Management Accounting Demystified

, by Berry, Leonard Eugene

Write a Review

Note: Supplemental materials are not guaranteed with Rental or Used book purchases.

ISBN: 9780071459617 | 0071459618
Cover: Paperback
Copyright: 12/14/2005

Buy New

This is a hard-to-find title. We are making every effort to obtain this item, but do not guarantee stock.

$28.81
eBook

Available Instantly

Online: 1825 Days

Downloadable: Lifetime Access

$21.00

Summary

Author Biography

Supplemental Materials

This hands-on self-teaching guide covers the fundamentals of management accounting as they apply to both for-profit companies and non-profits.

Introduction

xix

What Is Management Accounting?

(8)

Information for Decision Making

(3)

Strategic Analysis Information

(1)

Planning Information

(1)

Organizing and Directing Information

(1)

Performance Evaluation Information

(1)

The Key Accounting and Finance Players in a Large Business

(1)

Changing Roles of the Controller and Management Accountant

(1)

The Profession of Accounting

(1)

Management Accounting Compared to Financial Accounting

(1)

Summary

(2)

Basic Cost Terms and Concepts

(28)

Cost as an Asset or Expense

(3)

Costs That Become Assets

(1)

Costs That Become Expenses

(1)

Identification of Costs and Expenses in Three Types of Businesses

(2)

Tracing Costs to Cost Objects

(3)

Cost Objects

(1)

Direct Costs

(1)

Indirect Costs

(2)

Costs Based on Cost Behavior

(3)

Total Variable Costs

(1)

Relevant Range

(1)

Total Fixed Costs

(1)

Mixed Variable Costs

(1)

Stepped Fixed Costs

(1)

Unit vs. Total Costs

(1)

Cost Definitions for Decision Making

(1)

Summary of Cost Definitions

(2)

Cost Flows in a Manufacturing Business

(2)

Preparation of Financial Statements

(2)

The Balance Sheet

(1)

The Income Statement

(2)

Summary

(1)

Practice Problems

(5)

Solutions to Practice Problems

(5)

Job Order Cost Systems

(30)

Factors in Designing a Cost System

(2)

Job Order Cost System

(1)

The Accounting Components of a Job Order Costing System

(5)

Source Documents Used in the System

(2)

The General Ledger and Subsidiary Ledgers

(3)

The Major Steps in Designing a Job Order Cost System

(4)

Disposition of Overallocated or Underallocated Overhead

(11)

Summary

(1)

Practice Problems

(3)

Solutions to Practice Problems

(4)

Cost Allocation Systems

(22)

Why Allocate Indirect Costs?

(1)

Nature of Cost Allocation

(1)

Issues to Address in Cost Allocation

(3)

An Overview of Cost Flows in a Manufacturing Cost Allocation System

(1)

Methods of Allocating Support Department Costs

(5)

Direct Method

(3)

Step-Down Method

(2)

Other Methods for Allocating Support Department Overhead

(1)

Summary

(1)

Practice Problems

(5)

Solutions to Practice Problems

(4)

Process Cost Systems

(26)

Process Costing and Job Order Costing Compared

(1)

A Description of Process Costing

(2)

Concept of Equivalent Units

(1)

An Overview of the Major Steps in a Process Cost System

(1)

A Visual Look at Computing Unit Costs Under the Weighted Average Method and the FIFO Method

(8)

Weighted Average Method

(2)

FIFO Method

(1)

Assigning Costs Using the Weighted Average Method

(3)

Assigning Costs Using the FIFO Method

(3)

Costs Transferred in from Other Departments

101

(6)

Transferred-In Costs Using the Weighted Average Method

101

(3)

Transferred-In Costs Using the FIFO Method

104

(3)

Summary

107

(1)

Practice Problems

108

(3)

Solutions to Practice Problems

111

(4)

Activity-Based Management Systems

115

(26)

Activity-Based Management Systems

116

(2)

ABC as a Management System

116

(1)

ABC in Product Costing

117

(1)

An Overview of the Flow of Costs in an ABM System

118

(13)

Summary

131

(1)

Practice Problems

131

(6)

Solutions to Practice Problems

137

(4)

Costs for Decision Making: Cost Estimation and Cost-Volume-Profit Analysis

141

(32)

Why Cost Behavior and Cost Estimation Is So Important

142

(1)

Review of Cost Behavioral Terms

142

(2)

The Basic Linear Cost Function

144

(2)

Assumptions Underlying the Linear Cost Model

145

(1)

Methods for Estimating Variable and Fixed Costs

146

(6)

The Account Analysis Method

146

(2)

Industrial Engineering Method

148

(1)

Scatter Diagram Method

148

(2)

The High-Low Method

150

(1)

Regression Analysis

151

(1)

Putting It All Together---The Steps in Developing a Cost Estimation or Prediction Formula

152

(2)

Cost-Volume-Profit Analysis (CVP) and Its Uses

154

(1)

The CVP Model

155

(1)

Total Costs vs. Unit Costs

156

(1)

Contribution Margin Approach in CVP Analysis

157

(4)

The Formula Approach in CVP Analysis

161

(3)

Shortcut Approaches to CVP Analysis

164

(1)

CVP Analysis and the Multiproduct Firm

165

(1)

Summary

166

(1)

Practice Problems

167

(3)

Solutions to Practice Problems

170

(3)

Costs for Decision Making: Relevant Costing and Capital Expenditure Analysis

173

(26)

Decision Making Model

174

(3)

Important Accounting Concepts for Decision Making

177

(1)

Hazards in Using Relevant Costing

178

(1)

Problem: Should a Product, Service, or Business Segment Be Dropped?

178

(2)

Problem: How to Make Capital Investment Decisions

180

(5)

The Payback Method of Evaluating Capital Investment Projects

181

(1)

The Discounted Cash Flow (DCF) Method of Evaluating Capital Investment Projects

182

(3)

Problem: Should a Product or Service Be Produced Internally or Outsourced?

185

(2)

Problem: Which Product Mix Provides the Greater Profitability?

187

(2)

Summary

189

(1)

Appendix: Computing Present Value of a Lump Sum of Money

190

(2)

The Present Value of Money

190

(1)

Computing the Present Value of Money

190

(2)

Practice Problems

192

(3)

Solutions to Practice Problems

195

(4)

Costs for Decision Making: Setting Prices

199

(18)

Economics of Pricing

199

(1)

Short-Term Pricing Decisions

200

(2)

Long-Term Pricing Decisions

202

(2)

Cost-Plus Pricing

202

(2)

Contribution Margin Approach to Pricing

204

(2)

Target Costing

206

(5)

The Basic Concepts of Target Costing

206

(1)

Steps in Computing the Target Cost

207

(4)

Summary

211

(1)

Practice Problems

212

(3)

Solutions to Practice Problems

215

(2)

Profit Planning Using Master Budgets

217

(28)

Purposes and Benefits of Profit Planning

217

(1)

The Behavioral Aspects of Profit Planning and Budgeting

218

(2)

Budgeting Obstacles

220

(1)

The Master Budget Framework

221

(1)

Steps in Preparing the Master Budget

221

(19)

Budget Gap

240

(1)

Activity-Based Budgeting

240

(1)

Summary

240

(1)

Practice Problems

241

(3)

Solutions to Practice Problems

244

(1)

Planning and Performance Evaluation: Using Flexible Budgets

245

(18)

Flexible Budgets for Planning

246

(2)

Flexible Budgets for Activities and Planning of Overhead Costs

248

(2)

General Model for Evaluating Financial Performance

250

(2)

Flexible Budgets for Control

252

(1)

Flexible Budgeting in Action

252

(2)

Illustration of Flexible Budget for Control at the Senior Management Level

252

(2)

Determining the Cause of Flexible Budget Variances

254

(1)

Activity-Based Flexible Budgeting and Variance Analysis

254

(2)

Summary

256

(1)

Practice Problems

257

(3)

Solutions to Practice Problems

260

(3)

Performance Evaluation: Standard Costing and Variances Analysis

263

(28)

What Is a Standard?

264

(1)

Ideal Standards

264

(1)

Practical Standards

264

(1)

Advantages of Standard Costing

265

(1)

Criticisms of Standard Costing

265

(1)

Standard Costing in Performance Evaluation

266

(1)

Who Is Responsible for Setting Standards?

267

(1)

Purchasing

267

(1)

Industrial Engineering

267

(1)

Human Resources

267

(1)

Management Accountant

268

(1)

Using Standard Costing in Material and Labor Cost Variance Analysis

268

(3)

Causes of Direct Material and Direct Labor Variances

271

(1)

Variable Manufacturing Overhead Variances

272

(3)

Explanation and Causes of Variable Manufacturing Overhead Variances

275

(1)

Fixed Manufacturing Overhead Variances

276

(2)

Explanation and Causes of Fixed Manufacturing Overhead Variances

278

(1)

Different Approaches for Analyzing Manufacturing

279

(2)

Cost Variances in the General Ledger

281

(3)

Disposition of Cost Variances

284

(1)

Summary

285

(1)

Practice Problems

286

(3)

Solutions to Practice Problems

289

(2)

Performance Evaluation: Sales Variances and the Balanced Scorecard

291

(30)

Sales Variances

292

(4)

Total Sales Budget Variance

294

(1)

Sales Price Variance

295

(1)

Sales Volume Variance

296

(4)

Sales Mix Variance

296

(1)

Sales Quantity Variance

297

(1)

Sales Market Share Variance

298

(1)

Sales Market Size Variance

299

(1)

Evaluating the Success of a Strategic Initiative

300

(1)

Balancing Financial and Nonfinancial Success Factors

301

(1)

Some Guidelines for Adopting the Balanced Scorecard

302

(1)

Measuring the Key Success Areas

303

(8)

Vision and Strategy

304

(1)

Learning and Innovation

304

(1)

Learning and Innovation Measures of Performance

305

(1)

Internal Business Processes

305

(1)

Internal Business Process Performance Measures

306

(2)

Customer Focus

308

(1)

Customer Performance Measures

308

(2)

Financial Performance

310

(1)

Financial Performance Measures

310

(1)

Six Sigma and the Balanced Scorecard

311

(1)

Six Sigma in Action

311

(1)

Performance Dashboard

312

(1)

Benchmarking

312

(1)

Summary

313

(1)

Practice Problems

314

(3)

Solutions to Practice Problems

317

(4)

Performance Evaluation in Decentralized Companies

321

(30)

Nature of Decentralization

322

(1)

Advantages of Decentralization

322

(1)

Disadvantages of Decentralization

323

(1)

Responsibility Accounting System

324

(5)

The Issue of Controllability

324

(1)

Managerial Evaluation Compared to Segment Evaluation

325

(1)

Responsibility Centers

325

(4)

Measuring Investment Center (Divisional) Performance

329

(5)

Return on Investment (ROI)

329

(1)

Residual Income (RI)

330

(2)

Economic Value Added (EVA)

332

(2)

Measuring Income and the Investment Base

334

(3)

How Is Income Measured?

334

(1)

What Is Included in the Investment Base?

335

(1)

How Is the Investment Base Valued?

336

(1)

Activity-Based Costing and Responsibility Accounting

337

(1)

Transfer Pricing

337

(5)

Transfer Pricing When There Is No External Market

337

(1)

Transfer Pricing When There Is an External Market

338

(1)

Transfer Pricing When the Producing Division Has Excess Capacity

338

(2)

Transfer Pricing When the Producing Division Can Use Idle Facilities for Other Purposes

340

(1)

Transfer Pricing When Producing Division Has No Excess Capacity

341

(1)

Transfer Pricing in a Multinational Environment

342

(1)

A Synthesis of Performance Evaluation Methodologies

342

(1)

Summary

343

(2)

Practice Problems

345

(3)

Solutions to Practice Problems

348

(3)

Final Exam

351

(30)

Glossary

381

(18)

Index

399

Please wait while the item is added to your bag...

FREE SHIPPING

Amazon no longer offers textbook rentals. We do!

Management Accounting Demystified

Summary

Author Biography

Table of Contents

Supplemental Materials