About the Author
Preface
Chapter 1: Managerial Accounting: Tools for Decision-Making
Focus Company: Warby Parker
Uses of Accounting Information
Review 1-1: Comparison of Financial to Managerial Accounting
Missions, Goals, and Strategies
Review 1-2: Managerial Accounting Supporting Strategic Position
Understanding the Value Chain
Review 1-3: Classifying Activities Using a Generic Internal Value Chain
Changing Environment of Business
Review 1-4: Big Data Analysis and Enterprise Risk Management
Ethics in Managerial Accounting
Environmental, Social, and Governance Considerations
Review 1-5 Corporate Social Responsibility
Solutions to Review Problems
Chapter 2: Cost Definitions, Behavior, and Estimation
Focus Company: Block, Inc.
Review 2-1: Identifying Cost Behavior
Review 2-2: Estimating Costs Using a Linear Total Cost- Estimating Equation
Analyzing Data for Cost Estimation
Review 2-3: Cost Estimation
Additional Issues in Cost Estimation
Review 2-4: Identifying Appropriate Cost Drivers
Cost Classification and Decision-Making
Review 2-5: Classifying Costs Using Two Classification Systems Simultaneously
Solutions to Review Problems
Chapter 3: Cost-Volume-Profit Analysis and Planning
Focus Company: Razor USA, LLC
Cost-Volume-Profit Analysis
Review 3-1: Determining the Profit Equation
Contribution Income Statement
Review 3-2: Preparing a Contribution Income Statement
Break-Even Point and Profit Planning
Review 3-3: Applying Cost-Volume-Profit Analysis
Multiple-Product Cost-Volume-Profit Analysis
Review 3-4: Analyzing Profitability of a Multi-Product Firm
Analysis of Operating Leverage
Review 3-5: Applying Operating Leverage Ratio
Appendix 3A: Cost-Volume-Profit Analysis and Income Taxes
Review 3-6 Determining sales for a desired after-tax profit amount
Solutions to Review Problems
Chapter 4: Using Relevant Costs and Differential Analysis for Decision-Making
Focus Company: Boston Beer
Identifying Relevant Revenues and Costs
Review 4-1: Identifying Relevant and Irrelevant Costs
Preparing and Applying Differential Analysis
Review 4-2: Preparing a Differential Analysis for a Machine Purchase Decision
Review 4-3: Applying Differential Analysis to Alternative Profit Scenarios
Review 4-4: Estimating the Profitability of Special Orders
Review 4-5: Evaluating an Outsourcing Decision 4-17 Sell or Process Further
Review 4-6: Evaluating Whether to Sell or Process Further
Appendix 4A: Use of Limited Resources
Review 4-7 Analyzing Profitability Considering a Scarce Resource
Solutions to Review Problems
Chapter 5: Product Costing: Job and Process Operations
Reporting Inventory Costs in Various Organizations
Review 5-1: Classifying Inventory Costs
A Closer Look at Manufacturing Overhead
Review 5-2: Applying a Predetermined Overhead Rate
Job Order Costing for Products and Services
Review 5-3: Accounting for Costs of Jobs in a Job Order Costing System
Review 5-4: Accounting for Costs in a Process Costing System
Appendix 5A: Absorption and Variable Costing
Review 5-5: Computing Inventory Costs Under Absorption and Variable Costing
Solutions to Review Problems
Chapter 6: Activity-Based Costing, Customer Probability, and Activity-Based Management
Allocation of Overhead Using Traditional Costing Methods
Review 6-1: Determining Product Costs Using Traditional Costing
Concepts Underlying Activity-Based Costing
Review 6-2: Identifying Relevant Cost Drivers
Applying Activity-Based Costing
Review 6-3: Determining Product Costs Using Activity- Based Costing
Considerations before Implementing Activity-Based Costing
Review 6-4: Comparing Product Costs Using Traditional and Activity-Based Costing
ABC and Customer Profitability Analysis
Review 6-5: Analyzing Customer Profitability
Appendix 6A: Profitability Analysis with Activity-Based Cost Drivers
Review 6-6: Performing a Profitability Analysis Using Activity-Based Cost Drivers
Solutions to Review Problems
Chapter 7: Additional Topics in Product Costing
Focus Company: Whole Foods
Allocation of Service Department Costs
Review 7-1: Allocating Service Department Costs Using the Direct and Step Methods
The Cost of Excess Capacity
Review 7-2: Managing Excess Capacity
Just-In-Time (JIT) Inventory Management/Lean Production
Review 7-3: Analyzing Performance in Lean Manufacturing
Increased Focus on Data-Driven Decision-Making 7-19 Using Data Effectively
Review 7-4: Discussing Risks and Concerns of Access to Big Data
Solutions to Review Problems
Chapter 8: Decision-Making: Pricing and Product Cost Management
Review 8-1: Applying Cost-Based Approaches to Pricing
Review 8-2 Applying Target Costing
Review 8-3: Analyzing the Impact of Continuous Improvement Initiatives
Benchmarking to Improve Performance
Review 8-4: Distinguishing Between Benchmarking and Competitor Research
Solutions to Review Problems
Chapter 9: Operational Budgeting and Profit Planning
Review 9-1: Applying the Output/Input Approach and Activity-Based Approach to Budgeting
Master Budget for a Merchandiser
Starting Point: Beginning of Period Balance Sheet
Review 9-2: Preparing a Budget for a Merchandising Organization
Master Budget for a Manufacturer
Review 9-3: Preparing a Master Budget for a Manufacturer
Aspects of Budgeting That Impact Behavior and Outcomes
Review 9-4: Identifying Aspects of Budget Development Affecting Behavior
Solutions to Review Problems
Chapter 10: Standard Costs and Performance Reports
Focus Company: Samsonite International S.A.
Responsibility Accounting
Review 10-1: Identifying Responsibility Centers
Performance Reporting for Cost Centers
Review 10-2: Preparing a Flexible Budget for Performance Reporting
Variance Analysis for Costs
Review 10-3: Calculating Standard Cost Variances for Direct Materials
Review 10-4: Calculating Standard Cost Variances for Direct Labor
Review 10-5: Calculating Standard Cost Variances for Variable Manufacturing Overhead
Revenue Variances and Performance Reporting
Review 10-6: Calculating Revenue Variances
Appendix 10A: Fixed Overhead Variances
Review 10-7: Calculating Fixed Overhead Budget Variance
Appendix 10B: Reconciling Budgeted and Actual Income
Review 10-8: Reconciling Budgeted and Actual Contribution Margin
Solutions to Review Problems
Chapter 11: Performance Measurement Using Segment Reporting, Transfer Pricing, and Balanced Scorecard
Focus Company: Volkswagen
Segment Analysis and Reporting
Review 11-1: Reporting by Segment
Review 11-2: Analyzing Purchase Decisions with Transfer Pricing
Investment Center Evaluation Measures
Review 11-3: Computing Return on Investment and Residual Income
Review 11-4: Assigning Metrics to the Balanced Scorecard Categories
Solutions to Review Problems
Chapter 12: Capital Budgeting Decisions
Long-Range Planning and Capital Budgeting
Capital Budgeting Models That Do Not Consider Time Value of Money
Review 12-1: Computing the Payback Period and the Accounting Rate of Return
Capital Budgeting Models That Consider Time Value of Money
Review 12-2: Calculating Net Present Value and Internal Rate of Return
Evaluation of Capital Budgeting Models
Review 12-3: Evaluating Investment Proposals
Considering Risks and Relevant Cost Analysis in Capital Budgeting Decisions
Review 12-4: Considering Nonquantitative Factors in Capital Budgeting Decisions
Appendix 12A: Time Value of Money
Review 12-5: Performing Present Value Calculations Using the Table Approach
Appendix 12B: Table Approach to Determining Internal Rate of Return
Review 12-6: Determining the Internal Rate of Return Using the Table Approach
Appendix 12C: Taxes in Capital Budgeting Decisions
Review 12-7: Calculating Net Present Value with the Consideration of Income Taxes
Solutions to Review Problems
Appendix A: Managerial Analysis of Financial Statements
Focus Company: Sherwin Williams
Financial Statement Analysis
Review Appendix A-1: Identifying Factors that Influence Financial Statement Analysis
Evaluative Standards for Financial Statement Analysis
Review Appendix A-2: Performing Vertical and Horizontal Analyses
Financial Statement Ratio Analysis
Review Appendix A-3: Performing a Ratio Analysis to Evaluate Performance and Profitability
Financial Measure Trend Analysis and Benchmarking
Review Appendix A-4: Performing a Ratio Analysis to Evaluate Liquidity and Solvency
Solutions to Review Problems
Appendix B: Data Analytics
Summary of Learning Objectives
Data Analytics and Data Visualizations
Sage College Publishing
