Description
Managerial Accounting: Creating Value in a Dynamic Business Environment Edition 11 by Ronald Hilton EBOOK PDF Instant Download
Table of Contents
Cover
Title
Copyrights
Dedication
Praise for Managerial Accounting
Preface
What’s New in the 11th Edition?
Instructor Supplements
Connect
Adaptive
Acknowledgments
Brief Contents
Contents
Halftitle
Chapter 1 The Changing Role of Managerial Accounting in a Dynamic Business Environment
Managerial Accounting: A Business Partnership with Management
Managing Resources, Activities, and People
Decision Making
Planning
Directing Operational Activities
Controlling
How Managerial Accounting Adds Value to the Organization
Objectives of Managerial Accounting Activity
M.A.P. Using Managerial Accounting To Monetize the Internet
The Balanced Scorecard
Managerial Accounting in Different Types of Organizations
Managerial versus Financial Accounting
Where Do We Find Managerial Accountants in an Organization?
Organization Chart
Cross-Functional Deployment
Physical Location
The Operational Context of Managerial Accounting
Managerial Accounting and the Value Chain
Capacity and Capacity Costs
M.A.P. Managing the Costs of Unused Capacity in the Auto Industry: A Global Challenge
Cost Management Systems
Managerial Accounting as a Career
Professional Organizations
Professional Certification
Managerial Accounting and the Ethical Climate of Business
Focus on Ethics: IMA Statement of Ethical Professional Practice
Chapter Summary
Key Terms
Review Questions
Exercises
Problems
Case
Chapter 2 Basic Cost Management Concepts
What Do We Mean by a Cost?
Product Costs, Period Costs, and Expenses
Costs on Financial Statements
Income Statement
Balance Sheet
Manufacturing Operations and Manufacturing Costs
Assembly Manufacturing
Manufacturing Costs
Manufacturing Cost Flows
Non-Manufacturing Production Costs
Basic Cost Management Concepts: Different Costs for Different Purposes
Cost Drivers
Variable and Fixed Costs
M.A.P. Managing Health Care Costs Through Cost Behavior
Cost Accountability
Economic Cost Concepts
Costs and Benefits of Information
M.A.P. How Airlines Make Money Today
Costs in the Service Industry
Focus on Ethics: Was WorldCom’s Controller Just Following Orders?
Chapter Summary
Review Problems on Cost Classifications
Key Terms
Review Questions
Exercises
Problems
Cases
Chapter 3 Product Costing and Cost Accumulation in a Batch Production Environment
Product and Service Costing
Product Costing in Nonmanufacturing Firms
Flow of Costs in Manufacturing Firms
Types of Product-Costing Systems
Job-Order Costing Systems
Process-Costing Systems
Summary of Product-Costing System Alternatives
Accumulating Costs in a Job-Order Costing System
Job-Cost Record
Direct-Material Costs
M.A.P. Supply Chain Management
Direct-Labor Costs
Manufacturing-Overhead Costs
Summary of Event Sequence in Job-Order Costing
Illustration of Job-Order Costing
Purchase of Material
Use of Direct Material
Use of Indirect Material
Use of Direct Labor
Use of Indirect Labor
Manufacturing-Overhead Costs Incurred
Application of Manufacturing Overhead
Summary of Overhead Accounting
Selling and Administrative Costs
Completion of a Production Job
Sale of Goods
Underapplied and Overapplied Overhead
Schedule of Cost of Goods Manufactured
Schedule of Cost of Goods Sold
Posting Journal Entries to the Ledger
Further Aspects of Overhead Application
Actual and Normal Costing
Choosing the Cost Driver for Overhead Application
Departmental Overhead Rates
Two-Stage Cost Allocation
Project Costing: Job-Order Costing in Nonmanufacturing Organizations
Focus on Ethics: Did Boeing Exploit Accounting Rules to Conceal Cost Overruns And Production Snafus?
Chapter Summary
Review Problem on Job-Order Costing
Key Terms
Review Questions
Exercises
Problems
Cases
Chapter 4 Process Costing and Hybrid Product-Costing Systems
Comparison of Job-Order Costing and Process Costing
Flow of Costs
Differences Between Job-Order and Process Costing
Equivalent Units: A Key Concept
Equivalent Units
Illustration of Process Costing
Basic Data for Illustration
M.A.P. New York Wine Industry
Weighted-Average Method of Process Costing
Other Issues in Process Costing
Actual versus Normal Costing
Other Cost Drivers for Overhead Application
Subsequent Production Departments
Hybrid Product-Costing Systems
Operation Costing for Batch Manufacturing Processes
Chapter Summary
Review Problem on Process Costing
Key Terms
Review Questions
Exercises
Problems
Case
Chapter 5 Activity-Based Costing and Management
Traditional, Volume-Based Product-Costing System
Trouble in Denver
Activity-Based Costing System
ABC Stage One
ABC Stage Two
Interpreting the ABC Product Costs
The Punch Line
Why Traditional Volume-Based Systems Distort Product Costs
M.A.P. Cost Distortion at Rockwell International
Activity-Based Costing: Some Key Issues
Cost Drivers
M.A.P. “Big Data” and Activity-Based Costing at DHL Express
Collecting ABC Data
Activity Dictionary and Bill of Activities
Activity-Based Management
Two-Dimensional ABC
Using ABM to Identify Non-Value-Added Activities and Costs
Customer-Profitability Analysis
Illustration of Customer-Profitability Analysis
M.A.P. Customer Profitability Analysis at Bank One Corp.
Activity-Based Costing in the Service Industry
Time-Driven Activity-Based Costing
Activity-Based Costing at Immunity Medical Center
Interpreting the Primary Care Unit’s TDABC Information
Focus on Ethics: Ethical Issues Surrounding Activity-Based Costing
Chapter Summary
Review Problem on Cost Drivers and Product-Cost Distortion
Key Terms
Review Questions
Exercises
Problems
Cases
Chapter 6 Activity Analysis, Cost Behavior, and Cost Estimation
Cost Behavior Patterns
Variable Costs
Step-Variable Costs
Fixed Costs
Step-Fixed Costs
Semivariable Cost
Curvilinear Cost
Using Cost Behavior Patterns to Predict Costs
M.A.P. Is Direct Labor a Variable or a Fixed Cost?
Engineered, Committed, and Discretionary Costs
Cost Behavior in Other Industries
Cost Estimation
Account-Classification Method
Visual-Fit Method
High-Low Method
Least-Squares Regression Method
Multiple Regression
Data Collection Issues
Big Data
Engineering Method of Cost Estimation
Effect of Learning on Cost Behavior
Focus on Ethics: Cisco Systems, Walmart, Taco Bell, Starbucks, U-Haul, General Dynamics, and Farmer’s Insurance: Is Direct Labor A Variable Cost?
Chapter Summary
Review Problems on Cost Behavior and Estimation
Key Terms
Appendix to Chapter 6: Least-Squares Regression Using Microsoft® Excel
Review Questions
Exercises
Problems
Cases
Chapter 7 Cost-Volume-Profit Analysis
Illustration of Cost-Volume-Profit Analysis
Projected Expenses and Revenue
The Break-Even Point
Contribution-Margin Approach
Graphing Cost-Volume-Profit Relationships
Interpreting the CVP Graph
Alternative Format for the CVP Graph
Profit-Volume Graph
Target Profit
Contribution-Margin Approach
Equation Approach
Graphical Approach
Applying CVP Analysis
Safety Margin
Changes in Fixed Expenses
Changes in the Unit Contribution Margin
Predicting Profit Given Expected Volume
Interdependent Changes in Key Variables
CVP Information in Published Annual Reports
M.A.P. Airlines Keep a Close Eye on Break-Even Load Factors
CVP Analysis with Multiple Products
Assumptions Underlying CVP Analysis
Role of Spreadsheets and Computerized Planning Models
CVP Relationships and the Income Statement
Traditional Income Statement
Contribution Income Statement
Comparison of Traditional and Contribution Income Statements
Cost Structure and Operating Leverage
Operating Leverage
M.A.P. Operating Leverage Helps Web Companies to Be Profitable
Cost Structure and Operating Leverage: A Cost-Benefit Issue
M.A.P. Health Care Costs and Operating Leverage
CVP Analysis, Activity-Based Costing, and Advanced Manufacturing Systems
A Move Toward JIT and Flexible Manufacturing
Chapter Summary
Review Problem on Cost-Volume-Profit Analysis
Key Terms
Appendix to Chapter 7: Effect of Income Taxes
Review Questions
Exercises
Problems
Cases
Chapter 8 Variable Costing and the Costs of Quality and Sustainability
Section 1: Absorption and Variable Costing
Fixed Manufacturing Overhead: The Key
Illustration of Absorption and Variable Costing
Absorption-Costing Income Statements
Variable-Costing Income Statements
Reconciling Income under Absorption and Variable Costing
Cost-Volume-Profit Analysis
Evaluation of Absorption and Variable Costing
M.A.P. 1RS: Unique Product Packaging is an Inventoriable Cost
Section 2: Costs of Assuring Quality
Measuring and Reporting Quality Costs
Changing Views of Optimal Product Quality
ISO 9000 Standards
M.A.P. Six Sigma for Quality Management and Cost Reduction
Section 3: Costs of Environmental Sustainability
Classifying Environmental Costs
Managing Private Environmental Costs
ISO 14000 Standards and the GRI Sustainability Reporting Framework
Focus on Ethics: Incentive to Overproduce Inventory
Chapter Summary
Review Problem on Absorption and Variable Costing
Key Terms
Review Questions
Exercises
Problems
Cases
Chapter 9 Financial Planning and Analysis: The Master Budget
Financial Planning and Analysis (FP&A) Systems
Purposes of Budgeting
Types of Budgets
The Master Budget: A Planning Tool
Sales of Services or Goods
Sales Forecasting
Operational Budgets
Financing Budgets
M.A.P. The Budget: Valuable Planning Tool or Costly Waste of Time?
Budgeted Financial Statements
Activity-Based Budgeting
Developing the Master Budget
Sales Budget
Purchases Budget
Direct Labor Budget
Production Overhead and SG&A Budgets
Financing Budgets
Budgeted Financial Statements
Summary: Key Features of a Master Budget
Extending the Master Budget for a Manufacturing Firm
Production Budget
Direct-Material Budget
Budgeted Schedule of Cost of Goods Manufactured and Sold
Budgeted Balance Sheet
Assumptions and Predictions Underlying the Master Budget
Financial Planning Models
Budget Administration
M.A.P. Budget Administration at Cornell University
International Aspects of Budgeting
Behavioral Impact of Budgets
Budgetary Slack: Padding the Budget
Participative Budgeting
Focus on Ethics: Is Padding The Budget Unethical?
Chapter Summary
Review Problem on Preparing Master Budget Schedules
Key Terms
Review Questions
Exercises
Problems
Cases
Chapter 10 Standard Costing and Analysis of Direct Costs
Managing Costs
Management by Exception
Setting Standards
Methods for Setting Standards
Participation in Setting Standards
Perfection versus Practical Standards: A Behavioral Issue
Use of Standards by Service Organizations
Cost Variance Analysis
Direct-Material Standards
Direct-Labor Standards
Standard Costs Given Actual Output
Analysis of Cost Variances
Direct-Material Variances
Direct-Labor Variances
M.A.P. Parker Hannifin Corporation’s Brass Products Division
Multiple Types of Direct Material or Direct Labor
Allowing for Production Loss
Significance of Cost Variances
A Statistical Approach
Behavioral Impact of Standard Costing
Controllability of Variances
Interaction among Variances
Standard Costs and Product Costing
Evaluation of Standard Costing Systems
Advantages of Standard Costing
Criticisms of Standard Costing in Today’s Manufacturing Environment
M.A.P. Working with Suppliers to Manage Costs
Focus on Ethics: Sacrificing Quality to Cut Standard Costs
Chapter Summary
Review Problem on Standard Costing and Analysis of Direct Costs
Key Terms
Appendix to Chapter 10: Use of Standard Costs for Product Costing
Review Questions
Exercises
Problems
Cases
Chapter 11 Flexible Budgeting and Analysis of Overhead Costs
Overhead Budgets
Flexible Budgets
Advantages of Flexible Budgets
The Activity Measure
Flexible Overhead Budget Illustrated
Formula Flexible Budget
Overhead Application in a Standard-Costing System
Choice of Activity Measure
Criteria for Choosing the Activity Measure
Cost Management Using Overhead Cost Variances
Variable Overhead
Fixed Overhead
Overhead Cost Performance Report
Activity-Based Flexible Budget
M.A.P. Cost Management Systems in Germany
Flexible Budgeting in the Service Industry
Focus on Ethics: Misstated Standards Affect Accuracy of Reports
Chapter Summary
Review Problem on Flexible Budgeting and Analysis of Overhead Costs
Key Terms
Appendix A to Chapter 11: Standard Costs and Product Costing
Appendix B to Chapter 11: Sales Variances
Review Questions
Exercises
Problems
Cases
Chapter 12 Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard
Responsibility Centers
Illustration of Responsibility Accounting
Performance Reports
Budgets, Variance Analysis, and Responsibility Accounting
Cost Allocation
Cost Allocation Bases
Allocation Bases Based on Budgets
Activity-Based Responsibility Accounting
Behavioral Effects of Responsibility Accounting
Information versus Blame
Controllability
Motivating Desired Behavior
Segmented Reporting
Segments versus Segment Managers
Key Features of Segmented Reporting
Customer-Profitability Analysis and Activity-Based Costing
Operational Performance Measures in Today’s Production Environment
Gain-Sharing Plans
The Balanced Scorecard
M.A.P. The Balanced Scorecard
Lead and Lag Measures: The Key to the Balanced Scorecard
Linking the Balanced Scorecard to Organizational Strategy
M.A.P. Linking the Balanced Scorecard to Organizational Strategy
Focus on Ethics: Short-Sighted View of Cost Cutting
Chapter Summary
Review Problems on Responsibility Accounting and Operational Performance Measures
Key Terms
Review Questions
Exercises
Problems
Cases
Chapter 13 Investment Centers and Transfer Pricing
Delegation of Decision Making
Obtaining Goal Congruence: A Behavioral Challenge
Adaptation of Management Control Systems
Measuring Performance in Investment Centers
Return on Investment
Residual Income
Economic Value Added
M.A.P. PAY FOR PERFORMANCE BASED ON EVA
Measuring Income and Invested Capital
Invested Capital
Measuring Investment-Center Income
Inflation: Historical-Cost versus Current-Value Accounting
Other Issues in Segment Performance Evaluation
Alternatives to ROI, Residual Income, and Economic Value Added (EVA)
Importance of Nonfinancial Information
Measuring Performance in Nonprofit Organizations
Transfer Pricing
Goal Congruence
General Transfer-Pricing Rule
Transfers Based on the External Market Price
Negotiated Transfer Prices
Cost-Based Transfer Prices
Standard versus Actual Costs
Undermining Divisional Autonomy
An International Perspective
M.A.P. Transfer Pricing and Tax Issues
Transfer Pricing in the Service Industry
Behavioral Issues: Risk Aversion and Incentives
Goal Congruence and Internal Control Systems
Chapter Summary
Review Problems on Investment Centers and Transfer Pricing
Key Terms
Review Questions
Exercises
Problems
Cases
Chapter 14 Decision Making: Relevant Costs and Benefits
The Managerial Accountant’s Role in Decision Making
Steps in the Decision-Making Process
Quantitative versus Qualitative Analysis
Obtaining Information: Relevance, Accuracy, and Timeliness
Relevant Information
Unique versus Repetitive Decisions
Importance of Identifying Relevant Costs and Benefits
Identifying Relevant Costs and Benefits
Sunk Costs
Irrelevant Future Costs and Benefits
Opportunity Costs
Summary
Analysis of Special Decisions
Accept or Reject a Special Offer
Outsource a Product or Service
M.A.P. Insourcing Makes a Come-Back
Add or Drop a Service, Product, or Department
M.A.P. Adding a Service
Special Decisions in Manufacturing Firms
Joint Products: Sell or Process Further
Decisions Involving Limited Resources
Uncertainty
Activity-Based Costing and Today’s Advanced Manufacturing Environment
Conventional Outsourcing (Make-or-Buy) Analysis
Activity-Based Costing Analysis of the Outsourcing Decision
Other Issues in Decision Making
Incentives for Decision Makers
Short-Run versus Long-Run Decisions
Pitfalls to Avoid
Focus on Ethics: Effects of Decision to Close a Department and Outsource
Chapter Summary
Review Problem on Relevant Costs
Key Terms
Appendix to Chapter 14: Linear Programming
Review Questions
Exercises
Problems
Cases
Chapter 15 Target Costing and Cost Analysis for Pricing Decisions
Major Influences on Pricing Decisions
Customer Demand
Actions of Competitors
Costs
Political, Legal, and Image-Related Issues
Economic Profit-Maximizing Pricing
Total Revenue, Demand, and Marginal Revenue Curves
Total Cost and Marginal Cost Curves
Profit-Maximizing Price and Quantity
Price Elasticity
Limitations of the Profit-Maximizing Model
Costs and Benefits of Information
Role of Accounting Product Costs in Pricing
Cost-Plus Pricing
Absorption-Cost Pricing Formulas
Variable-Cost Pricing Formulas
Determining the Markup
M.A.P. Real Time Price Wars
Cost-Plus Pricing: Summary and Evaluation
Strategic Pricing of New Products
Target Costing
M.A.P. Dynamic Pricing on the Internet by “E-Tailers”
A Strategic Profit and Cost Management Process
Activity-Based Costing and Target Costing
Product-Cost Distortion and Pricing: The Role of Activity-Based Costing
Value Engineering and Target Costing
Time and Material Pricing
Competitive Bidding
Effect of Antitrust Laws on Pricing
Chapter Summary
Review Problem on Cost-Plus Pricing
Key Terms
Review Questions
Exercises
Problems
Cases
Chapter 16 Capital Expenditure Decisions
Section 1: Discounted-Cash-Flow Analysis
Net-Present-Value Method
Internal-Rate-of-Return Method
Comparing the NPV and IRR Methods
Assumptions Underlying Discounted-Cash-Flow Analysis
Choosing the Hurdle Rate
Depreciable Assets
Comparing Two Investment Projects
Managerial Accountant’s Role
Postaudit
Real Option Analysis
Section 2: Income Taxes and Capital Budgeting
After-Tax Cash Flows
Accelerated Depreciation
Modified Accelerated Cost Recovery System (MACRS)
Gains and Losses on Disposal
Investment in Working Capital
Extended Illustration of Income-Tax Effects in Capital Budgeting
M.A.P. Big Pharma Uses Capital Budgeting in Developing New Drugs
Ranking Investment Projects
Section 3: Alternative Methods for Making Investment Decisions
Payback Method
Accounting-Rate-of-Return Method
Estimating Cash Flows: The Role of Activity-Based Costing
Justification of Investments in Advanced Manufacturing Technology
Focus on Ethics: Dysfunctional Focus on Early Cash Flows
Chapter Summary
Review Problems on Investment Centers and Transfer Pricing
Key Terms
Appendix A to Chapter 16: Future Value and Present Value Tables
Appendix B to Chapter 16: Impact of Inflation
Review Questions
Exercises
Problems
Cases
Hint for Case 16-59
Chapter 17 Allocation of Support Activity Costs and Joint Costs
Section 1: Service Department Cost Allocation
Direct Method
Step-Down Method
Reciprocal-Services Method
Fixed versus Variable Costs
M.A.P. Cost Reimbursement in the Health Care Industry
Dual Cost Allocation
Allocate Budgeted Costs
Today’s Advanced Manufacturing Environment
The Rise of Activity-Based Costing
Section 2: Joint Product Cost Allocation
Allocating Joint Costs
M.A.P. Joint Cost Allocation in the Petroleum Industry
Chapter Summary
Review Problem on Service Department Cost Allocation
Key Terms
Appendix to Chapter 17: Reciprocal-Services Method
Review Questions
Exercises
Problems
Cases
Appendix I The Sarbanes-Oxley Act, Internal Controls, and Management Accounting
Appendix II Compound Interest and the Concept of Present Value
Appendix III Inventory Management
References for “In Their Own Words”
Glossary
Index of Companies and Organizations
Index of Subjects
