Managerial Accounting

Cover
Managerial ACCOUNTING
Dedication
Meet the Authors
Preparing Students for Success in Business
What’s New in the Fourth Edition?
For Students
BRIEF CONTENTS
CONTENTS
Chapter 1: Introduction to Managerial Accounting
	FOCUS COMPANY: CALIFORNIA PIZZA KITCHEN
	Organization of the Chapter
	Role of Managerial Accounting in Organizations
		Comparison of Financial and Managerial Accounting
		Functions of Management
		Ethics, Sustainability, and Decision Analytics
	Role of Cost in Managerial Accounting
		Cost Terminology
		Direct Versus Indirect Costs
		Variable Versus Fixed Costs
		Manufacturing Versus Nonmanufacturing Costs
		Product Versus Period Costs
		Relevant Versus Irrelevant Costs
	Review the Chapter
	Practice Material
Chapter 2: Job Order Costing
	FOCUS COMPANY: HGTV
	Organization of the Chapter
	Job Order versus Process Costing
		Process Costing
		Job Order Costing
	Assign Manufacturing Costs to Jobs
		Manufacturing Cost Categories
		Materials Requisition Form
		Direct Labor Time Tickets
		Job Cost Sheet
		Predetermined Overhead Rates
	Record the Flow of Costs in Job Order Costing
		Record the Purchase and Issue of Materials
		Record Labor Costs
		Record Applied Manufacturing Overhead
		Record Actual Manufacturing Overhead
		Transfer Costs to Finished Goods Inventory and Cost of Goods Sold
		Record Nonmanufacturing Costs
	Overapplied or Underapplied Manufacturing Overhead
		Calculate Overapplied or Underapplied Manufacturing Overhead
	Prepare the Cost of Goods Manufactured  Report
	Job Order Costing in a Service Firm
	Review the Chapter
	Practice Material
Chapter 3: Process Costing
	FOCUS COMPANY: FETZER Vineyards
	Organization of the Chapter
	Basic Concepts in Process Costing
		Flow of Costs in Process Costing
		Process Costing Production Report
	Prepare the Production Report (Weighted-Average Method)
		Step 1: Reconcile the Number of Physical Units
		Step 2: Convert Physical Units Into Equivalent Units
		Step 3: Calculate Cost Per Equivalent Unit
		Step 4: Reconcile the Total Cost of Work in Process Inventory
		Step 5: Prepare a Production Report
		Accounting for Subsequent Production Departments
	Review the Chapter
	Practice Material
Chapter 4: Activity-Based Costing and Cost Management
	FOCUS COMPANY: TOYOTA MOTOR CORPORATION
	Organization of the Chapter
	Review of Volume-Based Cost Systems
		Step 1: Determine the Cost Driver
		Step 2: Calculate the Predetermined Overhead Rate
		Step 3: Assign Indirect Costs to Individual Products or Services
	Activity-Based Costing (ABC)
		Step 1: Identify and Classify Activities
		Step 2: Form Activity Cost Pools and Assign Indirect Costs to Each Pool
		Step 3: Select a Cost Driver for Each Activity Cost Pool
		Step 4: Assign Indirect Costs to Products or Services Based on Their Activity Demands
	Activity-Based Costing in Service Industries
	Cost Management Methods
		Activity-Based Management (ABM)
		Abm and Sustainability
		Just-in-Time (JIT)
		Total Quality Management (Tqm)
		Target Costing and Life Cycle Cost Management
		Summary of ABC and ABM
	Review the Chapter
	Practice Material
Chapter 5: Cost Behavior
	FOCUS COMPANY: STARBUCKS COFFEE
	Organization of the Chapter
	Cost Behavior Patterns
		Relevant Range
		Variable Costs
		Fixed Costs
		Step Costs
		Mixed Costs
	Estimate Cost Behavior
		Linear Assumption
		Scattergraph
		High-Low Method
		Least-Squares Regression Method
		Summary of Linear Methods
	Contribution Margin Approach
		Unit Contribution Margin
		Contribution Margin Ratio
	Review the Chapter
	Practice Material
Chapter 6: Cost-Volume-Profit Analysis
	FOCUS COMPANY: STARBUCKS COFFEE
	Organization of the Chapter
	Cost-Volume-Profit Analysis
		Assumptions of Cost-Volume-Profit Analysis
		Cvp Graph
		Basic Cvp Analysis
		Profit Equation Method
		Unit Contribution Margin Method
		Contribution Margin Ratio Method
	Apply Cost-Volume-Profit Analysis
		Margin of Safety
		Cvp for Decision Making
		Changes in Cost Structure
		Degree of Operating Leverage
	Multiproduct Cost-Volume-Profit Analysis
		Weighted-Average Contribution Margin
		Weighted-Average Contribution Margin  Ratio
	Review the Chapter
	Practice Material
Chapter 7: Incremental Analysis for Short-Term Decision Making
	FOCUS COMPANY: IKEA
	Organization of the Chapter
	Managerial Decision-Making Framework
		Steps in the Decision-Making Process
		Relevant Versus Irrelevant Costs and Benefits
		Opportunity Costs and Capacity  Considerations
	Special-Order Decisions
	Make-or-Buy Decisions
	Keep-or-Drop Decisions
	Sell-or-Process-Further Decisions
		Summary of Incremental Analysis
	Prioritize Products with Constrained Resources
	Review the Chapter
	Practice Material
Chapter 8: Budgetary Planning
	FOCUS COMPANY: LEVI STRAUSS & CO.
	Organization of the Chapter
	Role of Budgets in Organizations
		Planning and Control Cycle
		Benefits of Budgeting
		Behavioral Effects of Budgets
		Components of the Master Budget
	Prepare the Operating Budgets
		Sales Budget
		Production Budget
		Direct Materials Purchases Budget
		Direct Labor Budget
		Manufacturing Overhead Budget
		Budgeted Cost of Goods Sold
		Selling and Administrative Expense Budget
		Budgeted Income Statement
	Prepare the Cash Budget and Merchandise Purchases Budget
		Budgeted Cash Receipts
		Budgeted Cash Payments
		Cash Budget
		Budgeted Balance Sheet
		Budgeting in Nonmanufacturing Firms
	Review the Chapter
	Practice Material
Chapter 9: Standard Costing and Variance Analysis
	FOCUS COMPANY: LEVI STRAUSS & CO
	Organization of the Chapter
	Standard Cost Systems
		Ideal Versus Attainable Standards
		Types of Standards
		Standard Cost Card
		The Flexible Budget
		Variance Analysis
		Favorable or Unfavorable Variances
	Variable Cost Variances
		Direct Materials Variances
		Direct Labor Variances
		Variable Manufacturing Overhead  Variances
		Summary of Variable Cost Variances
		Fixed Overhead Spending Variance
		Fixed Overhead Volume Variance
	Review the Chapter
	Practice Material
Chapter 10: Decentralized Performance Evaluation
	FOCUS COMPANY: APPLE INC.
	Organization of the Chapter
	Decentralization of Responsibility
		Advantages and Disadvantages of  Decentralization
		Types of Responsibility Centers
	Designing a Performance Evaluation System
		Balanced Scorecard
		Financial Performance Measures
		Limitations of Financial Performance Measures
	Transfer Pricing
		Market-Price Method
		Cost-Based Method
		Negotiation
	Review the Chapter
	Practice Material
Chapter 11: Capital Budgeting
	FOCUS COMPANY: APPLE INC.
	Organization of the Chapter
	Capital Budgeting Process
		Capital Investment Decisions
		Accounting Rate of Return
		Net Cash Flow Versus Net Income
		Payback Period
	Discounted Cash Flow Methods
		Time Value of Money
		Net Present Value
		Internal Rate of Return
		Profitability Index
		Summary of Capital Budgeting Methods
	Applying NPV and Sensitivity Analysis
		Evaluating Mutually Exclusive Projects
		Prioritizing Independent Projects
	Review the Chapter
	Practice Material
Chapter 12:  Statement of Cash Flows
	FOCUS COMPANY: UNDER ARMOUR, INC.
	Organization of the Chapter
	Understand the Business
		Business Activities and Cash Flows
		Classifying Cash Flows
	Study the Accounting Methods
		Relationship to Other Financial Statements
		Preparing the Statement of Cash Flows
	Evaluate the Results
		Evaluating Cash Flows
		Operating Cash Flows Revisited (Direct Method)
	Review the Chapter
	Practice Material
Chapter 13: Measuring and Evaluating Financial Performance
	FOCUS COMPANY: LOWE’S
	Organization of the Chapter
	Understand the Business
		Horizontal, Vertical, and Ratio Analyses
	Study the Accounting Methods
		Horizontal (Trend) Computations
		Vertical (Common Size) Computations
		Ratio Computations
	Evaluate the Results
		Interpreting Horizontal and Vertical Analyses
		Interpreting Ratio Analyses
	Review the Chapter
	Practice Material
GLOSSARY
CHECK FIGURES
SOLUTIONS TO MULTIPLE-CHOICE QUESTIONS
BUSINESS INDEX
SUBJECT INDEX