Horngren's financial & managerial accounting. The managerial chapters.

Cover
Title Page
Copyright
About the Authors
Brief Contents
Contents
Financial & Managerial Accounting . . . Expanding on Proven Success
Solving Learning and Teaching Challenges
Dedication
Acknowledgments
Chapter 1: Introduction to Managerial Accounting
	Why Is Managerial Accounting Important?
		Managers’ Role in the Organization
		Managerial Accounting Functions
		Ethical Standards of Managers
	How Are Costs Classified?
		Manufacturing Companies
		Direct and Indirect Costs
		Manufacturing Costs
		Prime and Conversion Costs
		Product and Period Costs
	How Do Manufacturing Companies Prepare Financial Statements?
		Balance Sheet
		Income Statement
		Flow of Product Costs in a Manufacturing Company
		Calculating Cost of Goods Manufactured
		Calculating Cost of Goods Sold
		Flow of Product Costs Through the Inventory Accounts
		Using the Schedule of Cost of Goods Manufactured to Calculate Unit Product Cost
	What Are Business Trends That Are Affecting Managerial Accounting?
		Shift Toward a Service Economy
		Global Competition
		Time-Based Competition
		Advances in Technology
		Total Quality Management
		The Triple Bottom Line
	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 2: 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
	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?
		At the End of the Period—Adjusting for Overallocated and Underallocated Overhead
	How Are Cost of Goods Manufactured and Cost of Goods Sold Calculated?
		Summary of Journal Entries
		Cost of Goods Manufactured and Cost of Goods Sold
	How Do Service Companies Use a Job Order Costing System?
	Review
	Assess Your Progress
	Critical Thinking
Chapter 3: 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 They Calculated?
	How Is a Production Cost Report Prepared for the First Department?
		Production Cost Report—First Process—Assembly Department
	How Is a Production Cost Report Prepared for Subsequent Departments?
		Production Cost Report—Second Process—Cutting Department
	What Journal Entries Are Required in a Process Costing System?
		Transaction 1—Materials Purchased
		Transaction 2—Materials Used
		Transaction 3—Labor Costs Incurred
		Transaction 4—Actual Overhead Costs Incurred
		Transaction 5—Overhead Allocation
		Transaction 6—Transferring Costs from the Assembly Department to the Cutting Department
		Transaction 7—Transferring Costs from the Cutting Department to Finished Goods Inventory
		Transaction 8—Puzzles Sold and Transferring Costs from Finished Goods Inventory to Cost of Goods Sold
		Transaction 9—Adjust Manufacturing Overhead
	How Can the Production Cost Report Be Used to Make Decisions?
	Appendix 3A: Process Costing: First-In, First-Out Method
	How Is a Production Cost Report Prepared Using the FIFO Method?
		Step 1: Summarize the Flow of Physical Units
		Step 2: Compute Output in Terms of Equivalent Units of Production
		Step 3: Compute the Cost per Equivalent Unit of Production
		Step 4: Assign Costs to Units Completed and Units in Process
		Comparison of Weighted-Average and FIFO Methods
	Review
	Assess Your Progress
	Critical Thinking
Chapter 4: Lean Management Systems: Activity-Based, Just-in-Time, and Quality Management Systems
	How Do Companies Assign and Allocate Costs?
		Single Plantwide Rate
		Multiple Department Rates
		Comparing Single Plantwide Rate to Multiple Department Rates
	How Is an Activity-Based Costing System Developed?
		Step 1: Identify Activities and Estimate Their Total Indirect Costs
		Step 2: Identify the Allocation Base for Each Activity and Estimate the Total Quantity of Each Allocation Base
		Step 3: Compute the Predetermined Overhead Allocation Rate for Each Activity
		Step 4: Allocate Indirect Costs to the Cost Object
		Traditional Costing Systems Compared with ABC Systems
	How Can Companies Use Activity-Based Management to Make Decisions?
		Pricing and Product Mix Decisions
		Cost Management Decisions
	How Can Activity-Based Management Be Used in Service Companies?
	How Do Just-in-Time Management Systems Work?
		Just-in-Time Management Systems
		Just-in-Time Costing
		Recording Transactions in JIT
	How Do Companies Manage Quality Using a Quality Management System?
		Quality Management Systems
		The Four Types of Quality Costs
		Quality Improvement Programs
	Review
	Assess Your Progress
	Critical Thinking
Chapter 5: 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 for Profit Planning?
		Assumptions
		Breakeven Point—Three Approaches
		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
		Using Sensitivity Analysis
		Cost Behavior Versus Management Behavior
	What Are Some Other Ways CVP Analysis Can Be Used?
		Margin of Safety
		Operating Leverage
		Sales Mix
	Review
	Assess Your Progress
	Critical Thinking
	Comprehensive Problem for Chapters M:1–M:5
Chapter 6: Variable Costing
	How Does Variable Costing Differ from Absorption Costing?
		Absorption Costing
		Variable Costing
		Comparison of Unit Product Costs
	How Does Operating Income Differ Between Variable Costing and Absorption Costing?
		Units Produced Equal Units Sold
		Units Produced Are More Than Units Sold
		Units Produced Are Less Than Units Sold
		Summary
	How Can Variable Costing Be Used for Decision Making in a Manufacturing Company?
		Setting Sales Prices
		Controlling Costs
		Planning Production
		Analyzing Profitability
		Analyzing Contribution Margin
		Summary
	How Can Variable Costing Be Used for Decision Making in a Service Company?
		Operating Income
		Profitability Analysis
		Contribution Margin Analysis
	Review
	Assess Your Progress
	Critical Thinking
Chapter 7: Master Budgets
	Why Do Managers Use Budgets?
		Budgeting Objectives
		Budgeting Benefits
		Budgeting Procedures
		Budgeting and Human Behavior
	What Are the 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
	How Are Operating Budgets Prepared for a Merchandising Company?
		Sales Budget
		Inventory, Purchases, and Cost of Goods Sold Budget
		Selling and Administrative Expense Budget
	How Are Financial Budgets Prepared for a Merchandising Company?
		Capital Expenditures Budget
		Cash Budget
		Budgeted Income Statement
		Budgeted Balance Sheet
	How Can Information Technology Be Used in the Budgeting Process?
		Sensitivity Analysis
		Budgeting Software
	Review
	Assess Your Progress
	Critical Thinking
Chapter 8: 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 9: Responsibility Accounting and Performance Evaluation
	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
	How Do Transfer Prices Affect Decentralized Companies?
		Objectives in Setting Transfer Prices
		Setting Transfer Prices
	Review
	Assess Your Progress
	Critical Thinking
	Comprehensive Problem for Chapters M:7–M:9
Chapter 10: 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 11: 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
		Present Value Examples
		Future Value of a Lump Sum
		Future Value of an Annuity
	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
	Critical Thinking
	Comprehensive Problem for Chapters M:10 and M:11
Appendix A: Present Value Tables and Future Value Tables
Appendix B: The Statement of Cash Flows
Appendix C: Financial Statement Analysis
Glossary
Subject Index
	A
	B
	C
	D
	E
	F
	G
	H
	I
	J
	K
	L
	M
	N
	O
	P
	Q
	R
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	T
	U
	V
	W
	Z
Company Index
	A
	B
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	F
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Photo Credits