Managerial Accounting: An Integrative Approach 2nd Edition

Management Accounting: An Integrative Approach
About the Authors
Preface
Acknowledgements
Contents
Chapter One. Business Planning and Analysis: An Integrative Framework for Management Accounting
	The World of Management: A n Overview
		WHAT IS A MANAGER?
		TYPES OF MANAGERIAL WORK
	The Management Process and the Role of Management Accounting
	What Is Business Planning and Analysis?
		BPA AS A TOOL TO INTEGRATE MANAGEMENT ACCOUNTING PRACTICES
		A FINANCIAL VS. MANAGERIAL PERSPECTIVE
	The BPA Integrated Framework and Management Accounting
		THE BPA DATABASE
		THE DECISION DOMAINS
	Management Accounting: Real World—Real Issues
		ANALYZING PERFORMANCE
		MANAGEMENT ACCOUNTING IN ACTION
	IMA Statement of Ethical Professional Practice
	The Management Accounting Professional
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Cases
Chapter Two. Measuring and Evaluating Performance
	Measurement: A Matter of Perspective
		FINANCIAL ACCOUNTING VS. MANAGEMENT ACCOUNTING MEASUREMENTS
	Measurement: A Strategic View
		GOOD MEASURES, BAD MEASURES
		A SYSTEM OF MEASUREMENTS—MCDONALD’S-STYLE
	Measurement and the Management Process
		MEASUREMENT AND PLANNING
	Action and Measurement
	Using Measures to Check Progress
		USING MEASUREMENTS TO ADJUST PERFORMANCE
		THE BEHAVIORAL IMPACT OF PERFORMANCE MEASUREMENT
	Results, Action, and Personnel/Cultural Controls
		CONTROL IN A CONTINUOUS IMPROVEMENT SETTING
	The Potential for Dysfunctional Consequences
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Three. Defining and Using Cost Estimates
	Cost Measurement: Basic Concepts
		DIRECT AND INDIRECT COSTS
		DIFFERENT COSTS FOR DIFFERENT PURPOSES
	The Behavior of Costs
		FIXED, VARIABLE, AND MIXED COSTS
		ESTIMATING AVERAGE COSTS
		STEPPED COSTS AND THE RELEVANT RANGE
	Cost-Volume-Profit Analysis
		THE BASIC CVP FORMULA
		THE VARIABLE COST INCOME STATEMENT AND OPERATING LEVERAGE
		USING CVP TO IMPROVE PROFIT PERFORMANCE
		EXPANDING THE BASIC CVP FORMULA
		MULTIPLE PRODUCT CVP
	Building an Effective Business Case
	Summary
	Key Terms
	Appendix to Chapter 3
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Four. Cost Pools, Capacity, and Activity-Based Costing
	From Resources to Cost Pools
		RESOURCE DRIVERS: COMBINING DIRECT AND INDIRECT RESOURCES
		HOMOGENOUS VS. HETEROGENEOUS COST POOLS
	Capacity and Cost Pools
		CAPACITY COSTING EXPLORED
		MANAGED AND COMMITTED COSTS
		PRODUCTIVE, NONPRODUCTIVE, AND IDLE CAPACITY
	Activity-Based Costing
		USING ABC TO ESTIMAT E COSTS
		PEOPLE-PACED VS. MACHINE-PACED COST POOLS
	From Cost Pools to Cost Objects
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Five. Understanding the Management Process
	Planning for Performance
		CREATING PLANS FOR ACTION
		PLANNING AND THE ROLE OF INFORMATION
		BENCHMARKING THE PLAN
		STANDARD SETTING
	Comparing Actual Results with Plan
		GAP ANALYSIS
		TREND ANALYSIS
		RADAR CHART ANALYSIS
		VARIANCE ANALYSIS
	Applying Analytical Tools to Solve Problems
		PARETO ANALYSIS
		CAUSE-AND-EFFECT ANALYSIS
	Making Adjustments
		ASSESSING THE IMPACT OF CHANGE: INCREMENTAL ANALYSIS
		BALANCING OBJECTIVE AND SUBJECTIVE INFORMATION
		USING INCREMENTAL ANALYSIS TO BUILD AN EFFECTIVE BUSINESS CASE
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Six. Planning in the Product Domain
	Target Costing: Planning in the Product Domain
	UNDERSTANDING AND USING TARGET COSTING
	ACHIEVING THE TARGET COST
	APPLYING TARGET COSTING
	COMMITTED VS. INCURRED PRODUCT COSTS
	Organizing for Production
	PROCESS MANUFACTURING
	LARGE BATCH
	ASSEMBLY LINE
	CELLULAR MANUFACTURING
	Estimating Product Costs
	WHAT IS A PRODUCT COST ?
	Estimating Overhead and Job Order Costs
	PLANT-WIDE VS. DEPARTMENTAL OVERHEAD RATES
	DEVELOPING AND USING DEPARTMENTAL OVERHEAD RATES
	Product Costing in Complex Settings
	CONVERSION COSTS IN MACHINE-PACED SETTINGS
	ACTIVITY-BASED COSTS AND PRODUCT COST ESTIMATES
	Summary
	Key Terms
	Appendix: Process Costing
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Seven. Assessing and Improving Product Profitability
	Moving Beyond Target Costing: Attainment Phase
		ATTAINING THE TARGET COST
		SETTING AND MEETING STANDARDS
		CREATING AND SUPPORTING CONTINUOUS IMPROVEMENT
	Analyzing Product Profitability
		FINANCIAL MEASURES OF PRODUCT PERFORMANCE
		EVALUATING PRODUCT COST VARIANCES
	Analyzing Product Performance
		PRODUCT-FOCUSED RADAR ANALYSIS
		PRODUCT-FOCUSED PARETO ANALYSIS
		PRODUCT-FOCUSED CAUSE-AND-EFFECT ANALYSIS
	Developing the Case for Change
		LEVERAGING EXISTING PROCESSES: COST-VOLUME-PROFIT ANALYSIS
		ASSESSING STRUCTURAL CHANGES: INCREMENTAL ANALYSIS
	Developing a Product-Focused Business Case: Behavioral, Strategic and Operational Considerations
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Eight. Setting Process Expectations
	Key Issues in the Process Domain
		PROCESS VS. FUNCTIONAL ORGANIZATIONS
		UNDERSTANDING THE PROCESS FLOW
	Going Lean
		LEAN ACCOUNTING
		APPLYING LEAN ACCOUNTING
	Activity-Based Approaches to Process Management
		ACTIVITY-BASED MANAGEMENT
	Activity-Based Budgeting
	The Theory of Constraints, Just-in-Time Management, and Capacity
		THE THEORY OF CONSTRAINTS
		JUST-IN-TIME MANAGEMENT AND CELLULAR PROCESS FLOWS
		A ROLE FOR CAPACITY ANALYSIS
		APPLYING JIT AND CAPACITY ANALYSIS IN NONMACHINE SETTINGS
	Summary
	Key Terms
	Appendix
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Nine. Evaluating and Improving Process Performance
	The Continuous Improvement Philosophy
		EAST MEETS WEST: KAIZEN
		IDENTIFYING AND ELIMINATING WASTE: MUDA
	Total Quality Management and the Cost of Quality
		COST OF QUALITY REPORTING
		THE TAGUCHI LOSS FUNCTION
		THE MALCOLM BALDRIGE AWARD
	Capacity Analysis and Reporting
		CAPACITY VARIANCE ANALYSIS
	Measuring Delivery Performance
	Incentives and Behavior: A Process Perspective
		USING INCENTIVES TO FOSTER IMPROVEMENT
		BUILDING A PORTFOLIO OF INCENTIVES
		BEHAVIORAL ISSUES OR, WHO’S IN CHARGE?
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problem
	Cases
Chapter Ten. Setting Performance Expectations at the Entity Level
	Planning Prerequisites: Missions and Objectives
	Three Organizational Archetypes
		SMALL ORGANIZATIONS
		FUNCTIONAL ORGANIZATIONS
		DIVISIONAL ORGANIZATIONS
	Planning in Small Organizations
		SCENARIO PLANNING IN SMALL ORGANIZATIONS
	Planning in Functional Organizations
	Budgeting in Functional Organizations
		FORECASTING SALES
		PRODUCTION BUDGET
		RAW MATERIALS, LABOR, AND OVERHEAD BUDGETS
		FINISHED GOODS AND COST OF GOODS SOLD BUDGETS
		SALES AND MARKETING, ADMINISTRATIVE, AND RESEARCH AND DEVELOPMENT BUDGETS
		BUDGETED INCOME STATEMENT
		CASH BUDGET
		ENDING BALANCE SHEET
		“FLEXING” THE BUDGET
	Eliminating or Reducing the Planning Gap
	Target-Setting Alternatives
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Eleven. Setting Performance Expectations in Large, Complex Organizations
	Organizing for Performance
		COSTS OF DECENTRALIZATION
	The Role of Responsibility Centers
	Planning and Budgeting Systems in Large, Complex Organizations
		THREE PLANNING AND BUDGETING CYCLES
		COMPANY-BY-COMPANY VARIATIONS IN PRACTICE
	Performance Measurement Problems in Divisionally Organized Entities
		ACCOUNTING METRICS AS SURROGATE INDICATORS OF VALUE
		THE CONGRUENCE PROBLEM
		THE INTERDEPENDENCY PROBLEM
		THE SUBOPTIMIZATION PROBLEM
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Twelve. Evaluating and Improving Entity Performance
	Evaluating Performance
	Comparing Measured Results with a Performance Target
	Profit Variance Analyses
		DISAGGREGATING PROFIT VARIANCES BY LINE ITEM
		DISAGGREGATING PROFIT VARIANCES BY RESPONSIBILITY CENTER
		DISAGGREGATING PROFIT VARIANCES BY PROFIT DRIVER
	Relative Performance Evaluations
	Subjective Performance Evaluations
	Designing an Incentive Program
		PERFORMANCE REWARDS: INDIVIDUAL VS. GROUP PERFORMANCE VS. A COMBINATION
		DETERMINING THE SHAPE OF THE FUNCTION LINKING REWARDS AND PERFORMANCE MEASURES
		DETERMINING THE AMOUNT OF THE INCENTIVE
		DETERMINING THE FORM OF INCENTIVES
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Thirteen. Setting and Achieving Targets in the Customer Domain
	Measuring Customer Profitability
	The Customer Value Perspective
	Planning in the Customer Domain
		ACQUIRING CUSTOMERS OF THE RIGHT TYPE
		MAKING EXISTING CUSTOMERS MORE PROFITABLE
		RETAINING EXISTING CUSTOMERS
	Measuring Performance and Making Adjustments
		CUSTOMER PROFIT VARIANCE ANALYSES
		NONFINANCIAL PERFORMANCE MEASURES IN THE CUSTOMER DOMAIN
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Chapter Fourteen. Strategic Cost Management and the Supply Chain Domain
	Key Issues in the Value Chain Domain
		BASIC FEATURES OF VALUE CHAINS
		STRATEGIC COST MANAGEMENT
		VALUE CHAINS AND COMPETITIVE ADVANTAGE
	Beyond the Basics
		IDENTIFYING AND MEASURING CURRENT PERFORMANCE
		RETURN ON EQUITY AND A FIRM’S BASIC ECONOMIC STRUCTURE
		CHANNEL ANALYSIS
		VALUE CHAIN PATTERNS
		VALUE MIGRATION
	Integrated Supply Chain Management
		THE BASICS OF ISCM
		ALIGNING THE SUPPLY CHAIN WITH BUSINESS STRATEGY
		MEASURING AND CONTROLLING SUPPLY CHAIN PERFORMANCE
	Summary
	Key Terms
	Questions
	Exercises
	Problems
	Database Problems
	Cases
Index
EULA