Accounting For Managers: Interpreting Accounting Information for Decision-Making, Third Edition

by Paul Collier (Monash University)

• ISBN13: 9780470777640
• ISBN10: 0470777648
• Edition: 3rd
• Format: Paperback
• Copyright: 2009-04-01
• Publisher: Wiley

Summary

A new edition of a successful textbook on how accounting information is used by non-financial managers!This revised and updated third edition of Accounting for Managers builds on the success of the previous two editions in explaining how non-financial managers use accounting information. Accounting for Managers emphasises the interpretation rather than the construction of accounting information and encourages a critical, rather than unthinking acceptance of the underlying assumptions behind accounting. It links theory with practical examples and case studies drawn from real life business situations across a range of industries. Completely revised and updated examples throughout the book. Introduces three new chapters: Accounting for Inventory, Accounting Information Systems and Strategic Management Accounting. Includes new sections on professional ethics, customer profitability analysis, CVP for multiple products and weighted contribution margin for breakeven analysis, accounting for waste, environmental accounting. Expanded treatment of transfer pricing and budgeting sections.

Author Biography

Paul M. Collier is Professor of Accounting at Monash University in Melbourne, Australia. He was previously at Aston Business School in Birmingham UK. Before becoming an academic, Paul was chief financial officer of a listed printing company and has worked in senior financial and general management positions in the UK and Australia. He has also conducted numerous executive education courses. Paul has been a board member and chair of the audit committee of a large UK housing association and an examiner for CIMA. This book is a result of his practical experience as a producer and user of accounting information as well as his teaching and training experience in the UK and Australia.

A comprehensive package of supplementary material is available on the book companion website at www.wileyeurope.com/college/collier, including PowerPoint slides, additional questions and solutions to the book and case study questions and solutions.

Table of Contents

About the Author

Preface to the 3rd Edition

Preface to the 2nd Edition

Acknowledgements

Context Of Accounting.

Introduction to Accounting.

Accounting, accountability and the account

A short history of accounting

The role of management accounting

Recent developments in management accounting

A critical perspective

Conclusion

References

Accounting and its Relationship to Shareholder Value and Corporate Governance.

Capital and product markets

Value-based management

Shareholder value, strategy and accounting

Company regulation and corporate governance

Risk, internal control and management accounting

A critical perspective

Conclusion

References

Recording Financial Transactions and the Principles of Accounting.

Business events, transactions and the accounting system

The double entry: recording transactions

Extracting financial information from the accounting system

Basic principles of accounting

Cost terms and concepts: the limitations of financial accounting

Conclusion

References

Management Control, Management Accounting and its Rational-Economic Assumptions.

Management control systems

Management planning and control systems and management accounting

Non-financial performance measurement

A theoretical framework for management accounting

Conclusion

References

Interpretive and Critical Perspectives on Accounting and Decision-Making.

Research and theory in management accounting and control

Alternative paradigms

The interpretive paradigm and the social construction perspective

Culture, control and accounting

The radical paradigm and critical accounting

Power and accounting

Case study 6.1: easyJet

Ethics and accounting

Case study 6.2: Enron

Case study 6.3: WorldCom

Conclusion

References

The Use Of Financial Reports For Decision-Making.

Constructing Financial Reports: IFRS and the Framework of Accounting.

True and fair view

International Financial Reporting Standards (IFRSs) - an overview

Framework for the Preparation and Presentation of Financial Statements

Reporting profitability: the Income Statement

Reporting financial position: the Balance Sheet

Accruals accounting

Depreciation

Specific IFRS accounting treatments

Reporting cash flow: the Cash Flow Statement

A theoretical perspective on financial reports

Conclusion

References

Appendix to chapter 6: IFRS as at 1st January 2008

Questions for chapter 6

Interpreting Financial Reports and Alternative Perspectives.

Annual Reports

Operating and Financial Review

Ratio analysis

Profitability

Liquidity

Gearing

Activity/efficiency

Working capital

Managing receivables

Managing inventory

Managing payables

Shareholder return

Interpreting financial information using ratios

Case study 7.1: HMV Group - interpreting financial reports

Limitations of financial reports and ratio analysis

Case study 7.2: Carrington printers - an accounting critique

Alternative theoretical perspectives on financial reports

Corporate social and environmental reporting

Applying different perspectives to financial reports

Conclusion

References

Questions for chapter 7

Accounting for Inventory.

Introduction to Inventory

Methods of costing inventory in manufacturing

Job costing illustration

Process costing illustration

Long term contract costing

Management accounting statements

Conclusion

Questions for chapter 8

USING ACCOUNTING INFORMATION FOR DECISION-MAKING, PLANNING AND CONTROL.

Accounting and Information Systems.

Introduction to accounting and information systems

Methods of data collection

Types of information system

Business processes

Internal controls for information systems

Developing information systems

Conclusion

References

Marketing Decisions.

Marketing strategy

Cost behaviour

Cost-volume-profit analysis

Alternative approaches to pricing

Cost-plus pricing

Target rate of return pricing

Optimum selling price

Special pricing decisions

Transfer pricing

Segmental profitability

Case study 10.1: Retail Stores PLC - the loss-making division

Case study 10.2: SuperTech - using accounting information to win sales

Conclusion

References

Questions for chapter 10

Operating Decisions.

The operations function

Managing operations - manufacturing

Managing operations - services

Accounting for the cost of spare capacity

Capacity utilization and product mix

Theory of Constraints

Operating decisions: relevant costs

Total quality management

Environmental cost management

Case study 11.1: Quality Printing Company - pricing for capacity utilization

Case study 11.2: Vehicle Parts Co. - the effect of equipment replacement on costs and prices

Conclusion

References

Questions for chapter 11

Human Resource Decisions.

Human resources and accounting

The cost of labour

Relevant cost of labour

Case study 12.1: The Database Management Company - labour costs and unused capacity

Case study 12.2: Trojan Sales - the cost of losing a customer

Conclusion

References

Questions for chapter 12

Accounting Decisions.

Cost classification

Calculating product/service costs

Shifts in management accounting thinking

Alternative methods of overhead allocation

Activity-based costing

Contingency theory

International comparisons

Behavioural implications of management accounting

Case study 13.1: Tektronix

Case study 13.2: Quality Bank - the overhead allocation problem

Applying different perspectives to management accounting: costs

Conclusion

References

Questions for chapter 13

Strategic Investment Decisions.

Strategy

Investment appraisal

Accounting rate of return

Payback

Discounted cash flow

Comparison of techniques

Case study 14.1: Goliath Co. - investment evaluation

Conclusion: a critical perspective

References

Appendix to chapter 14: Present value factors

Questions for chapter 14

Performance Evaluation of Business Units.

Structure of business organizations

The decentralized organization and divisional performance measurement

Return on investment

Residual income

Controllability

Case study 15.1: Majestic Services - divisional performance measurement

Transfer pricing

Transaction cost economics

Conclusion: a critical perspective

References

Questions for chapter 15

Budgeting.

What is budgeting?

The budgeting process

Retail budget example: Sports Stores Co-operative Ltd

Manufacturing budget example: Telcon Manufacturing

Cash forecasting

Cash forecasting example: Retail News Group

Theoretical perspectives on budgeting

A critical perspective: Beyond Budgeting?

Case study 16.1: Svenska Handelsbanken - is budgeting necessary?

Conclusion

References

Questions for chapter 16

Budgetary Control.

What is budgetary control?

Flexible budgeting

Variance analysis

Variance analysis example: WoodÆs Furniture Co

Sales variance

Cost variances

Materials variance

Labour variance

Overhead variances

Reconciling the variances

Criticism of variance analysis

Cost control

Applying different perspectives to management accounting

Conclusion

References

Questions for chapter 17

Strategic Management Accounting.

Strategic management accounting

Accounting techniques to support strategic management accounting

Case study 18.1: ANT and strategic management accounting

Other costing approaches

Conclusion

References

Further reading

Supporting Information.

Introduction to the Readings

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