Cost accounting managerial emphasis australian edition

Since every instructor has a unique way of organizing his or her course, we utilize a modular, flexible organization that permits a course to be custom tailored. This organization facilitates diverse approaches to teaching and learning.

Process costing is described in Chapters 17 and Other instructors may want their students to delve into activity-based costing and budgeting and more decision-oriented topics early in the course. These instructors may prefer to postpone discussion of process costing. Do you like this book? Please share with your friends, let's read it!! For complete information, visit the What's New section. The first thirteen chapters provide the essence of a one-term quarter or semester course. This book can be used immediately after the student has had an introductory course in financial accounting.

Alternatively, this book can build on an introductory course in managerial accounting. The framework in this edition helps students see how the demand for various types of management accounting information is a response to the decision-making needs of managers. Serving as a structure for discussing many management accounting concepts in later chapters, Chapter 1 presents the process p.

Chapter 2 p. The framework emphasizes three key ideas:. Chapter 13 p. The balanced scorecard and its four perspectives serve as an organizing framework for topics such as:.

Presented in Chapter 5 p. New material has been added to subsequent chapters on activity-based budgeting, customer-profitability analysis, activity-based costing and activity-based management. A systematic incorporation of new and evolving management thinking has been added including activity-based management, integrated approach to variance analysis, lean accounting and levels of control. For Professors: Instructors can access the Excel worksheets to support in-class discussion, to demonstrate key concepts, to explain difficult points, or to perform what-if sensitivity analysis.

For Students: Excel templates for selected end-of-chapter exercises and problems marked with an icon are available online at www. These templates allow students to complete selected exercises and problems using Excel to understand key concepts within the chapters. Each chapter opens with a vignette p. The vignettes engage the reader in a business situation or dilemma, illustrating why and how the concepts in the chapter are relevant in business.

Some companies featured are:. Serving as a structure for discussing many management accounting concepts in later chapters, Chapter 1 presents the process by:. Each chapter opens with a vignette on a real company situation. The Accountant's Role in the Organization 2. An Introduction to Cost Terms and Purposes 3. Cost-Volume Profit Analysis 4.

Job Costing 5. Master Budget and Responsibility Accounting 7. Inventory Costing and Capacity Analysis Determining How Costs Behave Decision-Making and Relevant Information Pricing Decisions and Cost Management Cost Allocation: Joint Products and Byproducts Process Costing Spoilage Rework, and Scrap Capital Budgeting and Cost Analysis Performance Measurement, Compensation, and Multinational Considerations. Pearson offers affordable and accessible purchase options to meet the needs of your students.

Connect with us to learn more. Horngren is the Edmund W. Harvard University and his Ph. He is also the recipient. Horngren is a member of the Accounting Hall of Fame. A member of the American Accounting Association, he has been its President and its. Director of Research. He received its first annual Outstanding Accounting Educator Award. He is the first person to have received both awards. Horngren was named Accountant of the Year, Education, by the national professional accounting fraternity, Beta Alpha Psi.

Horngren is the author of other accounting books published by Prentice Hall:. Introduction to Management Accounting , 13th ed. Introduction to Financial Accounting , 9th ed. Horngren is the Consulting Editor for the Charles T. Horngren Series in Accounting.

Srikant M. A graduate with distinction from the University of Bombay, he. A Chartered. Accountant, he holds two masters degrees and a Ph. Assume you are a Harvey Norman store. Planning: Decision by shareholder about whether to purchase more stock in the company. Control: Decision by bank to determine if financial ratios maintained in the line-of-credit LOC agreement warrant increasing the LOC amount.

Planning: Decisions regarding future staffing needs. Control: Decision regarding whether the recent sales promotion led to an increase in revenue. Planning: Decision of the store manager about whether to change the types of retail items carried. Control: Decision of the store manager regarding performance of the analyst that prepared the special study.

It also includes benefits, other than to customers, which are incidental to the product or service, for which the organisation does not receive revenue. Internalisation of these costs would force managers to consider them along with normal internal costs when making decisions. This includes preparing budgets and determining the prices and cost of products and services.

A company must know the cost of each product and service to decide which products to offer and whether to expand or discontinue product lines. Controlling business operations includes comparing actual results to the budgeted results and taking corrective action when needed. Feedback links planning and control. The control function provides information to assist in better future planning. First, actions are planned and then they are communicated to the entire organisation.

The budget also helps with coordination. Does the report indicate any cause for managerial investigation? The performance report highlights the unfavourable drop in the advertising rate per page.

While the percentage drop in advertising revenue per page is not dramatic, management might want to investigate the reasons behind such a drop. Some possibilities include: aggressive price reductions to obtain revenue, a general drop in newspaper media spending, some aggressive competition, or an unrealistic budget. A Strategy specifies how an organisation matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.

B A good strategy will always overcome poor implementation. C Management accountants provide input to help managers formulate strategy.

D Businesses usually follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. B how an organisation chooses to compete and highlights the opportunities its managers should evaluate and pursue if advantageous. C showing how management accounting connects with sustainability. D bringing relevant costs and benefits of sustainability to the attention of decision makers in the public arena, such as city councillors or government ministers.

B shareholders. D board of directors. Who are our most important customers, and how do we deliver value to them? What substitute products exist in the marketplace, and how do they differ from our product in terms of price and quality? What is our most critical capability? Will adequate cash be available to fund the strategy, or will additional funds need to be raised? Briefly describe the two broad types of strategies that companies may choose to pursue. In other words, strategy describes how a company will compete.

Companies follow one of two broad strategies. Assume you are opening a small food outlet across the street from your campus. How might that business be operated under each of the two broad strategies? Consider the following specific operational areas: a. Answers will differ from student to student, but you should see some specific themes. Products offered Few products, heavy emphasis on tight cost control, probably set up as a high volume operation.

Differential Strategy Target customers might be more wealthy students, faculty, or perhaps neighbours who live nearby. High quality products, probably a reasonable choice, restaurant might have a lot of ambience. Not as convenient, perhaps in a higher-end shopping or entertainment area. Customers might seek out the high quality and be willing to travel a bit for it.

Advertising Advertising would emphasise the Advertising would emphasise quality or ambience. Advertising media Media that would be looked at by Media that would be looked at by the target the target customers, such as customer, local magazines and newspapers. If the customer is confused about how the company is giving them value, they might perceive they are getting no value and abandon the product to a competitor with a clearer customer value proposition.

The other side of the argument is that cost management is a necessary part of any strategy and even if the company chooses to pursue a differential strategy, management of the company should always be seeking ways to manage costs and increase customer value simultaneously regardless of their strategy.

The student should be able to articulate one or the other arguments coherently. B take advantage of unforeseen opportunities. C not make decisions again until the next planning session. D underestimate costs so that actual operating results will be favourable when comparisons are made. Identify the problem 2. Gather relevant information 3. Identify and evaluate potential courses of action 4. Make and implement a decision 5. B competence, performance, integrity, and reporting.

C competence, confidentiality, integrity, and professional behaviour. D None of these answers are correct. A Maintain an appropriate level of professional expertise by continually developing knowledge and skills. B Perform professional duties in accordance with relevant laws, regulations, and technical standards. C Keep information confidential except when disclosure is authorised or legally required.

D Provide decision support information and recommendations that are accurate, clear, concise, and timely. B whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions.

C whether to file a tax return this year. D Both A and B are correct. Difficulty: Moderate Topic: The influence of professional accounting organisations on management accounting Learning Objective: 1. A Confront their supervisor directly. D Inform the Board of Directors of the existence of a potential conflict. B audit committee. C board of directors. D executive committee.

Topic: The influence of professional accounting organisations on management accounting Learning Objective: 1. For each principle, give an example that demonstrates compliance with that principle. Competence: Maintain an appropriate level of professional expertise by continually developing knowledge and skills 2.

Confidentiality: Refrain from using confidential information for unethical or illegal advantage 3.