Principles of Accounting, Volume 2: Managerial Accounting

Preface
1. About OpenStax
2. About OpenStax resources
3. About Principles of Accounting
4. Additional resources
5. About the authors
Chapter 1. Accounting as a Tool for Managers
Table of Contents
Why It Matters*
1.1. Define Managerial Accounting and Identify the Three Primary Responsibilities of Management*
1.2. Distinguish between Financial and Managerial Accounting*
1.3. Explain the Primary Roles and Skills Required of Managerial Accountants*
1.4. Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards*
1.5. Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Thought Provokers
Chapter 2. Building Blocks of Managerial Accounting
Table of Contents
Why It Matters*
2.1. Distinguish between Merchandising, Manufacturing, and Service Organizations*
2.2. Identify and Apply Basic Cost Behavior Patterns*
2.3. Estimate a Variable and Fixed Cost Equation and Predict Future Costs*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 3. Cost-Volume-Profit Analysis
Table of Contents
Why It Matters*
3.1. Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin*
3.2. Calculate a Break-Even Point in Units and Dollars*
3.3. Perform Break-Even Sensitivity Analysis for a Single Product Under Changing Business Situations*
3.4. Perform Break-Even Sensitivity Analysis for a Multi-Product Environment Under Changing Business Situations*
3.5. Calculate and Interpret a Company’s Margin of Safety and Operating Leverage*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 4. Job Order Costing
Table of Contents
Why It Matters*
4.1. Distinguish between Job Order Costing and Process Costing*
4.2. Describe and Identify the Three Major Components of Product Costs under Job Order Costing*
4.3. Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts*
4.4. Compute a Predetermined Overhead Rate and Apply Overhead to Production*
4.5. Compute the Cost of a Job Using Job Order Costing*
4.6. Determine and Dispose of Underapplied or Overapplied Overhead*
4.7. Prepare Journal Entries for a Job Order Cost System*
4.8. Explain How a Job Order Cost System Applies to a Nonmanufacturing Environment*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 5. Process Costing
Table of Contents
Why It Matters*
5.1. Compare and Contrast Job Order Costing and Process Costing*
5.2. Explain and Identify Conversion Costs*
5.3. Explain and Compute Equivalent Units and Total Cost of Production in an Initial Processing Stage*
5.4. Explain and Compute Equivalent Units and Total Cost of Production in a Subsequent Processing Stage*
5.5. Prepare Journal Entries for a Process Costing System*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 6. Activity-Based, Variable, and Absorption Costing
Table of Contents
Why It Matters*
6.1. Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method*
6.2. Describe and Identify Cost Drivers*
6.3. Calculate Activity-Based Product Costs*
6.4. Compare and Contrast Traditional and Activity-Based Costing Systems*
6.5. Compare and Contrast Variable and Absorption Costing*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 7. Budgeting
Table of Contents
Why It Matters*
7.1. Describe How and Why Managers Use Budgets*
7.2. Prepare Operating Budgets*
7.3. Prepare Financial Budgets*
7.4. Prepare Flexible Budgets*
7.5. Explain How Budgets Are Used to Evaluate Goals*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 8. Standard Costs and Variances
Table of Contents
Why It Matters*
8.1. Explain How and Why a Standard Cost Is Developed*
8.2. Compute and Evaluate Materials Variances*
8.3. Compute and Evaluate Labor Variances*
8.4. Compute and Evaluate Overhead Variances*
8.5. Describe How Companies Use Variance Analysis*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 9. Responsibility Accounting and Decentralization
Table of Contents
Why It Matters*
9.1. Differentiate between Centralized and Decentralized Management*
9.2. Describe How Decision-Making Differs between Centralized and Decentralized Environments*
9.3. Describe the Types of Responsibility Centers*
9.4. Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 10. Short-Term Decision Making
Table of Contents
Why It Matters*
10.1. Identify Relevant Information for Decision-Making*
10.2. Evaluate and Determine Whether to Accept or Reject a Special Order*
10.3. Evaluate and Determine Whether to Make or Buy a Component*
10.4. Evaluate and Determine Whether to Keep or Discontinue a Segment or Product*
10.5. Evaluate and Determine Whether to Sell or Process Further*
10.6. Evaluate and Determine How to Make Decisions When Resources Are Constrained*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 11. Capital Budgeting Decisions
Table of Contents
Why It Matters*
11.1. Describe Capital Investment Decisions and How They Are Applied*
11.2. Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions*
11.3. Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities*
11.4. Use Discounted Cash Flow Models to Make Capital Investment Decisions*
11.5. Compare and Contrast Non-Time Value-Based Methods and Time Value-Based Methods in Capital Investment Decisions*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 12. Balanced Scorecard and Other Performance Measures
Table of Contents
Why It Matters*
12.1. Explain the Importance of Performance Measurement*
12.2. Identify the Characteristics of an Effective Performance Measure*
12.3. Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added*
12.4. Describe the Balanced Scorecard and Explain How It Is Used*
Glossary
Summary
Multiple Choice
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers
Chapter 13. Sustainability Reporting
Table of Contents
Why It Matters*
13.1. Describe Sustainability and the Way It Creates Business Value*
13.2. Identify User Needs for Information*
13.3. Discuss Examples of Major Sustainability Initiatives*
13.4. Future Issues in Sustainability*
Glossary
Summary
Multiple Choice
Questions
Thought Provokers
Appendix A. Financial Statement Analysis*
A.1. Financial Statement Analysis
A.2. Horizontal Analysis
A.3. Vertical Analysis
A.4. Overview of Financial Ratios
A.5. Advantages and Disadvantages of Financial Statement Analysis
Appendix B. Time Value of Money*
B.1. Present Value of $1 Table
B.2. Present Value of an Ordinary Annuity Table
B.3. Future Value of $1 Table
B.4. Future Value of an Ordinary Annuity Table
Appendix C. Suggested Resources*
C.1. Sample Financial Statements
C.2. Accounting Software and Tools
C.3. Personal Finance
C.4. Accounting-Related Organizations
C.5. Accounting Exams and Certificates
Solutions
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Index
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