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Managerial Accounting: Information for Decisions / Edition 2

Managerial Accounting: Information for Decisions / Edition 2


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Product Details

ISBN-13: 9780324024418
Publisher: South-Western
Publication date: 07/28/2000
Series: Accounting Series
Edition description: Older Edition
Pages: 562
Product dimensions: 8.27(w) x 11.02(h) x (d)

Table of Contents

Section M1Product Costing and Decision Making1
M1Accounting and Management Decisions2
Introduction to Managerial Accounting3
Corporate Structure and Accounting Information Needs3
The Changing Needs of Business5
The Quality of Accounting Information5
The Role of Managerial Accounting in Planning and Control7
Ethics and Control10
Interactions Among Accounting, Marketing, and Operations10
Managerial Accounting and Marketing11
Managerial Accounting and Operations12
Other Effects on Marketing and Operations12
Responding to the New Business Environment14
Total Quality Management14
Just-in-Time Manufacturing15
Time-Based Competition15
Flexible Manufacturing15
Effects of the New Business Environment on Managerial Accounting16
Traditional Managerial Accounting Systems17
New Decision-Making Tools17
New Thinking about Performance Measures20
Managerial Accounting in Service Companies21
M2Cost Categorization, Cost Flow, and Measurement Decisions34
The Production Process: An Illustration35
Products and Market35
Product Design and Manufacturing36
Product Costs Versus Period Expense37
Product Costs37
Cost Flows Through an Organization40
Manufacturing Costs40
Manufacturing Cost Flow41
Traditional Cost Categories44
Cost Behavior in Relation to Changes in Activity Levels44
Other Behavior Considerations: Management Policies and Time47
Cost-Based Decision Making48
Target-Costing Decisions48
Make or Buy Decisions51
Sell-Now or Process-Further Decisions53
Cost Information for Service Organizations54
Cost Categories54
Cost Behavior54
Cost Control54
M3Unit Costs for Decision Making76
The Role of Unit Costs77
Placing a Value on Inventory77
Managerial Decision Making78
The Elements of Unit Cost80
Measuring Costs81
Actual Costing81
Normal Costing82
Assigning Unit Costs85
Choosing a Costing Method86
Job-Order Costing88
Process Costing90
Accuracy of Unit Costs95
Unit Costs in the Service Sector96
M4Cost Measurement for Management120
Contribution Margin and the Variable-Costing Income Statement121
Cost Behavior: A Review121
The Variable-Costing Income Statement122
Cost-Volume Profit Analysis123
Breakeven-Point Analysis125
Target-Profit Analysis126
Profit-Sensitivity Analysis127
Margin-of-Safety Analysis127
Managers' Decisions about Fixed Costs and Operating Risk127
Variable and Absorption Costing: A Comparison128
Pricing Decisions: Unit Product Cost129
Performance Evaluation: Net Income130
Choosing Between Variable Costing and Absorption Costing133
Arguments For and Against Variable Costing133
Arguments For and Against Absorption Costing135
Measuring Costs for Decision Making in Service Companies136
M5Cost Allocation and Business Strategy160
The Reasons for Cost Allocation161
Volume-Based Allocation: The Traditional Method161
Predetermined Overhead Rates: A Review163
Volume-Based Allocation: Two Examples164
Click Pen Company165
Wafer Pen Company168
Strategic Implications172
The Problems With Volume-Based Allocation174
Economies of Scale174
The Allocation Base174
Cooper's Hierarchy175
Unit-Level Costs175
Batch-Level Costs176
Product-Level Costs176
Facility-Level Costs176
Activity-Based Costing177
Cost Allocation and Decision Making in the Service Sector181
Section M2Control, Measurement, and Evaluation205
M6The Role of Budgets in Decision Making206
Overview of the Master Budget207
Developing the Master Budget208
Sales Budget209
Production Budget210
Direct Materials Budget211
Direct Labor Budget212
Manufacturing Overhead Budget212
Selling and Administrative Expense Budget213
Pro Forma Budgeted Income Statement215
Flexible Budget Approach215
Cash Budget216
Pro Forma Budgeted Balance Sheet218
Sensitivity Analysis in Budgeting219
Developing a Sound Budgeting Culture221
Considerations in Implementing Budgets221
Scope of the Budget222
Foreign Operations, Currency Fluctuation, and Inflation222
Budget Revisions222
Behavioral Concerns in Budgeting222
Changing Behavior223
Participation in the Budget Process223
Slack in Budgets224
Budgets in Undesirable Behavior225
Strategic Considerations in Budgeting226
Budgeting in Service Companies226
M7Evaluating Performance Within an Organization253
MetalArt: Performance Evaluation and the Manufacturing Process254
Coil Shearing254
Wrapping and Shipping256
MetalArt: Cost and Quality Management257
MetalArt--March 2000257
Variance Analysis for Direct Materials and Direct Labor258
MetalArt--April 2000258
Direct Materials and Direct Labor Variances258
Calculation and Interpretation of Materials and Labor Variances260
Limitations of Traditional Variance Analysis263
Quality Cost Concepts265
Taguchi's Quality Loss Function266
MetalArt--December 2001268
Statistical Process Control271
Performance Evaluation for Service Organizations273
M8Controlling Decisions in Decentralized Organizations299
The American Paper Company300
Theoretical Framework for Behavior Within Organizations302
Management of Decentralized Organizations303
Benefits of Decentralization304
Performance Evaluation Using ROI306
Discussion of Results307
Criticisms of Using ROI to Evaluate Performance309
Economic Value Added Compared to ROI311
The Balanced Scorecard Approach312
Transfer Pricing315
The Scenario315
Transfer Pricing Summary319
Management of Decentralized Service Organizations320
M9Management Accounting in a Competitive Business Environment342
The New Competitive Environment343
Total Quality Management at Tuff Cut344
Principles of Just-in-Time Manufacturing348
Nonfinancial Performance Measures349
Product-Oriented Versus Process-Oriented Plant Layout353
Financial Benefits Resulting from JIT356
Drawbacks to the Just-in-Time Manufacturing Philosophy358
The Theory of Constraints358
Steps to Improve Performance359
Implementation of the Theory of Constraints359
Just-in-Time and Theory of Constraints Similarities and Differences361
Service Organizations in a Global Business Environment363
M10Decisions About Capital Investments382
Factors Affecting Decisions383
Controlling Capital Investments385
Traditional Approaches386
Net Present Value386
Internal Rate of Return388
Payback Period390
Accounting Rate of Return391
Other Considerations391
The New Manufacturing Environment392
Automation and Modern Manufacturing393
Making Sound Strategic Decisions394
Problems in Making Decisions395
Avoiding Problems396
Moving Baseline Concept397
Uncertain and Hidden Costs397
Responding to Bad Capital Investment Decisions399
Opportunity Costs in Capital Investment Decisions401
Capital Investment Decisions in Service Companies401
Section M3Expanded Topics421
M11Internal Control422
Internal Control Objectives423
Internal Control and Human Behavior424
The Structure of an Internal Control System426
Organizational Environment427
Risk Assessment430
Other Aspects of Internal Control Structure431
Internal Control Activities431
Communication of Internal Control Policies and Problems435
Internal Auditing436
M12A Closer Look at Service Organizations452
Background and Environment of Stonebrook Medical Center453
Modern Cost Management Systems for Service Organizations454
Step-down and Simultaneous Algebraic Equation Methods for Allocating Reciprocal Support Costs455
Cost Management Systems for Service Companies460
Performance Measurement and Cost Management Strategies in the Service Environment463
Outcomes Data Dissemination464
Critical Path Utilization466
M13The Japanese Perspective488
Confrontation Strategy and the Survival Triplet489
The Survival Triplet490
Techniques to Control Future Costs494
Target Costing494
Value Engineering496
Decision Makers Affected498
Interorganizational Cost Management Systems498
Who Benefits from Target Costing and Value Engineering?498
Techniques to Control Current Costs499
Service Organizations501
Appendix AFuture and Present Value1
Appendix BA Short Introduction to Excel3

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