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Table of Contents

    • About the Authors
    • Acknowledgments
    • Dedication
    • Preface
    • 1What Is Managerial Accounting?
      • 1.1Characteristics of Managerial Accounting
      • 1.2Planning and Control Functions Performed by Managers
      • 1.3Key Finance and Accounting Personnel
      • 1.4Ethical Issues Facing the Accounting Industry
      • 1.5Computerized Accounting Systems
      • 1.6Cost Terminology
      • 1.7How Product Costs Flow through Accounts
      • 1.8Income Statements for Manufacturing Companies
    • 2How Is Job Costing Used to Track Production Costs?

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      • 2.1Differentiating Job Costing from Process Costing

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      • 2.2How a Job Costing System Works

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      • 2.3Assigning Manufacturing Overhead Costs to Jobs

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      • 2.4Job Costing in Service Organizations

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      • 2.5Chapter Wrap-Up: Summary of Cost Flows at Custom Furniture Company

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    • 3How Does an Organization Use Activity-Based Costing to Allocate Overhead Costs?

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      • 3.1Why Allocate Overhead Costs?

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      • 3.2Approaches to Allocating Overhead Costs

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      • 3.3Using Activity-Based Costing to Allocate Overhead Costs

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      • 3.4Using Activity-Based Management to Improve Operations

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      • 3.5Using Activity-Based Costing (ABC) and Activity-Based Management (ABM) in Service Organizations

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      • 3.6Variations of Activity-Based Costing (ABC)

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    • 4How Do Organizations Identify Cost Behavior Patterns?

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      • 4.1Cost Behavior Patterns

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      • 4.2Cost Estimation Methods

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      • 4.3The Contribution Margin Income Statement

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      • 4.4The Relevant Range and Nonlinear Costs

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      • 4.5Appendix: Performing Regression Analysis with Excel

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    • 5How Is Cost-Volume-Profit Analysis Used for Decision Making?

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      • 5.1Cost-Volume-Profit Analysis for Single-Product Companies

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      • 5.2Cost-Volume-Profit Analysis for Multiple-Product and Service Companies

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      • 5.3Using Cost-Volume-Profit Models for Sensitivity Analysis

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      • 5.4Impact of Cost Structure on Cost-Volume-Profit Analysis

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      • 5.5Using a Contribution Margin When Faced with Resource Constraints

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      • 5.6Income Taxes and Cost-Volume-Profit Analysis

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      • 5.7Using Variable Costing to Make Decisions

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    • 6How Are Relevant Revenues and Costs Used to Make Decisions?

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      • 6.1Using Differential Analysis to Make Decisions

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      • 6.2Make-or-Buy Decisions

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      • 6.3Product Line Decisions

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      • 6.4Customer Decisions

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      • 6.5Review of Cost Terms Used in Differential Analysis

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      • 6.6Special Order Decisions

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      • 6.7Cost-Plus Pricing and Target Costing

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      • 6.8Identifying and Managing Bottlenecks

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      • 6.9Be Aware of Qualitative Factors

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      • 6.10Appendix: Making Decisions Involving Joint Costs

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    • 7How Is Capital Budgeting Used to Make Decisions?

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      • 7.1Capital Budgeting and Decision Making

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      • 7.2Net Present Value

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      • 7.3The Internal Rate of Return

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      • 7.4Other Factors Affecting NPV and IRR Analysis

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      • 7.5The Payback Method

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      • 7.6Additional Complexities of Estimating Cash Flows

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      • 7.7The Effect of Income Taxes on Capital Budgeting Decisions

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      • 7.8Appendix: Present Value Tables

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    • 8How Are Operating Budgets Created?

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      • 8.1Planning and Controlling Operations

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      • 8.2The Budgeting Process

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      • 8.3The Master Budget

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      • 8.4Budgeting in Nonmanufacturing Organizations

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      • 8.5Ethical Issues in Creating Operating Budgets

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    • 9How Do Managers Evaluate Performance Using Cost Variance Analysis?

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      • 9.1Flexible Budgets

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      • 9.2Standard Costs

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      • 9.3Direct Materials Variance Analysis

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      • 9.4Direct Labor Variance Analysis

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      • 9.5Variable Manufacturing Overhead Variance Analysis

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      • 9.6Determining Which Cost Variances to Investigate

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      • 9.7Using Variance Analysis with Activity-Based Costing

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      • 9.8Fixed Manufacturing Overhead Variance Analysis

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      • 9.9Appendix: Recording Standard Costs and Variances

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    • 10How Is the Statement of Cash Flows Prepared and Used?

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      • 10.1Purpose of the Statement of Cash Flows

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      • 10.2Three Types of Cash Flow Activities

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      • 10.3Four Key Steps to Preparing the Statement of Cash Flows

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      • 10.4Using the Indirect Method to Prepare the Statement of Cash Flows

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      • 10.5Analyzing Cash Flow Information

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      • 10.6Appendix: Using the Direct Method to Prepare the Statement of Cash Flows

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    • 11How Do Managers Use Financial and Nonfinancial Performance Measures?

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      • 11.1Trend Analysis of Financial Statements

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      • 11.2Common-Size Analysis of Financial Statements

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      • 11.3Ratio Analysis of Financial Information

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      • 11.4Wrap-Up of Chapter Example

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      • 11.5Nonfinancial Performance Measures: The Balanced Scorecard

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