Standard Cost System
			Types of Standards
			Standard-Setting Procedures
			Establishing Standard Costs
			Standard Cost Sheet
		Recording Cost Flows and Variances in a Standard Cost System
			Direct Materials Cost
			Direct Labor Cost
			Application of Standard Factory Overhead Costs
			Completion of Production
		The Strategic Role of Nonfinancial Performance Indicators
			Limitations of Short-Term Financial Control
			Business Processes
			Operating Processes
			Just-in-Time Manufacturing
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problems
		Questions
		Brief Exercises
		Exercises
		Problems
		Solutions to Self-Study Problems
	Chapter 15: Operational Performance Measurement: Indirect Cost Variances and Resource-Capacity Management
		Standard Overhead Costs: Planning vs. Control
		Variance Analysis for Factory (Manufacturing) Overhead Costs
			Variable Overhead Cost Analysis
			Interpretation and Implications of Variable Overhead Variances
			Variable Overhead Efficiency Variance
			Fixed Overhead Cost Analysis
			Interpretation of Fixed Overhead Variances
			Alternative Analyses of Overhead Variances
			Summary of Overhead Variances
			Supplementing Financial Results with Nonfinancial Performance Indicators
		Recording Standard Overhead Costs
			Journal Entries and Variances for Overhead Costs
		End-of-Period Disposition of Variances
			Variance Disposition
			The Effects of Denominator-Level Choice on Absorption Costing Income
		Standard Costs in Service Organizations
		Overhead Cost Variances in Traditional ABC Systems
			ABC-Based Flexible Budgets for Control
			Flexible-Budget Analysis under Traditional (i.e., Non-Time-Driven) ABC When There Is a Standard Batch Size for Production Activity
			Extension of ABC Analysis: GPK and RCA
		Investigation of Variances
			Causes and Controllability
			Role of Control Charts
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
	Chapter 16: Operational Performance Measurement: Further Analysis of Productivity and Sales
		The Strategic Role of the Flexible Budget in Analyzing Productivity and Sales
		Analyzing Productivity
			Partial Productivity
			Total Productivity
		Analyzing Sales: Comparison with the Master Budget
			Sales Volume Variance Partitioned into Sales Quantity and Sales Mix Variances
			Sales Quantity Variance Partitioned into Market Size and Market Share Variances
			The Five Steps of Strategic Decision Making for Schmidt Machinery
		Analyzing Sales: Comparison with Prior Period Results
			Analysis of Selling Price and Volume Variances
			Analysis of Mix and Quantity Variances
			Analysis of Variable Cost Variances
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problems
		Questions
		Brief Exercises
		Exercises
		Problems
		Solutions to Self-Study Problems
	Chapter 17: The Management and Control of Quality
		The Strategic Importance of Quality
			Baldrige Quality Award
			ISO 9000 and ISO 14000
			Quality and Profitability: Conceptual Linkage
		Accounting's Role in the Management and Control of Quality
			The Five Steps of Strategic Decision Making: Improving Quality in Pharmaceutical and Medical-Product Companies
		Comprehensive Framework for Managing and Controlling Quality
			The Meaning of Quality
			Knowledge of Business Processes
			Role of the Customer
			Financial Component
			Nonfinancial Performance Indicators
			Feedback Loops
			Relevant Cost Analysis of Quality-Related Spending and Investments
			Link to Operations Management and Statistics
			Breadth of the System
		Alternative Approaches to Setting Quality-Related Expectations
			Setting Quality Expectations: A Six Sigma Approach
			Setting Quality Expectations: Goalpost vs. Absolute Conformance Standards
			Taguchi Quality Loss Function (QLF)
		Financial Measures and Cost of Quality
			Relevant Cost Analysis: Decision Making
			Cost-of-Quality (COQ) Reporting
			COQ Reports
			Cost of Quality (COQ) and Activity-Based Costing
		Nonfinancial Quality Indicators
			Internal Nonfinancial Quality Metrics
			External (Customer-Satisfaction) Quality Metrics
			Role of Nonfinancial Performance Measures
		Detecting and Correcting Poor Quality
			Detecting Poor Quality
			Taking Corrective Action
		Lean Manufacturing and Accounting for ÒLeanÓ
			Lean Manufacturing
			Accounting for Lean
			The Strategic Role of Lean Accounting
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problems
		Questions
		Brief Exercises
		Exercises
		Problems
		Solutions to Self-Study Problems
PART FOUR: Management-Level Control
	Chapter 18: Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard
		Performance Measurement and Control
			Operational Control vs. Management Control
			Objectives of Management Control
			Employment Contracts
		Design of Management Control Systems for Motivation and Evaluation
			Informal Control Systems
			Formal Control Systems
		Strategic Performance Measurement
			Decentralization
			Types of Strategic Business Units
			The Balanced Scorecard
		Cost Centers
			Strategic Issues Related to Implementing Cost Centers
			Implementing Cost Centers in Departments
			Outsourcing or Consolidating Cost Centers
			Cost Allocation
		Revenue Centers
		Profit Centers
			Strategic Role of Profit Centers
			The Contribution Income Statement
		Strategic Performance Measurement and the Balanced Scorecard
			Implementing the Balanced Scorecard and the Strategy Map for Performance Evaluation
			Implementing Strategy Using the Balanced Scorecard
		Management Control in Service Firms and Not-for-Profit Organizations
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problem
	Chapter 19: Strategic Performance Measurement: Investment Centers and Transfer Pricing
		Part One: Financial Performance Indicators for Investment Centers
		Return on Investment
			Return on Investment Equals Return on Sales Times Asset Turnover
			Illustration of Short-Term Financial Performance Evaluation Using ROI
			Return on Investment: Measurement Issues
			Strategic Issues Regarding the Use of ROI
		Residual Income
			Time Period of Analysis: Single vs. Multiperiod Perspective
			Limitations of Residual Income
		Economic Value Added
			Estimating EVA¨
			Alternative Approaches to Estimating EVA¨ NOPAT and EVA¨ Capital
		Using Average Total Assets
		Part Two: Transfer Pricing
		When Is Transfer Pricing Important?
		Objectives of Transfer Pricing
		Transfer Pricing Methods
			Choosing the Right Transfer Pricing Method: The Firmwide Perspective
		General Transfer Pricing Rule
		International Issues in Transfer Pricing
			Income Tax Planning Opportunities: International Transfer Pricing
			Other International Considerations
			Advance Pricing Agreements
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problem
		Questions
		Brief Exercises
		Exercises
		Problems
		Solutions to Self-Study Problems
	Chapter 20: Management Compensation, Business Analysis, and Business Valuation
		Part One: The Strategic Role of Management Compensation
		Types of Management Compensation
		Strategic Role and Objectives of Management Compensation
			Designing Compensation for Existing Strategic Conditions
			Risk Aversion and Management Compensation
			Ethical Issues
			Objectives of Management Compensation
		Bonus Plans
			Bases for Bonus Compensation
			Bonus Compensation Pools
			Bonus Payment Options
		Tax Planning and Financial Reporting
		Management Compensation in Service Firms
		Part Two: Business Analysis and Business Valuation
		Business Analysis
			The Balanced Scorecard
			Financial Ratio Analysis
		Business Valuation
			The Discounted Cash Flow Method
			Multiples-Based Valuation
			Enterprise Value
			An Illustration of the Five Steps of Strategic Decision Making in the Valuation of a Fashion Retailer
		Summary
		Key Terms
		Comments on Cost Management in Action
		Self-Study Problems
		Questions
		Brief Exercises
		Exercises
		Problems
		Solution to Self-Study Problems
Glossary
Index