Accounting Principles: A Business Perspective, Managerial ...
[Pages:316]Accounting Principles: Managerial Accounting
A Textbook Equity Open College Textbook originally by
Hermanson, Edwards, and Ivancevich
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ISBN-13: 978-1461130239 ISBN-10: 1461130239
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Textbook Provenance (1998 - 2011)
1998 Edition Accounting: A Business Perspective (Irwin/Mcgraw-Hill Series in Principles of Accounting) [Hardcover] Roger H. Hermanson (Author), James Don Edwards (Author), Michael W. Maher (Author) Eighth Edition
Hardcover: 944 pages
Publisher: Richard D Irwin; Sub edition (April 1998)
Language: English
ISBN-10: 0075615851
ISBN-13: 978-0075615859
Product Dimensions: 11.1 x 8.7 x 1.8 inches
Current Hardbound Price $140.00 ()
2010 Editions () Global Text Project Conversion to Creative Commons License CC-BY "Accounting Principles: A Business Perspective First Global Text Edition, Volume 1 Financial Accounting", by Hermanson, Edwards, and Maher, Revision Editor: Donald J. McCubbrey, PhD.
PDF Version, 817 pages, Free Download
"Accounting Principles: A Business Perspective First Global Text Edition, Volume 2 Managerial Accounting", by Hermanson, Edwards, and Ivancevich. Revision Editor: Donald J. McCubbrey, PhD.
PDF Version Volume 2, 262 pages, Free Download
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2011 Editions () Textbook Equity publishes this soft cover version using a the CC-BY-NC-SA license. They divided Volume 1 into two sections to fit paperback publishing requirements and made other formatting changes. No content changes were made to Global Text's version. Versions available at the Open College Textbook repository:
? PDF Version, Section 1 of Volume 1 (Chapters 1 ? 8), 436 pages, Free Download ? Textbook Equity Paperback, Principles of Accounting, Volume 1 ,Financial Accounting
(Chapters 1 ? 8), 436 pages, List Price $24.95 ? PDF Version, Financial Accounting (Chapters 9 ? 18), Free Download ? Textbook Equity Paperback, Principles of Accounting, Volume 1 , Financial Accounting
(Chapters 9 ? 18), List Price $14.95 ? PDF Version, Accounting Principles: Managerial Accounting, Free Download ? Textbook Equity Paperback, Accounting Principles: Managerial Accounting, 316 pages,
(chapters 19 ? 26 of the original volume). List Price $24.95 For original author information and acknowledgments see
Updated April 27, 2011
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Contents (Cont' from Vol 1," Financial Accounting")
19 Process: Cost systems...............................................................................................9 19.1 Learning objectives............................................................................................9 19.2 Nature of a process cost system........................................................................9 19.3 Process costing illustration..............................................................................11 19.4 Process costing in service organizations.........................................................22 19.5 Spoilage............................................................................................................22 19.6 Understanding the learning objectives...........................................................23 19.7 Appendix 19A: The FIFO process cost method..............................................25 19.8 FIFO process costing--An illustration...........................................................26 19.9 Appendix 19B: Allocation of joint costs..........................................................30 19.10 Demonstration problem................................................................................32 19.11 Solution to demonstration problem..............................................................32 19.12 Key terms.......................................................................................................33 19.13 Self-test...........................................................................................................34 19.14 Questions.......................................................................................................36 19.15 Exercises.........................................................................................................37 19.16 Problems........................................................................................................38 19.17 Alternate problems........................................................................................40 19.18 Beyond the numbers--Critical thinking........................................................41 19.19 Using the Internet--A view of the real world...............................................43 19.20 Answers to self-test.......................................................................................44 19.21 Comprehensive review problem....................................................................44
20 Using accounting for quality and cost management.............................................47 20.1 Learning objectives..........................................................................................47 20.2 Importance of good accounting information.................................................47 20.3 Quality and the new production environment..............................................48 20.4 Improving quality...........................................................................................48 20.5 Quality and customer satisfaction measures.................................................52 20.6 Just-in-time method.......................................................................................57 20.7 Activity-based costing and management.......................................................62 20.8 Methods used for activity-based costing.......................................................65 20.9 Impact of new production environment on cost drivers...............................71 20.10 Activity-based costing in marketing.............................................................71 20.11 Strategic use of activity-based management.................................................72 20.12 Behavioral and implementation issues.........................................................72 20.13 Opportunities to improve activity-based costing in practice.......................73 20.14 Understanding the learning objectives.........................................................73 20.15 Demonstration problem................................................................................74 20.16 Solution to demonstration problem.............................................................75 20.17 Key terms.......................................................................................................76
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20.18 Self-test..........................................................................................................76 20.19 Questions.......................................................................................................78 20.20 Exercises.......................................................................................................79 20.21 Problems........................................................................................................82 20.22 Alternate problems.......................................................................................85 20.23 Beyond the numbers--Critical thinking.......................................................87 20.24 Using the Internet--A view of the real world..............................................89 20.25 Answers to self-test.......................................................................................89
21 Cost-volume-profit analysis....................................................................................91 21.1 Learning objectives..........................................................................................91 21.2 A manager's perspective..................................................................................91 21.3 Cost behavior patterns....................................................................................92 21.4 Methods for analyzing costs............................................................................96 21.5 Cost-volume-profit (CVP) analysis.................................................................98 21.6 Finding the break-even point........................................................................100 21.7 Cost-volume-profit analysis illustrated........................................................104 21.8 Assumptions made in cost-volume-profit analysis......................................107 21.9 Using computer spreadsheets for CVP analysis...........................................107 21.10 Effect of automation on cost-volume-profit analysis.................................109 21.11 Understanding the learning objectives........................................................110 21.12 Demonstration problem ...............................................................................111 21.13 Solution to demonstration problem ............................................................111 21.14 Key terms*.....................................................................................................112 21.15 Self-test.........................................................................................................113 21.16 Questions......................................................................................................114 21.17 Exercises........................................................................................................115 21.18 Problems.......................................................................................................117 21.19 Alternate problems......................................................................................120 21.20 Beyond the numbers--Critical thinking.....................................................122 21.21 Using the Internet--A view of the real world..............................................124 21.22 Answers to self-test......................................................................................124
22 Short-term decision making: Differential analysis..............................................126 22.1 Learning objectives........................................................................................126 22.2 Contribution margin income statements.....................................................126 22.3 Differential analysis......................................................................................128 22.4 Applications of differential analysis..............................................................131 22.5 Applying differential analysis to quality.......................................................137 22.6 Understanding the learning objectives........................................................138 22.7 Demonstration problem................................................................................140 22.8 Solution to demonstration problem.............................................................140 22.9 Key terms*......................................................................................................141 22.10 Self-test.........................................................................................................141
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22.11 Questions......................................................................................................142 22.12 Exercises.......................................................................................................143 22.13 Problems......................................................................................................145 22.14 Alternate problems......................................................................................148 22.15 Beyond the numbers--Critical thinking......................................................150 22.16 Using the Internet--A view of the real world.............................................152 22.17 Answers to self-test......................................................................................153
23 Budgeting for planning and control.....................................................................154 23.1 A manager's perspective................................................................................154 23.2 The budget--For planning and control.........................................................155 23.3 The master budget illustrated.......................................................................161 23.4 Budgeting in merchandising companies.......................................................177 23.5 Budgeting in service companies....................................................................178 23.6 Additional concepts related to budgeting.....................................................178 23.7 Understanding the learning objectives.........................................................179 23.8 Demonstration problem...............................................................................180 23.9 Solution to demonstration problem.............................................................181 23.10 Key terms*....................................................................................................181 23.11 Self-test.........................................................................................................182 23.12 Questions.....................................................................................................183 23.13 Exercises......................................................................................................184 23.14 Problems......................................................................................................185 23.15 Alternate problems......................................................................................188 23.16 Beyond the numbers--Critical thinking......................................................191 23.17 Using the Internet--A view of the real world..............................................192 23.18 Comprehensive problems............................................................................193 23.19 Answers to self-test......................................................................................196
24 Control through standard costs...........................................................................198 24.1 Learning objectives........................................................................................198 24.2 Uses of standard costs...................................................................................198 24.3 Nature of standard costs...............................................................................198 24.4 Advantages and disadvantages of using standard costs..............................201 24.5 Computing variances....................................................................................203 24.6 Goods completed and sold............................................................................216 24.7 Investigating variances from standard.........................................................216 24.8 Disposing of variances from standard..........................................................217 24.9 Nonfinancial performance measures...........................................................219 24.10 Activity-based costing, standards, and variances.......................................219 24.11 Understanding the learning objectives.......................................................220 24.12 Demonstration problem..............................................................................222 24.13 Solution to demonstration problem...........................................................222 24.14 Key terms.....................................................................................................223
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24.15 Self-test........................................................................................................224 24.16 Questions.....................................................................................................226 24.17 Exercises.......................................................................................................227 24.18 Problems.....................................................................................................228 24.19 Alternate problems.....................................................................................229 24.20 Beyond the numbers--Critical thinking....................................................230 24.21 Using the Internet--A view of the real world.............................................232 24.22 Answers to self-test.....................................................................................232
25 Responsibility accounting: Segmental analysis...................................................234 25.1 Learning objectives........................................................................................234 25.2 Responsibility accounting.............................................................................234 25.3 Responsibility reports...................................................................................236 25.4 Responsibility reports--An illustration.......................................................238 25.5 Responsibility centers...................................................................................240 25.6 Transfer prices..............................................................................................243 25.7 Use of segmental analysis.............................................................................243 25.8 Concepts used in segmental analysis...........................................................244 25.9 Investment center analysis...........................................................................248 25.10 Economic value added and residual income..............................................253 25.11 Segmental reporting in external financial statements................................255 25.12 Understanding the learning objectives.......................................................255 25.13 Appendix: Allocation of service department costs.....................................256 25.14 Demonstration problem..............................................................................258 25.15 Solution to demonstration problem...........................................................259 25.16 Key terms*...................................................................................................259 25.17 Self-test........................................................................................................260 25.18 Questions.....................................................................................................262 25.19 Exercises......................................................................................................263 25.20 Problems.....................................................................................................265 25.21 Alternate problems......................................................................................269 25.22 Beyond the numbers--Critical thinking.....................................................271 25.23 Using the Internet--A view of the real world.............................................273 25.24 Answers to self-test.....................................................................................274
26 Capital budgeting:Long-range planning..............................................................276 26.1 Learning objectives........................................................................................276 26.2 Capital budgeting defined.............................................................................277 26.3 Project selection: A general view..................................................................278 26.4 Project selection: Payback period................................................................282 26.5 Project selection: Unadjusted rate of return...............................................284 26.6 Project selection: Net present value method...............................................286 26.7 Profitability index..........................................................................................287 26.8 Project selection: The time-adjusted rate of return (or internal rate of
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return)....................................................................................................................289 26.9 Investments in working capital....................................................................292 26.10 The postaudit..............................................................................................293 26.11 Investing in high technology projects.........................................................293 26.12 Capital budgeting in not-for-profit organizations.....................................294 26.13 Epilogue.......................................................................................................294 26.14 Understanding the learning objectives......................................................294 26.15 Demonstration problem..............................................................................295 26.16 Solution to demonstration problem...........................................................296 26.17 Key terms*...................................................................................................297 26.18 Self-test........................................................................................................298 26.19 Questions.....................................................................................................299 26.20 Exercises.....................................................................................................300 26.21 Problems......................................................................................................302 26.22 Alternate problems.....................................................................................305 26.23 Beyond the numbers--Critical thinking.....................................................307 26.24 Using the Internet--A view of the real world............................................309 26.25 Answers to self-test.....................................................................................310
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