Horngren's Cost Accounting, Global Edition

Höfundar: Srikant M. Datar; Madhav V. Rajan (Útgáfa: 18)
Horngren's Cost Accounting, Global Edition

Kaup valmöguleikar

Horngren’s Cost Accounting expertly demonstrates how cost accounting can help managers make good decisions. Guided by the theme of “different costs for different purposes,” this acclaimed text positions cost accounting as a tool for business strategy, rather than just a set of procedures. Its balance of modern and traditional coverage blends technical skills with the values and behaviors of effective cost accountants.

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Útgefandi
Pearson International Content
ISBN
9781292731193
Print ISBN
9781292463063
Format
ePub
Útgáfa
18
Höfundar
Srikant M. Datar; Madhav V. Rajan
Tungumál
English
Útgefið
2026-01-08
Prent takmörkun á líftíma
100
Prent takmörkun
2
Afritunar takmörkun
2

Kaflar

  • Cover
  • Cover
  • Front Matter
  • Title
  • Copyright
  • Brief Contents
  • Contents
  • About the Authors
  • Preface
  • 1 The Manager and Management Accounting
  • How Netflix Uses Data Science to Dominate the Streaming Industry
  • Financial Accounting, Management Accounting, and Cost Accounting
  • Strategic Decisions and the Management Accountant
  • Value-Chain and Supply-Chain Analysis and Key Success Factors
  • Value-Chain Analysis
  • Supply-Chain Analysis
  • Key Success Factors
  • Concepts in Action: Cost Leadership at Costco: Rock-Bottom Prices and Sky-High Profits
  • Decision Making, Planning, and Control: The Five-Step Decision-Making Process
  • Key Management Accounting Guidelines
  • Cost–Benefit Approach
  • Behavioral and Technical Considerations
  • Different Costs for Different Purposes
  • Organization Structure and the Management Accountant
  • Line and Staff Relationships
  • The Chief Financial Officer and the Controller
  • Management Accounting Beyond the Numbers
  • Professional Ethics
  • Institutional Support
  • Typical Ethical Challenges
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 2 An Introduction to Cost Terms and Purposes
  • Mosaic Brands’ Fall: The Impact of Declining Sales and Unchanging Costs
  • Costs and Cost Terminology
  • Direct Costs and Indirect Costs
  • Cost Allocation Challenges
  • Factors Affecting Direct/Indirect Cost Classifications
  • Cost-Behavior Patterns: Variable Costs and Fixed Costs
  • Concepts in Action: Foodpanda Helps SMEs Survive During the Pandemic
  • Cost Drivers
  • Relevant Range
  • Relationships Between Types of Costs
  • Total Costs and Unit Costs
  • Unit Costs
  • Use Unit Costs Cautiously
  • Business Sectors, Types of Inventory, Inventoriable Costs, and Period Costs
  • Manufacturing-, Merchandising-, and Service-Sector Companies
  • Types of Inventory
  • Commonly Used Classifications of Manufacturing Costs
  • Inventoriable Costs
  • Period Costs
  • Illustrating the Flow of Inventoriable Costs and Period Costs
  • Manufacturing-Sector Example
  • Recap of Inventoriable Costs and Period Costs
  • Prime Costs and Conversion Costs
  • Measuring Costs Requires Judgment
  • Labor Costs
  • Benefits of Defining Accounting Terms
  • Different Meanings of Product Costs
  • A Framework for Cost Accounting and Cost Management
  • Calculating the Cost of Products, Services, and Other Cost Objects
  • Obtaining Information for Planning and Control and Performance Evaluation
  • Analyzing the Relevant Information for Making Decisions
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 3 Cost–Volume–Profit Analysis
  • Breaking Barriers: BTS’s Record-Breaking World Tour and Its $247 Million Success
  • Essentials of CVP Analysis
  • Contribution Margin
  • Expressing CVP Relationships
  • Cost–Volume–Profit Assumptions
  • Break-even Point and Target Operating Income
  • Break-even Point
  • Target Operating Income
  • Income Taxes and Target Net Income
  • Using CVP Analysis for Decision Making
  • Decision to Advertise
  • Decision to Reduce the Selling Price
  • Determining Target Prices
  • Sensitivity Analysis and Margin of Safety
  • Cost Planning and CVP
  • Alternative Fixed-Cost/Variable-Cost Structures
  • Operating Leverage
  • Concepts in Action: F&N’s Path to Profitability
  • Effects of Sales Mix on Income
  • CVP Analysis in Service and Not-for-Profit Organizations
  • Contribution Margin Versus Gross Margin
  • Problem for Self-Study
  • Decision Points
  • Appendix: Decision Models and Uncertainty
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 4 Job Costing
  • Job Costing and the Sphere
  • Building-Block Concepts of Costing Systems
  • Job-Costing and Process-Costing Systems
  • Job Costing: Evaluation and Implementation
  • Time Period Used to Compute Indirect-Cost Rates
  • Normal Costing
  • General Approach to Job Costing Using Normal Costing
  • Concepts in Action: Better Job Costing Through Artificial Intelligence
  • The Role of Technology
  • Actual Costing
  • A Normal Job-Costing System in Manufacturing
  • General Ledger
  • Explanations of Transactions
  • Subsidiary Ledgers
  • Materials Records by Type of Material
  • Labor Records by Employee
  • Manufacturing Department Overhead Records by Month
  • Work-in-Process Inventory Records by Jobs
  • Finished Goods Inventory Records by Jobs
  • Other Subsidiary Records
  • Nonmanufacturing Costs and Job Costing
  • Budgeted Indirect Costs and End-of-Accounting-Year Adjustments
  • Underallocated and Overallocated Indirect Costs
  • Adjusted Allocation-Rate Approach
  • Proration Approach
  • Write-Off to Cost of Goods Sold Approach
  • Choosing Among Approaches
  • Variations of Normal Costing: A Service-Sector Example
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 5 Activity-Based Costing and Activity-Based Management
  • Activity-Based Costing and the True Cost of Data Breaches
  • Broad Averaging and Its Consequences
  • Undercosting and Overcosting
  • Product-Cost Cross-Subsidization
  • Simple Costing System at Plastim Corporation
  • Design, Manufacturing, and Distribution Processes
  • Simple Costing System Using a Single Indirect-Cost Pool
  • Applying the Five-Step Decision-Making Process at Plastim
  • Refining a Costing System
  • Developments That Have Increased the Demand for Refining Costing Systems
  • Guidelines for Refining a Costing System
  • Activity-Based Costing Systems
  • Plastim’s ABC System
  • Cost Hierarchies
  • Implementing Activity-Based Costing
  • Implementing ABC at Plastim
  • Comparing Alternative Costing Systems
  • Considerations in Implementing Activity-Based Costing Systems
  • Benefits and Costs of Activity-Based Costing Systems
  • ABC in Service and Merchandising Companies
  • Behavioral Issues in Implementing Activity-Based Costing Systems
  • Concepts in Action: Can Machine Learning Improve Activity-Based Costing?
  • Activity-Based Management
  • Pricing and Product-Mix Decisions
  • Cost Reduction and Process Improvement Decisions
  • Design Decisions
  • Planning and Managing Activities
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 6 Master Budget and Responsibility Accounting
  • “Scrimping” at the Ritz: Master Budgets
  • Budgets and the Budgeting Cycle
  • Strategic Plans and Operating Plans
  • Budgeting Cycle and Master Budget
  • Advantages and Challenges of Implementing Budgets
  • Promoting Coordination and Communication
  • Providing a Framework for Judging Performance and Facilitating Learning
  • Motivating Managers and Other Employees
  • Challenges in Administering Budgets
  • Developing an Operating Budget
  • Time Coverage of Budgets
  • Steps in Preparing an Operating Budget
  • Financial Planning Models and Sensitivity Analysis
  • Concepts in Action: How RG Gold Struck Gold with Cloud-Based Budgeting
  • Budgeting and Responsibility Accounting
  • Organization Structure and Responsibility
  • Feedback
  • Responsibility and Controllability
  • Human Aspects of Budgeting
  • Budgetary Slack
  • Stretch Targets
  • Kaizen Budgeting
  • Budgeting for Reducing Carbon Emissions
  • Budgeting in Multinational Companies
  • Problem for Self-Study
  • Decision Points
  • Appendix: The Cash Budget
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 7 Flexible Budgets, Direct-Cost Variances, and Management Control
  • Walmart’s Fleet Goes Green to Reduce Standard Costs
  • Static Budgets and Variances
  • The Use of Variances
  • Static Budgets and Static-Budget Variances
  • Flexible Budgets
  • Flexible-Budget Variances and Sales-Volume Variances
  • Sales-Volume Variances
  • Flexible-Budget Variances
  • Standard Costs for Variance Analysis
  • Obtaining Budgeted Input Prices and Budgeted Input Quantities
  • Price Variances and Efficiency Variances for Direct-Cost Inputs
  • Price Variances
  • Efficiency Variance
  • Journal Entries Using Standard Costs
  • Implementing Standard Costing
  • Management’s Use of Variances
  • Concepts in Action: Can Chipotle “Stop the Skimp” While Lowering Its Materials Costs?
  • Multiple Causes of Variances
  • When to Investigate Variances
  • Using Variances for Performance Measurement
  • Using Variances for Organization Learning
  • Using Variances for Continuous Improvement
  • Financial and Nonfinancial Performance Measures
  • Benchmarking and Variance Analysis
  • Problem for Self-Study
  • Decision Points
  • Appendix: Mix and Yield Variances for Substitutable Inputs
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 8 Flexible Budgets, Overhead Cost Variances, and Management Control
  • How Remote Work Helps Maybank Reduce Overhead Costs
  • Planning of Variable and Fixed Overhead Costs
  • Planning Variable Overhead Costs
  • Planning Fixed Overhead Costs
  • Standard Costing at Webb Company
  • Developing Budgeted Variable Overhead Rates
  • Developing Budgeted Fixed Overhead Rates
  • Variable Overhead Cost Variances
  • Flexible-Budget Analysis
  • Variable Overhead Efficiency Variance
  • Variable Overhead Spending Variance
  • Concepts in Action: How Nestlé Malaysia Remains Resilient in Managing Overhead Costs amid Economic Challenges
  • Journal Entries for Variable Overhead Costs and Variances
  • Fixed Overhead Cost Variances
  • Production-Volume Variance
  • Interpreting the Production-Volume Variance
  • Journal Entries for Fixed Overhead Costs and Variances
  • Integrated Analysis of Overhead Cost Variances
  • 4-Variance Analysis
  • Combined Variance Analysis
  • Production-Volume Variance and Sales-Volume Variance
  • Variance Analysis and Activity-Based Costing
  • Flexible Budget and Variance Analysis for Direct Materials-Handling Labor Costs
  • Flexible Budget and Variance Analysis for Fixed Setup Overhead Costs
  • Overhead Variances in Nonmanufacturing Settings
  • Financial and Nonfinancial Performance Measures
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 9 Inventory Costing and Capacity Analysis
  • Inventory Backlog Leaves Peloton Falling Behind
  • Variable and Absorption Costing
  • Variable Costing
  • Absorption Costing
  • Comparing Variable and Absorption Costing
  • Variable Versus Absorption Costing: Operating Income and Income Statements
  • Comparing Income Statements for One Year
  • Comparing Income Statements for Multiple Years
  • Variable Costing and the Effect of Sales and Production on Operating Income
  • Absorption Costing and Performance Measurement
  • Undesirable Buildup of Inventories
  • Proposals for Revising Performance Evaluation
  • Comparing Inventory Costing Methods
  • Throughput Costing
  • A Comparison of Alternative Inventory-Costing Methods
  • Denominator-Level Capacity Concepts and Fixed-Cost Capacity Analysis
  • Absorption Costing and Alternative Denominator-Level Capacity Concepts
  • Effect on Budgeted Fixed Manufacturing Cost Rate
  • Choosing a Capacity Level
  • Product Costing and Capacity Management
  • Pricing Decisions and the Downward Demand Spiral
  • Concepts in Action: Can ESPN Avoid the Cord-Cutting “Death Spiral”?
  • Performance Evaluation
  • Financial Reporting
  • Tax Requirements
  • Planning and Control of Capacity Costs
  • Difficulties in Forecasting Chosen Capacity Levels
  • Difficulties in Forecasting Fixed Manufacturing Costs
  • Nonmanufacturing Costs
  • Activity-Based Costing
  • Problem for Self-Study
  • Decision Points
  • Appendix: Break-even Points in Variable Costing and Absorption Costing
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 10 Determining How Costs Behave
  • UPS Uses Cutting-Edge Technology to Reduce Fuel Consumption and Costs
  • Basic Assumptions and Examples of Cost Functions
  • Basic Assumptions
  • Linear Cost Functions
  • Review of Cost Classification
  • Identifying Cost Drivers
  • The Cause-and-Effect Criterion
  • Cost Drivers and the Decision-Making Process
  • Cost Estimation Methods
  • Industrial Engineering Method
  • Conference Method
  • Account Analysis Method
  • Quantitative Analysis Method
  • Estimating a Cost Function Using Quantitative Analysis
  • Regression Analysis Method
  • Evaluating and Choosing Cost Drivers
  • Cost Drivers and Activity-Based Costing
  • Nonlinear Cost Functions
  • Learning Curves
  • Cumulative Average-Time Learning Model
  • Incremental Unit-Time Learning Model
  • Incorporating Learning-Curve Effects into Prices and Standards
  • Concepts in Action: Can Artificial Intelligence Learning Curves Help Save the Planet?
  • Data Collection and Adjustment Issues
  • Problem for Self-Study
  • Decision Points
  • Appendix: Regression Analysis
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 11 Data Analytic Thinking and Prediction
  • How Ford Uses Predictive Analytics to Improve Quality and Drive Sales
  • Data Science Basics and Management Accounting
  • Outcome Prediction
  • Value Creation
  • Data Science Framework
  • Concepts in Action: Carnival Uses Big Data and Machine Learning to Sail Toward Greater Profitability
  • Defining the Problem and the Relevant Data
  • Step 1: Gain a Business Understanding of the Problem
  • Step 2: Obtain and Explore Relevant Data
  • Step 3: Prepare the Data
  • Data Algorithms and Models
  • Step 4: Build a Model
  • Refining the Decision Tree
  • Overfitting
  • Pruning
  • Validating and Choosing Models
  • Cross-Validation Using Prediction Accuracy to Choose Between Full and Pruned Decision Trees
  • Testing the Pruned Decision-Tree Model on the Holdout Sample
  • Evaluating Data Science Models
  • Step 5: Evaluate the Model
  • Step 6: Visualize and Communicate Insights
  • Working with PeerLend Digital Data
  • Using Data Science Models
  • Step 7: Deploy the Model
  • Problem for Self-Study
  • Decision Points
  • Appendix: Using Maximum Likelihood Values to Choose Between Fully Grown and Pruned Decision Trees
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 12 Decision Making and Relevant Information
  • Relevant Costs and Broadway Shows
  • Information and the Decision Process
  • The Concept of Relevance
  • Relevant Costs and Relevant Revenues
  • Qualitative and Quantitative Relevant Information
  • One-Time-Only Special Orders
  • Potential Problems in Relevant-Cost Analysis
  • Short-Run Pricing Decisions
  • Insourcing-Versus-Outsourcing and Make-or-Buy Decisions
  • Outsourcing and Idle Facilities
  • Strategic and Qualitative Factors
  • International Outsourcing
  • The Total Alternatives Approach
  • Concepts in Action: The U.S. Invests Billions of Dollars to “Re-Shore” Semiconductor Production
  • The Opportunity-Cost Approach
  • Carrying Costs of Inventory
  • Product-Mix Decisions with Capacity Constraints
  • Bottlenecks, Theory of Constraints, and Throughput-Margin Analysis
  • Customer Profitability and Relevant Costs
  • Relevant-Revenue and Relevant-Cost Analysis of Dropping a Customer
  • Relevant-Revenue and Relevant-Cost Analysis of Adding a Customer
  • Relevant-Revenue and Relevant-Cost Analysis of Closing or Adding Branch Offices or Business Divisions
  • Irrelevance of Past Costs and Equipment-Replacement Decisions
  • Decisions and Performance Evaluation
  • Problem for Self-Study
  • Decision Points
  • Appendix: Linear Programming
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 13 Strategy, Balanced Scorecard, and Strategic Profitability Analysis
  • Deutsche Bank Leverages the Balanced Scorecard to Stay Ahead
  • What Is Strategy?
  • Strategy Implementation and the Balanced Scorecard
  • The Balanced Scorecard
  • Strategy Maps and the Balanced Scorecard
  • Implementing a Balanced Scorecard
  • Different Strategies Lead to Different Scorecards
  • Environmental and Social Performance and the Balanced Scorecard
  • Features of a Good Balanced Scorecard
  • Pitfalls in Implementing a Balanced Scorecard
  • Evaluating the Success of Strategy and Implementation
  • Strategic Analysis of Operating Income
  • Growth Component of Change in Operating Income
  • Concepts in Action: Spotify Faces the Music with Operating Income
  • Price-Recovery Component of Change in Operating Income
  • Productivity Component of Change in Operating Income
  • Further Analysis of Growth, Price-Recovery, and Productivity Components
  • Downsizing and the Management of Capacity
  • Identifying Unused Capacity Costs
  • Managing Unused Capacity
  • Problem for Self-Study
  • Decision Points
  • Appendix: Productivity Measurement
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 14 Pricing Decisions and Cost Management
  • Extreme Pricing and Cost Management at IKEA
  • Major Factors That Affect Pricing Decisions
  • Customers
  • Competitors
  • Costs
  • Weighing Customers, Competitors, and Costs
  • Costing and Pricing for the Long Run
  • Calculating Product Costs for Long-Run Pricing Decisions
  • Alternative Long-Run Pricing Approaches
  • Market-Based Approach: Target Costing for Target Pricing
  • Understanding Customers’ Perceived Value
  • Competitor Analysis
  • Implementing Target Pricing and Target Costing
  • Concepts in Action: Anglian Water Uses Automated Target Costing to Achieve Regulatory Targets
  • Value Engineering, Cost Incurrence, and Locked-In Costs
  • Value-Chain Analysis and Cross-Functional Teams
  • Achieving the Target Cost per Unit for Provalue
  • Pricing and Costing in the Health Care Industry
  • Cost-Plus Pricing
  • Cost-Plus Target Rate of Return on Investment
  • Alternative Cost-Plus Methods
  • Cost-Plus Pricing and Target Pricing
  • Life-Cycle Product Budgeting and Costing
  • Life-Cycle Budgeting and Pricing Decisions
  • Managing Environmental and Sustainability Costs
  • Customer Life-Cycle Costing
  • Noncost Factors in Pricing Decisions
  • Predatory Pricing
  • Collusive Pricing
  • Price Discrimination
  • International Pricing
  • Peak-Load Pricing
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 15 Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
  • The British Airways’ Customer Loyalty Program Pivots to Reward Big Spenders
  • Customer-Profitability Analysis
  • Customer-Revenue Analysis
  • Customer-Cost Analysis
  • Customer-Level Costs
  • Customer-Profitability Profiles
  • Concepts in Action: Amazon Prime and Customer Profitability
  • Presenting Profitability Analysis
  • Cost-Hierarchy-Based Operating Income Statement
  • Criteria to Guide Cost Allocations
  • Fully Allocated Customer Profitability
  • Implementing Corporate and Division Cost Allocations
  • Issues in Allocating Corporate Costs to Divisions and Customers
  • Using Fully Allocated Costs for Decision Making
  • Sales Variances
  • Static-Budget Variance
  • Flexible-Budget Variance and Sales-Volume Variance
  • Sales-Mix Variance
  • Sales-Quantity Variance
  • Market-Share and Market-Size Variances
  • Market-Share Variance
  • Market-Size Variance
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 16 Allocation of Support-Department Costs, Common Costs, and Revenues
  • Cost Allocation and the Future of Renewable Energy Distribution
  • Allocating Support Department Costs Using the Single-Rate and Dual-Rate Methods
  • Single-Rate and Dual-Rate Methods
  • Allocation Based on the Demand for (or Usage of) Materials-Handling Services
  • Allocation Based on the Supply of Capacity
  • Advantages and Disadvantages of Single-Rate Method
  • Advantages and Disadvantages of Dual-Rate Method
  • Budgeted Versus Actual Costs and the Choice of Allocation Base
  • Budgeted Versus Actual Rates
  • Budgeted Versus Actual Usage
  • Fixed-Cost Allocation Based on Budgeted Rates and Budgeted Usage
  • Fixed-Cost Allocation Based on Budgeted Rates and Actual Usage
  • Allocating Budgeted Fixed Costs Based on Actual Usage
  • Allocating Costs of Multiple Support Departments
  • Direct Method
  • Step-Down Method
  • Reciprocal Method
  • Overview of Methods
  • Calculating the Cost of Job WPP 298
  • Allocating Common Costs
  • Stand-Alone Cost-Allocation Method
  • Incremental Cost-Allocation Method
  • Cost Allocations and Contract Disputes
  • Concepts in Action: U.S. Government Goes After Contractor in Reimbursable Cost Dispute
  • Bundled Products and Revenue Allocation Methods
  • Bundling and Revenue Allocation
  • Stand-Alone Revenue-Allocation Method
  • Incremental Revenue-Allocation Method
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Exercises
  • Problems
  • 17 Cost Allocation: Joint Products and Byproducts
  • Joint Cost Allocation and the ASPCA
  • Joint-Cost Basics
  • Concepts in Action: Big Data Joint Products and Byproducts Create New Business Opportunities
  • Allocating Joint Costs
  • Approaches to Allocating Joint Costs
  • Sales Value at Splitoff Method
  • Physical-Measure Method
  • Net Realizable Value Method
  • Constant Gross-Margin Percentage NRV Method
  • Choosing an Allocation Method
  • Not Allocating Joint Costs
  • Why Joint Costs Are Irrelevant for Decision Making
  • Sell-or-Process-Further Decisions
  • Decision Making and Performance Evaluation
  • Pricing Decisions
  • Accounting for Byproducts
  • Production Method: Byproducts Recognized at Time Production Is Completed
  • Sales Method: Byproducts Recognized at Time of Sale
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 18 Process Costing
  • FIFO Versus LIFO Accounting for Cryptocurrency
  • Illustrating Process Costing
  • Case 1: Process Costing with Zero Beginning or Ending Work-in-Process Inventory
  • Case 2: Process Costing with Zero Beginning and Some Ending Work-in-Process Inventory
  • Summarizing the Physical Units and Equivalent Units (Steps 1 and 2)
  • Calculating Product Costs (Steps 3, 4, and 5)
  • Journal Entries
  • Case 3: Process Costing with Some Beginning and Some Ending Work-in-Process Inventory
  • Weighted-Average Method
  • First-In, First-Out Method
  • Comparing the Weighted-Average and FIFO Methods
  • Transferred-In Costs in Process Costing
  • Transferred-In Costs and the Weighted-Average Method
  • Transferred-In Costs and the FIFO Method
  • Points to Remember About Transferred-In Costs
  • Hybrid Costing Systems
  • Overview of Operation-Costing Systems
  • Concepts in Action: Hybrid Costing for H&M Print-On-Demand Apparel
  • Illustrating an Operation-Costing System
  • Journal Entries
  • Problem for Self-Study
  • Decision Points
  • Appendix: Standard-Costing Method of Process Costing
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 19 Spoilage, Rework, and Scrap
  • Dow Chemical Uses AI to Reduce Rework
  • Defining Spoilage, Rework, and Scrap
  • Two Types of Spoilage
  • Normal Spoilage
  • Abnormal Spoilage
  • Concepts in Action: Kawan Food Berhad’s Holistic Approach to Food Safety and Spoilage Reduction
  • Spoilage in Process Costing Using Weighted-Average and FIFO
  • Count All Spoilage
  • Five-Step Procedure for Process Costing with Spoilage
  • Weighted-Average Method and Spoilage
  • FIFO Method and Spoilage
  • Journal Entries
  • Inspection Points and Allocating Costs of Normal Spoilage
  • Job Costing and Spoilage
  • Job Costing and Rework
  • Accounting for Scrap
  • Recognizing Scrap at the Time of Its Sale
  • Recognizing Scrap at the Time of Its Production
  • Problem for Self-Study
  • Decision Points
  • Appendix: Standard-Costing Method and Spoilage
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 20 Managing Quality and Time
  • Food Safety Concerns Impact Nestlé’s Growth and Revenue in India
  • Quality as a Competitive Tool
  • The Financial Perspective: The Costs of Quality
  • Using Nonfinancial Measures to Evaluate and Improve Quality
  • The Customer Perspective: Nonfinancial Measures of Customer Satisfaction
  • The Internal-Business-Process Perspective: Analyzing Quality Problems and Improving Quality
  • The Learning-and-Growth Perspective: Quality Improvements
  • Relevant Costs and Benefits of Improving Quality
  • Evaluating a Company’s Quality Performance
  • Time as a Competitive Tool
  • Customer-Response Time and On-Time Performance
  • Time Drivers and Bottlenecks
  • Concepts in Action: Will Data Center Bottlenecks Throttle ChatGPT’s Continued Rise?
  • Relevant Revenues and Costs of Delays
  • Balanced Scorecard and Time-Based Measures
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 21 Inventory Management, Just-in-Time, and Simplified Costing Methods
  • Danone Leverages Artificial Intelligence to Drive Transformation in the Food Industry
  • Inventory Management in Retail Organizations
  • Costs Associated with Goods for Sale
  • The Economic-Order-Quantity Decision Model
  • When to Order, Assuming Certainty
  • Safety Stock
  • Estimating Inventory-Related Relevant Costs and Their Effects
  • Cost of a Prediction Error
  • Conflicts Between the EOQ Decision Model and Managers’ Performance Evaluation
  • Just-in-Time Purchasing
  • JIT Purchasing and EOQ Model Parameters
  • Relevant Costs of JIT Purchasing
  • Supplier Evaluation and Relevant Costs of Quality and Timely Deliveries
  • JIT Purchasing, Planning and Control, and Supply-Chain Analysis
  • Concepts in Action: Just-in-Time Versus Just-in-Case: What Is the Production System of the Future?
  • Inventory Management, MRP, and JIT Production
  • Materials Requirements Planning
  • Just-in-Time (JIT) Production
  • Features of JIT Production Systems
  • Costs and Benefits of JIT Production
  • JIT in Service Industries
  • Enterprise Resource Planning (ERP) Systems
  • Performance Measures and Control in JIT Production
  • Effect of JIT Systems on Product Costing
  • Backflush Costing
  • Simplified Normal or Standard-Costing Systems
  • Lean Accounting
  • Problems for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 22 Capital Budgeting and Cost Analysis
  • NPV and California’s New Residential Solar Panel Rules
  • Stages of Capital Budgeting
  • Concepts in Action: Danone Integrates Sustainability into Capital Budgeting
  • Discounted Cash Flow
  • Net Present Value Method
  • Internal Rate-of-Return Method
  • Comparing the Net Present Value and Internal Rate-of-Return Methods
  • Sensitivity Analysis
  • Payback Method
  • Uniform Cash Flows
  • Nonuniform Cash Flows
  • Accrual Accounting Rate-of-Return Method
  • Relevant Cash Flows in Discounted Cash Flow Analysis
  • Relevant After-Tax Flows
  • Categories of Cash Flows
  • Project Management and Performance Evaluation
  • Post-Investment Audits
  • Performance Evaluation
  • Strategic Considerations in Capital Budgeting
  • Investment in Research and Development
  • Customer Value and Capital Budgeting
  • Problem for Self-Study
  • Decision Points
  • Appendix: Capital Budgeting and Inflation
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • 23 Management Control Systems, Transfer Pricing, and Multinational Considerations
  • Microsoft Receives $28.9 Billion Back Tax Bill
  • Management Control Systems
  • Formal and Informal Systems
  • Effective Management Control
  • Decentralization
  • Benefits of Decentralization
  • Costs of Decentralization
  • Comparing Benefits and Costs
  • Decentralization in Multinational Companies
  • Choices About Responsibility Centers
  • Transfer Pricing
  • Criteria for Evaluating Transfer Prices
  • Calculating Transfer Prices
  • An Illustration of Transfer Pricing
  • Market-Based Transfer Prices
  • Perfect Competition
  • Imperfect Competition
  • Cost-Based Transfer Prices
  • Full-Cost Bases
  • Variable-Cost Bases
  • Hybrid Transfer Prices
  • Prorating the Difference Between Maximum and Minimum Transfer Prices
  • Negotiated Pricing
  • Dual Pricing
  • A General Guideline for Transfer-Pricing Situations
  • How Multinationals Use Transfer Pricing to Minimize Their Income Taxes
  • Concepts in Action: IRS Unlikes Facebook’s Transfer-Pricing Arrangements
  • Transfer Prices Designed for Multiple Objectives
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Exercises
  • Problems
  • 24 Performance Measurement, Compensation, and Multinational Considerations
  • Does Any CEO Deserve to Make $56 Billion?
  • Financial and Nonfinancial Performance Measures
  • Accounting-Based Measures for Business Units
  • Return on Investment
  • Residual Income
  • Economic Value Added
  • Return on Sales
  • Comparing Performance Measures
  • Choosing the Details of the Performance Measures
  • Alternative Time Horizons
  • Alternative Definitions of Investment
  • Alternative Asset Measurements
  • Target Levels of Performance and Feedback
  • Choosing Target Levels of Performance
  • Choosing the Timing of Feedback
  • Performance Measurement in Multinational Companies
  • Calculating a Foreign Division’s ROI in the Foreign Currency
  • Calculating a Foreign Division’s ROI in U.S. Dollars
  • Distinguishing the Performance of Managers from the Performance of Their Subunits
  • The Basic Tradeoff: Creating Incentives Versus Imposing Risk
  • Intensity of Incentives and Financial and Nonfinancial Measurements
  • Concepts in Action: Performance Measurement and the Rise of B Corporations
  • Benchmarks and Relative Performance Evaluation
  • Performance Measures at the Individual Activity Level
  • Executive Performance Measures and Compensation
  • Organizational Values
  • Organizational Value Statements
  • Problem for Self-Study
  • Decision Points
  • Terms to Learn
  • Assignment Material
  • Questions
  • Multiple-Choice Questions
  • Exercises
  • Problems
  • Appendix A: Notes on Compound Interest and Interest Tables
  • Glossary