Managerial accounting : the cornerstone of business decision making

Managerial accounting plays an essential role in helping today's managers make effective business decisions for their companies. Now MANAGERIAL ACCOUNTING, 7E shows you how. With a focus on "Here's How It's Used," this book makes managerial accounting meaningful, fun, and relevant to your life and business today. The book highlights exciting companies using relatable examples and scenarios throughout the book. You learn why managerial accounting is important, what it is, where managerial information comes from and how it is best used to make strong business decisions. You even explore emerging topics, such as sustainability, quality cost, lean accounting, international accounting, enterprise risk management, and forensic and fraud accounting. Accompanying videos and online materials help you understand and appreciate how managerial accounting is useful in both your professional and personal life.-Publisher's description Cover 1 Brief Contents 5 Acknowledgments and Thanks 14 About the Authors 16 Contents 17 Ch 1: Introduction to Managerial Accounting 27 The Meaning of Managerial Accounting 29 Financial Accounting and Managerial Accounting 32 Current Focus of Managerial Accounting 34 The Role of the Managerial Accountant 38 Managerial Accounting and Ethical Conduct 40 Certification 45 Ch 2: Basic Managerial Accounting Concepts 55 The Meaning and Uses of Cost 57 Product and Service Costs 62 Preparing Income Statements 69 Ch 3: Cost Behavior and Forecasting 103 Basics of Cost Behavior 105 Mixed Costs and Step Costs 113 Methods for Separating Mixed Costs into Fixed and Variable Components 116 Variable and Absorption Income Statements: Two Ways of Measuring Income 130 Appendix 3A: Using the Regression Programs 135 Ch 4: Job-Order Costing and Overhead Application 173 Characteristics of the Job-Order Environment 175 Normal Costing and Overhead Application 177 Keeping Track of Job Costs with Source Documents 186 The Flow of Costs through the Accounts 189 Appendix 4A: Journal Entries Associated with Job-Order Costing 198 Appendix 4B: Support Department Cost Allocation 201 Ch 5: Activity-Based Costing and Management 239 Limitations of Functional-Based Cost Accounting Systems 241 Activity-Based Product Costing 250 Activity-Based Customer Costing and Activity-Based Supplier Costing 256 Process-Value Analysis 261 Ch 6: Process Costing 301 Characteristics of Process Manufacturing 303 The Impact of Work-in-Process Inventories on Process Costing 308 Weighted Average Costing 311 Multiple Inputs and Multiple Departments 318 Appendix 6A: Production Report-First-In, First-Out Costing 323 Ch 7: Cost-Volume-Profit Analysis 357 Break-Even Point in Units and in Sales Dollars 359 Units and Sales Dollars Needed to Achieve a Target Income 368 Graphs of Cost-Volume-Profit Relationships 371 Illustrating Relationships among CVP Variables 373 Multiple-Product Analysis 376 Cost-Volume-Profit Analysis and Risk and Uncertainty 381 Making the Connection: Integrative Exercise (Chapters 2, 3, and 7) 415 Ch 8: Tactical Decision Making and Relevant Analysis 417 Short-Run Decision Making 419 Some Common Relevant Cost Applications 427 Product Mix Decisions 442 The Use of Costs in Pricing Decisions 445 Ch 9: Profit Planning and Flexible Budgets 479 Description of Budgeting 481 Preparing the Operating Budget 484 Preparing the Financial Budget 494 Using Flexible Budgets for Planning and Performance Reporting 500 Using Budgets for Performance Evaluation 504 Ch 10: Standard Costing and Variance Analysis 545 Unit Standards and Basic Concepts of Standard Costing 547 Variance Analysis: General Description 553 Variance Analysis: Materials and Labor 557 Overhead Analysis 568 Appendix 10A: Accounting for Variances 577 Making the Connection: Integrative Exercise (Chapters 5, 9, and 10) 613 Ch 11: Performance Evaluation and Decentralization 615 Decentralization and Responsibility Centers 617 Measuring the Performance of Investment Centers by Using Return on Investment 621 Measuring the Performance of Investment Centers by Using Residual Income and Economic Value Added 627 Transfer Pricing 632 Appendix 11A: The Balanced Scorecard-Basic Concepts 636 Ch 12: Capital Investment Decisions 669 Types of Capital Investment Decisions 671 Nondiscounting Models: Payback Period and Accounting Rate of Return 672 Discounting Models: The Net Present Value Method 677 Internal Rate of Return 681 Postaudit of Capital Projects 684 Mutually Exclusive Projects 686 Appendix 12A: Present Value Concepts 692 Appendix 12B: Present Value Tables 694 Making the Connection: Integrative Exercise (Chapters 3, 5, 8, and 12) 722 Ch 13: Emerging Topics in Managerial Accounting 725 Enterprise Risk Management 727 Business Sustainability 734 Quality Cost Management 744 Lean Manufacturing and Lean Accounting 752 International Issues in Management Accounting 763 The Role of Cost and Managerial Accounting in Fraud and Forensic Accounting 770 Ch 14: Statement of Cash Flows 815 Overview of the Statement of Cash Flows 817 Preparation of the Statement: Indirect Method 820 The Direct Method: An Alternative Approach 826 Worksheet Approach to the Statement of Cash Flows 828 Ch 15: Financial Statement Analysis 861 Common-Size Analysis 863 Ratio Analysis 867 Liquidity Ratios 871 Leverage Ratios 878 Profitability Ratios 881 Glossary 916 Check Figures 924 Index 928