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| Introduction | |
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| What Is Management Accounting? | |
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| Information for Decision Making | |
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| Strategic Analysis Information | |
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| Planning Information | |
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| Organizing and Directing Information | |
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| Performance Evaluation Information | |
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| The Key Accounting and Finance Players in a Large Business | |
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| Changing Roles of the Controller and Management Accountant | |
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| The Profession of Accounting | |
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| Management Accounting Compared to Financial Accounting | |
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| Summary | |
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| Basic Cost Terms and Concepts | |
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| Cost as an Asset or Expense | |
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| Costs That Become Assets | |
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| Costs That Become Expenses | |
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| Identification of Costs and Expenses in Three Types of Businesses | |
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| Tracing Costs to Cost Objects | |
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| Cost Objects | |
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| Direct Costs | |
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| Indirect Costs | |
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| Costs Based on Cost Behavior | |
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| Total Variable Costs | |
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| Relevant Range | |
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| Total Fixed Costs | |
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| Mixed Variable Costs | |
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| Stepped Fixed Costs | |
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| Unit vs. Total Costs | |
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| Cost Definitions for Decision Making | |
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| Summary of Cost Definitions | |
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| Cost Flows in a Manufacturing Business | |
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| Preparation of Financial Statements | |
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| The Balance Sheet | |
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| The Income Statement | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Job Order Cost Systems | |
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| Factors in Designing a Cost System | |
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| Job Order Cost System | |
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| The Accounting Components of a Job Order Costing System | |
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| Source Documents Used in the System | |
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| The General Ledger and Subsidiary Ledgers | |
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| The Major Steps in Designing a Job Order Cost System | |
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| Disposition of Overallocated or Underallocated Overhead | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Cost Allocation Systems | |
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| Why Allocate Indirect Costs? | |
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| Nature of Cost Allocation | |
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| Issues to Address in Cost Allocation | |
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| An Overview of Cost Flows in a Manufacturing Cost Allocation System | |
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| Methods of Allocating Support Department Costs | |
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| Direct Method | |
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| Step-Down Method | |
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| Other Methods for Allocating Support Department Overhead | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Process Cost Systems | |
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| Process Costing and Job Order Costing Compared | |
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| A Description of Process Costing | |
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| Concept of Equivalent Units | |
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| An Overview of the Major Steps in a Process Cost System | |
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| A Visual Look at Computing Unit Costs Under the Weighted Average Method and the FIFO Method | |
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| Weighted Average Method | |
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| FIFO Method | |
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| Assigning Costs Using the Weighted Average Method | |
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| Assigning Costs Using the FIFO Method | |
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| Costs Transferred in from Other Departments | |
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| Transferred-In Costs Using the Weighted Average Method | |
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| Transferred-In Costs Using the FIFO Method | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Activity-Based Management Systems | |
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| Activity-Based Management Systems | |
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| ABC as a Management System | |
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| ABC in Product Costing | |
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| An Overview of the Flow of Costs in an ABM System | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Costs for Decision Making: Cost Estimation and Cost-Volume-Profit Analysis | |
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| Why Cost Behavior and Cost Estimation Is So Important | |
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| Review of Cost Behavioral Terms | |
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| The Basic Linear Cost Function | |
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| Assumptions Underlying the Linear Cost Model | |
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| Methods for Estimating Variable and Fixed Costs | |
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| The Account Analysis Method | |
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| Industrial Engineering Method | |
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| Scatter Diagram Method | |
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| The High-Low Method | |
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| Regression Analysis | |
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| Putting It All Together-The Steps in Developing a Cost Estimation or Prediction Formula | |
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| Cost-Volume-Profit Analysis (CVP) and Its Uses | |
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| The CVP Model | |
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| Total Costs vs. Unit Costs | |
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| Contribution Margin Approach in CVP Analysis | |
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| The Formula Approach in CVP Analysis | |
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| Shortcut Approaches to CVP Analysis | |
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| CVP Analysis and the Multiproduct Firm | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Costs for Decision Making: Relevant Costing and Capital Expenditure Analysis | |
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| Decision Making Model | |
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| Important Accounting Concepts for Decision Making | |
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| Hazards in Using Relevant Costing | |
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| Problem: Should a Product, Service, or Business Segment Be Dropped? | |
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| Problem: How to Make Capital Investment Decisions | |
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| The Payback Method of Evaluating Capital Investment Projects | |
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| The Discounted Cash Flow (DCF) Method of Evaluating Capital Investment Projects | |
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| Problem: Should a Product or Service Be Produced Internally or Outsourced? | |
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| Problem: Which Product Mix Provides the Greater Profitability? | |
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| Summary | |
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| Computing Present Value of a Lump Sum of Money | |
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| The Present Value of Money | |
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| Computing the Present Value of Money | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Costs for Decision Making: Setting Prices | |
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| Economics of Pricing | |
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| Short-Term Pricing Decisions | |
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| Long-Term Pricing Decisions | |
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| Cost-Plus Pricing | |
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| Contribution Margin Approach to Pricing | |
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| Target Costing | |
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| The Basic Concepts of Target Costing | |
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| Steps in Computing the Target Cost | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Profit Planning Using Master Budgets | |
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| Purposes and Benefits of Profit Planning | |
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| The Behavioral Aspects of Profit Planning and Budgeting | |
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| Budgeting Obstacles | |
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| The Master Budget Framework | |
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| Steps in Preparing the Master Budget | |
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| Budget Gap | |
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| Activity-Based Budgeting | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Planning and Performance Evaluation: Using Flexible Budgets | |
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| Flexible Budgets for Planning | |
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| Flexible Budgets for Activities and Planning of Overhead Costs | |
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| General Model for Evaluating Financial Performance | |
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| Flexible Budgets for Control | |
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| Flexible Budgeting in Action | |
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| Illustration of Flexible Budget for Control at the Senior Management Level | |
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| Determining the Cause of Flexible Budget Variances | |
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| Activity-Based Flexible Budgeting and Variance Analysis | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Performance Evaluation: Standard Costing and Variances Analysis | |
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| What Is a Standard? | |
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| Ideal Standards | |
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| Practical Standards | |
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| Advantages of Standard Costing | |
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| Criticisms of Standard Costing | |
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| Standard Costing in Performance Evaluation | |
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| Who Is Responsible for Setting Standards? | |
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| Purchasing | |
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| Industrial Engineering | |
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| Human Resources | |
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| Management Accountant | |
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| Using Standard Costing in Material and Labor Cost Variance Analysis | |
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| Causes of Direct Material and Direct Labor Variances | |
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| Variable Manufacturing Overhead Variances | |
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| Explanation and Causes of Variable Manufacturing Overhead Variances | |
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| Fixed Manufacturing Overhead Variances | |
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| Explanation and Causes of Fixed Manufacturing Overhead Variances | |
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| Different Approaches for Analyzing Manufacturing | |
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| Cost Variances in the General Ledger | |
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| Disposition of Cost Variances | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Performance Evaluation: Sales Variances and the Balanced Scorecard | |
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| Sales Variances | |
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| Total Sales Budget Variance | |
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| Sales Price Variance | |
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| Sales Volume Variance | |
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| Sales Mix Variance | |
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| Sales Quantity Variance | |
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| Sales Market Share Variance | |
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| Sales Market Size Variance | |
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| Evaluating the Success of a Strategic Initiative | |
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| Balancing Financial and Nonfinancial Success Factors | |
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| Some Guidelines for Adopting the Balanced Scorecard | |
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| Measuring the Key Success Areas | |
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| Vision and Strategy | |
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| Learning and Innovation | |
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| Learning and Innovation Measures of Performance | |
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| Internal Business Processes | |
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| Internal Business Process Performance Measures | |
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| Customer Focus | |
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| Customer Performance Measures | |
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| Financial Performance | |
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| Financial Performance Measures | |
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| Six Sigma and the Balanced Scorecard | |
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| Six Sigma in Action | |
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| Performance Dashboard | |
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| Benchmarking | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Performance Evaluation in Decentralized Companies | |
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| Nature of Decentralization | |
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| Advantages of Decentralization | |
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| Disadvantages of Decentralization | |
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| Responsibility Accounting System | |
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| The Issue of Controllability | |
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| Managerial Evaluation Compared to Segment Evaluation | |
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| Responsibility Centers | |
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| Measuring Investment Center (Divisional) Performance | |
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| Return on Investment (ROI) | |
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| Residual Income (RI) | |
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| Economic Value Added (EVA) | |
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| Measuring Income and the Investment Base | |
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| How Is Income Measured? | |
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| What Is Included in the Investment Base? | |
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| How Is the Investment Base Valued? | |
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| Activity-Based Costing and Responsibility Accounting | |
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| Transfer Pricing | |
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| Transfer Pricing When There Is No External Market | |
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| Transfer Pricing When There Is an External Market | |
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| Transfer Pricing When the Producing Division Has Excess Capacity | |
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| Transfer Pricing When the Producing Division Can Use Idle Facilities for Other Purposes | |
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| Transfer Pricing When Producing Division Has No Excess Capacity | |
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| Transfer Pricing in a Multinational Environment | |
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| A Synthesis of Performance Evaluation Methodologies | |
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| Summary | |
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| Practice Problems | |
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| Solutions to Practice Problems | |
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| Final Exam | |
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| Glossary | |
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| Index | |