Management Accounting Demystified

( 4 )


Learn the essentials of management accounting in a flash!

This hands-on self-teaching guide covers the fundamentals of management accounting,
including cost accounting, how to develop and use information for costing products and services,
decision making, operational budgeting,
performance evaluation, and other important subjects and ...

See more details below
Other sellers (Paperback)
  • All (23) from $1.99   
  • New (11) from $2.55   
  • Used (12) from $1.99   
Management Accounting Demystified

Available on NOOK devices and apps  
  • NOOK Devices
  • Samsung Galaxy Tab 4 NOOK 7.0
  • Samsung Galaxy Tab 4 NOOK 10.1
  • NOOK HD Tablet
  • NOOK HD+ Tablet
  • NOOK eReaders
  • NOOK Color
  • NOOK Tablet
  • Tablet/Phone
  • NOOK for Windows 8 Tablet
  • NOOK for iOS
  • NOOK for Android
  • NOOK Kids for iPad
  • PC/Mac
  • NOOK for Windows 8
  • NOOK for PC
  • NOOK for Mac
  • NOOK for Web

Want a NOOK? Explore Now

NOOK Book (eBook)
$15.49 price
(Save 44%)$28.00 List Price


Learn the essentials of management accounting in a flash!

This hands-on self-teaching guide covers the fundamentals of management accounting,
including cost accounting, how to develop and use information for costing products and services,
decision making, operational budgeting,
performance evaluation, and other important subjects and provides an update on recent developments in the field. You will learn the key aspects of management accounting as they apply to both for-profit companies and nonprofits.

Read More Show Less

Product Details

  • ISBN-13: 9780071459617
  • Publisher: McGraw-Hill Professional Publishing
  • Publication date: 11/23/2005
  • Series: Demystified Series
  • Edition number: 1
  • Pages: 352
  • Sales rank: 638,580
  • Product dimensions: 7.40 (w) x 9.20 (h) x 0.82 (d)

Meet the Author

Leonard Eugene Berry, Ph.D., C.I.A., is Professor Emeritus and Director Emeritus in the School of Accountancy at Georgia State University. He is also a retired C.P.A.

Read More Show Less

Read an Excerpt


By Leonard Eugene Berry

The McGraw-Hill Companies, Inc.

Copyright © 2006The McGraw-Hill Companies
All rights reserved.
ISBN: 978-0-07-145961-7



What Is Management Accounting?

Information for Decision Making

Every day, all around the world, managers in companies of all sizes make important decisions that will affect the ultimate success of their businesses. Often these managers look to the management accountant to provide the necessary information they need to make these decisions. The decisions managers are faced with relate to the following categories:

Strategic Analysis Information

Strategy involves scanning the business environment (potential markets, customers, products/services, and competitors) for opportunities and making decisions relating to:

• What kind of business should the company engage in?

• What products or services should the company produce and/or sell?

• What markets should the company compete in?

• Should the company merge or acquire another company?

• How much should be spent on research and development over the long run?

• What capital assets should be acquired and how will they be financed?

Strategic analysis involves developing measures and a feedback system to evaluate the success of the strategies developed by the company.

The management accountant assists management in setting strategic planning and analysis by giving input on projected sales and costs of various strategic opportunities, creating benchmarks to evaluate strategies, assisting on due diligence of various strategic alternatives, and providing input on the effectiveness of business policies.

Planning Information

Planning involves long- and short-term decisions about the future course of the business.

• Long-term planning involves developing the broad steps to achieve the business's strategic growth goals. Long-term planning and strategic planning are very closely linked and may be used interchangeably. The long-range planning process involves deciding on such things as what capital assets and human resources are required to meet the strategic goals of the company; how these resources will be financed; and what processes will be employed to meet the customers' satisfaction effectively and efficiently.

• Short-term planning involves breaking down the long-range plans into smaller steps for the coming year or the coming quarter. This will require such decisions as setting prices for the coming year, estimating costs, and preparing a master budget. Management accountants assist management in planning by providing analysis of long-term investments, financial projections for long-term budgets, and master budgets for the coming period.

Organizing and Directing Information

To implement plans and operations, management must be organized to achieve the business goals effectively and efficiently. This involves such things as dividing responsibilities, creating an organization structure, and setting up an information system that provides information for all parts of the organization. In addition, management must oversee continuing operations, and keep the organization running smoothly. This requires motivating, directing, and communicating with all personnel within the organization. In a word, it has to do with leadership by top and middle managers.

The management accountant assists management in organizing and directing by providing input on organizational structure, information systems, internal controls, and compensation plans that motivate managers to achieve company goals.

Performance Evaluation Information

Evaluating Business Unit Performance

Each major business unit should be evaluated to determine whether it is competing effectively in the market to which it has been assigned. This evaluation involves:

• Using business unit financial reports to evaluate current operations; that is, is that unit profitable?

• Assessing whether a business unit is making a satisfactory return on investment.

• Deciding whether the business should close a business unit; for example, should Bank of America close a branch?

Evaluating Managers' Performance

Managerial evaluation involves evaluating the personal performance of a segment manager, rather than evaluating the unit itself. Evaluating the manager involves:

• Reviewing cost reports or budget reports to determine whether the manager met the assigned budget.

• Using specialized reporting to evaluate the manager's effectiveness in carrying out the strategy goals. Typical reports involve special measurement techniques such as Balanced Score Card, Return on Investment, Residual Income, and Economic Value Added (EVA) discussed in Chapter 14.

• Developing information to structure compensation plans.

The management accountant's role in organizational and management evaluation is critical since he or she will provide the key measures of performance, financial reports of responsibility center performance, reports of variance from budgets and standards, and other key pieces of information that help evaluate the success of the business.

The Key Accounting and Finance Players in a Large Business

Who provides the information for making the major decisions discussed above? The key players who are responsible for this role are:

• The Chief Financial Officer (CFO), the senior executive who is responsible for all the financing and accounting functions of the business.

• The Controller, the chief accounting officer of the business responsible for all accounting functions in the corporation. The Controller normally reports to the CFO. In some businesses, the title "Comptroller" is used instead of "Controller." When used in a corporation, it has the same meaning as "Controller." The information generated by the Controller includes financial information for both internal managers and external users of financial statements. Persons providing the information for internal users making the decisions discussed in the previous section, and who report to the Controller, are known as management accountants.

• The Treasurer, responsible for cash and other financial resources of the company, such as maintaining bank relations, managing investments, handling cash receipts and similar operations. The Treasurer normally reports to the CFO.

• The Internal Auditor, who performs financial, compliance, and management audits for internal management. The InternalAuditor provides independent appraisal of the organization's internal control system. Often, the Internal Auditor performs consulting services to internal management, and can report to the board of directors, the CEO, or the CFO, depending on the policy set by the board of directors or the CEO. The Internal Auditor may be a CPA and/or a Certified Internal Auditor (CIA). To be certified, candidates must pass a written examination, possess a specified level of experience, and hold a college degree. A CIA is certified by the Institute of Internal Auditors.

Changing Roles of the Controller and Management Accountant

The roles of the Controller and the management accountant have changed dramatically during the past decade. The Controller and modern management accountants go beyond the role of just providing the numbers for management, often becoming directly involved in the decision making process as consultants to management. Moreover, many Controllers are adding value to t

Excerpted from MANAGEMENT ACCOUNTING DEMYSTIFIED by Leonard Eugene Berry. Copyright © 2006 by The McGraw-Hill Companies. Excerpted by permission of The McGraw-Hill Companies, Inc..
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Read More Show Less

Table of Contents



CHAPTER 1 What Is Management Accounting?          

CHAPTER 2 Basic Cost Terms and Concepts          

CHAPTER 3 Job Order Cost Systems          

CHAPTER 4 Cost Allocation Systems          

CHAPTER 5 Process Cost Systems          

CHAPTER 6 Activity-Based Management Systems          

CHAPTER 7 Costs for Decision Making: Cost Estimation and
Cost-Volume-Profit Analysis          

CHAPTER 8 Costs for Decision Making: Relevant Costing and Capital
Expenditure Analysis          

CHAPTER 9 Costs for Decision Making: Setting Prices          

CHAPTER 10 Profit Planning Using Master Budgets          

CHAPTER 11 Planning and Performance Evaluation: Using Flexible Budgets          

CHAPTER 12 Performance Evaluation: Standard Costing and Variances

CHAPTER 13 Performance Evaluation: Sales Variances and the Balanced

CHAPTER 14 Performance Evaluation in Decentralized Companies          

Final Exam          



Read More Show Less

Customer Reviews

Average Rating 4
( 4 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Terms of Use.
  • - Barnes & reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously
Sort by: Showing all of 4 Customer Reviews
  • Anonymous

    Posted May 20, 2008

    Great review of management accounting

    While this book has a few errors, I found it to be an excellent review of management accounting. The chapters on cost allocation and budgeting were more advanced and better than most management accounting textbooks.

    2 out of 2 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted July 29, 2011

    Very practical review of management accounting at a great price.

    Clearly written. Many excellent real-world illustrations, and at a low price. Most management accounting textbooks cost over $100. I highly recommend.

    1 out of 1 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Posted July 4, 2011

    A Fun Introduction to Management Accounting

    Berry offers clear explanations for how the different aspects of management accounting work, along with food for thought about how the way a company thinks about where the money comes from and goes to can affect its operations. Reading it while thinking about the company where I work, I find myself nodding my head as I see why we track certain expenses a certain way or how a different model for other expenses could improve by-in by lower level management for new initiatives. A must-read not just for management accountants but for anybody responsible for controlling costs or managing the p&l of a unit in their company.

    1 out of 1 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted May 15, 2012

    No text was provided for this review.

Sort by: Showing all of 4 Customer Reviews

If you find inappropriate content, please report it to Barnes & Noble
Why is this product inappropriate?
Comments (optional)