Managerial Accounting

Table of Contents

• Licensing Information

• Preface

• Chapter 1: What Is Managerial Accounting?

  • Chapter Introduction
  • Characteristics of Managerial Accounting
  • Planning and Control Functions Performed by Managers
  • Key Finance and Accounting Personnel
  • Ethical Issues Facing the Accounting Industry
  • Computerized Accounting Systems
  • Cost Terminology
  • How Product Costs Flow through Accounts
  • Income Statements for Manufacturing Companies

• Chapter 2: How Is Job Costing Used to Track Production Costs?

  • Chapter Introduction
  • Differentiating Job Costing from Process Costing
  • How a Job Costing System Works
  • Assigning Manufacturing Overhead Costs to Jobs
  • Job Costing in Service Organizations
  • Chapter Wrap-Up: Summary of Cost Flows at Custom Furniture Company

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

  • Chapter Introduction
  • Why Allocate Overhead Costs?
  • Approaches to Allocating Overhead Costs
  • Using Activity-Based Costing to Allocate Overhead Costs
  • Using Activity-Based Management to Improve Operations
  • Using Activity-Based Costing (ABC) and Activity-Based Management (ABM) in Service Organizations
  • Variations of Activity-Based Costing (ABC)

• Chapter 4: How Is Process Costing Used to Track Production Costs?

  • Chapter Introduction
  • Comparison of Job Costing with Process Costing
  • Product Cost Flows in a Process Costing System
  • Determining Equivalent Units
  • The Weighted Average Method
  • Preparing a Production Cost Report

• Chapter 5: How Do Organizations Identify Cost Behavior Patterns?

  • Chapter Introduction
  • Cost Behavior Patterns
  • Cost Estimation Methods
  • The Contribution Margin Income Statement
  • The Relevant Range and Nonlinear Costs
  • Appendix: Performing Regression Analysis with Excel

• Chapter 6: How Is Cost-Volume-Profit Analysis Used for Decision Making?

  • Chapter Introduction
  • Cost-Volume-Profit Analysis for Single-Product Companies
  • Cost-Volume-Profit Analysis for Multiple-Product and Service Companies
  • Using Cost-Volume-Profit Models for Sensitivity Analysis
  • Impact of Cost Structure on Cost-Volume-Profit Analysis
  • Using a Contribution Margin When Faced with Resource Constraints
  • Income Taxes and Cost-Volume-Profit Analysis
  • Using Variable Costing to Make Decisions

• Chapter 7: How Are Relevant Revenues and Costs Used to Make Decisions?

  • Chapter Introduction
  • Using Differential Analysis to Make Decisions
  • Make-or-Buy Decisions
  • Product Line Decisions
  • Customer Decisions
  • Review of Cost Terms Used in Differential Analysis
  • Special Order Decisions
  • Cost-Plus Pricing and Target Costing
  • Identifying and Managing Bottlenecks
  • Be Aware of Qualitative Factors
  • Appendix: Making Decisions Involving Joint Costs

• Chapter 8: How Is Capital Budgeting Used to Make Decisions?

  • Chapter Introduction
  • Capital Budgeting and Decision Making
  • Net Present Value
  • The Internal Rate of Return
  • Other Factors Affecting NPV and IRR Analysis
  • The Payback Method
  • Additional Complexities of Estimating Cash Flows
  • The Effect of Income Taxes on Capital Budgeting Decisions
  • Appendix: Present Value Tables

• Chapter 9: How Are Operating Budgets Created?

  • Chapter Introduction
  • Planning and Controlling Operations
  • The Budgeting Process
  • The Master Budget
  • Budgeting in Nonmanufacturing Organizations
  • Ethical Issues in Creating Operating Budgets

• Chapter 10: How Do Managers Evaluate Performance Using Cost Variance Analysis?

  • Chapter Introduction
  • Flexible Budgets
  • Standard Costs
  • Direct Materials Variance Analysis
  • Direct Labor Variance Analysis
  • Variable Manufacturing Overhead Variance Analysis
  • Determining Which Cost Variances to Investigate
  • Using Variance Analysis with Activity-Based Costing
  • Fixed Manufacturing Overhead Variance Analysis
  • Appendix: Recording Standard Costs and Variances

• Chapter 11: How Do Managers Evaluate Performance in Decentralized Organizations?

  • Chapter Introduction
  • Using Decentralized Organizations to Control Operations
  • Maintaining Control over Decentralized Organizations
  • Comparing Segmented Income for Investment Centers
  • Using Return on Investment (ROI) to Evaluate Performance
  • Using Residual Income (RI) to Evaluate Performance
  • Using Economic Value Added (EVA) to Evaluate Performance
  • Wrap-Up of Game Products, Inc.
  • Appendix: Transfer Prices between Divisions

• Chapter 12: How Is the Statement of Cash Flows Prepared and Used?

  • Chapter Introduction
  • Purpose of the Statement of Cash Flows
  • Three Types of Cash Flow Activities
  • Four Key Steps to Preparing the Statement of Cash Flows
  • Using the Indirect Method to Prepare the Statement of Cash Flows
  • Analyzing Cash Flow Information
  • Appendix: Using the Direct Method to Prepare the Statement of Cash Flows

• Chapter 13: How Do Managers Use Financial and Nonfinancial Performance Measures?

  • Chapter Introduction
  • Trend Analysis of Financial Statements
  • Common-Size Analysis of Financial Statements
  • Ratio Analysis of Financial Information
  • Wrap-Up of Chapter Example
  • Nonfinancial Performance Measures: The Balanced Scorecard