Financial & Managerial Accounting

by Warren, Carl S.; Reeve, James M.

• ISBN13: 9780324401882
• ISBN10: 0324401884
• Edition: 9th
• Format: Hardcover
• Copyright: 2006-11-02
• Publisher: South-Western College Pub

Summary

Understand what accounting is all about and its evolving role in business with Warren and Reeve's FINANCIAL AND MANAGERIAL ACCOUNTING, the most successful higher education accounting text of all time. You'll use the preparation of financial statements as a framemark work for understand accounting and concepts and in the rocess you'll see how to use accounting to understand business.

Table of Contents

Introduction to Accounting and Business	1	(49)
Nature of Business and Accounting	2	(8)
Types of Businesses	3	(1)
Types of Business Organizations	3	(1)
Business Stakeholders	4	(1)
Role of Ethics in Business	4	(3)
The Role of Accounting in Business	7	(1)
Profession of Accounting	8	(2)
Generally Accepted Accounting Principles	10	(2)
Business Entity Concept	11	(1)
The Cost Concept	11	(1)
The Accounting Equation	12	(1)
Business Transactions and the Accounting Equation	12	(6)
Financial Statements	18	(32)
Income Statement	20	(1)
Retained Earnings Statement	20	(1)
Balance Sheet	21	(1)
Statement of Cash Flows	22	(2)
Interrelationships Among Financial Statements	24	(26)
Analyzing Transactions	50	(55)
Using Accounts to Record Transactions	51	(9)
Chart of Accounts	53	(1)
Analyzing and Summarizing Transactions in Accounts	53	(6)
Normal Balances of Accounts	59	(1)
Double-Entry Accounting System	60	(1)
Posting Journal Entries to Accounts	61	(13)
Trial Balance	74	(1)
Discovery and Corrections of Errors	75	(30)
Discovery of Errors	75	(1)
Correction of Errors	76	(29)
The Adjusting Process	105	(41)
Nature of the Adjusting Process	106	(3)
The Adjusting Process	107	(1)
Types of Accounts Requiring Adjustment	107	(2)
Recording Adjusting Entries	109	(9)
Prepaid Expenses	110	(3)
Unearned Revenues	113	(1)
Accrued Revenues	114	(1)
Accrued Expenses	115	(2)
Depreciation Expense	117	(1)
Summary of Adjustment Process	118	(4)
Adjusted Trial Balance	122	(24)
Completing the Accounting Cycle	146	(65)
Flow of Accounting Information	147	(2)
Financial Statements	149	(4)
Income Statement	149	(1)
Retained Earnings Statement	149	(3)
Balance Sheet	152	(1)
Closing Entries	153	(8)
Journalizing and Posting Closing Entries	155	(2)
Post-Closing Trial Balance	157	(4)
Accounting Cycle	161	(2)
Illustration of the Accounting Cycle	163	(13)
Step 1. Analyzing and Recording Transactions in the Journal	164	(2)
Step 2. Posting Transactions to the Ledger	166	(1)
Step 3. Preparing an Unadjusted Trial Balance	166	(1)
Step 4. Assembling and Analyzing Adjustment Data	166	(1)
Step 5. Preparing an Optional End-of-Period Spreadsheet (Work Sheet)	167	(1)
Step 6. Journalizing and Posting Adjusting Entries	167	(1)
Step 7. Preparing an Adjusted Trial Balance	168	(1)
Step 8. Preparing the Financial Statements	168	(2)
Step 9. Journalizing and Posting Closing Entries	170	(1)
Step 10. Preparing a Post-Closing Trial Balance	170	(6)
Fiscal Year	176	(1)
Appendix: End-of-Period Spreadsheet (Work Sheet)	177	(30)
Unadjusted Trial Balance Columns	177	(1)
Adjustments Columns	177	(2)
Adjusted Trial Balance Columns	179	(1)
Income Statement and Balance Sheet Columns	180	(27)
Comprehensive Problem 1	207	(4)
Practice Set: Ralph's Painting
Accounting for Merchandising Businesses	211	(56)
Nature of Merchandising Businesses	212	(2)
Financial Statements for a Merchandising Business	214	(5)
Multiple-Step Income Statement	214	(3)
Single-Step Income Statement	217	(1)
Retained Earnings Statement	217	(1)
Balance Sheet	217	(2)
Merchandising Transactions	219	(13)
Chart of Accounts for a Merchandising Business	219	(1)
Sales Transactions	220	(5)
Purchase Transactions	225	(2)
Transportation Costs, Sales Taxes, and Trade Discounts	227	(3)
Dual Nature of Merchandise Transactions	230	(2)
The Adjusting and Closing Process	232	(2)
Adjusting Entry for Inventory Shrinkage	232	(1)
Closing Entries	233	(1)
Financial Analysis and Interpretation	234	(1)
Appendix: The Periodic Inventory System	235	(26)
Cost of Merchandise Sold Using the Periodic Inventory System	235	(1)
Chart of Accounts Under the Periodic Inventory System	235	(1)
Recording Merchandise Transactions Under the Periodic Inventory System	236	(2)
Adjusting Process Under the Periodic Inventory System	238	(1)
Financial Statements Under the Periodic Inventory System	238	(1)
Closing Entries Under the Periodic Inventory System	238	(23)
Comprehensive Problem 2	261	(6)
Practice Set: Tee Time Merchandise
Inventories	267	(40)
Control of Inventory	268	(1)
Inventory Cost Flow Assumptions	269	(3)
Inventory Costing Methods Under a Perpetual Inventory System	272	(3)
First-In, First-Out Method	272	(1)
Last-In, First-Out Method	273	(1)
Average Cost Method	274	(1)
Computerized Perpetual Inventory Systems	275	(1)
Inventory Costing Methods Under a Periodic Inventory System	275	(3)
First-In, First-Out Method	275	(1)
Last-In, First-Out Method	276	(1)
Average Cost Method	277	(1)
Comparing Inventory Costing Methods	278	(2)
Use of the First-In, First-Out Method	279	(1)
Use of the Last-In, First-Out Method	279	(1)
Use of the Average Cost Method	279	(1)
Reporting Merchandise Inventory in the Financial Statements	280	(4)
Valuation at Lower of Cost or Market	280	(1)
Valuation at Net Realizable Value	281	(1)
Merchandise Inventory on the Balance Sheet	281	(1)
Effect of Inventory Errors on the Financial Statements	282	(2)
Estimating Inventory Cost	284	(2)
Retail Method of Inventory Costing	284	(1)
Gross Profit Method of Estimating Inventories	285	(1)
Financial Analysis and Interpretation	286	(21)
Sarbanes-Oxley, Internal Control, and Cash	307	(46)
Sarbanes-Oxley Act of 2002	308	(2)
Internal Control	310	(7)
Objectives of Internal Control	310	(1)
Elements of Internal Control	311	(1)
Control Environment	312	(1)
Risk Assessment	313	(1)
Control Procedures	313	(2)
Monitoring	315	(1)
Information and Communication	315	(2)
Cash Controls Over Receipts and Payments	317	(3)
Control of Cash Receipts	317	(2)
Control of Cash Payments	319	(1)
Bank Accounts	320	(4)
Use of Bank Accounts	320	(1)
Bank Statement	320	(2)
Bank Accounts as a Control Over Cash	322	(2)
Bank Reconciliation	324	(3)
Special-Purpose Cash Funds	327	(1)
Financial Statement Reporting of Cash	328	(2)
Financial Analysis and Interpretation	330	(23)
Receivables	353	(41)
Classification of Receivables	354	(1)
Accounts Receivable	354	(1)
Notes Receivable	354	(1)
Other Receivables	355	(1)
Uncollectible Receivables	355	(1)
Direct Write-Off Method for Uncollectible Accounts	356	(1)
Allowance Method for Uncollectible Accounts	357	(7)
Write-Offs to the Allowance Account	358	(1)
Estimating Uncollectibles	359	(5)
Comparing Direct Write-Off and Allowance Methods	364	(1)
Notes Receivable	365	(3)
Characteristics of Notes Receivable	365	(1)
Accounting for Notes Receivable	366	(2)
Reporting Receivables on the Balance Sheet	368	(1)
Financial Analysis and Interpretation	369	(1)
Appendix: Discounting Notes Receivable	370	(24)
Fixed Assets and Intangible Assets	394	(44)
Nature of Fixed Assets	395	(5)
Classifying Costs	395	(1)
The Cost of Fixed Assets	396	(1)
Capital and Revenue Expenditures	397	(2)
Leasing Fixed Assets	399	(1)
Accounting for Depreciation	400	(7)
Factors in Computing Depreciation Expense	400	(2)
Straight-Line Method	402	(1)
Units-of-Production Method	402	(1)
Double-Declining-Balance Method	403	(1)
Comparing Depreciation Methods	404	(1)
Depreciation for Federal Income Tax	405	(1)
Revising Depreciation Estimates	406	(1)
Disposal of Fixed Assets	407	(5)
Discarding Fixed Assets	407	(1)
Selling Fixed Assets	408	(1)
Exchanging Similar Fixed Assets	409	(3)
Natural Resources	412	(1)
Intangible Assets	413	(3)
Patents	413	(1)
Copyrights and Trademarks	414	(1)
Goodwill	414	(2)
Financial Reporting for Fixed Assets and Intangible Assets	416	(2)
Financial Analysis and Interpretation	418	(1)
Appendix: Sum-of-the-Years-Digits Depreciation	418	(20)
Current Liabilities and Payroll	438	(47)
Current Liabilities	439	(3)
Accounts Payable	439	(1)
Current Portion of Long-Term Debt	440	(1)
Short-Term Notes Payable	440	(2)
Payroll and Payroll Taxes	442	(6)
Liability for Employee Earnings	443	(1)
Deductions from Employee Earnings	443	(3)
Computing Employee Net Pay	446	(1)
Liability for Employer's Payroll Taxes	446	(2)
Accounting Systems for Payroll and Payroll Taxes	448	(7)
Payroll Register	448	(3)
Employee's Earnings Record	451	(1)
Payroll Checks	451	(1)
Payroll System Diagram	452	(1)
Internal Controls for Payroll Systems	453	(2)
Employees' Fringe Benefits	455	(3)
Vacation Pay	455	(1)
Pensions	456	(2)
Postretirement Benefits Other Than Pensions	458	(1)
Contingent Liabilities	458	(3)
Financial Analysis and Interpretation	461	(19)
Comprehensive Problem 3	480	(5)
Practice Set: Puppy Spa and Supply
Corporations: Organization, Stock Transactions, and Dividends	485	(40)
Nature of a Corporation	486	(3)
Characteristics of a Corporation	486	(1)
Forming a Corporation	487	(2)
Paid-in Capital from Issuing Stock	489	(6)
Characteristics of Stock	489	(1)
Classes of Stock	490	(1)
Issuing Stock	491	(1)
Premium on Stock	492	(1)
No-Par Stock	493	(2)
Accounting for Dividends	495	(3)
Cash Dividends	495	(2)
Stock Dividends	497	(1)
Treasury Stock Transactions	498	(1)
Reporting Stockholders' Equity	499	(4)
Stockholders' Equity in the Balance Sheet	499	(2)
Reporting Retained Earnings	501	(1)
Statement of Stockholders' Equity	502	(1)
Stock Splits	503	(1)
Financial Analysis and Interpretation	504	(21)
Income Taxes, Unusual Income Items, and Investments in Stocks	525	(40)
Corporate Income Taxes	526	(4)
Payment of Income Taxes	526	(1)
Allocating Income Taxes	527	(2)
Reporting and Analyzing Taxes	529	(1)
Reporting Unusual Items on the Income Statement	530	(5)
Unusual Items Affecting the Current Period's Income Statement	530	(4)
Unusual Items Affecting the Prior Period's Income Statement	534	(1)
Earnings per Common Share	535	(1)
Comprehensive Income	536	(2)
Accounting for Investments in Stocks	538	(6)
Short-Term Investments in Stocks	538	(3)
Long-Term Investments in Stocks	541	(1)
Sale of Investments in Stocks	542	(1)
Business Combinations	543	(1)
Financial Analysis and Interpretation	544	(21)
Practice Set: Casa Bella
Practice Set: Wizard Computer Sales & Services
Bonds Payable and Investments in Bonds	565	(44)
Financing Corporations	566	(2)
Characteristics, Terminology, and Pricing of Bonds Payable	568	(5)
Bond Characteristics and Terminology	568	(1)
Pricing of Bonds Payable	569	(4)
Accounting for Bonds Payable	573	(4)
Bonds Issued at Face Amount	573	(1)
Bonds Issued at a Discount	574	(1)
Amortizing a Bond Discount	575	(1)
Bonds Issued at a Premium	575	(1)
Amortizing a Bond Premium	576	(1)
Zero-Coupon Bonds	577	(1)
Payment and Redemption of Bonds Payable	577	(2)
Bond Sinking Funds	578	(1)
Bond Redemption	578	(1)
Investments in Bonds	579	(3)
Accounting for Bond Investments---Purchase, Interest, and Amortization	579	(2)
Accounting for Bond Investments---Sale	581	(1)
Corporation Balance Sheet	582	(2)
Balance Sheet Presentation of Bonds Payable	582	(1)
Balance Sheet Presentation of Bond Investments	582	(2)
Financial Analysis and Interpretation	584	(1)
Appendix: Effective Interest Rate Method of Amortization	584	(18)
Amortization of Discount by the Interest Method	584	(1)
Amortization of Premium by the Interest Method	585	(17)
Comprehensive Problem 4	602	(7)
Statement of Cash Flows	609	(50)
Reporting Cash Flows	610	(4)
Cash Flows from Operating Activities	611	(1)
Cash Flows from Investing Activities	612	(1)
Cash Flows from Financing Activities	613	(1)
Noncash Investing and Financing Activities	613	(1)
No Cash Flow per Share	614	(1)
Statement of Cash Flows---The Indirect Method	614	(10)
Retained Earnings	615	(1)
Cash Flows from Operating Activities---Indirect Method	615	(6)
Cash Flows Used for Payment of Dividends	621	(1)
Common Stock	621	(1)
Bonds Payable	622	(1)
Building	622	(1)
Land	623	(1)
Preparing the Statement of Cash Flows	623	(1)
Statement of Cash Flows---The Direct Method	624	(6)
Cash Received from Customers	624	(2)
Cash Payments for Merchandise	626	(1)
Cash Payments, for Operating Expenses	627	(1)
Gain on Sale of Land	628	(1)
Interest Expense	628	(1)
Cash Payments for Income Taxes	628	(1)
Reporting Cash Flows from Operating Activities---Direct Method	628	(2)
Financial Analysis and Interpretation	630	(1)
Appendix: Spreadsheet (Work Sheet) for Statement of Cash Flows---The Indirect Method	630	(29)
Analyzing Accounts	631	(1)
Retained Earnings	631	(1)
Other Accounts	632	(1)
Preparing the Statement of Cash Flows	633	(26)
Financial Statement Analysis	659	(54)
Basic Analytical Procedures	660	(6)
Horizontal Analysis	660	(3)
Vertical Analysis	663	(2)
Common-Size Statements	665	(1)
Other Analytical Measures	665	(1)
Solvency Analysis	666	(7)
Current Position Analysis	666	(2)
Accounts Receivable Analysis	668	(2)
Inventory Analysis	670	(1)
Ratio of Fixed Assets to Long-Term Liabilities	671	(1)
Ratio of Liabilities to Stockholders' Equity	672	(1)
Number of Times Interest Charges Earned	672	(1)
Profitability Analysis	673	(8)
Ratio of Net Sales to Assets	673	(1)
Rate Earned on Total Assets	674	(1)
Rate Earned on Stockholders' Equity	675	(1)
Rate Earned on Common Stockholders' Equity	676	(1)
Earnings per Share on Common Stock	677	(1)
Price-Earnings Ratio	677	(1)
Dividends per Share and Dividend Yield	678	(1)
Summary of Analytical Measures	679	(2)
Corporate Annual Reports	681	(32)
Management Discussion and Analysis	681	(1)
Report on Adequacy of Internal Control	681	(1)
Report on Fairness of Financial Statements	682	(31)
Managerial Accounting Concepts and Principles	713	(37)
Managerial Accounting	714	(5)
The Differences Between Managerial and Financial Accounting	714	(1)
The Management Accountant in the Organization	715	(1)
Managerial Accounting in the Management Process	716	(3)
A Tour of Manufacturing Operations: Costs and Terminology	719	(6)
Direct and Indirect Costs	720	(1)
Manufacturing Costs	721	(4)
Financial Statements for a Manufacturing Business	725	(5)
Balance Sheet for a Manufacturing Business	725	(1)
Income Statement for a Manufacturing Company	726	(4)
Uses of Managerial Accounting	730	(20)
Job Order Cost Systems	750	(41)
Cost Accounting System Overview	751	(1)
Job Order Cost Systems for Manufacturing Businesses	752	(13)
Materials	753	(2)
Factory Labor	755	(2)
Factory Overhead Cost	757	(3)
Work in Process	760	(2)
Finished Goods and Cost of Goods Sold	762	(1)
Sales	762	(1)
Period Costs	763	(1)
Summary of Cost Flows for Legend Guitars	763	(2)
Job Order Costing for Decision Making	765	(1)
Job Order Cost Systems for Professional Service Businesses	766	(25)
Practice Set: Kitchen Concepts, Inc.
Process Cost Systems	791	(48)
Overview of Process Manufacturers and Process Costing	792	(4)
Comparing Job Order and Process Cost Systems	793	(2)
Cost Flows for a Process Manufacturer	795	(1)
The First-In, First-Out (FIFO) Method	796	(10)
Step 1: Determine the Units to Be Assigned Costs	797	(1)
Step 2: Compute Equivalent Units of Production	798	(3)
Step 3: Determine the Cost per Equivalent Unit	801	(1)
Step 4: Allocate Costs to Transferred and Partially Completed Units	802	(2)
Bringing It All Together: The Cost of Production Report	804	(2)
Journal Entries for a Process Cost System	806	(2)
Using the Cost of Production Report for Decision Making	808	(1)
Just-in-Time Processing	809	(3)
Appendix: Average Cost Method	812	(27)
Determining Cost Under the Average Cost Method	812	(1)
The Cost of Production Report	813	(26)
Cost Behavior and Cost-Volume-Profit Analysis	839	(44)
Cost Behavior	840	(6)
Variable Costs	841	(1)
Fixed Costs	842	(1)
Mixed Costs	842	(3)
Summary of Cost Behavior Concepts	845	(1)
Cost-Volume-Profit Relationships	846	(2)
Contribution Margin Concept	846	(1)
Unit Contribution Margin	847	(1)
Mathematical Approach to Cost-Volume-Profit Analysis	848	(5)
Break-Even Point	848	(4)
Target Profit	852	(1)
Graphic Approach to Cost-Volume-Profit Analysis	853	(4)
Cost-Volume-Profit (Break-Even) Chart	853	(2)
Profit-Volume Chart	855	(1)
Use of Computers in Cost-Volume-Profit Analysis	856	(1)
Assumptions of Cost-Volume-Profit Analysis	856	(1)
Special Cost-Volume-Profit Relationships	857	(26)
Sales Mix Considerations	858	(1)
Operating Leverage	859	(1)
Margin of Safety	860	(23)
Variable Costing for Management Analysis	883	(48)
The Income Statement Under Variable Costing and Absorption Costing	884	(5)
Income from Operations When Units Manufactured Equal Units Sold	886	(1)
Income from Operations When Units Manufactured Exceed Units Sold	886	(1)
Income from Operations When Units Manufactured Are Less than Units Sold	887	(2)
Comparing Income from Operations Under the Two Concepts	889	(1)
Income Analysis Under Variable Costing and Absorption Costing	889	(3)
Management's Use of Variable Costing and Absorption Costing	892	(2)
Controlling Costs	892	(1)
Pricing Products	893	(1)
Planning Production	894	(1)
Analyzing Contribution Margins	894	(1)
Analyzing Market Segments	894	(1)
Variable Costing in Analyzing Market Segments	894	(5)
Sales Territory Profitability Analysis	895	(1)
Product Profitability Analysis	896	(1)
Salesperson Profitability Analysis	897	(2)
Contribution Margin Analysis	899	(2)
Variable Costing for Service Firms	901	(30)
Variable Costing Income Statement---Service Firm	901	(1)
Market Segment Analysis---Service Firm	902	(1)
Contribution Margin Analysis	903	(28)
Budgeting	931	(46)
Nature and Objectives of Budgeting	932	(4)
Objectives of Budgeting	932	(2)
Human Behavior and Budgeting	934	(2)
Budgeting Systems	936	(4)
Static Budget	937	(1)
Flexible Budget	938	(1)
Computerized Budgeting Systems	939	(1)
Master Budget	940	(1)
Income Statement Budgets	941	(6)
Sales Budget	941	(1)
Production Budget	941	(1)
Direct Materials Purchases Budget	942	(1)
Direct Labor Cost Budget	943	(1)
Factory Overhead Cost Budget	944	(1)
Cost of Goods Sold Budget	945	(1)
Selling and Administrative Expenses Budget	946	(1)
Budgeted Income Statement	947	(1)
Balance Sheet Budgets	947	(30)
Cash Budget	947	(3)
Capital Expenditures Budget	950	(1)
Budgeted Balance Sheet	951	(26)
Performance Evaluation Using Variances from Standard Costs	977	(42)
Standards	978	(3)
Setting Standards	978	(1)
Types of Standards	979	(1)
Reviewing and Revising Standards	979	(2)
Budgetary Performance Evaluation	981	(2)
Direct Materials and Direct Labor Variances	983	(4)
Direct Materials Variances	983	(2)
Direct Labor Variances	985	(2)
Factory Overhead Variances	987	(5)
The Factory Overhead Flexible Budget	987	(1)
Variable Factory Overhead Controllable Variance	988	(1)
Fixed Factory Overhead Volume Variance	989	(2)
Reporting Factory Overhead Variances	991	(1)
Factory Overhead Variances and the Factory Overhead Account	991	(1)
Recording and Reporting Variances from Standards	992	(3)
Nonfinancial Performance Measures	995	(17)
Comprehensive Problem 5	1012	(7)
Performance Evaluation for Decentralized Operations	1019	(42)
Centralized and Decentralized Operations	1020	(2)
Advantages of Decentralization	1020	(1)
Disadvantages of Decentralization	1021	(1)
Responsibility Accounting	1021	(1)
Responsibility Accounting for Cost Centers	1022	(2)
Responsibility Accounting for Profit Centers	1024	(4)
Service Department Charges	1024	(2)
Profit Center Reporting	1026	(2)
Responsibility Accounting for Investment Centers	1028	(7)
Rate of Return on Investment	1029	(3)
Residual Income	1032	(1)
The Balanced Scorecard	1033	(2)
Transfer Pricing	1035	(26)
Market Price Approach	1035	(1)
Negotiated Price Approach	1036	(2)
Cost Price Approach	1038	(23)
Differential Analysis and Product Pricing	1061	(40)
Differential Analysis	1062	(10)
Lease or Sell	1063	(2)
Discontinue a Segment or Product	1065	(2)
Make or Buy	1067	(1)
Replace Equipment	1068	(2)
Process or Sell	1070	(1)
Accept Business at a Special Price	1071	(1)
Setting Normal Product Selling Prices	1072	(6)
Total Cost Concept	1073	(2)
Product Cost Concept	1075	(1)
Variable Cost Concept	1076	(1)
Choosing a Cost-Plus Approach Cost Concept	1077	(1)
Activity-Based Costing	1077	(1)
Target Costing	1077	(1)
Product Profitability and Pricing Under Production Bottlenecks	1078	(23)
Product Profitability Under Production Bottlenecks	1078	(2)
Product Pricing Under Production Bottlenecks	1080	(21)
Capital Investment Analysis	1101	(35)
Nature of Capital Investment Analysis	1102	(1)
Methods of Evaluating Capital Investment Proposals	1103	(10)
Methods that Ignore Present Value	1103	(3)
Present Value Methods	1106	(7)
Factors that Complicate Capital Investment Analysis	1113	(3)
Income Tax	1113	(1)
Unequal Proposal Lives	1113	(1)
Lease versus Capital Investment	1114	(1)
Uncertainty	1115	(1)
Changes in Price Levels	1115	(1)
Qualitative Considerations	1115	(1)
Capital Rationing	1116	(20)
Cost Allocation and Activity-Based Costing	1136	(48)
Product Costing Allocation Methods	1138	(1)
Single Plantwide Factory Overhead Rate Method	1139	(2)
Multiple Production Department Factory Overhead Rate Method	1141	(4)
Production Department Factory Overhead Rates and Allocation	1142	(2)
Distortion in Product Costs---Single Plantwide versus Multiple Production Department Factory Overhead Rates	1144	(1)
Activity-Based Costing Method	1145	(7)
Activity Rates and Allocation	1147	(2)
Distortion in Product Costs---Multiple Production Department Factory Overhead Rate Method versus Activity-Based Costing	1149	(1)
The Dangers of Product Cost Distortion	1150	(2)
Activity-Based Costing for Selling and Administrative Expenses	1152	(1)
Activity-Based Costing in Service Businesses	1153	(31)
Cost Management for Just-in-Time Environments	1184	(20)
Just-in-Time Principles	1185	(7)
Reducing Inventory	1185	(1)
Reducing Lead Times	1186	(1)
Reducing Setup Time	1187	(3)
Emphasizing Product-Oriented Layout	1190	(1)
Emphasizing Employee Involvement	1190	(1)
Emphasizing Pull Manufacturing	1190	(1)
Emphasizing Zero Defects	1191	(1)
Emphasizing Supply Chain Management	1191	(1)
Applying a Just-in-Time Approach to Anderson Metal Fabricators	1192	(2)
Traditional Operations---AMF	1192	(1)
Just-in-Time Operations---AMF	1193	(1)
Accounting for Just-in-Time Operations	1194	(3)
Fewer Transactions	1195	(1)
Combined Accounts	1195	(2)
Nonfinancial Performance Measures	1197	(1)
Direct Tracing of Overhead	1197	(1)
Just-in-Time for Nonmanufacturing Processes	1197	(2)
Activity Analysis	1199	(5)
Costs of Quality Using Activity Analysis	1199	(1)
The Relationship between the Costs of Quality	1200	(1)
Pare to Chart of Quality Costs	1201	(1)
Cost of Quality Report	1202	(1)
Value-Added / Non-Value-Added Activity Analysis	1203	(1)
Activity Analysis for Processes	1204
Appendix A: Interest Tables	2
Appendix B: Reversing Entries	1	(1)
Appendix C: Special Journals and Subsidiary Ledgers	1	(1)
Appendix D: End-of-Period Spreadsheet (Work Sheet) for a Merchandising Business	1	(1)
Appendix E: The Williams-Sonoma, Inc., 2005 Annual Report	1	(1)
Glossary	1	(1)
Subject Index	1	(15)
Company Index	16