Managerial Accounting: Tools for Business Decision-Making

Title Page......Page 1
Copyright......Page 3
About the Authors......Page 5
Hallmark Features......Page 8
Acknowledgements......Page 16
Brief Contents......Page 20
Contents......Page 21
CHAPTER 1 Managerial Accounting......Page 36
Managerial Accounting Basics......Page 39
Management Functions and Organizational Structures......Page 43
Business Ethics......Page 48
Managerial Accounting Today......Page 55
Review and Practice......Page 67
Glossary Review......Page 68
Self-Study Questions......Page 70
DO IT! Review......Page 73
Exercises......Page 74
Cases......Page 79
Decision-Making at Current Designs......Page 80
Waterways Continuing Problem......Page 82
CHAPTER 2 Managerial Cost Concepts and Cost Behaviour Analysis......Page 84
Managerial Cost Concepts......Page 87
Cost Behaviour Analysis......Page 96
The High-Low Method of Classifying Costs......Page 104
Manufacturing Costs in Financial Statements......Page 109
Review and Practice......Page 119
Decision Tools and Review......Page 121
Glossary Review......Page 122
Self-Study Questions......Page 127
Brief Exercises......Page 130
DO IT! Review......Page 135
Exercises......Page 137
Problems: Set A......Page 152
Problems: Set B......Page 161
Cases......Page 172
Decision-Making at Current Designs......Page 176
Waterways Continuing Problem......Page 178
CHAPTER 3 Job-Order Cost Accounting......Page 181
Cost Accounting Systems......Page 184
Job-Order Cost Flow......Page 188
Assigning Manufacturing Costs to Work in Process......Page 193
Manufacturing Overhead Costs......Page 200
Accounting for Jobs Completed and Sold......Page 206
Applied Manufacturing Overhead......Page 215
Review and Practice......Page 223
Decision Tools Review......Page 224
Glossary Review......Page 225
Self-Study Questions......Page 230
Brief Exercises......Page 233
DO IT! Review......Page 235
Exercises......Page 237
Problems: Set A......Page 246
Problems: Set B......Page 257
Cases......Page 269
Decision-Making at Current Designs......Page 277
Waterways Continuing Problem......Page 278
CHAPTER 4 Process Cost Accounting......Page 282
The Nature of Process Cost Systems......Page 285
The Flow and Assignment of Manufacturing Costs......Page 292
Equivalent Units......Page 297
The Production Cost Report......Page 302
Appendix 4A FIFO Method......Page 315
Review and Practice......Page 331
Glossary Review......Page 333
Self-Study Questions......Page 337
Brief Exercises......Page 341
DO IT! Review......Page 344
Exercises......Page 346
Problems: Set A......Page 358
Problems: Set B......Page 371
Cases......Page 385
“All About You” Activity......Page 391
Waterways Continuing Problem......Page 392
CHAPTER 5 Activity-Based Costing......Page 396
Traditional Costing Versus Activity-Based Costing......Page 399
Applying an Activity-Based Costing System......Page 406
Benefits and Limitations of Activity-Based Costing......Page 415
Activity-Based Costing in Service Industries......Page 424
Review and Practice......Page 432
Decision Tools and Review......Page 433
Glossary Review......Page 434
Self-Study Questions......Page 438
Brief Exercises......Page 441
DO IT! Review......Page 446
Exercises......Page 448
Problems: Set A......Page 462
Problems: Set B......Page 475
Cases......Page 488
“All About You” Activity......Page 498
Decision-Making at Current Designs......Page 499
Waterways Continuing Problem......Page 501
CHAPTER 6 Decision-Making: Cost-Volume-Profit......Page 506
Cost-Volume-Profit Analysis, Income Statement, and the Contribution Margin......Page 509
Break-Even Analysis......Page 517
Target Operating Income and the Margin of Safety......Page 522
CVP and Changes in the Business Environment......Page 529
Sales Mix and Break-Even Sales......Page 533
Appendix 6A Cost Structure and Operating Leverage......Page 540
Review and Practice......Page 548
Decision Tools and Review......Page 549
Glossary Review......Page 551
Self-Study Questions......Page 554
Brief Exercises......Page 558
DO IT! Review......Page 561
Exercises......Page 565
Problems: Set A......Page 575
Problems: Set B......Page 587
Cases......Page 599
Decision-Making at Current Designs......Page 606
Waterways Continuing Problem......Page 607
CHAPTER 7 Incremental Analysis......Page 613
Decision-Making and the Incremental Analysis Approach......Page 616
Special Orders......Page 622
Make or Buy......Page 625
Sell or Process Further......Page 631
Retain or Replace Equipment......Page 637
Eliminate an Unprofitable Segment or Product......Page 640
Allocate Limited Resources......Page 643
Review and Practice......Page 650
Glossary Review......Page 651
Self-Study Questions......Page 653
Brief Exercises......Page 657
DO IT! Review......Page 659
Exercises......Page 662
Problems: Set A......Page 674
Problems: Set B......Page 688
Cases......Page 702
“All About You” Activity......Page 708
Decision-Making at Current Designs......Page 709
Waterways Continuing Problem......Page 712
CHAPTER 8 Alternative Inventory Costing Methods: A Decision-Making Perspective......Page 719
Inventory Costing Methods......Page 721
Decision-Making Concerns......Page 733
Appendix 8A Other Inventory Costing Methods......Page 741
Review and Practice......Page 755
Decision Tools and Review......Page 756
Glossary Review......Page 757
Self-Study Questions......Page 761
Brief Exercises......Page 765
DO IT! Review......Page 768
Exercises......Page 770
Problems: Set A......Page 777
Problems: Set B......Page 789
Cases......Page 801
“All About You” Activity......Page 808
Decision-Making at Current Designs......Page 809
Waterways Continuing Problem......Page 810
CHAPTER 9 Pricing......Page 815
Pricing Goods for External Sales......Page 817
Absorption Cost-Plus Pricing......Page 826
Transfer Pricing for Internal Sales......Page 839
Review and Practice......Page 858
Decision Tools and Review......Page 859
Glossary Review......Page 860
Self-Study Questions......Page 863
Brief Exercises......Page 867
DO IT! Review......Page 870
Exercises......Page 871
Problems: Set A......Page 882
Problems: Set B......Page 897
Cases......Page 910
“All About You” Activity......Page 918
Waterways Continuing Problem......Page 919
CHAPTER 10 Budgetary Planning......Page 925
Budgeting Basics and the Master Budget......Page 928
Preparing the Sales, Production, and Direct Materials Budgets......Page 937
Preparing the Direct Labour, Manufacturing Overhead, and S&A Expense Budgets......Page 944
Preparing the Financial Budgets......Page 950
Budgeting in Non-Manufacturing Companies......Page 957
Review and Practice......Page 966
Glossary Review......Page 968
Self-Study Questions......Page 974
Brief Exercises......Page 977
DO IT! Review......Page 979
Exercises......Page 981
Problems: Set A......Page 990
Problems: Set B......Page 1003
Cases......Page 1014
Decision-Making at Current Designs......Page 1023
Waterways Continuing Problem......Page 1024
CHAPTER 11 Budgetary Control and Responsibility Accounting......Page 1031
The Concept of Budgetary Control and Static Budget Reports......Page 1034
Flexible Budgets......Page 1041
Responsibility Accounting for Cost and Profit Centres......Page 1052
Evaluating Performance in Investment Centres......Page 1068
Appendix 11A Residual Income—Another Performance Measurement......Page 1076
Review and Practice......Page 1082
Glossary Review......Page 1084
Self-Study Questions......Page 1087
Brief Exercises......Page 1091
DO IT! Review......Page 1094
Exercises......Page 1096
Problems: Set A......Page 1108
Problems: Set B......Page 1123
Cases......Page 1134
Decision-Making at Current Designs......Page 1143
Waterways Continuing Problem......Page 1145
CHAPTER 12 Standard Costs and Balanced Scorecard......Page 1151
Standards—Needs and Costs......Page 1154
Direct Materials Variances......Page 1164
Direct Labour and Manufacturing Overhead Variances......Page 1170
Variance Reports and the Balanced Scorecard......Page 1183
Appendix 12A Standard Cost Accounting System......Page 1192
Review and Practice......Page 1202
Glossary Review......Page 1204
Self-Study Questions......Page 1210
Brief Exercises......Page 1213
DO IT! Review......Page 1216
Exercises......Page 1217
Problems: Set A......Page 1230
Problems: Set B......Page 1243
Cases......Page 1255
Decision-Making at Current Designs......Page 1261
Waterways Continuing Problem......Page 1263
CHAPTER 13 Planning for Capital Investments......Page 1267
The Capital Budgeting Evaluation Process and the Cash Payback Technique......Page 1270
Net Present Value Method......Page 1277
Capital Budgeting Challenges......Page 1286
Internal Rate of Return Method......Page 1294
Annual Rate of Return Method......Page 1299
Review and Practice......Page 1306
Self-Study Questions......Page 1311
Brief Exercises......Page 1314
DO IT! Review......Page 1317
Exercises......Page 1318
Problems: Set A......Page 1322
Problems: Set B......Page 1333
Cases......Page 1343
“All About You” Activity......Page 1349
Decision-Making at Current Designs......Page 1350
Waterways Continuing Problem......Page 1351
Appendix 13A Time Value of Money......Page 1352
Company Index......Page 1362
Subject Index......Page 1371
EULA......Page 1415