Cornerstones of Managerial Accounting (5th edition)

Book Preface

The greatest benefit of managerial accounting is also its biggest challenge—to provide managers with information that improves decisions and creates organizational value. This information helps inform managers about the impact of various strategic and operational decisions on key nonfinancial performance measures and their eventual impact on the organization’s financial performance. The information is challenging to prepare and analyze because it requires an understanding of all value chain components that affect the organization, including research and development, production, marketing, distribution, and customer service.

Since its inception in 1999, BuyCostumes.com has blended the right managerial accounting information and an innovative business model to provide costumes to customers in over 50 countries. Using the Internet and marketing creativity, BuyCostumes .com serves a market of 150 million U.S. consumers who spend $3.6 billion on costumes each year.

According to CEO Jalem Getz, BuyCostumes.com measures key performance indicators to guide its decision making. For example, managerial accountants analyze measures of customer satisfaction, average time between order placement and costume arrival for each shipping method, and the profitability of individual customer types. As customer trends change, competitors emerge, and technological advances occur, BuyCostumes.com’s managerial accounting information adapts to provide crucial insight into the company’s performance and how its strategy should evolve to remain the world’s largest Internet costume retailer.

BRIEF CONTENTS
CHAPTER 1 Introduction to Managerial Accounting 2
CHAPTER 2 Basic Managerial Accounting Concepts 26
CHAPTER 3 Cost Behavior 66
CHAPTER 4 Cost-Volume-Profit Analysis: A Managerial Planning Tool 116
‘‘MAKING THE CONNECTION’’ 170
CHAPTER 5 Job-Order Costing 172
CHAPTER 6 Process Costing 230
CHAPTER 7 Activity-Based Costing and Management 280
CHAPTER 8 Absorption and Variable Costing, and Inventory Management 342
CHAPTER 9 Profit Planning 380
CHAPTER 10 Standard Costing: A Managerial Control Tool 430
‘‘MAKING THE CONNECTION’’ 474
CHAPTER 11 Flexible Budgets and Overhead Analysis 476
CHAPTER 12 Performance Evaluation and Decentralization 522
CHAPTER 13 Short-Run Decision Making: Relevant Costing 572
CHAPTER 14 Capital Investment Decisions 622
‘‘MAKING THE CONNECTION’’ 670
CHAPTER 15 Statement of Cash Flows 674
CHAPTER 16 Financial Statement Analysis 714
Glossary 760
Check Figures 768
Index 772