Managerial Accounting for Libraries & Other Not-For-Profit Organizations

by Smith, G. Stevenson

• ISBN13: 9780838908204
• ISBN10: 0838908209
• Edition: 2nd
• Format: Paperback
• Copyright: 2002-05-01
• Publisher: Ala Editions

Summary

The only book of its kind, this step-by-step guide focuses on accounting methods that fit the nonprofit world, such as responsibility accounting, life cycle costing, and activity-based accounting as an alternative to traditional cost reporting. New to this edition are current cost estimates, new or updated figures on break-even analysis, lease alternatives, journal entries, and variable and fixed costs, and a quick-reference glossary that will help you "talk the talk."With more than 50 figures and examples illustrating library-specific scenarios, this step-by-step guide walks you through the process of forecasting, budgeting, evaluating performance, and analyzing costs.

Table of Contents

Figures	ix
Introduction to Nonprofit Managerial Accounting	1	(11)
Managerial Accounting	2	(1)
Financial Accounting	3	(1)
Managerial Accounting in For-Profit and Nonprofit Contexts	4	(2)
The Normative Model versus the Descriptive Model in the Nonprofit Environment	6	(3)
What Is Nonprofit Managerial Accounting?	9	(1)
Who Will Benefit from This Book?	9	(1)
Summary	10	(2)
Cost Concepts and Decision Making	12	(17)
Cost Concepts for Managerial Decision Making	14	(12)
Actual Cost	15	(1)
Allocated (Indirect) Costs	16	(2)
Standard Costs	18	(1)
Controllable and Noncontrollable Costs	19	(1)
Fixed, Variable, and Mixed Costs	20	(3)
Direct and Indirect (Allocated) Costs	23	(1)
Discretionary Costs, Sunk Costs, and Differential Costs	23	(3)
Life Cycle Costs	26	(1)
Historical Costs and Current Costs	26	(1)
Summary	26	(3)
Responsibility Accounting and Methods of Managerial Cost Control	29	(28)
Performance Basis for Responsibility Centers	30	(1)
Traditional Cost Centers	31	(23)
Full Costs and Performance Reports	36	(4)
Determining Overhead Cost-Allocation Rates	40	(11)
Profit and Investment Centers	51	(3)
Summary	54	(3)
Activity-Based Accounting and Management	57	(22)
Activity-Based Costing: An Alternative to Traditional Cost Reporting	57	(20)
Activity Accounting Management	76	(1)
Summary	77	(2)
Budgeting and Standard Cost Analysis	79	(34)
The Accounting Systems: Accrual, Modified Accrual, and Cash	80	(3)
Accrual Basis	81	(1)
Modified Accrual	82	(1)
Cash Method	83	(1)
Budget Reports	83	(13)
Traditional Budget Reports: Legal Focus	84	(5)
Target Budget Reports: A Managerial Focus	89	(7)
The Flexible Budget: A Managerial Tool	96	(11)
The Flexible Budget and Standards of Performance	97	(10)
The Detailed Variances: Spending, Usage, and Time	107	(4)
Summary	111	(2)
Life Cycle Costing	113	(38)
Cost Design Considerations	115	(5)
Design Stage Costs	116	(1)
Purchase Price and Installation Costs	116	(2)
Annual Operating Costs	118	(1)
Miscellaneous Costs	119	(1)
A Note on Cost Reductions	119	(1)
Projecting Life Cycle Costs	120	(3)
Developing Life Cycle Management in the Library	123	(18)
Photocopying Machines	125	(3)
Present Values and LCC Analysis	128	(5)
Integrated Library Computer System	133	(7)
Limitations of LCC Analysis	140	(1)
LCC Performance Evaluation	141	(8)
Summary	149	(2)
Selected Managerial Decision-Making Techniques	151	(32)
Break-Even Analysis	151	(7)
Identifying Cost Behavior for Break-Even Analysis	158	(4)
Break-Even Analysis and Appropriations	162	(3)
Differential Cost Analysis	165	(6)
Using Probabilities and Sensitivity Analysis in Cost Estimating	171	(6)
Estimating Costs with the Learning Curve	177	(3)
Summary	180	(3)
Leasing: Issues and Analysis	183	(20)
Types of Leases	184	(1)
Cost Comparisons of Leased Assets	185	(6)
Leasing versus Purchasing an Asset	186	(2)
Leasing or Contracting for Personnel Services versus In-House Personnel	188	(3)
Lease Comparisons	191	(6)
Trade-Offs in Leasing	197	(4)
A Final Consideration: Monitoring Lease Performance	199	(2)
Summary	201	(2)
Performance Analysis: The Evaluation of Administrators	203	(68)
General Performance Measures	205	(3)
Long-Range Outcome Measures	208	(1)
Administrators and Long-Range Outcome Measurement	209	(16)
Contracts for Performance	225	(2)
Summary	227	(2)
APPENDIXES
A The Methods of Accounting Used in Libraries	229	(6)
Examples of Journal Entries and Their Effect on Financial Reporting under the Different Systems of Accounting	230	(1)
Inventories	230	(1)
Revenues	231	(2)
The Significance of the Differences	233	(2)
B Time Value of Money Concepts and Discounted Cash Flows	235	(9)
Determining the Present Value of Cash Outflows	236	(2)
Lump Sums	238	(1)
Annuities	239	(2)
Determination of the Discount Rate	241	(1)
Limitations of Present Value Method	242	(1)
Net Present Value	242	(2)
C Solutions to Chapter Exercises	244	(27)
Glossary	271	(8)
Index	279