Managerial Accounting ISE

Name: Managerial Accounting ISE
Price: 5150 ISK
Availability: InStock
Author: Stacey Whitecotton
ISBN: 9781265462406

Höfundur: Stacey Whitecotton (Útgáfa: 6)

Kaup valmöguleikar

From the award-winning, market-leading Libby/Phillips author team comes a modern, relevant, and engaging textbook for today’s managerial accounting student. The text prepares students for success in business by incorporating key components that motivate and guide them through the course. It builds student interest by using recognizable companies like Starbucks and Apple and shows how managers use accounting information to make decisions in these companies.

It helps students become better problem-solvers, using a robust end of chapter practice content and uses interactive technology to enhance student learning. Whitecotton/Libby/Phillips Managerial Accounting brings lively and engaging coverage of managerial accounting topics and decision-making focus to the managerial accounting course and pairs perfectly with Phillips/Clor-Proell/Libby/Libby Fundamentals of Financial Accounting, to provide a truly comprehensive solution to your introductory students.

Nánar um bókina

Útgefandi: McGraw-Hill Higher Education (International)

ISBN: 9781265462406

Print ISBN: 9781265251871

Format: ePub

Útgáfa: 6

Höfundar: Stacey Whitecotton

Tungumál: English

Útgefið: 2025-07-01

Prent takmörkun á líftíma: 100

Prent takmörkun: 2

Afritunar takmörkun: 2

Flokkar: Viðskiptafræði

Efnisflokkar: Viðskipti og hagfræði › Stjórnunartengd

Kaflar

Sharpen
Meet Sharpen
Frontmatter
Cover Page
Title Page
Copyright
Dedication
Meet the Authors
Stacey Whitecotton
Robert Libby
Fred Phillips
Preparing Students for Success in Business Managerial Accounting by Whitecotton/Libby/Phillips
Engaging Features and Relevant Pedagogy Bring Managerial Accounting Content to Life
Chapter Openers—Focus Companies
Integrated Analytics Case
How’s It Going? Self-Study Practice
Coach’s Tips
Spotlight Features
Review and Practice Material Build a Strong Foundation for Future Success
Demonstration Case
Chapter Summary by Learning Objectives
Key Terms
Homework Helper
Questions
Multiple-Choice Questions
Mini-Exercises
Exercises
Problems (Groups A and B)
Integrated Analytics Case Questions
Level-Up Questions
Sustainability Questions
Skills Development Cases
What’s New in This Release?
Connect
Concept Overview Videos
Integrated Excel
Guided Example Hint Videos
Proctorio Remote Proctoring & Browser-Locking Capabilities
ReadAnywhere® App
Online Learning Consortium-Aligned Courses Implementing High-Quality Instruction and Assessment through Preconfigured Courseware
Test Builder in McGraw Hill Connect®
Writing Assignment
Polling
Evergreen
Acknowledgments
Editorial Review Panel
Reviewers of Previous Editions
Brief Contents
Contents
Chapter 1: Introduction to Managerial Accounting
Introduction
Role of Managerial Accounting in Organizations
COMPARISON OF FINANCIAL AND MANAGERIAL ACCOUNTING
TYPES OF ORGANIZATIONS
FUNCTIONS OF MANAGEMENT
SUSTAINABILITY AND ESG REPORTING
DECISION ANALYTICS
Role of Cost in Managerial Accounting
DIRECT VERSUS INDIRECT COSTS
MANUFACTURING VERSUS NONMANUFACTURING COSTS
PRODUCT VERSUS PERIOD COSTS
VARIABLE VERSUS FIXED COSTS
RELEVANT VERSUS IRRELEVANT COSTS
Supplement 1A Ethics and the Accounting Profession
Review The Chapter
DEMONSTRATION CASE
Chapter Summary
LO 1–1 Describe the key differences between financial accounting and managerial accounting. p. 5
LO 1–2 Describe how managerial accounting is used in different types of organizations to support the key functions of management. p. 8
LO 1–3 Describe the importance of sustainability, ESG, and decision analytics in managerial accounting. p. 11
LO 1–4 Define and give examples of different types of costs. p. 14
LO 1–S1 Describe the Sarbanes-Oxley Act and the importance of ethics in the accounting profession. p. 20
Key Terms
Homework Helper
Common Terminology
Key Formulas
Helpful Reminders
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 1–1 M1–1 Comparing Financial and Managerial Accounting
LO 1–1, 1–2 1–4 M1–2 Matching Terminology
LO 1–1, 1–2, 1–4 M1–3 Matching Terminology
LO 1–2 M1–4 Identifying Management Functions
LO 1–4 M1–5 Classifying Costs
LO 1–4 M1–6 Classifying Costs
LO 1–4 M1–7 Classifying and Calculating Cost
LO 1–4 M1–8 Calculating Costs
LO 1–4 M1–9 Classifying Costs
LO 1–4 M1–10 Classifying Costs
LO 1–4 M1–11 Calculating Missing Amounts
LO 1–2 M1–12 Classifying Type of Company
LO 1–4 M1–13 Identifying Direct and Indirect Costs for a Service Company
LO 1–4 M1–14 Identifying Direct and Indirect Costs for a Merchandising Company
LO 1–S1 M1–15 Classifying Sarbanes-Oxley (SOX) Objectives and Requirements
LO 1–S1 M1–16 Identifying Ethical Dilemmas
Exercises
LO 1–1 E1–1 Making Decisions Using Managerial Accounting
LO 1–2 E1–2 Identifying Management Functions
LO 1–3 E1–3 Identify sustainability issues affecting the triple bottom line
LO 1–4 E1–4 Classifying Costs
LO 1–4 E1–5 Classifying Costs
LO 1–4 E1–6 Calculating Missing Amounts
LO 1–4 E1–7 Classifying and Calculating Costs
LO 1–4 E1–8 Classifying Costs
LO 1–4 E1–9 Classifying and Calculating Costs
LO 1–4 E1–10 Identifying Relevant and Irrelevant Costs
LO 1–4 E1–11 Calculating Missing Amounts
LO 1–4 E1–12 Explaining Manufacturing Cost Categories
LO 1–4 E1–13 Explaining Effects of Cost Misclassification
LO 1–S1 E 1–14 Identifying and Resolving Ethical Dilemmas
Group A Problems
LO 1–1 PA1–1 Comparing Financial and Managerial Accounting
LO 1–2 PA1–2 Identifying Management Functions
LO 1–4 PA1–3 Classifying Costs; Calculating Total Costs; Identifying Impact of Misclassification
LO 1–4 PA 1–4 Classifying Costs
LO 1–4 PA 1–5 Calculating Costs
Group B Problems
LO 1–4 PB1–1 Comparing Product and Period Costs
LO 1–2 PB1–2 Identifying Management Functions
LO 1–4 PB1–3 Classifying Costs, Calculating Total Costs, and Identifying Impact of Classifications
LO 1–4 PB 1–4 Classifying Costs
LO 1–4 PB 1–5 Calculating Costs
Skills Development Cases
LO 1–4 S1–1 Video Case Assignment: Identifying Manufacturing Costs
LO 1–4 S1–2 Identifying Changes in Manufacturing Process and Costs Due to Automation
LO 1–2 S1–3 Identifying Service, Merchandising, and Manufacturing Firms: Internet Research
LO 1–3 S1–4 Interviewing Local Manager to Identify Sustainability Initiatives
LO 1–3 S1–5 Using Decision Analytics to Reduce Energy Consumption and Enhance Sustainability at California Pizza Kitchen
Integrated Analytics Case: Bene Petit
Case Background
CUSTOMER MEALS
DONATED MEALS
Case Requirements
PART 1: UNDERSTANDING THE BUSINESS (CHAPTER 1)
PART 2: PRODUCT AND SERVICE COSTING (CHAPTERS 2–5)
PART 3: MANAGERIAL DECISION MAKING (CHAPTERS 6 and 7)
PART 4: PLANNING AND CONTROL (CHAPTERS 8 AND 9)
PART 5: PERFORMANCE EVALUATION AND ANALYSIS (CHAPTERS 10–13)
Chapter 2: Job Order Costing
Introduction
Fundamentals of Job Order Costing
JOB ORDER VERSUS PROCESS COSTING
MANUFACTURING COST CATEGORIES
SOURCE DOCUMENTS IN JOB ORDER COSTING
APPLYING MANUFACTURING OVERHEAD TO JOBS
Flow of Manufacturing Costs in Job Order Costing
DIRECT AND INDIRECT MATERIALS
DIRECT AND INDIRECT LABOR
APPLIED MANUFACTURING OVERHEAD
ACTUAL MANUFACTURING OVERHEAD
TRANSFER COSTS TO FINISHED GOODS INVENTORY AND COST OF GOODS SOLD
RECORD NONMANUFACTURING COSTS
Reporting in Job Order Costing
OVERAPPLIED OR UNDERAPPLIED MANUFACTURING OVERHEAD
COST OF GOODS MANUFACTURED REPORT
JOB ORDER COSTING IN A SERVICE FIRM
Supplement 2A Journal Entries for Job Order Costing
RECORDING THE PURCHASE AND ISSUE OF MATERIALS
RECORDING LABOR COSTS
RECORDING APPLIED MANUFACTURING OVERHEAD
RECORDING ACTUAL MANUFACTURING OVERHEAD
TRANSFERRING COSTS TO FINISHED GOODS INVENTORY AND COST OF GOODS SOLD
RECORDING NONMANUFACTURING COSTS
RECORDING OVERAPPLIED OR UNDERAPPLIED MANUFACTURING OVERHEAD
Review The Chapter
DEMONSTRATION CASE
Required:
Suggested Solution
Chapter Summary
Key Terms
Homework Helper
Common Terminology
Key Formulas
Helpful Reminders
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 2–1 M2–1 Identifying Companies That Use Job Order versus Process Costing
LO 2–2 M2–2 Identifying Source Document Information
LO 2–1, 2–2, 2–3, 2–4, 2–5 M2–3 Matching Terms in Job Order Costing
LO 2–4, 2–6 M2–4 Matching Terms in Job Order Costing
LO 2–3 M2–5 Computing Applied Manufacturing Overhead and Conversion Cost
LO 2–3 M2–6 Calculating Predetermined Overhead Rates
LO 2–3 M2–7 Calculating Applied Manufacturing Overhead
LO 2–5 M2–8 Calculating Over- or Underapplied Manufacturing Overhead
LO 2–3 M2–9 Calculating Predetermined Overhead Rate
LO 2–5 M2–10 Calculating Over- or Underapplied Manufacturing Overhead
LO 2–4 M2–11 Identifying Inventory Accounts
LO 2–5 M2–12 Determining Missing Amounts
LO 2–2, 2–4 M2–13 Recording the Purchase and Issue of Raw Materials
LO 2–S1 M2–14 Preparing Journal Entries
LO 2–2, 2–4 M2–15 Recording Direct and Indirect Labor Costs
LO 2–S1 M2–16 Preparing Journal Entries
LO 2–3, 2–4, 2–5 M2–17 Calculating Over- or Underapplied Overhead Costs
LO 2–S1 M2–18 Preparing Journal Entries
LO 2–6 M2–19 Calculating Total Current Manufacturing Cost
LO 2–6 M2–20 Calculating Cost of Goods Sold
LO 2–3, 2–6 M2–21 Calculating Direct Materials Used in Production
LO 2–2 M2–22 Interpreting the Job Cost Sheet
LO 2–6 M2–23 Calculating Missing Amounts and Cost of Goods Manufactured
LO 2–6 M2–24 Calculating Missing Amounts and Cost of Goods Sold
Exercises
LO 2–2, LO 2–3, LO 2–4 E2–1 Posting Direct Materials, Direct Labor, and Applied Overhead to T-Accounts, Calculating Ending Balances
LO 2–S1 E2–2 Preparing Journal Entries
LO 2–2, LO 2–4 E2–3 Analyzing Labor Time Tickets and Recording Labor Costs
LO 2–S1 E2–4 Preparing Journal Entries
LO 2–3 E2–5 Calculating Predetermined Overhead Rate and Applied Overhead
LO 2–3, LO 2–6 E2–6 Finding Unknown Values in the Cost of Goods Manufactured Report
LO 2–3, LO 2–5 E2–7 Calculating Overhead Rates, Actual and Applied Manufacturing Overhead, and Analyzing Over- or Underapplied Manufacturing Overhead
LO 2–S1 E2–8 Preparing Journal Entries
LO 2–4, LO 2–6 E2–9 Calculating Cost of Jobs
LO 2–6 E2–10 Preparing Cost of Goods Manufactured and Income Statement
LO 2–4 E2–11 Calculating Cost of Jobs in Work in Process, Finished Goods, and Cost of Goods Sold
LO 2–3, LO 2–4, LO 2–7 E2–12 Applying Job Order Costing in a Service Setting
LO 2–3, LO 2–4 E2–13 Calculating the Cost of Finished and Unfinished Jobs
LO 2–3, LO 2–7 E2–14 Computing Overhead Rate and Billing Rate for Service Firm
LO 2–3, 2–4, 2–6 E2–15 Calculating and Posting Sales Revenue and the Total Cost to Complete a Job to T-Accounts
LO 2–S1 E2–16 Preparing Journal Entries
LO 2–4 E2–17 Identifying Manufacturing Cost Flow through T-Accounts
LO 2–3, LO 2–4, LO 2–5, LO 2–6 E2–18 Calculating Actual and Applied Manufacturing Overhead Costs and Over- or Underapplied Overhead Costs
LO 2–S1 E2–19 Preparing Journal Entries
LO 2–3, LO 2–4, LO 2–5 E2–20 Recording Manufacturing Costs
LO 2–3, LO 2–4, LO 2–5, LO 2–6 E2–21 Calculating Missing Amounts and Cost of Goods Manufactured and Sold
LO 2–6 E2–22 Calculating Cost of Goods Manufactured and Sold and Preparing an Income Statement
LO 2–S1 E2–23 Preparing Journal Entries
LO 2–S1 E2–24 Preparing Journal Entries
LO 2–S1 E2–25 Preparing Journal Entries
LO 2–3, LO 2–4, LO 2–7 E2–26 Applying Job Order Costing in a Service Setting
LO 2–2 E2–27 Sustainability and Job Order Costing
Group A Problems
LO 2–3, 2–4, 2–5, 2–6 PA2–1 Recording Manufacturing and Nonmanufacturing Costs, Preparing the Cost of Goods Manufactured Report and Income Statement
LO 2–S1PA2–2 Preparing Journal Entries
LO 2–3, 2–4, 2–5 PA2–3 Calculating Predetermined Overhead Rates, Recording Manufacturing Costs, and Analyzing Overhead
LO 2–S1 PA2–4 Preparing Journal Entries
LO 2–3, 2–4, 2–5 PA2–5 Recording Manufacturing Costs and Analyzing Manufacturing Overhead
LO 2–3, 2–4, 2–5, 2–6 PA2–6 Finding Unknowns in the Cost of Goods Manufactured Report and Analyzing Manufacturing Overhead
LO 2–3, 2–5 PA2–7 Selecting an Allocation Base and Analyzing Manufacturing Overhead
LO 2–3, 2–4, 2–5, 2–6 PA2–8 Recording Manufacturing Costs, Preparing a Cost of Goods Manufactured Report, and Calculating Income from Operations
Group B Problems
LO 2–3, 2–4, 2–5, 2–6 PB2–1 Recording Manufacturing and Nonmanufacturing Costs, Preparing Cost of Goods Manufactured Report and Income Statement
LO 2–S1 PB2–2 Preparing Journal Entries
LO 2–3, 2–4, 2–5 PB2–3 Calculating Predetermined Overhead Rates, Recording Manufacturing Costs, and Analyzing Overhead
LO 2–S1 PB2–4 Preparing Journal Entries
LO 2–3, 2–4, 2–5 PB2–5 Recording Manufacturing Costs and Analyzing Manufacturing Overhead
LO 2–3, 2–4, 2–5, 2–6 PB2–6 Finding Unknowns in the Cost of Goods Manufactured Report and Analyzing Manufacturing Overhead
LO 2–3, 2–5 PB2–7 Selecting an Allocation Base and Analyzing Manufacturing Overhead
LO 2–3, 2–4, 2–5, 2–6 PB2–8 Recording Manufacturing Costs, Preparing a Cost of Goods Manufactured Report, and Calculating Income from Operations
Skills Development Cases
LO 2–1 S2–1 Video Case Assignment: Identifying Characteristics of Job Order Costing
LO 2–1, 2–2, 2–3 S2–2 Applying Job Order Costing to an Entrepreneurial Business
LO 2–3, 2–4, 2–5, 2–6, 2–S1S2–3 Comprehensive Job Order Costing Case
Integrated Analytics Case
Questions for Discussion:
Chapter 3: Process Costing
Introduction
Basic Concepts in Process Costing
FLOW OF COSTS IN PROCESS COSTING
PROCESS COSTING PRODUCTION REPORT
WEIGHTED AVERAGE VERSES FIFO
STEPS IN PROCESS COSTING
Prepare the Production Report (Weighted-Average Method)
STEP 1: RECONCILE THE NUMBER OF PHYSICAL UNITS
STEP 2: CONVERT PHYSICAL UNITS INTO EQUIVALENT UNITS
STEP 3: CALCULATE COST PER EQUIVALENT UNIT
STEP 4: RECONCILE THE TOTAL COST OF WORK IN PROCESS INVENTORY
STEP 5: PREPARE A PRODUCTION REPORT
Prepare the Production Report (FIFO Method)
STEP 1: RECONCILE THE NUMBER OF PHYSICAL UNITS
STEP 2: CONVERT PHYSICAL UNITS INTO EQUIVALENT UNITS
STEP 3: CALCULATE COST PER EQUIVALENT UNIT
STEP 4: RECONCILE THE TOTAL COST OF WORK IN PROCESS INVENTORY
STEP 5: PREPARE A PRODUCTION REPORT
Supplement 3A Subsequent Departments and Journal Entries in Process Costing
ACCOUNTING FOR SUBSEQUENT PRODUCTION DEPARTMENTS
JOURNAL ENTRIES IN PROCESS COSTING
Review the Chapter
DEMONSTRATION CASE A: WEIGHTED-AVERAGE METHOD
DEMONSTRATION CASE B: FIFO METHOD
Suggested Solution
Chapter Summary
LO 3–1 Describe the key features of a process costing system. p. 113
LO 3–2 Convert physical units into equivalent units using the weighted-average method. p. 119
LO 3–3 Prepare a process costing production report using the weighted-average method. p. 124
LO 3–4 Convert physical units into equivalent units using the first-in, first-out (FIFO) method. p. 126
LO 3–5 Prepare a process costing production report using the first-in, first-out (FIFO) method. p. 130
LO 3–S1 Describe how manufacturing costs are recorded in subsequent production departments and the journal entries for process costing. p. 132
Key Terms
Homework Helper
Common Terminology
Key Formulas
Helpful Reminders
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 3–1, LO 3–2M3–1 Matching Terminology
LO 3–1 M3–2 Identifying Companies That Use Process Costing
LO 3–1 M3–3 Compute Costs for Manufacturing Company
LO 3–2 M3–4 Calculating Physical Units
LO 3–2 M3–5 Calculating Physical Units
LO 3–2 M3–6 Calculating Physical Units and Equivalent Units (Weighted-Average Method)
LO 3–4 M3–7 Calculating Physical Units and Equivalent Units (FIFO)
LO 3–2 M3–8 Calculating Physical Units and Equivalent Units (Weighted-Average Method)
LO 3–2 M3–9 Calculating Physical Units and Equivalent Units (Weighted-Average Method)
LO 3–2 M3–10 Calculating Cost per Equivalent Unit (Weighted-Average Method)
LO 3–4 M3–11 Calculating Cost per Equivalent Unit (FIFO)
LO 3–2 M3–12 Assigning Costs to Units (Weighted Average)
LO 3–2 M3–13 Assigning Costs to Units (Weighted Average)
LO 3–S1 M3–14 Preparing Journal Entries
LO 3–2 M3–15 Calculating Equivalent Units (Weighted-Average Method)
LO 3–4 M3–16 Calculating Equivalent Units (FIFO)
LO 3–1 M3–17 Compare Weighted-Average and FIFO Process Costing
LO 3–3 M3–18 Calculating Physical Units and Equivalent Units (Weighted-Average Method) for a Subsequent Department
LO 3–S1 M3–19 Preparing Journal Entries for Process Costing System
Exercises
LO 3–1 E3–1 Understanding Process Costing
LO 3–1 E3–2 Computing Manufacturing Costs for Process Costing
LO 3–1 E3–3 Changing Direct Material Inputs to Reduce Costs and Energy Consumption
LO 3–1 E3–4 Computing Unknown Manufacturing Costs for Process Costing
LO 3–2 E3–5 Calculating Physical Units and Equivalent Units (Weighted-Average Method)
LO 3–4 E3–6 Calculating Physical Units and Equivalent Units (FIFO Method)
LO 3–2 E3–7 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method)
LO 3–4 E3–8 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (FIFO)
LO 3–2 E3–9 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method)
LO 3–4 E3–10 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (FIFO)
LO 3–2 E3–11 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method)
LO 3–4 E3–12 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (FIFO)
LO 3–2 E3–13 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method)
LO 3–4 E3–14 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (FIFO)
LO 3–2 E3–15 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method)
LO 3–4 E3–16 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (FIFO)
LO 3–2E3–17 Calculating Equivalent Units, Unit Costs, and Cost Assigned (Weighted-Average Method)
LO 3–2 E3–18 Calculating Cost per Equivalent Unit (Weighted-Average Method)
LO 3–S1 E3–19 Calculating Physical Units, Equivalent Units, and Cost per Equivalent Unit (Weighted-Average Method) for a Subsequent Department
LO 3–S1E3–20 Reconcile the Total Cost of Work in Process
LO 3–1E3–21 Identifying Steps for Preparing a Process Costing Production Report
LO 3–3 E3–22 Computing Missing Information from Production Report
LO 3–3 E3–23 Complete a Production Report
LO 3–S1 E3–24 Recording Manufacturing Costs in Process Costing
LO 3–S1 E3–25 Recording Manufacturing Costs in Process Costing
Group A Problems
LO 3–2, 3–3PA3–1 Preparing a Process Costing Production Report (Weighted-Average Method)
LO 3–4, 3–5 PA3–2 Preparing a Process Costing Production Report (FIFO)
LO 3–2, 3–3 PA3–3 Preparing a Process Costing Production Report (Weighted-Average Method)
LO 3–4, 3–5 PA3–4 Preparing a Process Costing Production Report (FIFO)
LO 3–2, 3–3 PA3–5 Preparing a Process Costing Production Report (Weighted-Average Method)
LO 3–2, 3–3 PA3–6 Process Costing for Subsequent Month (Weighted-Average Method)
LO 3–4, 3–5 PA3–7 Preparing a Process Costing Production Report (FIFO)
LO 3–4, 3–5 PA3–8 Process Costing for Subsequent Month (FIFO Method)
Group B Problems
LO 3–2, 3–3 PB3–1 Preparing a Process Costing Production Report (Weighted-Average Method)
LO 3–4, 3–5 PB3–2 Preparing a Process Costing Production Report (FIFO)
LO 3–2, 3–3 PB3–3 Preparing a Process Costing Production Report (Weighted-Average Method)
LO 3–4, 3–5 PB3–4 Preparing a Process Costing Production Report (FIFO)
LO 3–2, 3–3 PB3–5 Preparing a Process Costing Production Report (Weighted-Average Method)
LO 3–2, 3–3 PB3–6 Process Costing for Subsequent Month (Weighted-Average Method)
LO 3–4, 3–5 PB3–7 Preparing a Process Costing Production Report (FIFO)
LO 3–4, 3–5 PB3–8 Process Costing for Subsequent Month (FIFO Method)
Skills Development Cases
LO 3–1 S3–1 Video Case Assignment: Identifying Characteristics of Process Costing
LO 3–1 S3–2 Researching Companies That Use Process Costing
LO 3–1 S3–3 Evaluating the Implications of Process Costing in a Service Industry
Integrated Analytics Case
Questions for Discussion:
Chapter 4: Activity-Based Costing and Cost Management
Introduction
Review of Volume-Based Cost Systems
STEP 1: DETERMINE THE COST DRIVER
STEP 2: CALCULATE THE PREDETERMINED OVERHEAD RATE
STEP 3: ASSIGN INDIRECT COSTS TO INDIVIDUAL PRODUCTS OR SERVICES
Activity-Based Costing (ABC)
STEP 1: IDENTIFY AND CLASSIFY ACTIVITIES
STEP 2: FORM ACTIVITY POOLS AND ASSIGN INDIRECT COSTS TO EACH POOL
STEP 3: SELECT A COST DRIVER FOR EACH ACTIVITY POOL
STEP 4: ASSIGN INDIRECT COSTS TO PRODUCTS OR SERVICES BASED ON THE COST DRIVERS
Activity-Based Costing in Service Industries
Cost Management Methods
ACTIVITY-BASED MANAGEMENT (ABM)
ABM AND SUSTAINABILITY
JUST-IN-TIME (JIT)
TOTAL QUALITY MANAGEMENT (TQM)
TARGET COSTING AND LIFE CYCLE COST MANAGEMENT
Review The Chapter
DEMONSTRATION CASE
Chapter Summary
LO 4–1 Assign indirect costs to products or services using a single volume-based cost driver. p. 167
LO 4–2 Classify activities as unit-, batch-, product-, or facility-level activities. p. 171
LO 4–3 Assign indirect costs to activity pools and select a cost driver for each pool. p. 172
LO 4–4 Assign indirect costs to products or services using activity rates. p. 175
LO 4–5 Assign indirect costs to products or services using activity proportions. p. 176
LO 4–6 Compare the results of a volume-based cost system to activity-based costing. p. 178
LO 4–7 Apply activity-based costing to a service industry. p. 180
LO 4–8 Describe how managers use activity-based management and other cost management methods. p. 182
Key Terms
Homework Helper
Common Terminology
Key Formulas
Helpful Reminders
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 4–1, LO 4–6 M4–1 Comparing Traditional and ABC Systems
LO 4–3 M4–2 Identifying Cost Drivers in an ABC System
LO 4–3 M4–3 Identifying Cost Drivers in an ABC System
LO 4–1, LO 4–2, LO 4–3, LO 4–4, LO 4–5, LO 4–6, LO 4–8 M4–4 Identifying terms in ABC and ABM
LO 4–1, LO 4–2, LO 4–8 M4–5 Matching Terminology
LO 4–2, LO 4–3, LO 4–8 M4–6 Matching Terminology
LO 4–4M4–7 Calculating Activity Rates
LO 4–4M4–8 Assigning Costs Using Activity Rates
LO 4–5M4–9 Assigning Costs Using Activity Proportions
LO 4–4 M4–10 Calculating Activity Rates for ABC System
LO 4–4 M4–11 Assigning Costs Using Activity Rates
LO 4–5 M4–12 Assigning Costs Using Activity Proportions
LO 4–4, LO 4–7 M4–13 Calculating Activity Rates for a Service Company
LO 4–4, LO 4–7 M4–14 Assigning Costs Using Activity Rates for a Service Company
LO 4–5, LO 4–7 M4–15 Assigning Costs Using Activity Proportions for a Service Company
LO 4–8 M4–16 Classifying Activities as Value-Added or Non-Value-Added
LO 4–2 M4–17 Classifying Activities According to Level
LO 4–8 M4–18 Cost of Quality
Exercises
LO 4–1, 4–3, 4–8 E4–1 Classifying Activities According to Level, Determining Value-Added or Non-Value-Added
LO 4–2, 4–3 E4–2 Assigning Costs to Activity Pools, Identifying a Cost Driver
LO 4–2, 4–4 E4–3 Calculating Activity Rates, Classifying Activities
LO 4–4 E4–4 Assigning Costs Using Activity Rates
LO 4–5, 4–6 E4–5 Assigning Costs Using Activity Proportions
LO 4–3, 4–4 E4–6 Calculating Activity Rates, Assigning Costs
LO 4–1 E4–7 Calculating Traditional Overhead Rates, Assigning Costs
LO 4–3, 4–4 E4–8 Calculating Activity Rates, Assigning Costs
LO 4–1 E4–9 Calculating Traditional Overhead Rates, Assigning Costs
LO 4–4 E4–10 Assigning Costs Using Activity Rates
LO 4–6 E4–11 Comparing Traditional Costing Systems and Activity-Based Costing
LO 4–1, 4–3, 4–4, 4–5, 4–6 E4–12 Assigning Costs Using Traditional System, ABC System
LO 4–1, 4–3, 4–4, 4–5, 4–6 E4–13 Assigning Costs Using Traditional System, ABC System
LO 4–1, 4–3, 4–4, 4–5 E4–14 Assigning Costs Using Traditional System, ABC System
LO 4–3, 4–4, 4–5, 4–7 E4–15 Computing Activity Rates, Assigning Costs for a Service Industry
LO 4–4 E4–16 Calculate Total Manufacturing Costs and Gross Profit
LO 4–8 E4–17 Identifying Value-Added and Non-Value-Added Activities
LO 4–8 E4–18 Describing the Benefits of JIT
LO 4–8 E4–19 Calculating Target Cost
LO 4–8 E4–20 Calculating Target Cost
LO 4–8 E4–21 Explaining the Concept of TQM
LO 4–8 E4–22 Classifying Costs of Quality
Group A Problems
LO 4–1, 4–3, 4–4, 4–6 PA4–1 Assigning Costs Using Traditional System, ABC System
LO 4–1, 4–3, 4–5, 4–6 PA4–2 Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions
LO 4–1, 4–3, 4–4, 4–6 PA4–3 Selecting Cost Drivers, Assigning Costs Using Activity Rates
LO 4–1, 4–3, 4–4, 4–6 PA4–4 Selecting Cost Drivers, Assigning Costs Using Activity Rates
LO 4–8 PA4–5 Describing the Impact of ABM and TQM on a Company
Group B Problems
LO 4–1, 4–3, 4–4, 4–6 PB4–1 Assigning Costs Using Traditional System, ABC System
LO 4–1, 4–3, 4–5, 4–6 PB4–2 Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions
LO 4–1, 4–3, 4–4, 4–6 PB4–3 Selecting Cost Drivers, Assigning Costs Using Activity Rates
LO 4–1, 4–3, 4–4, 4–6 PB4–4 Selecting Cost Drivers, Assigning Costs Using Activity Rates
LO 4–8 PB4–5 Defining Concepts of Target Costing, Just-in-Time, and Lean Manufacturing
Skills Development Cases
LO 4–2, 4–8 S4–1 Video Case Assignment: Identifying Unit-, Batch-, Product-, and Facility-Level Costs
LO 4–8 S4–2 Researching Companies That Have Implemented Activity-Based Costing
LO 4–1, 4–6, 4–8 S4–3 Implementing ABC and Ethical Dilemmas
LO 4–3, 4–6, 4–7 S4–4 Classifying and Evaluating Sustainability Metrics
LO4–8 S4–5 Classifying and Evaluating Sustainability Metrics
Integrated Analytics Case
Questions for Discussion:
Chapter 5: Cost Behavior
Introduction
Cost Behavior Patterns
RELEVANT RANGE
VARIABLE COSTS
FIXED COSTS
STEP COSTS
MIXED COSTS
Estimate Cost Behavior
LINEAR ASSUMPTION
SCATTERGRAPH
HIGH-LOW METHOD
LEAST-SQUARES REGRESSION METHOD
SUMMARY OF LINEAR METHODS
Contribution Margin Approach
UNIT CONTRIBUTION MARGIN
CONTRIBUTION MARGIN RATIO
Supplement 5A Variable Versus Full Absorption Costing
Review The Chapter
DEMONSTRATION CASE
Chapter Summary
LO 5–1 Identify costs as variable, fixed, step, or mixed. p. 220
LO 5–2 Prepare a scattergraph to depict the relationship between total cost and activity. p. 225
LO 5–3 Use the high-low method to estimate cost behavior. p. 226
LO 5–4 Use simple and multiple regression to estimate cost behavior. p. 229
LO 5–5 Prepare and interpret a contribution margin income statement. p. 233
LO 5–S1 Compare variable costing to full absorption costing. p. 235
Key Terms
Homework Helper
Common Terminology
Key Formulas
Helpful Reminders
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 5–1 M5–1 Identifying Cost Behavior
LO 5–1 M5–2 Identifying Cost Behavior
LO 5–1 M5–3 Defining Cost Behavior
LO 5–2 M5–4 Defining Terms on a Scattergraph
LO 5–3 M5–5 Defining Terms for the High-Low Method
LO 5–4 M5–6 Defining Terms in Least-Squares Regression
LO 5–2, 5–3 M5–7 Estimating Cost Behavior
LO 5–2, 5–3 M5–8 Predicting Cost Behavior
LO 5–2 M5–9 Preparing a Scattergraph
LO 5–3 M5–10 Estimating Cost Behavior Using High-Low Method
LO 5–4 M5–11 Estimating Cost Behavior Using Least-Squares Regression
LO 5–5 M5–12 Calculating Unit Contribution Margin and Contribution Margin Ratio
LO 5–2 M5–13 Preparing a Scattergraph
LO 5–3 M5–14 Estimating Cost Behavior Using High-Low Method
LO 5–4 M5–15 Estimating Cost Behavior Using Least-Squares Regression
LO 5–5 M5–16 Preparing a Contribution Margin Income Statement
LO 5–3 M5–17 Estimating Cost Behavior Using High-Low Method
LO 5–5 M5–18 Preparing a Contribution Margin Income Statement
LO 5–5 M5–19 Calculating Unit Contribution Margin and Contribution Margin Ratio
LO 5–S1 M5–20 Compare Full Absorption Costing to Variable Costing
Exercises
LO 5–1, 5–5, 5–S1 E5–1 Matching Terminology
LO 5–1 E5–2 Identifying Cost Behavior Patterns
LO 5–1 E5–3 Identifying Cost Behavior Graphs
LO 5–1 E5–4 Determining Cost Behavior and Calculating Expected Cost
LO 5–5 E5–5 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement
LO 5–1, 5–5 E5–6 Explaining Cost Behavior and Implications of Relevant Range
LO 5–3 E5–7 Estimating Cost Behavior Using High-Low Method
LO 5–2 E5–8 Estimating Cost Behavior Using Scattergraph Method
LO 5–4 E5–9 Estimating Cost Behavior Using Least-Squares Regression Method
LO 5–5 E5–10 Preparing Contribution Margin Income Statement
LO 5–5 E5–11 Preparing Contribution Margin Income Statement
LO 5–2, 5–3, 5–4 E5–12 Estimating Cost Behavior Using Scattergraph, High-Low Method, and Least-Squares Regression
LO 5–2, 5–3 E5–13 Estimating Cost Behavior Using Scattergraph and High-Low Methods
LO 5–4 E5–14 Estimating Cost Behavior Using Least-Squares Regression
LO 5–3, 5–4 E5–15 Comparing High-Low Method and Least-Squares Regression Results
LO 5–5 E5–16 Preparing Contribution Margin Income Statement
LO 5–1, 5–5 E5–17 Determining Cost Behavior, Preparing Contribution Margin Income Statement
LO 5–5 E5–18 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement
LO 5–5 E5–19 Predicting How Sustainability Initiatives Will Impact the Contribution Margin Income Statement
LO 5–3, 5–5 E5–20 Estimating Cost Behavior Using High-Low Method, Preparing Contribution Margin Income Statement
LO 5–3, 5–5 E5–21 Estimating Cost Behavior Using High-Low Method, Preparing Contribution Margin Income Statement
LO 5–5, 5S–1 E5–22 Explaining the Need for Variable Costing
LO 5–S1 E5–23 Comparing Full Absorption Costing and Variable Costing
LO 5–3, 5–4 E5–24 Estimating Cost Behavior Using Least-Squares Regression and High-Low Method
Group A Problems
LO 5–2, 5–3, 5–4 PA5–1 Estimating Cost Behavior Using Scattergraph, High-Low, and Least-Squares Regression Methods
LO 5–2, 5–3 PA5–2 Estimating Cost Behavior Using Scattergraph and High-Low Methods
LO 5–5 PA5–3 Estimating Cost Behavior Using High-Low Method, Preparing and Interpreting Contribution Margin Income Statement
LO 5–4 PA5–4 Estimating Cost Behavior Using Simple and Multiple Regression
LO 5–1, 5–5 PA5–5 Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit
LO 5S–1 PA5–6 Comparing Full Absorption and Variable Costing
LO 5S–1 PA5–7 Comparing Full Absorption and Variable Costing
Group B Problems
LO 5–2, 5–3, 5–4 PB5–1 Estimating Cost Behavior Using Scattergraph, High-Low, and Least-Squares Regression Methods
LO 5–2, 5–3 PB5–2 Estimating Cost Behavior Using Scattergraph and High-Low Methods
LO 5–5 PB5–3 Estimating Cost Behavior Using High-Low and Regression, Preparing and Interpreting Contribution Margin Income Statement
LO 5–4 PB5–4 Estimating Cost Behavior Using Scattergraph, Simple and Multiple Regression
LO 5–5 PB5–5 Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit
LO 5S–1 PB5–6 Comparing Full Absorption and Variable Costing
LO 5S–1 PB5–7 Comparing Full Absorption and Variable Costing
Skills Development Cases
LO 5–S1 S5–1 Case Assignment: Identifying Cost Behavior and Predicting Difference in Variable and Absorption Costing
LO 5–1 S5–2 Analyzing Cost Behavior and the Impact on Profit
Integrated Analytics Case
Questions for Discussion:
Chapter 6: Cost-Volume-Profit Analysis
Introduction
Cost-Volume-Profit Analysis
ASSUMPTIONS OF COST-VOLUME-PROFIT ANALYSIS
CVP GRAPH
BASIC CVP ANALYSIS
PROFIT EQUATION METHOD
UNIT CONTRIBUTION MARGIN METHOD
CONTRIBUTION MARGIN RATIO METHOD
Apply Cost-Volume-Profit Analysis
MARGIN OF SAFETY
CVP FOR DECISION MAKING
CHANGES IN COST STRUCTURE
DEGREE OF OPERATING LEVERAGE
Multiproduct Cost-Volume-Profit Analysis
WEIGHTED-AVERAGE CONTRIBUTION MARGIN
WEIGHTED-AVERAGE CONTRIBUTION MARGIN RATIO
Review the Chapter
DEMONSTRATION CASE A: SINGLE PRODUCT
Suggested Solution
Demonstration Case B: Multiproduct
Required:
Chapter Summary
LO 6–1Use cost-volume-profit analysis to find the break-even point. p. 273
LO 6–2Use cost-volume-profit analysis to determine the sales needed to achieve a target profit. p. 274
LO 6–3Compute the margin of safety. p. 277
LO 6–4Analyze how changes in prices and cost structure affect cost-volume-profit relationships. p. 278
LO 6–5Calculate the degree of operating leverage and use it to predict the effect a change in sales will have on profit. p. 283
LO 6–6Perform multiproduct cost-volume-profit analysis and explain how the product or sales mix affects the analysis. p. 286
Key Terms
Homework Helper
Key Formulas
Helpful Reminders
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 6–1, 6–2, 6–5, 6–6M6–1 Matching Terminology
LO 6–1, 6–2 M6–2 Calculating Contribution Margin, Contribution Margin Ratio
LO 6–1 M6–3 Calculating Contribution Margin and Contribution Margin Ratio, Finding Break-Even Point
LO 6–2 M6–4 Determining Sales Needed to Achieve a Target Profit
LO 6–1, 6–4 M6–5 Analyzing Changes in Price Structure
LO 6–1, 6–4 M6–6 Analyzing Changes in Cost Structure
LO 6–1, 6–4 M6–7 Analyzing Changes in Cost Structure
LO 6–1 M6–8 Finding Break-Even Point
LO 6–1, 6–4 M6–9 Calculating Break-Even Point After Cost Structure Change
LO 6–3 M6–10 Calculating Margin of Safety
LO 6–2 M6–11 Calculating Target Profit
LO 6–3 M6–12 Identifying Margin of Safety
LO 6–5 M6–13 Calculating Degree of Operating Leverage
LO 6–4 M6–14 Predicting Effects on Profit
LO 6–6 M6–15 Analyzing Multiproduct CVP
LO 6–6 M6–16 Analyzing Multiproduct CVP
LO 6–6 M6–17 Analyzing Multiproduct CVP
LO 6–6 M6–18 Analyzing Multiproduct CVP
LO 6–6 M6–19 Analyzing Multiproduct CVP
LO 6–6 M6–20 Analyzing Multiproduct CVP, Calculating Weighted-Average Contribution Margin Ratio
LO 6–6 M6–21 Calculating Break-Even Sales Using Weighted-Average Contribution Margin Ratio
LO 6–6 M6–22 Calculating Target Sales
Exercises
LO 6–1 E6–1Understanding CVP Relationships
LO 6–1 E6–2Identifying Elements on a CVP Graph
LO 6–1, LO 6–2, LO 6–3 E6–3Determining Break-Even Point, Target Profit, Margin of Safety
LO 6–4, LO 6–5 E6–4 Analyzing Changes in Price, Cost Structure, Degree of Operating Leverage
LO 6–1, LO 6–2 E6–5 Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit
LO 6–1, LO 6–2, LO 6–3, LO 6–4 E6–6 Identifying Break-Even Point, Analyzing How Price Changes Affect Profitability; Calculating Margin of Safety, Target Profit
LO 6–1, LO 6–2, LO 6–3, LO 6–4 E6–7 Determining Break-Even Point and Analyzing Changes in Price and Cost Structure
LO 6–2, LO 6–3, LO 6–4, LO 6–5, LO 6–6 E6–8 Matching Terms to Definitions
LO 6–1, LO 6–4, LO 6–5 E6–9Analyzing Break-Even Point, Preparing CVP Graph, Calculating Degree of Operating Leverage, Predicting Effect of Price Structure Changes
LO 6–2, LO 6–3E6–10 Calculating Contribution Margin, Contribution Margin Ratio, Margin of Safety
LO 6–1E6–11 Analyzing Break-Even Point, Preparing CVP Graph
LO 6–2, LO 6–3, LO 6–4, LO 6–5 E6–12 Calculating Target Profit, Margin of Safety, Degree of Operating Leverage
LO 6–1, LO 6–5 E6–13 Determining Contribution Margin from Degree of Operating Leverage
LO 6–1, LO 6–5 E6–14 Calculating Break-Even Point, Degree of Operating Leverage
LO 6–1, LO 6–4 E6–15 Calculating Break-Even Point with Different Cost Structures
LO 6–5 E6–16Calculating Degree of Operating Leverage
LO 6–1, LO 6–2 E6–17 Analyzing Break-Even and Target Profit
LO 6–6 E6–18Analyzing Multiproduct CVP
LO 6–6 E6–19Analyzing Multiproduct CVP
LO 6–6 E6–20Analyzing Multiproduct CVP
LO 6–6 E6–21Analyzing Multiproduct CVP
LO 6–6 E6–22Multiproduct CVP Analysis
LO 6–6 E6–23Multiproduct CVP Analysis
LO 6–2, LO 6–3 E6–24 Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety
Group A Problems
LO 6–1, LO 6–2 PA6–1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point
LO 6–1, LO 6–2, LO 6–5 PA6–2 Analyzing Break-Even Point, Setting Target Profit, Degree of Operating Leverage
LO 6–1, LO 6–2 PA6–3 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point, Target Profit
LO 6–1, LO 6–2, LO 6–5PA6–4 Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage
LO 6–3, LO 6–6 PA6–5 Analyzing Multiproduct CVP, Break-Even Point, Target Profit, Margin of Safety
LO 6–5, LO 6–6 PA6–6 Multiproduct CVP, Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage
LO 6–6 PA6–7 CVP in Social Enterprises, Multiproduct CVP, Break-Even Point, Target Profit Analysis
Group B Problems
LO 6–1, LO 6–2 PB6–1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point
LO 6–1, LO 6–2, LO 6–5 PB6–2 Preparing Contribution Margin Income Statement, Analyzing Break-Even Point, Setting Target Profit
LO 6–1, LO 6–2 PB6–3 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point, Target Profit
LO 6–1, LO 6–2, LO 6–5 PB6–4 Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage
LO 6–3, LO 6–6 PB6–5 Analyzing Multiproduct CVP, Break-Even Point, Target Profit, Margin of Safety
LO 6–5, LO 6–6 PB6–6 Multiproduct CVP, Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage
LO 6–6 PB6–7 CVP in Social Enterprises, Multiproduct CVP, Break-Even Point, Target Profit Analysis
Skills Development Cases
LO 6–1, LO 6–2 S6–1 Video Case Assignment: Estimating Variable and Fixed Costs and Performing Cost-Volume-Profit Analysis
LO 6–1, LO 6–3, LO 6–5 S6–2 Evaluating the Effect of Decisions on Contribution Margin, Break-Even Point, Margin of Safety
LO 6–1, LO 6–6 S6–3 Researching Cost of Operating Vending Machines, Performing Cost-Volume-Profit Analysis, Multiproduct CVP
LO 6–1, LO 6–2 S6–4 Researching a Company Website, Performing Cost-Volume-Profit Analysis
Integrated Analytics Case
Questions for Discussion:
Chapter 7: Incremental Analysis for Short-Term Decision Making
Introduction
Managerial Decision-Making Framework
STEPS IN THE DECISION-MAKING PROCESS
RELEVANT VERSUS IRRELEVANT COSTS AND BENEFITS
OPPORTUNITY COSTS AND CAPACITY CONSIDERATIONS
Incremental Analysis
SPECIAL-ORDER DECISIONS
MAKE-OR-BUY DECISIONS
KEEP-OR-DROP DECISIONS
SELL-OR-PROCESS-FURTHER DECISIONS
CONSTRAINED-RESOURCE DECISIONS
SUMMARY OF INCREMENTAL ANALYSIS
Review the Chapter
DEMONSTRATION CASE
Suggested Solution
Chapter Summary
LO 7–1Describe the five steps in the decision-making process. p. 317
LO 7–2Define and identify relevant costs and benefits. p. 320
LO 7–3Analyze a special-order decision. p. 321
LO 7–4Analyze a make-or-buy decision. p. 325
LO 7–5Analyze a keep-or-drop decision. p. 328
LO 7–6Analyze a sell-or-process-further decision. p. 330
LO 7–7Prioritize products to maximize short-term profit with constrained resources. p. 332
Key Terms
Homework Helper
Common Terminology
Key Formulas
Helpful Reminders
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 7–1, LO 7–2, LO 7–3, LO 7–4, LO 7–5, LO 7–6, LO 7–7 M7–1 Matching Key Terms and Concepts to Definitions
LO 7–1 M7–2 Identifying Steps in the Decision-Making Process
LO 7–2 M7–3 Identifying Relevant and Irrelevant Costs
LO 7–2 M7–4 Identifying Relevant and Irrelevant Costs
LO 7–2, LO 7–3 M7–5 Analyzing Special-Order Decision
LO 7–3 M7–6 Considering Impact of Full Capacity on Special-Order Decision
LO 7–2, LO 7–5 M7–7 Analyzing Keep-or-Drop Decision
LO 7–2, LO 7–4 M7–8 Analyzing Make-or-Buy Decision
LO 7–6 M7–9 Analyzing Sell-or-Process-Further Decisions
LO 7–2, LO 7–3, LO 7–7 M7–10 Identifying Capacity Impact on Special-Order Decisions
LO 7–2, LO 7–7 M7–11 Prioritizing Products with Constrained Resource
LO 7–2, LO 7–7 M7–12 Prioritizing Products with Constrained Resource
Exercises
LO 7–1, LO 7–2, LO 7–5, LO 7–7 E7–1 Matching Terminology
LO 7–1 E7–2 Identifying Steps in Decision-Making Process
LO 7–1, 7–2 E7–3 Identifying Steps in Decision-Making Process and Relevant Costs
LO 7–2 E7–4 Identifying Relevant Costs and Calculating Differential Costs
LO 7–2 E7–5 Completing Statements Regarding Relevant Costs and Benefits
LO 7–2, LO 7–3 E7–6 Analyzing Special-Order Decision
LO 7–2, LO 7–4 E7–7 Analyzing Make-or-Buy Decision
LO 7–2, LO 7–5 E7–8 Analyzing Keep-or-Drop Decision
LO 7–2, LO 7–6 E7–9 Analyzing Sell-or-Process-Further Decision
LO 7–2,LO 7–3, LO 7–4, LO 7–5, LO 7–6 E7–10 Identifying Qualitative Factors in Short-Term Decision Making
LO 7–2, LO 7–4 E7–11 Analyzing Make-or-Buy Decision
LO 7–2, LO 7–5 E7–12 Analyzing Keep-or-Drop Decision
LO 7–2, LO 7–3 E7–13 Analyzing Special-Order Decision
LO 7–2, LO 7–6 E7–14 Analyzing Sell-or-Process-Further Decision
LO 7–2, LO 7–7 E7–15 Making Decisions Involving Constrained Resource
LO 7–2, LO 7–7 E7–16 Making Decisions Involving Constrained Resource
LO 7–2, LO 7–3, LO 7–4, LO 7–5, LO 7–6 E7–17 Identifying Relevant and Irrelevant Costs and Benefits
Group A Problems
LO 7–2, LO 7–3 PA7–1 Analyzing Special-Order Decision
LO 7–2, LO 7–4 PA7–2 Analyzing Make-or-Buy Decision
LO 7–2, LO 7–5 PA7–3 Analyzing Keep-or-Drop Decision
LO 7–2, LO 7–6 PA7–4 Analyzing Sell-or-Process-Further Decision
LO 7–2, LO 7–5 PA7–5 Analyzing Keep-or-Drop Decision
LO 7–2, LO 7–7 PA7–6 Making Decisions Involving Constrained Resource
LO 7–2, LO 7–6 PA7–7 Analyzing Sell-or-Process-Further Decision
LO 7–2, LO 7–3 PA7–8 Analyzing Special-Order Decision
LO 7–2, LO 7–4 PA7–9 Analyzing Make-or-Buy Decision
Group B Problems
LO 7–2, LO 7–3 PB7–1 Analyzing Special-Order Decision
LO 7–2, LO 7–4 PB7–2 Analyzing Make-or-Buy Decision
LO 7–2, LO 7–5 PB7–3 Analyzing Keep-or-Drop Decision
LO 7–2, LO 7–6 PB7–4 Analyzing Sell-or-Process-Further Decision
LO 7–2, LO 7–5 PB7–5 Analyzing Keep-or-Drop Decision
LO 7–2, LO 7–7 PB7–6 Making Decisions Involving Constrained Resource
LO 7–2, LO 7–6 PB7–7 Analyzing Sell-or-Process-Further Decision
LO 7–2, LO 7–3 PB7–8 Analyzing Special-Order Decision
LO 7–2, LO 7–4 PB7–9 Analyzing Make-or-Buy Decision
Skills Development Cases
LO 7–2 S7–1 Evaluating Netflix’s Decision to Separate Its Lines of Business and Raise Prices
LO 7–5 S7–2 Evaluating Decision to Eliminate Collegiate Sports Programs: Quantitative and Qualitative Considerations
LO 7–5 S7–3 Evaluating Walmart’s Decision to Raise Hourly Wages and Eliminate Salaried Positions: Quantitative and Qualitative Considerations
LO 7–4 S7–4 Researching Outsourcing Issues in National and Local Press
Integrated Analytics Case
Questions for Discussion:
Chapter 8: Budgetary Planning
Introduction
Role of Budgets in Organizations
PLANNING AND CONTROL CYCLE
BENEFITS OF BUDGETING
BEHAVIORAL EFFECTS OF BUDGETS
COMPONENTS OF THE MASTER BUDGET
Prepare the Operating Budgets
SALES BUDGET
PRODUCTION BUDGET
DIRECT MATERIALS PURCHASES BUDGET
DIRECT LABOR BUDGET
MANUFACTURING OVERHEAD BUDGET
BUDGETED COST OF GOODS SOLD
SELLING AND ADMINISTRATIVE EXPENSE BUDGET
BUDGETED INCOME STATEMENT
Prepare the Financial Budgets
BUDGETED CASH RECEIPTS
BUDGETED CASH PAYMENTS
CASH BUDGET
BUDGETED BALANCE SHEET
BUDGETING IN NONMANUFACTURING FIRMS
Review The Chapter
DEMONSTRATION CASE A: OPERATING BUDGETS
Demonstration Case b: Cash Budget
Required:
Suggested Solution
Chapter Summary
LO 8–1 Describe (a) how and why organizations use budgets for planning and control and (b) potential behavioral issues to consider when implementing a budget. p. 365
LO 8–2 Describe the major components of the master budget and their interrelationships. p. 368
LO 8–3 Prepare the following components of the operating budget. p. 370
LO 8–4 Prepare the cash budget and describe the relationships among the operating budgets, cash budget, and budgeted balance sheet. p. 377
LO 8–5 Prepare a merchandise purchases budget for a merchandising firm. p. 383
Key Terms
Homework Helper
Common Terminology
Key Formulas
Helpful Reminders
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 8–1 M8–1 Explaining the Role of Managerial Accounting in the Planning and Control Cycle
LO 8–1 M8–2 Describing Advantages of Budgetary Planning
LO 8–1, LO 8–2, LO 8–3, LO 8–4 M8–3 Matching Terminology
LO 8–2 M8–4 Classifying Components of Master Budget
LO 8–3a M8–5 Preparing Sales Budget
LO 8–3c M8–6 Preparing Direct Materials Purchases Budget
LO 8–3d M8–7 Preparing Direct Labor Budget
LO 8–3b M8–8 Preparing Production Budget
LO 8–3c M8–9 Preparing Direct Materials Purchases Budget
LO 8–3d M8–10 Preparing Direct Labor Budget
LO 8–3e M8–11 Preparing Manufacturing Overhead Budget
LO 8–3e M8–12 Preparing Manufacturing Overhead Budget
LO 8–3g M8–13 Preparing Selling and Administrative Expense Budget
LO 8–4 M8–14 Preparing Schedule of Cash Receipts
LO 8–4 M8–15 Preparing Cash Payments Budget
LO 8–4 M8–16 Preparing Data for the Cash Budget
LO 8–5 M8–17 Preparing Merchandise Purchases Budget
Exercises
LO 8–1 E8–1 Understanding Behavioral Effects of Budgeting
LO 8–1, LO 8–2 E8–2 Using Terms to Complete Sentences about Budgets
LO 8–2 E8–3 Classifying, Ordering Components of the Master Budget
LO 8–3b E8–4 Calculating Unknowns Based on Production, Sales, Beginning and Ending Inventory Values
LO 8–3a, LO 8–3b E8–5 Calculating Sales and Production Budgets
LO 8–3c, LO 8–3e E8–6 Preparing Direct Materials Purchases Budget
LO 8–3d E8–7 Preparing Direct Labor and Manufacturing Overhead Budgets
LO 8–3f E8–8 Preparing Cost of Goods Sold Budget
LO 8–3g E8–9 Preparing Selling and Administrative Expense Budget
LO 8–3h E8–10 Preparing Budgeted Income Statement
LO 8–4 E8–11 Calculating Cash Receipts
LO 8–3b, LO 8–3c E8–12 Preparing Production, Direct Materials Purchases Budgets
LO 8–3d E8–13 Preparing Direct Labor Budget
LO 8–3g E8–14 Preparing Selling and Administrative Expense Budget
LO 8–3h E8–15 Preparing Budgeted Income Statement
LO 8–4 E8–16 Preparing Cash Budget
LO 8–4 E8–17 Calculating Cash Receipts
LO 8–4 E8–18 Preparing Cash Receipts and Cash Payments Budgets
LO 8–5 E8–19 Preparing a Merchandise Purchases Budget
LO 8–3h, LO 8–5 E8–20 Preparing a Merchandise Purchases Budget and a Budgeted Income Statement
LO 8–3b, LO 8–3c E8–21 Preparing Production and Direct Materials Purchases Budgets
LO 8–3d, LO 8–3e E8–22 Preparing the Direct Labor and Manufacturing Overhead Budgets
LO 8–3f E8–23 Cost of Goods Sold Budget
LO 8–4 E8–24 Determining Balances for a Budgeted Balance Sheet
Group A Problems
LO 8–3a, LO 8–3b, LO 8–3c, LO 8–3d, LO 8–3e, LO 8–3f, LO 8–3g PA8–1 Preparing Operating Budgets
LO 8–3h PA8–2 Preparing Budgeted Income Statement
LO 8–4 PA8–3 Preparing Cash Budget
LO 8–3a, LO 8–3b, LO 8–3c, LO 8–3d PA8–4 Preparing Operating Budget Components
LO 8–3f, LO 8–3g, LO 8–3h PA8–5 Preparing Operating Budget Components
LO 8–5 PA8–6 Preparing Operating Budgets for a Merchandising Firm
Group B Problems
LO 8–3a, LO 8–3b, LO 8–3c, LO 8–3d, LO 8–3e, LO 8–3f, LO 8–3g PB8–1 Preparing Operating Budgets
LO 8–3h PB8–2 Preparing Budgeted Income Statement
LO 8–4 PB8–3 Preparing Cash Budget
LO 8–3a, LO 8–3b, LO 8–3c, LO 8–3d PB8–4 Preparing Operating Budget Components
LO 8–3f, LO 8–3g, LO 8–3h PB8–5 Preparing Operating Budgets Components
LO 8–5 PB8–6 Preparing Operating Budgets for a Merchandising Firm
Skills Development Cases
LO 8–1 S8–1 Interviewing, Writing a Real-World Budget Process Report
LO 8–1 S8–2 Researching Online Budget Tools
Integrated Analytics Case
Questions for Discussion:
Chapter 9: Standard Costing and Variance Analysis
Introduction
Cost Behavior Patterns
IDEAL VERSUS ATTAINABLE STANDARDS
TYPES OF STANDARDS
STANDARD COST CARD
FAVORABLE OR UNFAVORABLE VARIANCES
TOTAL BUDGET VARIANCE
THE FLEXIBLE BUDGET
Spending Variances
FRAMEWORK FOR ANALYZING SPENDING VARIANCES
DIRECT MATERIALS VARIANCES
DIRECT LABOR VARIANCES
VARIABLE MANUFACTURING OVERHEAD VARIANCES
SUMMARY OF VARIANCES
Supplement 9A Fixed Manufacturing Overhead Variances
FIXED OVERHEAD SPENDING VARIANCE
FIXED OVERHEAD VOLUME VARIANCE
Supplement 9B Recording Direct Materials And Direct Labor In A Standard Cost System
Review The Chapter
DEMONSTRATION CASE
Chapter Summary
Key Terms
Homework Helper
Common Terminology
Key Formulas
Helpful Reminders
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 9–1, LO 9–2, LO 9–3, LO 9–4, LO 9–5, LO 9–S1, LO 9–S2 M9–1 Using Variance Terminology
LO 9–1, LO 9–2, LO 9–3, LO 9–4 M9–2 Matching Terminology
LO 9–1 M9–3 Creating Grading Scale Based on Ideal, Tight but Attainable, Easily Attainable Standards
LO 9–2 M9–4 Explaining Costs That Change with Flexible Budget Activity
LO 9–2 M9–5 Preparing a Flexible Budget
LO 9–1 M9–6 Describing How to Set Standards in Standard Cost System
LO 9–4 M9–7 Calculating Unknown Values for Direct Labor Variances
LO 9–3 M9–8 Interpreting Direct Materials Cost Variances
LO 9–3 M9–9 Calculating Direct Materials Cost Variances
LO 9–4 M9–10 Calculating Direct Labor Cost Variances
LO 9–5 M9–11 Calculating Variable Manufacturing Overhead Variances
LO 9–S1 M9–12 Calculating Fixed Manufacturing Overhead Spending Variance
LO 9–S1 M9–13 Calculating Fixed Manufacturing Overhead Volume Variance
LO 9–S2 M9–14 Preparing Journal Entries to Record Direct Material Variances
LO 9–S2 M9–15 Preparing Journal Entries to Record Direct Labor Variances
Exercises
LO 9–3, 9–4 E9–1 Calculating Unknown Values for Direct Materials, Direct Labor Variances
LO 9–2 E9–2 Preparing Flexible Budget for Manufacturing Costs
LO 9–2 E9–3 Preparing a Flexible Budget Performance Report
LO 9–3 E9–4 Interpreting Direct Materials Price, Quantity Variances
LO 9–3, 9–4 E9–5 Calculating Direct Materials and Direct Labor Variances
LO 9–3, 9–4 E9–6 Calculating Direct Materials and Direct Labor Variances
LO 9–3, 9–4 E9–7 Calculating Direct Materials and Direct Labor Variances
LO 9–3 E9–8 Calculating Direct Materials Variances
LO 9–4 E9–9 Calculating Direct Labor Variances
LO 9–5 E9–10 Calculating Variable Overhead Variances
LO 9–S1 E9–11 Calculating Fixed Manufacturing Overhead Spending, Volume Variances
LO 9–S2 E9–12 Preparing Journal Entries to Record Direct Materials, Direct Labor, Variable Overhead Costs, and Variances
LO 9–5 E9–13 Calculating Variable Manufacturing Overhead Variances
LO 9–S1 E9–14 Calculating Fixed Manufacturing Overhead Spending, Volume Variances
LO 9–3, 9–4 E9–15 Determining Actual Costs, Standard Costs, and Variances
LO 9–S1 E9–16 Calculating Fixed Manufacturing Overhead Capacity Variances
LO 9–5 E9–17 Calculating Variable Manufacturing Overhead Variances
LO 9–S1 E9–18 Calculating Fixed Manufacturing Overhead Volume Variances
LO 9–S1 E9–19 Calculating Fixed Manufacturing Overhead Capacity Variances
LO 9–4 E9–20 Determining Actual, Standard Costs, and Variances
Group A Problems
LO 9–3, 9–4, 9–5 PA9–1 Calculating Direct Material, Direct Labor, Variable Overhead Variances
LO 9–S1 PA9–2 Calculating Fixed Manufacturing Overhead Spending, Volume Variances
LO 9–S2 PA9–3 Preparing Journal Entries to Record Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances
LO 9–3, 9–4, 9–5 PA9–4 Calculating Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances
LO 9–S1 PA9–5 Calculating Fixed Manufacturing Overhead Spending, Volume Variances
LO 9–S2 PA9–6 Preparing Journal Entries to Record Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances
LO 9–2, 9–3, 9–4, 9–5, 9–S1 PA9–7 Prepare Flexible Budget and Compute Manufacturing Cost Spending and Volume Variances
LO 9–S2 PA9–8 Preparing Journal Entries to Record Direct Materials and Direct Labor Variances
Group B Problems
LO 9–3, 9–4, 9–5 PB9–1 Calculating Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances
LO 9–S1 PB9–2 Calculating Fixed Manufacturing Overhead Spending and Volume Variances
LO 9–S2 PB9–3 Preparing Journal Entries to Record Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances
LO 9–3, 9–4, 9–5 PB9–4 Calculating Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances
LO 9–S1 PB9–5 Calculating Fixed Manufacturing Overhead Spending, Volume Variances
LO 9–S2 PB9–6 Preparing Journal Entries to Record Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances
LO 9–2 9–3, 9–4, 9–5, 9–S1 PB9–7 Prepare Flexible Budget and Compute Manufacturing Cost Spending and Volume Variances
LO 9–S2 PB9–8 Preparing Journal Entries to Record Variable and Fixed Manufacturing Overhead Variances
Skills Development Cases
LO 9–1, 9–2, 9–3, 9–4, 9–5, 9–S1 S9–1 Video Case Assignment: Explaining Variance for a Manufacturing Firm
LO 9–1, 9–2 S9–2 Evaluating Managerial Performance by Comparing Actual to Budgeted Results
LO 9–1 S9–3 Developing Standard Costs Using Time Studies, Incentives to Distort Standard
Integrated Analytics Case
Questions for Discussion:
Chapter 10: Decentralized Performance Evaluation
Introduction
Decentralization of Responsibility
ADVANTAGES AND DISADVANTAGES OF DECENTRALIZATION
TYPES OF RESPONSIBILITY CENTERS
Designing a Performance Evaluation System
BALANCED SCORECARD
FINANCIAL PERFORMANCE MEASURES
LIMITATIONS OF FINANCIAL PERFORMANCE MEASURES
Transfer Pricing
MARKET-PRICE METHOD
COST-BASED METHOD
NEGOTIATION
Review the Chapter
DEMONSTRATION CASE
Chapter Summary
Key Terms
Homework Helper
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
Exercises
Group A Problems
Group B Problems
Skills Development Cases
Integrated Analytics Case
Chapter 11: Capital Budgeting
Introduction
Capital Budgeting Process
CAPITAL INVESTMENT DECISIONS
ACCOUNTING RATE OF RETURN
NET CASH FLOW VERSUS NET INCOME
PAYBACK PERIOD
Discounted Cash Flow Methods
TIME VALUE OF MONEY
NET PRESENT VALUE
INTERNAL RATE OF RETURN
PROFITABILITY INDEX
SUMMARY OF CAPITAL BUDGETING METHODS
Applying NPV and Sensitivity Analysis
EVALUATING MUTUALLY EXCLUSIVE PROJECTS
PRIORITIZING INDEPENDENT PROJECTS
SUPPLEMENT 11A TIME VALUE OF MONEY
Computing Future and Present Values of a Single Amount
Computing Future and Present Values of an Annuity
Review The Chapter
DEMONSTRATION CASE
Chapter Summary
Key Terms
Homework Helper
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
Exercises
Group A Problems
Group B Problems
Skills Development Cases
Integrated Analytics Case
Chapter 12: Statement of Cash Flows
Introduction
Understand the Business
BUSINESS ACTIVITIES AND CASH FLOWS
CLASSIFYING CASH FLOWS
Study the Accounting Methods
RELATIONSHIP TO OTHER FINANCIAL STATEMENTS
PREPARING THE STATEMENT OF CASH FLOWS
Evaluate the Results
EVALUATING CASH FLOWS
OPERATING CASH FLOWS REVISITED (DIRECT METHOD)
Supplement 12A Reporting Disposals of Property, Plant, and Equipment (Indirect Method)
Supplement 12B T-Account Approach (Indirect Method)
Review The Chapter
DEMONSTRATION CASE A: INDIRECT METHOD
Demonstration Case B: Direct Method
Required:
Chapter Summary
Key Terms
Homework Helper
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
LO 12–1, LO 12–5 M12–1 Identifying Companies from Cash Flow Patterns
LO 12–1, LO 12–2 M12–2 Matching Items Reported to Cash Flow Statement Categories (Indirect Method)
LO 12–2 M12–3 Determining the Effects of Account Changes on Cash Flows from Operating Activities (Indirect Method)
LO 12–2 M12–4 Computing Cash Flows from Operating Activities (Indirect Method)
LO 12–2 M12–5 Computing Cash Flows from Operating Activities (Indirect Method)
LO 12–3 M12–6 Computing Cash Flows from Investing Activities
LO 12–4 M12–7 Computing Cash Flows from Financing Activities
LO 12–1 M12–8 Computing Cash Flows under IFRS
LO 12–3, LO 12–4 M12–9 Reporting Noncash Investing and Financing Activities
LO 12–5 M12–10 Interpreting Cash Flows from Operating, Investing, and Financing Activities
LO 12–5 M12–11 Evaluating Cash Flows
LO 12–1, LO 12–5 M12–12 Calculating Cash Flows
LO 12–1, LO 12–5 M12–13 Calculating Cash Flows
LO 12–1, LO 12–6 M12–14 Matching Items Reported to Cash Flow Statement Categories (Direct Method)
LO 12–6 M12–15 Computing Cash Flows from Operating Activities (Direct Method)
LO 12–6 M12–16 Computing Cash Flows from Operating Activities (Direct Method)
Exercises
LO 12–1, LO 12–2 E12–1 Matching Items Reported to Cash Flow Statement Categories (Indirect Method)
LO 12–2 E12–2 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method)
LO 12–2 E12–3 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method)
LO 12–2 E12–4 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method)
LO 12–2 E12–5 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method)
LO 12–2, LO 12–5 E12–6 Preparing and Evaluating a Simple Statement of Cash Flows (Indirect Method)
LO 12–1, LO 12–2, LO 12–5 E12–7 Preparing and Evaluating a Simple Statement of Cash Flows (Indirect Method)
LO 12–2 E12–8 Reporting Cash Flows from Operating Activities (Indirect Method)
LO 12–2, LO 12–5 E12–9 Reporting and Interpreting Cash Flows from Operating Activities from an Analyst’s Perspective (Indirect Method)
LO 12–2, LO 12–5 E12–10 Computing and Interpreting Cash Flows from Operating Activities from an Analyst’s Perspective (Indirect Method)
LO 12–2 E12–11 Inferring Balance Sheet Changes from the Cash Flow Statement (Indirect Method)
LO 12–2 E12–12 Inferring Balance Sheet Changes from the Cash Flow Statement (Indirect Method)
LO 12–1, LO 12–2, LO 12–3, LO 12–4, LO 12–5 E12–13 Preparing and Evaluating a Statement of Cash Flows (Indirect Method) from Comparative Balance Sheets and Income Statements
LO 12–2 E12–14 Calculating and Understanding Operating Cash Flows Relating to Inventory Purchases (Indirect Method)
LO 12–3, LO 12–4 E12–15 Reporting Cash Flows from Investing and Financing Activities
LO 12–3, LO 12–4 E12–16 Reporting and Interpreting Cash Flows from Investing and Financing Activities
LO 12–2, LO 12–5 E12–17 Interpreting the Cash Flow Statement
LO 12–2, 12–6 E12–18 Comparing the Direct and Indirect Methods
LO 12–5, LO 12–6 E12–19 Reporting and Interpreting Cash Flows from Operating Activities from an Analyst’s Perspective (Direct Method)
LO 12–5, LO 12–6 E12–20 Reporting and Interpreting Cash Flows from Operating Activities from an Analyst’s Perspective (Direct Method)
LO 12–S1 E12–21 (Supplement 12A) Determining Cash Flows from the Sale of Equipment
LO 12–S1 E12–22 (Supplement 12A) Determining Cash Flows from the Sale of Equipment
LO 12–S2 E12–23 (Supplement 12B) Preparing a Statement of Cash Flows, Indirect Method: T-Account Approach
Group A Problems
LO 12–1 PA12–1 Determining Cash Flow Statement Effects of Transactions
Group B Problems
Skills Development Cases
Integrated Analytics Case
Chapter 13: Measuring and Evaluating Financial Performance
Introduction
Understand the Business
HORIZONTAL, VERTICAL, AND RATIO ANALYSES
Study the Accounting Methods
HORIZONTAL (TREND) COMPUTATIONS
VERTICAL (COMMON SIZE) COMPUTATIONS
RATIO COMPUTATIONS
Evaluate the Results
INTERPRETING HORIZONTAL AND VERTICAL ANALYSES
INTERPRETING RATIO ANALYSES
UNDERLYING ACCOUNTING DECISIONS AND CONCEPTS
Review The Chapter
DEMONSTRATION CASE
Chapter Summary
Key Terms
Homework Helper
Practice Material
QUESTIONS
Multiple Choice
Mini-Exercises
Exercises
Group A Problems
Group B Problems
LO 13–2, LO 13–5 PB13–1 Analyzing Financial Statements Using Horizontal Analyses
LO 13–4, LO 13–5 PB13–2 Analyzing Comparative Financial Statements Using Selected Ratios
LO 13–3, LO 13–5 PB13–3 Vertical Analysis of a Balance Sheet
LO 13–3, LO 13–5 PB13–4 Vertical Analysis of an Income Statement
LO 13–4, LO 13–5 PB13–5 Interpreting Profitability, Liquidity, and Solvency Ratios
LO 13–4, LO 13–5 PB13–6 Using Ratios to Compare Loan Requests from Two Companies
LO 13–5 PB13–7 Analyzing an Investment by Comparing Selected Ratios
Skills Development Cases
LO 13–4 S13–1 Computing Ratios
LO 13–5 S13–2 Evaluating Financial Information
LO 13–1, LO 13–2, LO 13–3, LO 13–4, LO 13–5 S13–3 Internet-Based Team Research: Examining an Annual Report
LO 13–4, LO 13–5 S13–4 Ethical Decision Making: A Mini-Case
LO 13–4, LO 13–5 S13–5 Critical Thinking: Analyzing the Impact of Alternative Depreciation Methods on Ratio Analysis
LO 13–2, LO 13–3 S13–6 Using a Spreadsheet to Calculate Financial Statement Ratios
Integrated Analytics Case
Evaluating Profitability, Liquidity, and Solvency
Backmatter
Glossary
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B
C
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F
G
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Check Figures for Problem Set A
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Solutions to Multiple-Choice Questions
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Business Index
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Subject Index
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