Horngren’s Cost Accounting: A Managerial Emphasis (16th Edition)

Book Preface

Studying cost accounting is one of the best business investments a student can make. Why? Because success in any organization—from the smallest corner store to the largest multinational corporation—requires the use of cost accounting concepts and practices. Cost accounting provides key data to managers for planning and controlling, as well as costing products, services, and even customers. This book focuses on how cost accounting helps managers make better decisions, as cost accountants are increasingly becoming integral members of their company’s decision-making teams. In order to emphasize this prominence in decision making, we use the “different costs for different purposes” theme throughout this book. By focusing on basic concepts, analyses, uses, and procedures instead of procedures alone, we recognize cost accounting as a managerial tool for business strategy and implementation. We also prepare students for the rewards and challenges they face in the professional cost accounting world of today and tomorrow. For example, we emphasize both the development of analytical skills such as Excel to leverage available information technology and the values and behaviors that make cost accountants effective in the workplace.

Brief Contents
1 The Manager and Management Accounting 1
2 An Introduction to Cost Terms and Purposes 28
3 Cost–Volume–Profit Analysis 66
4 Job Costing 107
5 Activity-Based Costing and Activity-Based Management 152
6 Master Budget and Responsibility Accounting 197
7 Flexible Budgets, Direct-Cost Variances, and Management Control 249
8 Flexible Budgets, Overhead Cost Variances, and Management Control 288
9 Inventory Costing and Capacity Analysis 329
10 Determining How Costs Behave 372
11 Decision Making and Relevant Information 426
12 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 477
13 Pricing Decisions and Cost Management 524
14 Cost Allocation, Customer-Profitability Analysis, and Sales-Variance
Analysis 559
15 Allocation of Support-Department Costs, Common Costs, and Revenues 601
16 Cost Allocation: Joint Products and Byproducts 643
17 Process Costing 675
18 Spoilage, Rework, and Scrap 718
19 Balanced Scorecard: Quality and Time 748
20 Inventory Management, Just-in-Time, and Simplified Costing Methods 778
21 Capital Budgeting and Cost Analysis 818
22 Management Control Systems, Transfer Pricing, and Multinational
Considerations 856
23 Performance Measurement, Compensation, and Multinational
Considerations 891