NOT IN USE - Managerial Accounting, 8e - Sacramento State

ISBN: 978-1-61853-235-0 | Copyright 2018

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Managerial Accounting, 8e (pg. 1.iii)
Preface (pg. 1.iii)
Brief Contents (pg. 1.ix)
Contents (pg. 1.x)
Chapter 1: Managerial Accounting: Tools for Decision Making (pg. 1.2)
ModCloth (pg. 1.2)
Uses of Accounting Information (pg. 1.4)
Financial Accounting (pg. 1.4)
Managerial Accounting (pg. 1.5)
Review 1-1 (pg. 1.7)
Strategic Cost Management (pg. 1.7)
Review 1-2 (pg. 1.7)
Missions, Goals, and Strategies (pg. 1.8)
An Organization’s Mission and Goals (pg. 1.8)
Strategic Position Analysis (pg. 1.9)
Managerial Accounting and Goal Attainment (pg. 1.11)
Planning, Organizing, and Controlling (pg. 1.12)
Review 1-3 (pg. 1.14)
Changing Environment of Business (pg. 1.14)
Global Competition and Its Key Dimensions (pg. 1.14)
Big Data and Analysis (pg. 1.14)
Enterprise Risk Management (ERM) (pg. 1.15)
Review 1-4 (pg. 1.15)
Ethics in Managerial Accounting (pg. 1.15)
Codes of Ethics (pg. 1.16)
Corporate Governance (pg. 1.17)
Sustainability Accounting and Corporate Social Responsibility (pg. 1.18)
Review 1-5 (pg. 1.18)
Cost Drivers (pg. 1.19)
Structural Cost Drivers (pg. 1.19)
Organizational Cost Drivers (pg. 1.20)
Activity Cost Drivers (pg. 1.21)
Review 1-6 (pg. 1.22)
 Guidance Answers (pg. 1.22)
 Key Terms (pg. 1.22)
 Multiple Choice (pg. 1.22)
Questions (pg. 1.23)
Mini Exercises (pg. 1.24)
Exercises (pg. 1.26)
Cases and Projects (pg. 1.27)
Solutions to Review Problems (pg. 1.29)
Chapter 2: Cost Behavior, Activity Analysis, and Cost Estimation (pg. 1.32)
Square, Inc. (pg. 1.32)
Cost Behavior Analysis (pg. 1.34)
Four Basic Cost Behavior Patterns (pg. 1.34)
Factors Affecting Cost Behavior Patterns (pg. 1.36)
Review 2-1 (pg. 1.37)
Total Cost Function for an Organization or Segment (pg. 1.37)
Relevant Range (pg. 1.38)
Additional Cost Behavior Patterns (pg. 1.40)
Committed and Discretionary Fixed Costs (pg. 1.42)
Review 2-2 (pg. 1.42)
Cost Estimation (pg. 1.42)
High-Low Cost Estimation (pg. 1.43)
Scatter Diagrams (pg. 1.44)
Least-Squares Regression (pg. 1.45)
Review 2-3 (pg. 1.48)
Additional Issues in Cost Estimation (pg. 1.48)
Changes in Technology and Prices (pg. 1.48)
Matching Activity and Costs (pg. 1.49)
Identifying Activity Cost Drivers (pg. 1.49)
Review 2-4 (pg. 1.49)
Alternative Cost Driver Classifications (pg. 1.49)
Manufacturing Cost Hierarchy (pg. 1.50)
Customer Cost Hierarchy (pg. 1.51)
Review 2-5 (pg. 1.52)
Guidance Answers  (pg. 1.53)
Key Ratios  (pg. 1.53)
 Key Terms (pg. 1.54)
 Multiple Choice (pg. 1.54)
Questions (pg. 1.55)
Mini Exercises (pg. 1.56)
Exercises (pg. 1.58)
Problems (pg. 1.61)
Cases and Projects (pg. 1.63)
Solutions to Review Problems (pg. 1.66)
Chapter 3: Cost-Volume-Profit Analysis and Planning (pg. 1.68)
Razor USA, LLC (pg. 1.68)
Cost-Volume-Profit Analysis (pg. 1.70)
Key Assumptions (pg. 1.71)
Profit Formula (pg. 1.72)
Review 3-1 (pg. 1.74)
Contribution and Functional Income Statements (pg. 1.74)
Contribution Income Statement (pg. 1.74)
Functional Income Statement (pg. 1.75)
Analysis Using Contribution Margin Ratio (pg. 1.75)
Review 3-2 (pg. 1.76)
Break-Even Point and Profit Planning (pg. 1.76)
Determining Break-Even Point in Units (pg. 1.76)
Profit Planning (pg. 1.78)
Cost-Volume-Profit Graph (pg. 1.79)
Profit-Volume Graph (pg. 1.79)
Impact of Income Taxes (pg. 1.81)
Review 3-3 (pg. 1.82)
Multiple-Product Cost-Volume-Profit Analysis (pg. 1.82)
Determining Break-Even and Target Profit Sales Dollars (pg. 1.82)
Sales Mix Analysis (pg. 1.84)
Review 3-4 (pg. 1.86)
Analysis of Operating Leverage (pg. 1.86)
 Appendix 3A: Profitability Analysis with Unit and Nonunit Cost Drivers (pg. 1.88)
Multi-Level Contribution Income Statement (pg. 1.88)
Variations in Multi-Level Contribution Income Statement (pg. 1.90)
Review 3-6 (pg. 1.91)
Guidance Answers (pg. 1.91)
 Key Ratios (pg. 1.92)
 Key Terms (pg. 1.92)
 Multiple Choice  (pg. 1.92)
Questions (pg. 1.94)
Mini Exercises (pg. 1.94)
Exercises (pg. 1.96)
Problems (pg. 1.100)
Cases and Projects (pg. 1.105)
Solutions to Review Problems (pg. 1.106)
Chapter 4: Relevant Costs and Benefits for Decision Making (pg. 1.110)
Uber (pg. 1.110)
Identifying Relevant Costs (pg. 1.112)
Relevance of Future Revenues (pg. 1.113)
Relevance of Outlay Costs (pg. 1.113)
Irrelevance of Sunk Costs (pg. 1.114)
Sunk Costs Can Cause Ethical Dilemmas (pg. 1.114)
Relevance of Disposal and Salvage Values (pg. 1.115)
Relevance of Opportunity Costs (pg. 1.115)
Review 4-1 (pg. 1.116)
Differential Analysis of Relevant Costs (pg. 1.116)
Review 4-2 (pg. 1.117)
Applying Differential Analysis (pg. 1.117)
Multiple Changes in Profit Plans (pg. 1.118)
Review 4-3 (pg. 1.119)
Special Orders (pg. 1.119)
Review 4-4 (pg. 1.122)
Outsourcing Decisions (Make or Buy) (pg. 1.122)
Review 4-5 (pg. 1.126)
Sell or Process Further (pg. 1.126)
Review 4-6 (pg. 1.128)
Use of Limited Resources (pg. 1.128)
Single Constraint (pg. 1.128)
Multiple Constraints (pg. 1.129)
Theory of Constraints (pg. 1.130)
Limitations of Decision Analysis Models (pg. 1.131)
Review 4-7 (pg. 1.131)
Guidance Answers (pg. 1.131)
 Key Terms (pg. 1.132)
 Multiple Choice (pg. 1.132)
Questions (pg. 1.133)
Mini Exercises (pg. 1.134)
Exercises (pg. 1.137)
Problems (pg. 1.140)
Cases and Projects (pg. 1.144)
Solutions to Review Problems (pg. 1.148)
Chapter 5: Product Costing: Job and Process Operations (pg. 1.152)
Samsung (pg. 1.152)
Inventory Costs in Various Organizations (pg. 1.154)
Review 5-1­ (pg. 1.156)
Inventory Costs for Financial Reporting (pg. 1.156)
Product Costs and Period Costs (pg. 1.156)
Three Components of Product Costs (pg. 1.156)
A Closer Look at Manufacturing Overhead (pg. 1.158)
Review 5-2 (pg. 1.160)
The Production Environment (pg. 1.160)
Production Files and Records (pg. 1.161)
Review 5-3 (pg. 1.162)
Job Costing for Products and Services (pg. 1.162)
Job Costing Illustrated (pg. 1.163)
Statement of Cost of Goods Manufactured (pg. 1.167)
Overapplied and Underapplied Overhead (pg. 1.169)
Job Costing in Service Organizations (pg. 1.170)
Review 5-4 (pg. 1.171)
Process Costing (pg. 1.172)
Cost of Production Report (pg. 1.173)
Weighted Average and First-In, First-Out Process Costing (pg. 1.176)
Process Costing in Service Organizations (pg. 1.176)
Review 5-5 (pg. 1.177)
 Appendix 5A: Absorption and Variable Costing (pg. 1.178)
Basic Concepts (pg. 1.178)
Income Under Absorption and Variable Costing (pg. 1.179)
Production Equals Sales (pg. 1.179)
Production Exceeds Sales (pg. 1.179)
Sales Exceed Production (pg. 1.181)
Evaluating Alternatives to Inventory Valuation (pg. 1.182)
Review 5-6 (pg. 1.183)
Guidance Answers  (pg. 1.183)
Key Ratios  (pg. 1.183)
 Key Terms (pg. 1.184)
 Multiple Choice (pg. 1.184)
Questions (pg. 1.185)
Mini Exercises (pg. 1.186)
Exercises (pg. 1.188)
Problems (pg. 1.192)
Cases and Projects (pg. 1.199)
Solutions to Review Problems (pg. 1.201)
Chapter 6: Activity-Based Costing, Customer Profitability, and Activity-Based Management (pg. 1.206)
Unilever (pg. 1.206)
Activity-Based Costing (ABC) (pg. 1.208)
Changing Cost Environment (pg. 1.208)
LO1 Review 6-1 (pg. 1.209)
Activity-Based Costing Concepts (pg. 1.209)
ABC Product Costing Model (pg. 1.210)
Review 6-2 (pg. 1.211)
Traditional Product Costing and ABC Compared (pg. 1.212)
Applying Overhead with a Plantwide Rate (pg. 1.212)
Applying Overhead with Department Rates (pg. 1.212)
Applying Overhead with Activity-Based Costing (pg. 1.214)
LO3 Review 6-3 (pg. 1.217)
Implementation of ABC (pg. 1.218)
Limitations of ABC Illustration (pg. 1.218)
Comparing Traditional and Activity-Based Costing (pg. 1.218)
ABC Implementation Issues (pg. 1.219)
Review 6-4 (pg. 1.220)
ABC and Customer Profitability Analysis (pg. 1.221)
Customer Profitability Profile (pg. 1.221)
ABC Customer Profitability Analysis Illustrated (pg. 1.221)
Review 6-5 (pg. 1.224)
Activity-Based Management (pg. 1.224)
The Difference Between ABC and Activity-Based Management (pg. 1.224)
Review 6-6 (pg. 1.225)
Guidance Answers (pg. 1.225)
 Key Terms (pg. 1.226)
 Multiple Choice (pg. 1.226)
Questions (pg. 1.227)
Mini Exercises (pg. 1.227)
Exercises (pg. 1.231)
Problems (pg. 1.234)
Cases and Projects (pg. 1.239)
Solutions to Review Problems (pg. 1.243)
Chapter 7: Additional Topics in Product Costing (pg. 1.246)
Whole Foods (pg. 1.246)
Production and Service Department Costs (pg. 1.248)
Review 7-1 (pg. 1.249)
Service Department Cost Allocation (pg. 1.249)
Direct Method (pg. 1.250)
Step Method (pg. 1.251)
Linear Algebra (Reciprocal) Method (pg. 1.253)
Dual Rates (pg. 1.254)
Review 7-2 (pg. 1.255)
Lean Production and Just-in-Time Inventory Management (pg. 1.255)
Reducing Incoming Materials Inventory (pg. 1.256)
Reducing Work-in-Process Inventory (pg. 1.256)
Review 7-3 (pg. 1.258)
Performance Evaluation and Recordkeeping with Lean Production and JIT (pg. 1.258)
Performance Evaluation (pg. 1.258)
Simplified Recordkeeping (pg. 1.260)
Review 7-4 (pg. 1.261)
Increased Focus on Data-Driven Decision Making (pg. 1.261)
Review 7-5 (pg. 1.262)
 Guidance Answers (pg. 1.262)
Key Ratios  (pg. 1.263)
Key Terms  (pg. 1.263)
Multiple Choice  (pg. 1.263)
Questions (pg. 1.264)
Mini Exercises (pg. 1.265)
Exercises (pg. 1.267)
Problems (pg. 1.269)
Cases and Projects (pg. 1.273)
Solutions to Review Problems (pg. 1.274)
Chapter 8: Pricing and Other Product Management Decisions (pg. 1.278)
Roku (pg. 1.278)
Understanding the Value Chain (pg. 1.280)
Usefulness of a Value Chain Perspective (pg. 1.282)
Value-Added and Value Chain Perspectives (pg. 1.284)
Review 8-1­ (pg. 1.284)
The Pricing Decision (pg. 1.284)
Economic Approaches to Pricing (pg. 1.284)
Cost-Based Approaches to Pricing (pg. 1.285)
Review 8-2 (pg. 1.288)
Target Costing (pg. 1.289)
Target Costing Is Proactive for Cost Management (pg. 1.289)
Target Costing Encourages Design for Production (pg. 1.290)
Target Costing Reduces Time to Introduce Products (pg. 1.291)
Target Costing Requires Cost Information (pg. 1.291)
Target Costing Requires Coordination (pg. 1.291)
Target Costing is Key for Products with Short Life Cycles (pg. 1.292)
Target Costing Helps Manage Life Cycle Costs (pg. 1.293)
Review 8-3 (pg. 1.294)
Continuous Improvement Costing (pg. 1.294)
Review 8-4 (pg. 1.295)
Benchmarking (pg. 1.296)
Review 8-5 (pg. 1.297)
Guidance Answers  (pg. 1.297)
Key Ratios  (pg. 1.297)
Key Terms  (pg. 1.297)
Multiple Choice  (pg. 1.297)
Questions (pg. 1.298)
Mini Exercises (pg. 1.299)
Exercises (pg. 1.300)
Problems (pg. 1.302)
Cases and Projects (pg. 1.304)
Solutions to Review Problems (pg. 1.305)
Chapter 9: Operational Budgeting and Profit Planning (pg. 1.308)
Pinterest (pg. 1.308)
Reasons for Budgeting (pg. 1.310)
Compel Planning (pg. 1.310)
Promote Communication and Coordination (pg. 1.310)
Provide a Guide to Action and Basis of Evaluation (pg. 1.311)
Aid in Risk Management (pg. 1.311)
Review 9-1 (pg. 1.311)
General Approaches to Budgeting (pg. 1.311)
Output/Input Approach (pg. 1.311)
Activity-Based Approach (pg. 1.312)
Incremental Approach (pg. 1.312)
Minimum Level Approach (pg. 1.313)
Review 9-2 (pg. 1.314)
Master Budget (pg. 1.314)
Sales Budget (pg. 1.316)
Purchases Budget (pg. 1.317)
Selling Expense Budget (pg. 1.318)
General and Administrative Expense Budget (pg. 1.318)
Cash Budget (pg. 1.319)
Budgeted Financial Statements (pg. 1.321)
Finalizing the Budget (pg. 1.322)
Review 9-3 (pg. 1.323)
Budget Development in Manufacturing Organizations (pg. 1.323)
Production Budget (pg. 1.324)
Manufacturing Cost Budget (pg. 1.325)
Review 9-4 (pg. 1.327)
Budget Development and Manager Behavior (pg. 1.328)
Employee Participation (pg. 1.328)
Budgeting Periods (pg. 1.329)
Forecasts (pg. 1.329)
Ethics (pg. 1.330)
Open Book Management (pg. 1.330)
Review 9-5 (pg. 1.331)
Guidance Answers  (pg. 1.331)
Key Terms  (pg. 1.331)
Multiple Choice  (pg. 1.331)
Questions (pg. 1.333)
Mini Exercises (pg. 1.333)
Exercises (pg. 1.335)
Problems (pg. 1.340)
Cases and Projects (pg. 1.345)
Solutions to Review Problems (pg. 1.347)
Chapter 10: Standard Costs and Performance Reports (pg. 1.354)
Southwest Airlines (pg. 1.354)
Responsibility Accounting (pg. 1.356)
Performance Reporting and Organization Structures (pg. 1.357)
Types of Responsibility Centers (pg. 1.357)
Financial and Nonfinancial Performance Measures (pg. 1.359)
Review10-1 (pg. 1.359)
Performance Reporting for Cost Centers (pg. 1.359)
Development of Flexible Budgets (pg. 1.359)
Flexible Budgets Emphasize Performance (pg. 1.360)
Standard Costs and Performance Reports (pg. 1.361)
Review 10-2 (pg. 1.362)
Variance Analysis for Costs (pg. 1.362)
Components of Standard Cost Analysis (pg. 1.362)
Establishing and Using Standards for Direct Materials (pg. 1.363)
Review 10-3 (pg. 1.366)
Establishing and Using Standards for Direct Labor (pg. 1.366)
Review 10-4 (pg. 1.368)
Establishing and Using Standards for Variable Overhead (pg. 1.369)
Fixed Overhead Variances (pg. 1.371)
Review 10-5 (pg. 1.371)
Performance Reports for Revenue Centers (pg. 1.372)
Inclusion of Controllable Costs (pg. 1.373)
Revenue Centers as Profit Centers (pg. 1.374)
Review 10-6 (pg. 1.375)
Appendix 10A: Fixed Overhead Variances   (pg. 1.375)
Review 10-6 (pg. 1.377)
Appendix 10B: Reconciling Budgeted and Actual Income  (pg. 1.377)
Review 10-8 (pg. 1.378)
Guidance Answers  (pg. 1.379)
Key Ratios  (pg. 1.379)
Key Terms  (pg. 1.379)
Multiple Choice  (pg. 1.379)
Questions (pg. 1.380)
Mini Exercises (pg. 1.381)
Exercises (pg. 1.383)
Problems (pg. 1.385)
Cases and Projects (pg. 1.391)
Solutions to Review Problems (pg. 1.393)
Chapter 11: Segment Reporting, Transfer Pricing, and Balanced Scorecard (pg. 1.398)
Volkswagen (pg. 1.398)
Strategic Business Segments and Segment Reporting (pg. 1.400)
Multilevel Segment Income Statements (pg. 1.402)
Interpreting Segment Reports (pg. 1.402)
Review 11-1 (pg. 1.404)
Transfer Pricing (pg. 1.405)
Management Considerations (pg. 1.405)
Determining Transfer Prices (pg. 1.407)
Review 11-2 (pg. 1.410)
Investment Center Evaluation Measures (pg. 1.410)
Return on Investment (pg. 1.410)
Investment Center Income (pg. 1.413)
Investment Center Asset Base (pg. 1.414)
Other Valuation Issues (pg. 1.414)
Residual Income (pg. 1.414)
Economic Value Added (pg. 1.415)
Which Measure Is Best? (pg. 1.416)
Review 11-3 (pg. 1.417)
Balanced Scorecard (pg. 1.418)
Balanced Scorecard Framework (pg. 1.418)
Balanced Scorecard and Strategy (pg. 1.420)
Review 11-4 (pg. 1.421)
 Guidance Answers (pg. 1.422)
 Key Ratios (pg. 1.422)
 Key Terms (pg. 1.422)
 Multiple Choice (pg. 1.422)
Questions (pg. 1.424)
Mini Exercises (pg. 1.424)
Exercises (pg. 1.428)
Problems (pg. 1.431)
Cases and Projects (pg. 1.436)
Solutions to Review Problems (pg. 1.438)
Chapter 12: Capital Budgeting Decisions (pg. 1.442)
Amazon (pg. 1.442)
Long-Range Planning and Capital Budgeting (pg. 1.445)
Review 12-1 (pg. 1.447)
Capital Budgeting Models that Consider Time Value of Money (pg. 1.448)
Expected Cash Flows (pg. 1.448)
Manager Behavior and Expected Cash Flows (pg. 1.449)
Net Present Value (pg. 1.449)
Internal Rate of Return (pg. 1.451)
Cost of Capital (pg. 1.452)
Review 12-2 (pg. 1.452)
Capital Budgeting Models That Do Not Consider Time Value of Money (pg. 1.453)
Payback Period (pg. 1.453)
Accounting Rate of Return (pg. 1.454)
Review 12-3 (pg. 1.455)
Evaluation of Capital Budgeting Models (pg. 1.455)
Review 12-4 (pg. 1.457)
Additional Aspects of Capital Budgeting (pg. 1.458)
Using Multiple Investment Criteria (pg. 1.458)
Evaluating Risk (pg. 1.458)
Differential Analysis of Project Cash Flows (pg. 1.459)
Predicting Differential Costs and Revenues for High-Tech Investments (pg. 1.460)
Review 12-5 (pg. 1.462)
Taxes in Capital Budgeting Decisions (pg. 1.462)
Depreciation Tax Shield (pg. 1.462)
Investment Tax Credit (pg. 1.465)
Appendix 12A: Time Value of Money  (pg. 1.465)
Future Value (pg. 1.465)
Present Value (pg. 1.466)
Annuities (pg. 1.467)
Unequal Cash Flows (pg. 1.469)
Review 12-7 (pg. 1.470)
 Appendix 12B: Table Approach to Determining Internal Rate of Return (pg. 1.470)
Equal Cash Inflows (pg. 1.470)
Unequal Cash Inflows (pg. 1.471)
 Guidance Answers (pg. 1.472)
 Key Ratios (pg. 1.472)
Key Terms  (pg. 1.473)
Multiple Choice  (pg. 1.473)
Questions (pg. 1.474)
Mini Exercises (pg. 1.475)
Exercises (pg. 1.476)
Problems (pg. 1.479)
Cases and Projects (pg. 1.481)
Solutions to Review Problems (pg. 1.486)
Appendix A: Managerial Analysis of Financial Statements (pg. 1.492)
Financial Statement Analysis for Managers (pg. 1.494)
Review Appendix A-1 (pg. 1.495)
Factors Impacting Financial Statement Analysis (pg. 1.495)
Review Appendix A-2 (pg. 1.496)
Application of Financial Statement Analysis (pg. 1.496)
Evaluative Standards and Benchmarks (pg. 1.496)
Comparative and Common Size Statements (pg. 1.497)
Review Appendix A-3 (pg. 1.499)
Solvency Analysis (pg. 1.501)
Review Appendix A-4 (pg. 1.504)
Performance Analysis (pg. 1.504)
Horizontal Analysis of Solvency and Performance (pg. 1.507)
Industry Benchmarking of Analysis Measures (pg. 1.509)
Review Appendix A-5 (pg. 1.511)
Key Terms  (pg. 1.511)
Questions  (pg. 1.511)
Mini Exercises (pg. 1.512)
Exercises (pg. 1.514)
Problems (pg. 1.515)
Cases and Projects (pg. 1.517)
Solutions to Review Problems (pg. 1.519)
Glossary (pg. 1.523)
Index (pg. 1.533)
Managerial Accounting, 8e (Hartgraves, Morse)
Errata
Last Updated: Dec 10 2019

Corrections to identified errors in the text.

Practice Quizzes
Last Updated: Jun 22 2017

Brief practice quizzes containing multiple choice questions for each chapter.

Practice Quiz Solutions
Last Updated: Jun 22 2017

Solutions to brief practice quizzes.