Managerial Accounting

Tag line: Teaching Managerial Accounting in the Context of Business Whitecotton 1e addresses the reality of students taking the managerial accounting course: the majority of them will not become accounting majors and accountants; instead they will use accounting information in their professional lives to make business decisions . Therefore, the greatest challenges instructors have are to engage these students in the managerial accounting course, keep the students motivated throughout the course, and teach them accounting in a way that connects conceptual understanding to the real world, so students will be able to analyze and apply their managerial accounting knowledge successfully in careers as managers in the world of business. Whitecotton 1e will engage and motivate students by presenting accounting in the context of real, recognizable companies like Starbucks, Mattel, and Tombstone Pizza, then integrate those companies throughout the chapters. This will allow students to see accounting information being used to make real business decisions in companies that are part of their lives, helping them connect their learning to the real world. Title Contents 1. Introduction to Managerial Accounting TOMBSTONE PIZZA Role of Managerial Accounting in Organizations Decision-Making Orientation Comparison of Financial and Managerial Accounting Types of Organizations Functions of Management Ethics and Internal Reporting Role of Cost in Managerial Accounting Definition of Cost Out-of-Pocket versus Opportunity Costs Direct versus Indirect Costs Variable versus Fixed Costs Relevant versus Irrelevant Costs Manufacturing versus Nonmanufacturing Costs Product versus Period Costs Demonstration Case Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 2. Job Order Costing TOLL BROTHERS Job Order versus Process Costing Process Costing Job Order Costing Assigning Manufacturing Costs to Jobs Manufacturing Cost Categories Materials Requisition Form Direct Labor Time Ticket Job Cost Sheet Predetermined Overhead Rates Recording the Flow of Costs in Job Order Costing Recording the Purchase and Issue of Materials Recording Labor Costs Recording Actual Manufacturing Overhead Recording Applied Manufacturing Overhead Transferring Costs to Finished Goods Inventory and Cost of Goods Sold Recording Nonmanufacturing Costs Overapplied or Underapplied Manufacturing Overhead Calculating Overapplied or Underapplied Manufacturing Overhead Disposing of Overapplied or Underapplied Manufacturing Overhead Preparing the Cost of Goods Manufactured Report Supplement 2: Journal Entries for Job Order Costing Demonstration Case Chapter Summary Key Formulas Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 3. Process Costing CK MONDAVI FAMILY VINEYARDS Basic Concepts in Process Costing Job Order versus Process Costing Flow of Costs in Process Costing Process Costing Production Report Weighted Average versus FIFO Process Costing Preparation of the Production Report (Weighted Average Method) Step 1: Reconcile the Number of Physical Units Step 2: Translate Physical Units into Equivalent Units Step 3: Calculate the Cost per Equivalent Unit Step 4: Reconcile the Total Cost of Work in Process Inventory Step 5: Prepare a Production Report Additional Factors in Process Costing Supplement 3A: FIFO Method Supplement 3B: Journal Entries for Process Costing Demonstration Case A (Weighted Average Method) Demonstration Case B (FIFO Method) Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 4. Activity Based Cost Management TOYOTA MOTOR COMPANY Traditional Volume-Based Cost Systems Volume-Based Cost System Assignment of Indirect Cost to Individual Products or Services Calculation of Total Manufacturing Cost and Profitability Activity Based Costing (ABC) Stage 1: Assign Indirect Costs to Activities Stage 2: Assign Activity Costs to Individual Products or Services Comparison of Volume-Based and Activity Based Cost Systems Calculation of Total Manufacturing Cost and Gross Margin Activity Based Management (ABM) Life Cycle Cost Management Total Quality Management (TQM) Target Costing Just-in-Time (JIT) Summary of ABC and ABM Demonstration Case Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 5. Cost Behavior STARBUCKS COFFEE Cost Behavior Patterns Relevant Range Variable Costs Fixed Costs Step Costs Mixed Costs Analysis of Mixed Costs Linear Approach to Analyzing Mixed Costs Scattergraph Visual Fit Method High-Low Method Least-Squares Regression Method Summary of Linear Methods Contribution Margin Approach Unit Contribution Margin Contribution Margin Ratio Supplement 5: Variable versus Full Absorption Costing Demonstration Case Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 6. Cost-Volume-Profit Analysis STARBUCKS COFFEE Cost-Volume-Profit Analysis Assumptions of Cost-Volume-Profit Analysis Cost-Volume-Profit Graph Break-Even Analysis Target Profit Analysis Applications of Cost-Volume-Profit Analysis Margin of Safety Evaluating Changes in Prices Changes in Cost Structure Degree of Operating Leverage Multiproduct Cost-Volume-Profit Analysis Weighted Average Contribution Margin Break-Even Analysis Target Profit Analysis Contribution Margin Ratio Approach Demonstration Case A (Single Product) Demonstration Case B (Multiproduct) Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 7. Incremental Analysis for Short-Term Decision Making MATTEL TOYS Managerial Decision-Making Framework Steps in the Decision-Making Process Relevant versus Irrelevant Costs and Benefits Opportunity Costs and Capacity Considerations Incremental Analysis for Short-Term Decision Making Special-Order Decisions Make-or-Buy Decisions Decisions to Eliminate Unprofitable Business Segments Sell-or-Process Further Decisions Prioritization of Products with Constrained Resources Summary of Incremental Analysis Demonstration Case Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 8. Capital Budgeting MATTEL TOYS Capital Budgeting Process Capital Investment Decisions Cash Flow versus Accounting Net Income Accounting Rate of Return Payback Period Time Value of Money Discounted Cash Flow Methods Net Present Value (NPV) Internal Rate of Return (IRR) Summary of Capital Budgeting Methods Applications of NPV Decision Case 1: Lease or Buy Equipment Decision Case 2: To Automate or Not to Automate Decision Case 3: Prioritizing Independent Projects Summary Analysis of Opening Case Decision Supplement 8: Time Value of Money Demonstration Case Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 9. Budgetary Planning COLD STONE CREAMERY Role of Budgets in the Planning and Control Cycle Planning Process Benefits of Budgeting Behavioral Effects of Budgets Components of the Master Budget Preparation of the Operating Budgets Sales Budget Production Budget Raw Materials Purchases Budget Direct Labor Budget Manufacturing Overhead Budget Budgeted Cost of Goods Sold Selling and Administrative Expense Budget Budgeted Income Statement Preparation of the Financial Budgets Cash Budget Budgeted Balance Sheet Budgeting in Nonmanufacturing Firms Demonstration Case A (Operating Budgets) Demonstration Case B (Cash Budget) Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 10. Budgetary Control COLD STONE CREAMERY Standard Cost Systems Ideal versus Attainable Standards Types of Standard Standard Cost Card Master Budget versus Flexible Budget Flexible Budget as a Benchmark Volume Variance versus Spending Variance Favorable versus Unfavorable Variances Direct Material and Direct Labor Variances Variance Framework Direct Materials Variances Direct Labor Variances Manufacturing Overhead Cost Variances Variable Manufacturing Overhead Variances Fixed Manufacturing Overhead Spending Variances Summary of Spending Variances Supplement 10A: Fixed Manufacturing Overhead Volume and Capacity Variances Supplement 10B: Recording Standard Costs and Variances in a Standard Cost System Demonstration Case Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 11. Decentralized Performance Evaluation BLOCKBUSTER VIDEO Decentralization of Responsibility Responsibility Centers Cost Centers Revenue Centers Profit Centers Investment Centers Evaluation of Investment Center Performance Return on Investment (ROI) Residual Income Return on Investment versus Residual Income Limitations of Financial Performance Measures Balanced Scorecard Transfer Pricing Market-Price Method Cost-Based Method Negotiation Demonstration Case Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 12. Reporting and Interpreting the Statement of Cash Flows UNDER ARMOUR Statement of Cash Flows Business Activities and Cash Flows Classifying Cash Flows Relationship to Other Financial Statements Preparing the Statement of Cash Flows Direct and Indirect Reporting of Operating Cash Flows Determining Operating Cash Flows (Indirect Method) Cash Flows from Investing and Financing Activities Interpreting the Statement of Cash Flows Evaluating Cash Flows Determining Operating Cash Flows (Direct Method) Supplement 12A: Reporting Sales of Property, Plant, and Equipment (Indirect Method) Supplement 12B: Spreadsheet Approach (Indirect Method) Demonstration Case A (Indirect Method) Demonstration Case B (Direct Method) Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases 13. Measuring and Evaluating Financial Performance LOWE’S Horizontal, Vertical, and Ratio Analyses Horizontal (Trend) Computations Vertical (Common Size) Computations Ratio Computations Interpreting the Results Interpreting Horizontal and Vertical Analyses Interpreting Ratio Analyses Demonstration Case Chapter Summary Key Terms Questions Multiple Choice Mini Exercises Exercises Problems——Set A Problems——Set B Skills Development Cases GLOSSARY CHECK FIGURES ANSWERS TO MULTIPLE-CHOICE QUESTIONS CREDITS INDEX

tag Line: Teaching Managerial Accounting In The Context Of Business

whitecotton 1e Addresses The Reality Of Students Taking The Managerial Accounting Course: The Majority Of Them Will Not Become Accounting Majors And Accountants; Instead They Will Use Accounting Information In Their Professional Lives to Make Business Decisions. Therefore, The Greatest Challenges Instructors Have Are To Engage These Students In The Managerial Accounting Course, Keep The Students Motivated Throughout The Course, And Teach Them Accounting In A Way That Connects Conceptual Understanding To The Real World, So Students Will Be Able To Analyze And Apply Their Managerial Accounting Knowledge Successfully In Careers As Managers In The World Of Business. Whitecotton 1e Will Engage And Motivate Students By Presenting Accounting In The Context Of Real, Recognizable Companies Like Starbucks, Mattel, And Tombstone Pizza, Then Integrate Those Companies Throughout The Chapters. This Will Allow Students To See Accounting Information Being Used To Make Real Business Decisions In Companies That Are Part Of Their Lives, Helping Them Connect Their Learning To The Real World.

**Tag line: Teaching Managerial Accounting in the Context of Business**__to make business decisions__