Description
Cost Accounting A Managerial Emphasis, Sixth Canadian Edition, by Charles T. Horngren EBOOK PDF Instant Download
Table of Contents
Title Page
Copyright Page
TABLE OF CONTENTS
PREFACE
ACKNOWLEDGMENTS
ABOUT THE AUTHORS
PART ONE
1 The Accountant’s Vital Role in Decision Making
Management Accounting Data: Cost Accounting and Cost Management
CONCEPTS IN ACTION—STRATEGY: INNOVATION IN BUSINESS MODELS REQUIRES INNOVATION IN STRATEGY
Value-Chain and Supply-Chain Analysis and Key Success Factors
Decision Making, Planning, and Control: The Five-Step Decision-Making Process
Key Management Accounting Guidelines and Organization Structure
Corporate Governance, Ethics, and Corporate Social Responsibility
CONCEPTS IN ACTION—CORPORATE GOVERNANCE: MANAGEMENT ACCOUNTANTS ARE LEGALLY LIABLE AND PROFESSIONA
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
2 An Introduction to Cost Terms and Purposes
Costs and Cost Terminology
Cost-Behaviour Patterns: Variable Costs and Fixed Costs
CONCEPTS IN ACTION—STRATEGY: HOW AUTOSHARE REDUCES BUSINESS TRANSPORTATION COSTS
Interpreting Unitized Fixed Costs
Cost of Goods Sold and the Income Statement
Inventory Valuation and the Balance Sheet
Measuring and Classifying Costs Requires Judgment
CONCEPTS IN ACTION—GOVERNANCE: DON’T OVERCHARGE THE GOVERNMENT
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
3 Cost-Volume-Profit Analysis
Essentials of CVP Analysis
Using CVP to Calculate a Target Operating Income
Contribution Margin, Gross Margin, Operating Margin, and Net Income Margin
Using CVP Analysis to Make More Complex Decisions
CONCEPTS IN ACTION—STRATEGY: SKY-HIGH FIXED COSTS TROUBLE XM SATELLITE RADIO
Effects of Sales Mix on Income
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
4 Job Costing
Building-Block Concepts of Costing Systems
Job Costing: Actual Cost Assignment to a Distinct Service
Job Costing: Actual Cost Assignment to a Distinct Product
CONCEPTS IN ACTION—GOVERNANCE: JOB COSTING ON THE NEXT-GENERATION MILITARY FIGHTER PLANE
Methods Available to Calculate Cost Rates and Assign Job Costs
A Normal Job-Costing System and Cost Flow
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
5 Activity-Based Costing and Management
Activity-Based Costing: Building Block Concepts
Identifying Preventable Over- and Undercosting
Activity-Based Costing Systems
Implementing an ABC Cost-Assignment System
CONCEPTS IN ACTION—GOVERNANCE: EFFECTIVE COST ASSIGNMENT: IT’S THE LAW
ABC: The Foundation of ABM
CONCEPTS IN ACTION—STRATEGY: IF ONLY EVERYTHING DID NOT DEPEND ON EVERYTHING ELSE
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
PART TWO
6 Master Budget and Responsibility Accounting
The Decision Framework and Budgets
The Master Operating Budget
CONCEPTS IN ACTION—TECHNOLOGY: ELECTRONIC PRO FORMAS
Preparing the Cash Budget
Three Budget Strategies: Sensitivity Analysis, Kaizen Budgeting, and Activity-Based Budgets
Responsibility versus Controllability
CONCEPTS IN ACTION—GOVERNANCE: MANAGEMENT ACCOUNTING AND THE CORPORATE GOVERNANCE LAWS
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
7 Flexible Budgets, Variances, and Management Control: I
The Decision Framework and Variance Analyses
Static and Flexible Budgets
Developing a Flexible Budget from the Cost MIS
Mix and Yield Level 4 Variances for Substitutable Inputs
CONCEPTS IN ACTION—STRATEGY: ALMOST FOOLED: ANALYZING EFFICIENCY AND YIELD
Flexible Budgeting and Activity-Based Costing
Managerial Uses of Variance Analyses
CONCEPTS IN ACTION—GOVERNANCE: LEARN, DON’T BLAME
Pulling it All Together—Problem for Self-Study
Appendix: Budgets, Benchmarks, and Standards
Summary Points
Terms to Learn
Assignment Material
8 Flexible Budgets, Variances, and Management Control: II
Flexible-Budget MOH Cost Variances
CONCEPTS IN ACTION—GOVERNANCE: COST ALLOCATION BASE DENOMINATOR DECISION: THERE IS A RIGHT WAY
Flexible-Budget Variable Overhead Variances
Activity-Based Costing and Variance Analysis
Summary of All Overhead Cost Variances
CONCEPTS IN ACTION—STRATEGY: INTERDEPENDENCIES AND SHARED BENEFITS
Non-Manufacturing Variance Analysis
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
9 Income Effects of Denominator Level on Inventory Valuation
Denominator Levels: A Complex Decision with Complex Effects
Effects on Reporting, Costing, Pricing, and Evaluation
CONCEPTS IN ACTION—STRATEGY: DENOMINATOR-LEVEL CHOICE REFLECTS RECOVERABLE COSTS IN STRATEGIC PRIC
Denominator Level and Inventory Valuation
CONCEPTS IN ACTION—GOVERNANCE: PRORATE OR WRITEOFF: CRA VERSUS INTERNAL EVALUATION
Throughput: Super-Variable Costing
Productivity Under Each Cost Policy
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
PART THREE
10 Quantitative Analyses of Cost Functions
General Issues in Estimating Cost Functions
Cost Estimation Methods Using Historical Data
Ordinary Least Squares Linear Regression
CONCEPTS IN ACTION—STRATEGY: KNOWLEDGE IMPROVES THE IMPLEMENTATION OF A COST-LEADERSHIP STRATEGY
Cleaning Up Dirty Data
Pulling it All Together—Problem for Self-Study
Appendix: Regression Analysis
Summary Points
Terms to Learn
Assignment Material
11 Decision Making and Relevant Information
Decision Framework: Choose Only Relevant Costs
Change Output Level: Short- and Long-Term Decisions
CONCEPTS IN ACTION—STRATEGY: THE CHANGING BENEFITS AND COSTS OF “OFFSHORING”
Opportunity Cost and Book Value—One Relevant, One Irrelevant
Product Mix Decisions
Reduce Negative Effects and Conflict
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
12 Pricing Decisions, Product Profitability Decisions, and Cost Management
Major Influences on Pricing
The Decision Framework: Relevant Costs in Short-Run Pricing
Target Pricing Using Target Costing
The Decision Framework and Long-Term Pricing
CONCEPTS IN ACTION—STRATEGY: EXTREME TARGET PRICING AT IKEA
Life-Cycle Pricing and Relevant Qualitative Factors in Pricing
CONCEPTS IN ACTION—GOVERNANCE: ENVIRONMENTAL SUSTAINABILITY, ECOLOGICAL FRIENDLINESS—WHO CARES?
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
13 Strategy, Balanced Scorecard, and Profitability Analysis
Five Forces Analysis to Define Strategic Alternatives
The Decision Framework Applied to Chipset’s Strategy
Balanced Scorecard: Measures of Performance
Evaluation Using the BSC
Specific Productivity Improvement Measures
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
PART FOUR
14 Period Cost Application
The Relevance Criterion
Deciding Between Single- and Dual-Rate Cost Methods
Analysis of Favourable and Unfavourable Efficiency Variances
CONCEPTS IN ACTION—GOVERNANCE: WRONG CHOICE! BAD JUDGMENT! LESSON LEARNED!
Deciding Among Direct, Step-Down, and Reciprocal Cost Allocation Methods
Allocating Common Costs
Pulling it All Together—Problem for Self-Study
Appendix: Matrix Algebra
Summary Points
Terms to Learn
Assignment Material
15 Cost Allocation: Joint Products and Byproducts
Joint-Cost Basics
Approaches to Allocating Joint Costs
Deciding Whether to Sell at Splitoff or Process Further
Challenges for Management Accountants
CONCEPTS IN ACTION—STRATEGY: OVERCOMING THE CHALLENGES OF JOINT COST ALLOCATION
Accounting for Byproducts
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
16 Revenue and Customer Profitability Analysis
Revenue Allocation and Bundled Products
CONCEPTS IN ACTION—GOVERNANCE: REVENUE ALLOCATION BY THE GOVERNMENT AND FIRST NATIONS
ABC: The Cost Object Is the Customer
Revenue Variance Analyses
CONCEPTS IN ACTION—STRATEGY: MARKET-SHARE AND MARKET-SIZE GROWTH BOTH INCREASE PROFIT
Customer Profitablity Analysis
Customer Mix Analysis
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
17 Process Costing
Process-Costing Calculations
CONCEPTS IN ACTION—GOVERNANCE: NI 52-109—INTERNAL CONTROL SYSTEM DESIGN
Weighted-Average Method with No Beginning WIP Inventory
Weighted-Average Method with Beginning and Ending WIP Inventory
First-In, First-Out and Standard-Cost Methods
Transferred-in Costs in Process Costing
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
PART FIVE
18 Spoilage, Rework, and Scrap
Defining and Accounting for Spoilage, Rework, and Scrap
Process Costing with Spoilage Under the Weighted- Average and FIFO Methods
Process Costing Standard Costs
CONCEPTS IN ACTION—STRATEGY: MANAGING WASTE AND ENVIRONMENTAL COSTS AT TOYOTA
Job Costing and Spoilage
Reworked Units and Scrap
CONCEPTS IN ACTION—GOVERNANCE: MANAGING TOXIC WASTE AND ENVIRONMENTAL AND CORPORATE SUSTAINABILITY
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
19 Cost Management: Quality, Time, and the Theory of Constraints
Quality as a Competitive Tool
CONCEPTS IN ACTION—STRATEGY: KNOWLEDGE REDUCES PRODUCTION COSTS!
Analyze Quality-Control Problems—Internal Business Processes
Relevant Costs and Benefits of Quality Improvement
CONCEPTS IN ACTION—GOVERNANCE: THE COST OF QUALITY FAILURE AT FIRESTONE
Time as a Competitive Tool
Theory of Constraints and Throughput Contribution Analysis
CONCEPTS IN ACTION—STRATEGY: DEBOTTLENECKING ON THE INTERNET!
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
20 Inventory Cost Management Strategies
Inventory Management
CONCEPTS IN ACTION—STRATEGY: LEAN MANUFACTURING
Challenges in Supply-Chain Cost Management
Relevance and the JIT Strategy of Supply-Chain Management
Inventory Management: MRP and ERP
Backflush Costing
CONCEPTS IN ACTION—GOVERNANCE: INVENTORY VALUATION, COST OF GOODS SOLD, GAAP
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
PART SIX
21 Capital Budgeting: Methods of Investment Analysis
Applying the Concept of the Time Value of Money to Capital Budgeting
Evaluate Two DCF and Two Non-DCF Methods to Calculate the ROR
Assessing Relevance in DCF Analyses
Complexities in Capital Budgeting Applications
CONCEPTS IN ACTION—GOVERNANCE: LONG-TERM CONTRACTS AND PERFORMANCE EVALUATION AT ENRON
Defensive Strategy in Capital Budgeting
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
22 Capital Budgeting: A Closer Look
Income Taxes and Capital Budgeting
CONCEPTS IN ACTION—GOVERNANCE: TAX IS MANDATORY
Alternative Approaches to Capital Budgeting
Capital Budgeting and Inflation
Project Risk and Rate of Return
CONCEPTS IN ACTION—STRATEGY: RISK ANALYSIS IN CAPITAL BUDGETING AT CONSUMER ENERGY COMPANY
Implementing Capital Budgeting
CONCEPTS IN ACTION—STRATEGY: CAPITAL BUDGETING METHODS AND THE BALANCED SCORECARD (BSC)
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
PART SEVEN
23 Transfer Pricing and Multinational Management Control Systems
Management Control Systems
CONCEPTS IN ACTION—STRATEGY: STRUCTURE CANNOT REPLACE COMMITMENT AND CAPABILITY
Transfer Pricing
CONCEPTS IN ACTION—STRATEGY: US$3.4 BILLION IS AN INCENTIVE
Market-Based Transfer Prices
Cost-Based and Negotiated Transfer Prices
MNC Transfer Pricing and Tax Considerations
CONCEPTS IN ACTION—GOVERNANCE: ONCE AGAIN—TAX IS MANDATORY—THEY WILL GET YOU
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
24 Multinational Performance Measurement and Compensation
Financial and Nonfinancial Performance Measures
CONCEPTS IN ACTION—STRATEGY: THE COMPENSATION ANALYSIS AND DISCUSSION—BARRICK GOLD
Evaluating Performance Measurement Alternatives
Performance Measurement in Multinational Companies
Executive Performance Measures and Compensation
Strategy and Levers of Control
CONCEPTS IN ACTION—GOVERNANCE: COURAGE—BOUNDARIES AND BELIEFS
Pulling it All Together—Problem for Self-Study
Summary Points
Terms to Learn
Assignment Material
APPENDIX A: NOTES ON COMPOUND INTEREST AND INTEREST TABLES
APPENDIX B: COST ACCOUNTING IN PROFESSIONAL EXAMINATIONS
GLOSSARY
