Introduction to Managerial Accounting and Job Order Cost Systems | p. 1 |
The Differences Between Managerial and Financial Accounting | p. 2 |
The Management Accountant in the Organization | p. 4 |
Manufacturing Cost Terms | p. 5 |
Materials | p. 5 |
Factory Labor | p. 6 |
Factory Overhead Cost | p. 7 |
Cost Accounting System Overview | p. 7 |
Job Order Cost Systems for Manufacturing Businesses | p. 8 |
Materials | p. 9 |
Factory Labor | p. 10 |
Factory Overhead Cost | p. 12 |
Work in Process | p. 15 |
Finished Goods and Cost of Goods Sold | p. 16 |
Sales | p. 17 |
Period Costs | p. 17 |
Summary of Cost Flows for Goodwell Printers | p. 18 |
Job Order Costing for Decision Making | p. 18 |
Job Order Cost Systems for Professional Service Businesses | p. 21 |
Practice Set: Sunblaze Inc. | |
Process Cost Systems | p. 51 |
Comparing Job Order Costing and Process Costing | p. 52 |
Physical Flows and Cost Flows for a Process Manufacturer | p. 53 |
The First-In, First-Out (Fifo) Method | p. 55 |
Determine the Units to Be Assigned Costs | p. 56 |
Calculate Equivalent Units of Production | p. 57 |
Determine the Cost per Equivalent Unit | p. 59 |
Allocate Costs to Transferred and Partially Completed Units | p. 60 |
Bringing It All Together: The Cost of Production Report | p. 61 |
Journal Entries for a Process Cost System | p. 62 |
Using the Cost of Production Report for Decision Making | p. 64 |
Just-in-Time Processing | p. 65 |
Cost Behavior and Cost-Volume-Profit Analysis | p. 87 |
Cost Behavior | p. 88 |
Variable Costs | p. 88 |
Fixed Costs | p. 90 |
Mixed Costs | p. 90 |
Summary of Cost Behavior Concepts | p. 93 |
Reporting Variable and Fixed Costs | p. 94 |
Cost-Volume-Profit Relationships | p. 94 |
Contribution Margin Concept | p. 94 |
Mathematical Approach to Cost-Volume-Profit Analysis | p. 96 |
Break-Even Point | p. 97 |
Target Profit | p. 100 |
Graphic Approach to Cost-Volume-Profit Analysis | p. 101 |
Cost-Volume-Profit (Break-Even) Chart | p. 101 |
Profit-Volume Chart | p. 103 |
Use of Computers in Cost-Volume-Profit Analysis | p. 104 |
Sales Mix Considerations | p. 105 |
Special Cost-Volume-Profit Relationships | p. 107 |
Margin of Safety | p. 107 |
Operating Leverage | p. 107 |
Assumptions of Cost-Volume-Profit Analysis | p. 108 |
Profit Reporting for Management Analysis | p. 131 |
The Income Statement Under Variable Costing and Absorption Costing | p. 132 |
Income from Operations When Units Manufactured Equal Units Sold | p. 134 |
Income from Operations When Units Manufactured Exceed Units Sold | p. 134 |
Income from Operations When Units Manufactured Are Less Than Units Sold | p. 135 |
Comparing Income from Operations Under the Two Concepts | p. 136 |
Income Analysis Under Variable Costing and Absorption Costing | p. 137 |
Management's Use of Variable Costing and Absorption Costing | p. 139 |
Controlling Costs | p. 139 |
Pricing Products | p. 140 |
Planning Production | p. 141 |
Analyzing Market Segments | p. 141 |
Analyzing Contribution Margins | p. 145 |
Budgeting | p. 173 |
Nature and Objectives of Budgeting | p. 174 |
Objectives of Budgeting | p. 174 |
Human Behavior and Budgeting | p. 176 |
Budgeting Systems | p. 177 |
Static Budget | p. 178 |
Flexible Budget | p. 179 |
Computerized Budgeting Systems | p. 180 |
Master Budget | p. 181 |
Income Statement Budgets | p. 181 |
Sales Budget | p. 182 |
Production Budget | p. 183 |
Direct Materials Purchases Budget | p. 184 |
Direct Labor Cost Budget | p. 185 |
Factory Overhead Cost Budget | p. 185 |
Cost of Goods Sold Budget | p. 186 |
Selling and Administrative Expenses Budget | p. 187 |
Budgeted Income Statement | p. 187 |
Balance Sheet Budgets | p. 188 |
Cash Budget | p. 188 |
Capital Expenditures Budget | p. 191 |
Budgeted Balance Sheet | p. 192 |
Performance Evaluation Using Variances from Standard Costs | p. 221 |
Standards | p. 222 |
Setting Standards | p. 222 |
Types of Standards | p. 223 |
Reviewing and Revising Standards | p. 223 |
Support and Criticism of Standards | p. 224 |
Budgetary Performance Evaluation | p. 224 |
Direct Materials Variances | p. 226 |
Direct Materials Price Variance | p. 227 |
Direct Materials Quantity Variance | p. 227 |
Direct Materials Variance Relationships | p. 227 |
Reporting Direct Materials Variances | p. 227 |
Direct Labor Variances | p. 228 |
Direct Labor Rate Variance | p. 229 |
Direct Labor Time Variance | p. 229 |
Direct Labor Variance Relationships | p. 229 |
Reporting Direct Labor Variances | p. 229 |
Factory Overhead Variances | p. 230 |
The Factory Overhead Flexible Budget | p. 231 |
Variable Factory Overhead Controllable Variance | p. 232 |
Fixed Factory Overhead Volume Variance | p. 232 |
Reporting Factory Overhead Variances | p. 234 |
Recording and Reporting Variances from Standards | p. 235 |
Standards for Nonmanufacturing Expenses | p. 236 |
Nonfinancial Performance Measures | p. 237 |
Performance Evaluation for Decentralized Operations | p. 257 |
Centralized and Decentralized Operations | p. 258 |
Advantages of Decentralization | p. 258 |
Disadvantages of Decentralization | p. 259 |
Responsibility Accounting | p. 260 |
Responsibility Accounting for Cost Centers | p. 260 |
Responsibility Accounting for Profit Centers | p. 262 |
Service Department Charges | p. 262 |
Profit Center Reporting | p. 265 |
Responsibility Accounting for Investment Centers | p. 265 |
Rate of Return on Investment | p. 266 |
Residual Income | p. 269 |
The Balanced Scorecard | p. 270 |
Transfer Pricing | p. 271 |
Market Price Approach | p. 272 |
Negotiated Price Approach | p. 273 |
Cost Price Approach | p. 274 |
Differential Analysis and Product Pricing | p. 299 |
Differential Analysis | p. 300 |
Lease or Sell | p. 301 |
Discontinue a Segment or Product | p. 302 |
Make or Buy | p. 304 |
Replace Equipment | p. 305 |
Process or Sell | p. 306 |
Accept Business at a Special Price | p. 307 |
Setting Normal Product Selling Prices | p. 308 |
Total Cost Concept | p. 309 |
Product Cost Concept | p. 310 |
Variable Cost Concept | p. 311 |
Choosing a Cost-Plus Approach Cost Concept | p. 312 |
Activity-Based Costing | p. 313 |
Product Profitability and Pricing Under Production Bottlenecks | p. 314 |
Product Profitability Under Production Bottlenecks | p. 314 |
Product Pricing Under Production Bottlenecks | p. 315 |
Capital Investment Analysis | p. 335 |
Nature of Capital Investment Analysis | p. 336 |
Methods of Evaluating Capital Investment Proposals | p. 337 |
Methods That Ignore Present Value | p. 337 |
Present Value Methods | p. 339 |
Factors That Complicate Capital Investment Analysis | p. 346 |
Income Tax | p. 346 |
Unequal Proposal Lives | p. 346 |
Lease versus Capital Investment | p. 346 |
Uncertainty | p. 347 |
Changes in Price Levels | p. 348 |
Qualitative Considerations | p. 348 |
Capital Rationing | p. 348 |
Cost Allocation and Activity-Based Costing | p. 369 |
Product Costing Allocation Methods | p. 370 |
Single Plantwide Factory Overhead Rate Method | p. 371 |
Multiple Production Department Factory Overhead Rate Method | p. 373 |
Production Department Factory Overhead Rates and Allocation | p. 374 |
Distortion in Product Costs--Single Plantwide versus Multiple Production Department Factory Overhead Rates | p. 375 |
Activity-Based Costing Method | p. 376 |
Activity Rates and Allocation | p. 378 |
Distortion in Product Costs--Multiple Production Department Factory Overhead Rate Method versus Activity-Based Costing | p. 380 |
The Dangers of Product Cost Distortion | p. 381 |
Activity-Based Costing for Selling and Administrative Expenses | p. 381 |
Activity-Based Costing in Service Businesses | p. 383 |
Cost Management for Just-in-Time Environments | p. 411 |
Just-in-Time Principles | p. 412 |
Reducing Inventory | p. 413 |
Reducing Lead Times | p. 413 |
Reducing Setup Time | p. 414 |
Emphasizing Product-Oriented Layout | p. 416 |
Emphasizing Employee Involvement | p. 417 |
Emphasizing Pull Manufacturing | p. 417 |
Emphasizing Zero Defect | p. 418 |
Emphasizing Supplier Partnering | p. 418 |
Applying a Just-in-Time Approach to Anderson Metal Fabricators | p. 418 |
Traditional Operations--AMF | p. 418 |
Just-in-Time Operations--AMF | p. 419 |
Accounting for Just-in-Time Operations | p. 421 |
Fewer Transactions | p. 421 |
Combined Accounts | p. 421 |
Nonfinancial Performance Measures | p. 423 |
Direct Tracing of Overhead | p. 423 |
Just-in-Time for Service Processes | p. 423 |
Accounting for the Costs of Quality | p. 425 |
Costs of Controlling Quality | p. 426 |
Costs of Failing to Control Quality | p. 426 |
The Relationship Between the Costs of Quality | p. 426 |
Determining the Costs of Quality | p. 427 |
Pareto Chart | p. 427 |
Cost of Quality Report | p. 429 |
Value-Added/Nonvalue-Added Activity Analysis | p. 429 |
Statement of Cash Flows | p. 447 |
Purpose of the Statement of Cash Flows | p. 448 |
Reporting Cash Flows | p. 448 |
Cash Flows from Operating Activities | p. 450 |
Cash Flows from Investing Activities | p. 450 |
Cash Flows from Financing Activities | p. 451 |
Noncash Investing and Financing Activities | p. 451 |
No Cash Flow per Share | p. 452 |
Statement of Cash Flows--The Indirect Method | p. 452 |
Retained Earnings | p. 453 |
Common Stock | p. 458 |
Bonds Payable | p. 458 |
Building | p. 458 |
Land | p. 459 |
Preparing the Statement of Cash Flows | p. 460 |
Statement of Cash Flows--The Direct Method | p. 461 |
Cash Received from Customers | p. 462 |
Cash Payments for Merchandise | p. 462 |
Cash Payments for Operating Expenses | p. 463 |
Gain on Sale of Land | p. 463 |
Interest Expense | p. 464 |
Cash Payments for Income Taxes | p. 464 |
Reporting Cash Flows from Operating Activities--Direct Method | p. 464 |
Financial Analysis and Interpretation | p. 465 |
Work Sheet for Statement of Cash Flows | p. 467 |
Work Sheet--Indirect Method | p. 467 |
Work Sheet--Direct Method | p. 469 |
Financial Statement Analysis | p. 499 |
Basic Analytical Procedures | p. 500 |
Horizontal Analysis | p. 500 |
Vertical Analysis | p. 503 |
Common-Size Statements | p. 503 |
Other Analytical Measures | p. 505 |
Solvency Analysis | p. 505 |
Current Position Analysis | p. 506 |
Accounts Receivable Analysis | p. 508 |
Inventory Analysis | p. 509 |
Ratio of Fixed Assets to Long-Term Liabilities | p. 510 |
Ratio of Liabilities to Stockholders' Equity | p. 510 |
Number of Times Interest Charges Earned | p. 511 |
Profitability Analysis | p. 511 |
Ratio of Net Sales to Assets | p. 511 |
Rate Earned on Total Assets | p. 512 |
Rate Earned on Stockholders' Equity | p. 513 |
Rate Earned on Common Stockholders' Equity | p. 513 |
Earnings per Share on Common Stock | p. 515 |
Price-Earnings Ratio | p. 515 |
Dividends per Share and Dividend Yield | p. 515 |
Summary of Analytical Measures | p. 516 |
Corporate Annual Reports | p. 518 |
Financial Highlights | p. 518 |
President's Letter to the Stockholders | p. 518 |
Management Discussion and Analysis | p. 518 |
Independent Auditors' Report | p. 519 |
Historical Summary | p. 519 |
Interest Tables | p. 2 |
Codes of Professional Ethics for Accountants | p. 1 |
Cisco Systems, Inc., Annual Report | p. 1 |
Glossary | p. 1 |
Subject Index | p. 1 |
Company Index | p. 1 |
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