Table of Contents
Chapter 1: What Is Managerial Accounting?
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
How Product Costs Flow through Accounts
Income Statements for Manufacturing Companies
Chapter 2: How Is Job Costing Used to Track Production Costs?
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?
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?
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?
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?
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?
Using Differential Analysis to Make Decisions
Product Line 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?
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?
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?
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?
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?
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?
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