Needles/Powers/Crosson delivers interactive pedagogy by illustrating accounting principles and real-world examples to encourage critical thinking. This revision is based on an understanding of the nature, culture, and motivations of today's students and on extensive feedback from instructors. These substantial changes meet the needs of students, who not only face a business world increasingly complicated by ethical issues, globalization, and technology, but who also have more demands on their time. To help them meet these challenges, this textbook shows students how business transactions, which are the result of business decisions, are recorded in a way to show their effects on the financial statements. Built on historically strong pedagogy, this edition demonstrates strengthened transaction analysis and its link to the accounting cycle. *Proven Presentation: Students learn from a trusted approach built on proper accounting principles and technical detail to ensure mastery of core accounting concepts. *Relevant Coverage: Chapter-opening Decision Points have been enhanced to expose students to the changing financial reporting environment and IFRS. *Critical Thinking Tools: New Stop & Think features help students develop the judgment skills they need in the modern business world. Needles/Powers/Crosson demonstrates accounting in motion!
Author(s): Belverd E. Needles, Marian Powers, Susan V. Crosson
Edition: 11
Publisher: South-Western College West
Year: 2010
Language: English
Pages: 1328
Tags: Финансово-экономические дисциплины;Бухгалтерский учет;Теория бухгалтерского учета;
Front Cover......Page 1
Title Page......Page 2
Copyright......Page 3
Contents......Page 6
Preface......Page 18
About the Authors......Page 32
CHAPTER 1 Uses of Accounting Information and the Financial Statements......Page 35
DECISION POINT: A USER’S FOCUS KEEP-FIT CENTER......Page 36
Business Goals, Activities, and Performance Measures......Page 37
Processing Accounting Information......Page 40
Ethical Financial Reporting......Page 41
Management......Page 43
Users with a Direct Financial Interest......Page 44
Governmental and Not-for-Profit Organizations......Page 45
Accounting Measurement......Page 46
Money Measure......Page 47
Characteristics of Corporations, Sole Proprietorships, and Partnerships......Page 48
Financial Position and the Accounting Equation......Page 50
Owner’s Equity......Page 51
Income Statement......Page 52
The Balance Sheet......Page 53
Relationships Among the Financial Statements......Page 54
Generally Accepted Accounting Principles......Page 57
GAAP and the Independent CPA’s Report......Page 58
Other Organizations That Influence GAAP......Page 59
Corporate Governance......Page 60
KEEP-FIT CENTER: REVIEW PROBLEM......Page 61
STOP & REVIEW......Page 64
CHAPTER ASSIGNMENTS......Page 66
CHAPTER 2 Analyzing Business Transactions 48......Page 81
DECISION POINT: A USER’S FOCUS PAWS AND HOOFS CLINIC 49......Page 82
Recognition......Page 83
Valuation......Page 84
Ethics and Measurement Issues......Page 86
The T Account......Page 87
Rules of Double-Entry Accounting......Page 88
Owner’s Equity Accounts......Page 89
Owner’s Investment to Form the Business......Page 91
Purchase of an Asset on Credit......Page 92
Payment of a Liability......Page 93
Revenue Collected in Advance......Page 94
Expense Paid in Cash......Page 95
Withdrawals......Page 96
Preparation and Use of a Trial Balance......Page 98
Finding Trial Balance Errors......Page 100
Cash Flows and the Timing of Transactions......Page 101
General Journal......Page 103
General Ledger......Page 105
Some Notes on Presentation......Page 106
PAWS AND HOOFS CLINIC: REVIEW PROBLEM......Page 108
STOP & REVIEW......Page 112
CHAPTER ASSIGNMENTS......Page 114
CHAPTER 3 Measuring Business Income......Page 131
DECISION POINT: A USER’S FOCUS RELIABLE ANSWERING SERVICE......Page 132
Net Income......Page 133
Income Measurement Assumptions......Page 134
Ethics and the Matching Rule......Page 135
Recognizing Revenues......Page 137
Adjusting the Accounts......Page 138
Adjustments and Ethics......Page 139
Type 1 Adjustment: Allocating Recorded Costs (Deferred Expenses)......Page 140
Type 2 Adjustment: Recognizing Unrecorded, Incurred Expenses (Accrued Expenses)......Page 144
Type 3 Adjustment: Allocating Recorded, Unearned Revenues (Deferred Revenues)......Page 146
Type 4 Adjustment: Recognizing Unrecorded, Earned Revenues (Accrued Revenues)......Page 147
A Note About Journal Entries......Page 148
Using the Adjusted Trial Balance to Prepare Financial Statements......Page 149
Cash Flows from Accrual-Based Information......Page 152
RELIABLE ANSWERING SERVICE: REVIEW PROBLEM......Page 154
STOP & REVIEW......Page 158
CHAPTER ASSIGNMENTS......Page 160
CHAPTER 4 Completing the Accounting Cycle......Page 175
DECISION POINT A USER’S FOCUS WESTWOOD MOVERS......Page 176
Closing Entries......Page 177
Step 4: Closing the Withdrawals Account Balance......Page 180
The Accounts After Posting......Page 181
The Post-Closing Trial Balance......Page 183
Reversing Entries: An Optional First Step......Page 185
Preparing the Work Sheet......Page 187
Using the Work Sheet......Page 190
WESTWOOD MOVERS: REVIEW PROBLEM......Page 191
STOP & REVIEW......Page 193
CHAPTER ASSIGNMENTS......Page 195
CHAPTER 5 Financial Reporting and Analysis......Page 213
DECISION POINT: A USER’S FOCUS FUN-FOR-FEET COMPANY......Page 214
Qualitative Characteristics of Accounting Information......Page 215
Ethical Financial Reporting......Page 217
Consistency......Page 218
Full Disclosure (Transparency)......Page 219
Conservatism......Page 220
Cost-Benefit......Page 221
Assets......Page 223
Liabilities......Page 225
Owner’s Equity......Page 226
Dell’s Balance Sheets......Page 227
Multistep Income Statement......Page 229
Dell’s Income Statements......Page 232
Single-Step Income Statement......Page 233
Evaluation of Liquidity......Page 234
Evaluation of Profitability......Page 235
FUN-FOR-FEET COMPANY: REVIEW PROBLEM......Page 241
STOP & REVIEW......Page 243
CHAPTER ASSIGNMENTS......Page 245
The Components of an Annual Report......Page 259
Management’s Discussion and Analysis......Page 260
Financial Statements......Page 261
Notes to the Financial Statements......Page 266
Reports of Certified Public Accountants......Page 267
CHAPTER 6 The Operating Cycle and Merchandising Operations......Page 299
DECISION POINT: A USER’S FOCUS FONG COMPANY......Page 300
Operating Cycle......Page 301
Foreign Business Transactions......Page 303
Sales and Purchases Discounts......Page 305
Transportation Costs......Page 306
Terms of Debit and Credit Card Sales......Page 307
Purchases of Merchandise......Page 308
Sales of Merchandise......Page 310
Periodic Inventory System......Page 314
Purchases of Merchandise......Page 315
Sales of Merchandise......Page 317
FONG COMPANY: REVIEW PROBLEM......Page 319
STOP & REVIEW......Page 322
CHAPTER ASSIGNMENTS......Page 323
Sales Journal......Page 335
Purchases Journal......Page 339
Cash Receipts Journal......Page 341
Cash Payments Journal......Page 344
CHAPTER 7 Internal Control......Page 351
DECISION POINT A USER’S FOCUS FISHER’S GRILL......Page 352
The Need for Internal Controls......Page 353
Management’s Responsibility for Internal Control......Page 354
Components of Internal Control......Page 355
Control Activities......Page 356
Limitations of Internal Control......Page 357
Internal Control and Management Goals......Page 358
Control of Cash Receipts......Page 359
Control of Purchases and Cash Disbursements......Page 360
Establishing the Petty Cash Fund......Page 365
Reimbursing the Petty Cash Fund......Page 366
FISHER’S GRILL: REVIEW PROBLEM......Page 368
STOP & REVIEW......Page 370
CHAPTER ASSIGNMENTS......Page 371
CHAPTER 8 Inventories......Page 383
DECISION POINT A USER’S FOCUS SNUGS COMPANY......Page 384
Inventory Decisions......Page 385
Evaluating the Level of Inventory......Page 386
Effects of Inventory Misstatements on Income Measurement......Page 388
Goods Flows and Cost Flows......Page 391
Lower-of-Cost-or-Market (LCM) Rule......Page 392
Disclosure of Inventory Methods......Page 393
Specific Identification Method......Page 394
First-In, First-Out (FIFO) Method......Page 395
Last-In, First-Out (LIFO) Method......Page 396
Summary of Inventory Costing Methods......Page 397
Effects on Income Taxes......Page 398
Inventory Cost Under the Perpetual Inventory System......Page 400
Retail Method......Page 403
Gross Profit Method......Page 404
SNUGS COMPANY: REVIEW PROBLEM......Page 406
STOP & REVIEW......Page 409
CHAPTER ASSIGNMENTS......Page 411
CHAPTER 9 Cash and Receivables......Page 423
DECISION POINT A USER’S FOCUS PENTE COMPUTER COMPANY......Page 424
Cash Management......Page 425
Accounts Receivable and Credit Policies......Page 426
Evaluating the Level of Accounts Receivable......Page 427
Financing Receivables......Page 429
Ethics and Estimates in Accounting for Receivables......Page 431
Fair Value of Cash and Cash Equivalents......Page 432
Cash Control Methods......Page 433
Bank Reconciliations......Page 434
Uncollectible Accounts......Page 436
Disclosure of Uncollectible Accounts......Page 437
Estimating Uncollectible Accounts Expense......Page 438
Writing Off Uncollectible Accounts......Page 442
Notes Receivable......Page 444
Maturity Date......Page 445
Interest and Interest Rate......Page 446
Dishonored Note......Page 447
PENTE COMPUTER COMPANY: REVIEW PROBLEM......Page 448
STOP & REVIEW......Page 450
CHAPTER ASSIGNMENTS......Page 452
CHAPTER 10 Current Liabilities and Fair Value Accounting......Page 463
DECISION POINT A USER’S FOCUS MEGGIE’S FITNESS CENTER......Page 464
Evaluating Accounts Payable......Page 465
Reporting Liabilities......Page 467
Definitely Determinable Liabilities......Page 469
Estimated Liabilities......Page 476
Contingent Liabilities and Commitments......Page 480
Interest and the Time Value of Money......Page 481
Calculating Present Value......Page 482
Valuing an Asset......Page 486
Deferred Payment......Page 487
Other Applications......Page 488
MEGGIE’S FITNESS CENTER: REVIEW PROBLEM......Page 489
STOP & REVIEW......Page 491
CHAPTER ASSIGNMENTS......Page 493
CHAPTER 11 Long-Term Assets......Page 505
DECISION POINT: A USER’S FOCUS CAMPUS CLEANERS......Page 506
Management Issues Related to Long-Term Assets......Page 507
Acquiring Long-Term Assets......Page 509
Financing Long-Term Assets......Page 510
Applying the Matching Rule......Page 511
Acquisition Cost of Property, Plant, and Equipment......Page 512
Specific Applications......Page 513
Depreciation......Page 516
Methods of Computing Depreciation......Page 517
Special Issues in Depreciation......Page 521
Plant Assets Sold for Cash......Page 524
Exchanges of Plant Assets......Page 526
Depletion......Page 527
Development and Exploration Costs in the Oil Gas Industry......Page 528
Intangible Assets......Page 530
Goodwill......Page 533
CAMPUS CLEANERS: REVIEW PROBLEM......Page 535
STOP & REVIEW......Page 538
CHAPTER ASSIGNMENTS......Page 540
CHAPTER 12 Contributed Capital......Page 551
DECISION POINT: A USER’S FOCUS GAMMON, INC......Page 552
The Corporate Form of Business......Page 553
Advantages and Disadvantages of Incorporation......Page 554
Equity Financing......Page 555
Dividend Policies......Page 557
Using Return on Equity to Measure Performance......Page 559
Cash Flow Information......Page 560
Components of Stockholders’ Equity......Page 561
Preference as to Dividends......Page 564
Convertible Preferred Stock......Page 565
Callable Preferred Stock......Page 566
Issuance of Common Stock......Page 567
Par Value Stock......Page 568
No-Par Stock......Page 569
Issuance of Stock for Noncash Assets......Page 570
Purchase of Treasury Stock......Page 572
Sale of Treasury Stock......Page 573
Retirement of Treasury Stock......Page 575
GAMMON, INC.: REVIEW PROBLEM......Page 577
STOP & REVIEW......Page 580
CHAPTER ASSIGNMENTS......Page 582
CHAPTER 13 Long-Term Liabilities......Page 595
DECISION POINT: A USER’S FOCUS WILSON MANUFACTURING COMPANY......Page 596
Deciding to Issue Long-Term Debt......Page 597
Evaluating Long-Term Debt......Page 598
Types of Long-Term Debt......Page 599
Cash Flow Information......Page 605
Bond Issue: Prices and Interest Rates......Page 606
Characteristics of Bonds......Page 607
Bonds Issued at Face Value......Page 608
Bonds Issued at a Discount......Page 609
Bonds Issued at a Premium......Page 610
Bond Issue Costs......Page 611
Case 1: Market Rate Above Face Rate......Page 612
Case 2: Market Rate Below Face Rate......Page 613
Amortizing a Bond Discount......Page 614
Amortizing a Bond Premium......Page 619
Calling Bonds......Page 623
Converting Bonds......Page 624
Sale of Bonds Between Interest Dates......Page 625
Year-End Accrual of Bond Interest Expense......Page 626
WILSON MANUFACTURING COMPANY: REVIEW PROBLEM......Page 629
STOP & REVIEW......Page 632
CHAPTER ASSIGNMENTS......Page 635
CHAPTER 14 The Corporate Income Statement and the Statement of Stockholders’ Equity......Page 647
DECISION POINT: A USER’S FOCUS KOWALSKI, INC.......Page 648
Performance Measurement: Quality of Earnings Issues......Page 649
The Effect of Accounting Estimates and Methods......Page 650
Write-Downs and Restructurings......Page 652
Nonoperating Items......Page 653
Income Taxes......Page 654
Deferred Income Taxes......Page 655
Net of Taxes......Page 656
Earnings per Share......Page 658
Diluted Earnings per Share......Page 659
Comprehensive Income......Page 660
Retained Earnings......Page 662
Stock Dividends......Page 663
Stock Splits......Page 666
Book Value......Page 668
KOWALSKI, INC.: REVIEW PROBLEM......Page 670
STOP & REVIEW......Page 673
CHAPTER ASSIGNMENTS......Page 675
CHAPTER 15 The Statement of Cash Flows......Page 689
DECISION POINT: A USER’S FOCUS LOPATA CORPORATION......Page 690
Classification of Cash Flows......Page 691
Format of the Statement of Cash Flows......Page 693
Ethical Considerations and the Statement of Cash Flows......Page 695
Cash-Generating Efficiency......Page 696
Free Cash Flow......Page 698
Operating Activities......Page 701
Depreciation......Page 703
Changes in Current Assets......Page 704
Changes in Current Liabilities......Page 705
Schedule of Cash Flows from Operating Activities......Page 706
Investing Activities......Page 707
Plant Assets......Page 708
Common Stock......Page 711
Retained Earnings......Page 712
Treasury Stock......Page 714
LOPATA CORPORATION: REVIEW PROBLEM......Page 715
STOP & REVIEW......Page 719
CHAPTER ASSIGNMENTS......Page 721
CHAPTER 16 Financial Performance Measurement......Page 739
DECISION POINT: A USER’S FOCUS WASHINGTON INVESTMENTS......Page 740
Financial Performance Measurement: Creditors’ and Investors’ Objectives......Page 741
Standards of Comparison......Page 742
Sources of Information......Page 744
Executive Compensation......Page 745
Horizontal Analysis......Page 748
Vertical Analysis......Page 751
Ratio Analysis......Page 754
Comprehensive Illustration of Ratio Analysis......Page 755
Evaluating Profitability......Page 756
Evaluating Long-Term Solvency......Page 759
Evaluating the Adequacy of Cash Flows......Page 760
Evaluating Market Strength......Page 762
WASHINGTON INVESTMENTS: REVIEW PROBLEM......Page 764
STOP & REVIEW......Page 768
CHAPTER ASSIGNMENTS......Page 770
CHAPTER 17 Partnerships......Page 787
DECISION POINT: A USER’S FOCUS HOLDER AND WILLIAMS PARTNERSHIP......Page 788
Characteristics of Partnerships......Page 789
Limited Partnerships and Joint Ventures......Page 790
Accounting for Partners’ Equity......Page 792
Stated Ratios......Page 794
Capital Balance Ratios......Page 795
Salaries, Interest, and Stated Ratios......Page 796
Admission of a New Partner......Page 800
Withdrawal of a Partner......Page 803
Liquidation of a Partnership......Page 805
Gain on Sale of Assets......Page 806
Loss on Sale of Assets......Page 808
HOLDER AND WILLIAMS PARTNERSHIP: REVIEW PROBLEM......Page 811
STOP & REVIEW......Page 814
CHAPTER ASSIGNMENTS......Page 816
CHAPTER 18 The Changing Business Environment: A Manager’s Perspective......Page 827
DECISION POINT: A MANAGER’S FOCUS GOOD FOODS STORE......Page 828
Management Accounting and Financial Accounting: A Comparison......Page 829
Management Accounting and the Management Process......Page 830
Primary Processes and Support Services......Page 836
Managers and Value Chain Analysis......Page 838
Management Tools for Continuous Improvement......Page 840
Achieving Continuous Improvement......Page 842
Using Performance Measures in the Management Process......Page 844
The Balanced Scorecard......Page 845
Standards of Ethical Conduct......Page 847
GOOD FOODS STORE: REVIEW PROBLEM......Page 849
STOP & REVIEW......Page 852
CHAPTER ASSIGNMENTS......Page 854
Cookie Company (Continuing Case)......Page 868
CHAPTER 19 Cost Concepts and Cost Allocation......Page 869
DECISION POINT: A MANAGER’S FOCUS THE CHOICE CANDY COMPANY......Page 870
Cost Classifications and Their Uses......Page 871
Cost Traceability......Page 872
Value-Adding Versus Nonvalue-Adding Costs......Page 873
Cost Classifications for Financial Reporting......Page 874
Income Statement and Accounting for Inventories......Page 875
Statement of Cost of Goods Manufactured......Page 877
Cost of Goods Sold and a Manufacturer’s Income Statement......Page 878
Document Flows and Cost Flows Through the Inventory Accounts......Page 879
The Manufacturing Cost Flow......Page 880
Elements of Product Costs......Page 883
Prime Costs and Conversion Costs......Page 884
Product Cost Measurement Methods......Page 885
Computing Service Unit Cost......Page 887
Allocating the Costs of Overhead......Page 888
Allocating Overhead: The Traditional Approach......Page 890
Allocating Overhead: The ABC Approach......Page 892
THE CHOICE CANDY COMPANY: REVIEW PROBLEM......Page 894
STOP & REVIEW......Page 896
CHAPTER ASSIGNMENTS......Page 899
Cookie Company (Continuing Case)......Page 913
CHAPTER 20 Costing Systems: Job Order Costing......Page 915
DECISION POINT: A MANAGER’S FOCUS AUGUSTA CUSTOM GOLF CARTS, INC.......Page 916
Communicating......Page 917
Product Costing Systems......Page 918
Job Order Costing in a Manufacturing Company......Page 920
Materials......Page 921
Overhead......Page 923
Sold Units......Page 924
Reconciliation of Overhead Costs......Page 925
A Manufacturer’s Job Order Cost Card and the Computation of Unit Cost......Page 926
Job Order Costing in a Service Organization......Page 927
AUGUSTA CUSTOM GOLF CARTS, INC.: REVIEW PROBLEM......Page 930
STOP & REVIEW......Page 932
CHAPTER ASSIGNMENTS......Page 934
Cookie Company (Continuing Case)......Page 952
CHAPTER 21 Costing Systems: Process Costing......Page 953
DECISION POINT: A MANAGER’S FOCUS MILK PRODUCTS COMPANY......Page 954
The Process Costing System......Page 955
Patterns of Product Flows and Cost Flow Methods......Page 956
Cost Flows Through the Work in Process Inventory Accounts......Page 957
Computing Equivalent Production......Page 958
Equivalent Production for Direct Materials......Page 959
Summary of Equivalent Production......Page 960
Accounting for Units......Page 961
Assigning Costs......Page 964
Process Costing for Two or More Production Departments......Page 966
Accounting for Units......Page 968
Assigning Costs......Page 970
MILK PRODUCTS COMPANY: REVIEW PROBLEM......Page 973
STOP & REVIEW......Page 976
CHAPTER ASSIGNMENTS......Page 978
Cookie Company (Continuing Case)......Page 990
CHAPTER 22 Value-Based Systems: ABM and Lean......Page 991
DECISION POINT: A MANAGER’S FOCUS BEAN BAG CONVERTIBLES, INC.......Page 992
Value-Based Systems and Management......Page 993
Value Chains and Supply Chains......Page 994
Process Value Analysis......Page 995
Activity-Based Management......Page 996
Activity-Based Costing......Page 997
The Cost Hierarchy and the Bill of Activities......Page 998
Just-in-Time (JIT)......Page 1001
Accounting for Product Costs in a JIT Operating Environment......Page 1003
Backflush Costing......Page 1005
Comparison of ABM and Lean......Page 1009
BEAN BAG CONVERTIBLES, INC.: REVIEW PROBLEM......Page 1010
STOP & REVIEW......Page 1013
CHAPTER ASSIGNMENTS......Page 1015
Cookie Company (Continuing Case)......Page 1030
CHAPTER 23 Cost Behavior Analysis......Page 1031
DECISION POINT: A MANAGER’S FOCUS MY MEDIA PLACE......Page 1032
Cost Behavior and Management......Page 1033
The Behavior of Costs......Page 1034
The Scatter Diagram Method......Page 1039
The High-Low Method......Page 1040
Contribution Margin Income Statements......Page 1042
Cost-Volume-Profit Analysis......Page 1043
Breakeven Analysis......Page 1045
Using an Equation to Determine the Breakeven Point......Page 1046
The Breakeven Point for Multiple Products......Page 1047
Applying C-V-P to Target Profits......Page 1050
MY MEDIA PLACE: REVIEW PROBLEM......Page 1053
STOP & REVIEW......Page 1056
CHAPTER ASSIGNMENTS......Page 1058
Cookie Company (Continuing Case)......Page 1071
CHAPTER 24 The Budgeting Process......Page 1073
DECISION POINT: A MANAGER’S FOCUS FRAMECRAFT COMPANY......Page 1074
Advantages of Budgeting......Page 1075
Budgeting Basics......Page 1076
Preparation of a Master Budget......Page 1078
Budget Procedures......Page 1081
The Sales Budget......Page 1082
The Production Budget......Page 1083
The Direct Materials Purchases Budget......Page 1084
The Overhead Budget......Page 1086
The Selling and Administrative Expense Budget......Page 1087
The Cost of Goods Manufactured Budget......Page 1088
The Budgeted Income Statement......Page 1090
The Cash Budget......Page 1091
The Budgeted Balance Sheet......Page 1094
FRAMECRAFT COMPANY: REVIEW PROBLEM......Page 1096
STOP & REVIEW......Page 1099
CHAPTER ASSIGNMENTS......Page 1101
Cookie Company (Continuing Case)......Page 1124
CHAPTER 25 Performance Management and Evaluation......Page 1125
DECISION POINT: A MANAGER’S FOCUS WINTER WONDERLAND RESORT......Page 1126
Other Measurement Issues......Page 1127
The Balanced Scorecard and Management......Page 1128
Responsibility Accounting......Page 1130
Types of Responsibility Centers......Page 1131
Organizational Structure and Performance Management......Page 1133
Evaluating Cost Center Performance Using Flexible Budgeting......Page 1135
Evaluating Profit Center Performance Using Variable Costing......Page 1136
Return on Investment......Page 1138
Residual Income......Page 1140
Economic Value Added......Page 1141
The Importance of Multiple Performance Measures......Page 1143
Linking Goals, Performance Objectives, Measures, and Performance Targets......Page 1144
The Coordination of Goals......Page 1145
WINTER WONDERLAND RESORT: REVIEW PROBLEM......Page 1148
STOP & REVIEW......Page 1151
CHAPTER ASSIGNMENTS......Page 1153
Cookie Company (Continuing Case)......Page 1168
CHAPTER 26 Standard Costing and Variance Analysis......Page 1169
DECISION POINT: A MANAGER’S FOCUS ICU, INC.......Page 1170
Standard Costs and Managers......Page 1171
Standard Direct Labor Cost......Page 1172
Standard Overhead Cost......Page 1173
Total Standard Unit Cost......Page 1174
The Role of Flexible Budgets in Variance Analysis......Page 1175
Using Variance Analysis to Control Costs......Page 1178
Computing Direct Materials Variances......Page 1180
Analyzing and Correcting Direct Materials Variances......Page 1182
Computing Direct Labor Variances......Page 1183
Analyzing and Correcting Direct Labor Variances......Page 1185
Computing Overhead Variances......Page 1187
Analyzing and Correcting Overhead Variances......Page 1192
Using Cost Variances to Evaluate Managers’ Performance......Page 1194
ICU, INC.: REVIEW PROBLEM......Page 1196
STOP & REVIEW......Page 1201
CHAPTER ASSIGNMENTS......Page 1203
Cookie Company (Continuing Case)......Page 1216
CHAPTER 27 Short-Run Decision Analysis......Page 1217
DECISION POINT: A MANAGER’S FOCUS HOME STATE BANK......Page 1218
Incremental Analysis for Short-Run Decisions......Page 1219
Incremental Analysis for Outsourcing Decisions......Page 1222
Incremental Analysis for Special Order Decisions......Page 1224
Incremental Analysis for Segment Profitability Decisions......Page 1227
Incremental Analysis for Sales Mix Decisions......Page 1229
Incremental Analysis for Sell or Process- Further Decisions......Page 1232
HOME STATE BANK: REVIEW PROBLEM......Page 1235
STOP & REVIEW......Page 1238
CHAPTER ASSIGNMENTS......Page 1240
Cookie Company (Continuing Case)......Page 1256
CHAPTER 28 Capital Investment Analysis......Page 1257
DECISION POINT: A MANAGER’S FOCUS NEIGHBORHOOD COMMUNICATIONS......Page 1258
Capital Investment Analysis......Page 1259
Capital Investment Analysis in the Management Process......Page 1260
Cost of Capital......Page 1262
Ranking Capital Investment Proposals......Page 1263
Expected Benefits from a Capital Investment......Page 1264
Depreciation Expense and Income Taxes......Page 1265
Disposal or Residual Values......Page 1266
Interest......Page 1267
Present Value......Page 1268
Present Value of an Ordinary Annuity......Page 1269
The Net Present Value Method Illustrated......Page 1271
The Payback Period Method......Page 1274
The Accounting Rate-of-Return Method......Page 1275
NEIGHBORHOOD COMMUNICATIONS: REVIEW PROBLEM......Page 1277
STOP & REVIEW......Page 1279
CHAPTER ASSIGNMENTS......Page 1281
Cookie Company (Continuing Case)......Page 1293
Management Issues Related to Investments......Page 1295
Trading Securities......Page 1297
Long-Term Investments in Equity Securities......Page 1300
Investments in Debt Securities......Page 1304
Long-Term Investments in Bonds......Page 1305
STOP & REVIEW......Page 1306
APPENDIX B Present Value Tables......Page 1309
Endnotes......Page 1313
Company Index......Page 1317
Subject Index......Page 1318
