Ebook Management Accounting - June 2012 presented the main contents: introduction to cost accounting; cost classification and behaviour; materials, labour, stock control; overheads and absorption costing; cost bookkeeping; marginal costing and contribution theory; costing for jobs, batches, and services; process costing, joint and by products; budgets; statistical techniques; investment appraisal techniques; standard costing and variance analysis; performance measurement.
Chapter 1: Managerial accounting and cost concepts. In this chapter we explain how managers need to rely on different cost classifications for different purposes. The four main purposes emphasized in this chapter include preparing external financial reports, predicting cost behavior, assigning costs to cost objects, and decision making.
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Chapter 1 - Introduction to managerial accounting and cost concepts. After studying Chapter 1, you should be able to: Identify and give examples of each of the three basic manufacturing cost categories, distinguish between product costs and period costs and give examples of each, prepare an income statement including calculation of the cost of goods sold,...
Chapter 3 - Recording transactions. Recording transactions related to the purchase and sale of merchandize inventory was introduced and discussed in Chapter 5. This chapter reviews how the cost of goods sold is calculated using various inventory cost flow assumptions. Additionally, issues related to merchandize inventory that remains on hand at the end of an accounting period are also explored.
Chapter 6 - Inventory issues. The main contents of this chapter include all of the following: Issues in counting inventory, ownership of inventory rules, inventory errors, 4 cost flow assumptions, special rule for inventory costing,...
Chapter 9 - Long lived assets. In this chapter, you will learn to: Describe how the cost principle applies to plant assets; explain the concept of depreciation; compute periodic depreciation using the straight-line method, and contrast its expense pattern with those of other methods; describe the procedure for revising periodic depreciation;...
Chapter 3 - Operating processes: Planning and control. In this chapter students will be able to: Identify the activities in the three operating subprocesses; describe fixed, variable, and mixed costs and revenues; use the high/low method to determine fixed and variable costs and revenues; apply linear regression analysis to determine fixed and variable costs and revenues.
Chapter 4 - Short-term decision making. After completing this chapter, students will be able to: Describe the differences among product, nonproduct, unit-related, batch-related, product-sustaining, and facility-sustaining costs; explain the purpose of, and perform, cost-volume-profit (CVP) analysis; define and analyze a short-term special order decision; explain and analyze a short-term outsourcing decision; discuss and analyze a short-term product mix decision.
Chapter 6 - Planning, the balanced scorecard, and budgeting. The goals of this chapter are: Describe the purposes, strategies, and approaches to budgeting; explain the process of revenue process planning and prepare the resulting budgets and schedules; discuss the process of conversion process planning and prepare the resulting budget; explain the process of expenditure process planning and prepare the resulting budgets and schedules.
Chapter 9 - Recording and evaluating conversion process activities. In this chapter, the learning objectives are: Explain the different types of manufacturing costs and how manufacturing costs are different than nonmanufacturing costs, describe manufacturing cost flows for direct materials and direct labor and record these activities, explain the process of applying manufacturing overhead and record these activities.
Chapter 10 - Marketing/sales/collection/customer support process: Recording and evaluating revenue process activities. After completing this chapter, students will be able to: Describe how revenue activities are analyzed and recorded in the accounting system, explain how cost of goods sold activities are analyzed and recorded in the accounting system using FIFO and/or LIFO costing, discuss how uncollectible accounts are recorded,...
Chapter 12 "Planning investments: Capital budgeting". In this chapter, the learning objectives are: Explain the concept of and calculate a company cost of capital, use NPV analysis to make investment decisions for a not-for-profit entity, use NPV analysis to make investment decisions assuming uniform depreciation, use NPV analysis to make investment decisions assuming tax depreciation.
Chapter 17 - Company performance: Profitability. After completing this chapter, students will be able to: Discuss the importance of income from continuing operations and net income; describe the purpose of, and calculate, earnings per share and diluted earnings per share; explain the purpose of, and calculate, income using variable, absorption, and throughput costing for internal reporting purposes.
After reading this chapter, you should be able to answer the following questions: How does a company interact with the business environment through external agents? What are the basic methods of obtaining a competitive advantage? How can information technology be used to gain a competitive advantage? How is technology used to search for an advantage over rivals? What are the costs and potential dangers of being on the leading edge of technology? What strategies led to failures in the early dot-com firms?
CHAPTER 1 Introduction to Cost and Management Accounting in a Global Business Environment
After completing this chapter, you should be able to answer the following questions:
How do financial and management accounting relate to each other? How does cost accounting relate to financial and management accounting?
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CHAPTER 2 Introduction to Cost Management Systems
After completing this chapter, you should be able to answer the following questions: Why do organizations have management control systems? What is a cost management system and what are its primary goals?
Planning involves selecting a course of action and specifying how the action will be implemented. The first step in planning is to identify the various alternatives. Next, the alternative that does the best job of furthering the organization’s objectives is selected. Management’s plans are usually expressed in budgets. Typically, budgets are prepared annually under the direction of the controller, who is the manager of the accounting department.