McGrawhill eBook Library

Learn the essentials of management accounting in a flash!

This hands-on self-teaching guide covers thefundamentals of management accounting,including cost accounting, how to develop anduse information for costing products and services,decision making, operational budgeting,performance evaluation, and other importantsubjects and provides an update on recent developments in the field. You will learn the keyaspects of management accounting as they applyto both for-profit companies and nonprofits.

• Contents

• Introduction

• Chapter 1 What Is Management Accounting?
• Information for Decision Making
• The Key Accounting and Finance Players in a Large Business
• Changing Roles of the Controller and Management Accountant
• The Profession of Accounting
• Management Accounting Compared to Financial Accounting
• Summary

• Chapter 2 Basic Cost Terms and Concepts
• Cost as an Asset or Expense
• Tracing Costs to Cost Objects
• Costs Based on Cost Behavior
• Cost Definitions for Decision Making
• Summary of Cost Definitions
• Cost Flows in a Manufacturing Business
• Preparation of Financial Statements
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 3 Job Order Cost Systems
• Factors in Designing a Cost System
• The Accounting Components of a Job Order Costing System
• The Major Steps in Designing a Job Order Cost System
• Disposition of Overallocated or Underallocated Overhead
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 4 Cost Allocation Systems
• Why Allocate Indirect Costs?
• Nature of Cost Allocation
• Issues to Address in Cost Allocation
• An Overview of Cost Flows in a Manufacturing Cost Allocation System
• Methods of Allocating Support Department Costs
• Other Methods for Allocating Support Department Overhead
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 5 Process Cost Systems
• Process Costing and Job Order Costing Compared
• A Description of Process Costing
• Concept of Equivalent Units
• An Overview of the Major Steps in a Process Cost System
• A Visual Look at Computing Unit Costs Under the Weighted Average Method and the FIFO Method
• Costs Transferred in from Other Departments
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 6 Activity-Based Management Systems
• Activity-Based Management Systems
• An Overview of the Flow of Costs in an ABM System
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 7 Costs for Decision Making: Cost Estimation and Cost-Volume-Profit Analysis
• Why Cost Behavior and Cost Estimation Is So Important
• Review of Cost Behavioral Terms
• The Basic Linear Cost Function
• Methods for Estimating Variable and Fixed Costs
• Putting It All Together—The Steps in Developing a Cost Estimation or Prediction Formula
• Cost-Volume-Profit Analysis (CVP) and Its Uses
• The CVP Model
• Total Costs vs. Unit Costs
• Contribution Margin Approach in CVP Analysis
• The Formula Approach in CVP Analysis
• Shortcut Approaches to CVP Analysis
• CVP Analysis and the Multiproduct Firm
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 8 Costs for Decision Making: Relevant Costing and Capital Expenditure Analysis
• Decision Making Model
• Important Accounting Concepts for Decision Making
• Hazards in Using Relevant Costing
• Problem: Should a Product, Service, or Business Segment Be Dropped?
• Problem: How to Make Capital Investment Decisions
• Problem: Should a Product or Service Be Produced Internally or Outsourced?
• Problem: Which Product Mix Provides the Greater Profitability?
• Summary
• Appendix: Computing Present Value of a Lump Sum of Money
• Practice Problems
• Solutions to Practice Problems

• Chapter 9 Costs for Decision Making: Setting Prices
• Economics of Pricing
• Short-Term Pricing Decisions
• Long-Term Pricing Decisions
• Contribution Margin Approach to Pricing
• Target Costing
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 10 Profit Planning Using Master Budgets
• Purposes and Benefits of Profit Planning
• The Behavioral Aspects of Profit Planning and Budgeting
• Budgeting Obstacles
• The Master Budget Framework
• Steps in Preparing the Master Budget
• Budget Gap
• Activity-Based Budgeting
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 11 Planning and Performance Evaluation: Using Flexible Budgets
• Flexible Budgets for Planning
• Flexible Budgets for Activities and Planning of Overhead Costs
• General Model for Evaluating Financial Performance
• Flexible Budgets for Control
• Flexible Budgeting in Action
• Determining the Cause of Flexible Budget Variances
• Activity-Based Flexible Budgeting and Variance Analysis
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 12 Performance Evaluation: Standard Costing and Variances Analysis
• What Is a Standard?
• Advantages of Standard Costing
• Criticisms of Standard Costing
• Standard Costing in Performance Evaluation
• Who Is Responsible for Setting Standards?
• Using Standard Costing in Material and Labor Cost Variance Analysis
• Causes of Direct Material and Direct Labor Variances
• Variable Manufacturing Overhead Variances
• Explanation and Causes of Variable Manufacturing Overhead Variances
• Fixed Manufacturing Overhead Variances
• Explanation and Causes of Fixed Manufacturing Overhead Variances
• Different Approaches for Analyzing Manufacturing
• Cost Variances in the General Ledger
• Disposition of Cost Variances
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 13 Performance Evaluation: Sales Variances and the Balanced Scorecard
• Sales Variances
• Sales Volume Variance
• Evaluating the Success of a Strategic Initiative
• Balancing Financial and Nonfinancial Success Factors
• Some Guidelines for Adopting the Balanced Scorecard
• Measuring the Key Success Areas
• Six Sigma and the Balanced Scorecard
• Benchmarking
• Summary
• Practice Problems
• Solutions to Practice Problems

• Chapter 14 Performance Evaluation in Decentralized Companies
• Nature of Decentralization
• Advantages of Decentralization
• Disadvantages of Decentralization
• Responsibility Accounting System
• Measuring Investment Center (Divisional) Performance
• Measuring Income and the Investment Base
• Activity-Based Costing and Responsibility Accounting
• Transfer Pricing
• A Synthesis of Performance Evaluation Methodologies
• Summary
• Practice Problems
• Solutions to Practice Problems

• Final Exam

• Glossary
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• Index
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• Z