Horngren's Accounting: The Managerial Chapters

Cover
Title Page
Copyright Page
About the Authors
Contents
Chapter 18 Introduction to Managerial Accounting
	Why Is Managerial Accounting Important?
		Financial Versus Managerial Accounting
		Management Accountability
		Today’s Business Environment
		Ethical Standards
	How Do Service, Merchandising, and Manufacturing Companies Differ?
		Service Companies
		Merchandising Companies
		Manufacturing Companies
	How Are Costs Classified?
		Direct and Indirect Costs
		Product Costs
		Prime and Conversion Costs
	How Do Manufacturing Companies Determine the Cost of Manufactured Products?
		Calculating Cost of Goods Sold
		Calculating Cost of Goods Manufactured
		Flow of Costs Through the Inventory Accounts
		Calculating Unit Product Cost
	How Is Managerial Accounting Used in Service and Merchandising Companies?
		Calculating Cost per Service
		Calculating Cost per Item
	Review
	Assess Your Progress
	Critical Thinking
Chapter 19 Job Order Costing
	How Do Manufacturing Companies Use Job Order and Process Costing Systems?
		Job Order Costing
		Process Costing
	How Do Materials and Labor Costs Flow Through the Job Order Costing System?
		Materials
		Labor
	How Do Overhead Costs Flow Through the Job Order Costing System?
		Before the Period—Calculating the Predetermined Overhead Allocation Rate
		During the Period—Allocating Overhead
		At the End of the Period—Adjusting for Overallocated and Underallocated Overhead
	What Happens When Products Are Completed and Sold?
		Transferring Costs to Finished Goods Inventory
		Transferring Costs to Cost of Goods Sold
	How Is the Manufacturing Overhead Account Adjusted?
		Summary
	How Do Service Companies Use a Job Order Costing System?
	Review
	Assess Your Progress
	Critical Thinking
Chapter 20 Process Costing
	How Do Costs Flow Through a Process Costing System
		Job Order Costing Versus Process Costing
		Flow of Costs Through a Process Costing System
	What Are Equivalent Units of Production, and How Are Calculated?
		Equivalent Units of Production
		Conversion Costs
	How Is a Production Cost report Prepared?
		Production Cost Report—FirstProcess—Assembly Department
		Production Cost Report—Second Process—Cutting Department
	What Journal Entries Are Required In a Process Costing System?
		Transaction 1—Raw Materials Purchased
		Transaction 2—Raw Materials Used In Production
		Transaction 3—Labor Costs Incurred
		Transaction 4—Additional Manufacturing Costs Incurred
		Transaction 5—Allocation of Manufacturing Overhead
		Transaction 6—Transfer from the Assembly Department to the Cutting Department
		Transaction 7—Transfer from Cutting Department to Finished Goods Inventory
		Transaction 8—Puzzles Sold
		Transaction 9—Adjust Manufacturing Overhead
	How Can the Production Cost Report Be Used to Make Decisions?
	APPENDIX 20A: Process Costing: First-In, First-Out Method
	How Is a Production Cost Report Prepared Using the FIFO Method?
		Comparison of Weighted-Average and FIFO Methods
	Review
	Assess Your Progress
	Critical Thinking
Chapter 21 Cost-Volume-Profit Analysis
	How Do Costs Behave When There Is a Change in Volume?
		Variable Costs
		Fixed Costs
		Mixed Costs
	What Is Contribution Margin, and How Is It Used to Compute Operating Income?
		Contribution Margin
		Unit Contribution Margin
		Contribution Margin Ratio
		Contribution Margin Income Statement
	How Is Cost-Volume-Profit (CVP) Analysis Used?
		Assumptions
		Target Profit—Three Approaches
		Breakeven Point—A Variation of Target Profit
		CVP Graph—A Graphic Portrayal
	How Is CVP Analysis Used for Sensitivity Analysis?
		Changes in the Sales Price
		Changes in Variable Costs
		Changes in Fixed Costs
	What Are Some Other Ways CVP Analysis Can Be Used?
		Margin of Safety
		Operating Leverage
		Sales Mix
	APPENDIX 21A: Variable Costing
	How Does Variable Costing Differ From Absorption Costing?
		Absorption Costing
		Variable Costing
		Comparison of Unit Product Cost
	How Does Operating Income Differ Between Variable Costing and Absorption Costing?
		Production Equals Sales
		Production Exceeds Sales
		Production Is Less Than Sales
		Summary
	Review
	Assess Your Progress
	Comprehensive Problem for Chapters 18–21
	Critical Thinking
Chapter 22 Master Budgets
	Why Do Managers Use Budgets?
		Budgeting Objectives
		Budgeting Benefits
		Budgeting Procedures
		Budgeting and Human Behavior
	Are There Different Types of Budgets?
		Strategic and Operational Budgets
		Static and Flexible Budgets
		Master Budgets
	How Are Operating Budgets Prepared for a Manufacturing Company?
		Sales Budget
		Production Budget
		Direct Materials Budget
		Direct Labor Budget
		Manufacturing Overhead Budget
		Cost of Goods Sold Budget
		Selling and Administrative Expense Budget
	How Are Financial Budgets Prepared for a Manufacturing Company?
		Capital Expenditures Budget
		Cash Budget
		Budgeted Income Statement
		Budgeted Balance Sheet
		Budgeted Statement of Cash Flows
	How Can Information Technology Be Used in the Budgeting Process?
		Sensitivity Analysis
		Budgeting Software
	APPENDIX 22A: Budgeting for Merchandising Companies
	How Are Operating Budgets Prepared for a Merchandising Company?
		Sales Budget
		Inventory, Purchases, and Cost of Goods Sold Budget
		Selling and Administration Expense Budget
	How Are Financial Budgets Prepared for a Merchandising Company?
		Capital Expenditures Budget
		Cash Budget
		Budgeted Income Statement
		Budgeted Balance Sheet
		Budgeted Statement of Cash Flows
	Review
	Assess Your Progress
	Critical Thinking
Chapter 23 Flexible Budgets and Standard Cost Systems
	How Do Managers Use Budgets to Control Business Activities?
		Performance Reports Using Static Budgets
		Performance Reports Using Flexible Budgets
	Why Do Managers Use a Standard Cost System to Control Business Activities?
		Setting Standards
		Standard Cost System Benefits
		Variance Analysis for Product Costs
	How Are Standard Costs Used to Determine Direct Materials and Direct Labor Variances?
		Direct Materials Variances
		Direct Labor Variances
	How Are Standard Costs Used to Determine Manufacturing Overhead Variances?
		Allocating Overhead in a Standard Cost System
		Variable Overhead Variances
		Fixed Overhead Variances
	What Is the Relationship Among the Product Cost Variances, and Who Is Responsible for Them?
		Variance Relationships
		Variance Responsibilities
	How Do Journal Entries Differ in a Standard Cost System?
		Journal Entries
		Standard Cost Income Statement
	Review
	Assess Your Progress
	Critical Thinking
Chapter 24 Cost Allocation and Responsibility Accounting
	How Do Companies Assign and Allocate Costs
		Single Plantwide Rate
		Multiple Department Rates
		Activity-Based Costing
		Traditional Costing Systems Compared with ABC Systems
	Why Do Decentralized Companies Need Responsibility Accounting?
		Advantages of Decentralization
		Disadvantages of Decentralization
		Responsibility Accounting
	What Is a Performance Evaluation System, and How Is It Used?
		Goals of Performance Evaluation Systems
		Limitations of Financial Performance Measurement
		The Balanced Scorecard
	How Do Companies Use Responsibility Accounting to Evaluate Performance in Cost, Revenue, and Profit Centers?
		Controllable Versus Noncontrollable Costs
		Responsibility Reports
	How Does Performance Evaluation in Investment Centers Differ From Other Centers?
		Return on Investment (ROI)
		Residual Income (RI)
		Limitations of Financial Performance Measures
	APPENDIX 24A: Transfer Pricing
	How Do Transfer Prices Affect Decentralized Companies?
		Objectives in Setting Transfer Prices
		Setting Transfer Prices
	Review
	Assess Your progress
	Comprehensive Problem for Chapters 22–24
	Critical Thinking
Chapter 25 Short-Term Business Decisions
	How Is Relevant Information Used to Make Short-Term Decisions?
		Relevant Information
		Relevant Nonfinancial Information
		Differential Analysis
	How Does Pricing Affect Short-Term Decisions?
		Setting Regular Prices
		Special Pricing
	How Do Managers Decide Which Products to Produce and Sell?
		Dropping Unprofitable Products and Segments
		Product Mix
		Sales Mix
	How Do Managers Make Outsourcing and Processing Further Decisions?
		Outsourcing
		Sell or Process Further
	Review
	Assess Your Progress
	Critical Thinking
Chapter 26 Capital Investment Decisions
	What Is Capital Budgeting?
		The Capital Budgeting Process
		Focus on Cash Flows
	How Do the Payback and Accounting Rate of Return Methods Work?
		Payback
		Accounting Rate of Return (ARR)
	What Is the Time Value of Money?
		Time Value of Money Concepts
		Present Value of a Lump Sum
		Present Value of an Annuity
		Summary
	How Do Discounted Cash Flow Methods Work?
		Net Present Value (NPV)
		Internal Rate of Return (IRR)
		Comparing Capital Investment Analysis Methods
		Sensitivity Analysis
		Capital Rationing
	Review
	Assess Your Progress
	Comprehensive Problem for Chapters 25–26
	Critical Thinking
APPENDIX A—2013 Green Mountain Coffee Roasters, Inc. Annual Report
APPENDIX B—Present Value Tables
APPENDIX C—The Statement of Cash Flows
APPENDIX D—Financial Statement Analysis
GLOSSARY
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INDEX
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