Managerial Accounting

The Changing Business Environment: A Manager’s Perspective

Cost Concepts and Cost Allocation

Costing Systems: Job Order Costing

Costing Systems: Process Costing

Value-Based Systems: ABM and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short-Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, Including Target Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

Chapter 1 The Changing Business Environment: A Manager’s Perspective

• Updated definition of management accounting in LO1

• Lean production introduced as a key term in LO3

• Sections on total quality management and activity based management in LO3 revised

• Updated Focus on Business Practice box on how to blow the whistle on fraud

Chapter 2 Cost Concepts and Cost Allocation

• New company (Hershey’s) used as example in the Decision Point

• Discussions of costs in LO2 in previous edition incorporated in LO1

• Introduction to methods of product cost measurement added and section on computing service unit cost shortened in new LO4

• LO7 and LO8 in previous edition (the traditional and ABC approaches to allocating overhead) streamlined and incorporated in new LO5

Chapter 3 Costing Systems: Job Order Costing

• Chapter 3 in previous edition separated into two chapters, with new Chapter 3 focusing on job order costing and new Chapter 4 focusing on process costing

• Operations costing system introduced as a key concept

• Discussions of manufacturer’s job order cost card, computation of unit cost,

and job order costing in a service organization included in new LO4

Chapter 4 Costing Systems: Process Costing

• New chapter (part of Chapter 3 in previous edition)

Chapter 5 Value-Based Systems: ABM and Lean

• Chapter revised to emphasize value-based systems

• LO1, LO2, and LO3 in last edition revised and incorporated in new LO1

• New listing of the disadvantages of activity-based costing in LO2

• New focus on lean operations in LO3 and section on accounting for product costs added

Chapter 6 Cost Behavior Analysis

• New company (Flickr) used as example in the Decision Point

• Sections on variable, fixed, and mixed costs, which were in LO2 in last edition, now included in LO1

• Concept of a step cost introduced in discussion of fixed costs in LO1

• Methods used to separate the components of mixed costs and the contribution margin income statement now the focus of LO2

• Material in LO4 reformatted to clarify concepts

Chapter 7 The Budgeting Process

• New company (Framerica Corporation) used as example in the Decision Point

• LO1 reorganized, revised, and shortened

• Section on advantages of budgeting and three new key terms—static budget,continuous budget, and zero-based budgeting added to LO1

Chapter 8 Performance Management and Evaluation

• LO1 and LO2 in last edition combined and revised

Chapter 9 Standard Costing and Variance Analysis

• New company (iRobot Corporation) used as example in the Decision Point

• LO1 and LO2 in last edition combined and revised

• New Focus on Business Practice box titled “What Do You Get When You Cross a Vacuum Cleaner with a Gaming Console?”

Chapter 10 Short-Run Decision Analysis

• Chapter revised to focus on the use of incremental analysis in making shortrun decisions; capital investment analysis and time value of money now covered in Chapter 11

Chapter 11 Capital Investment Analysis

• New chapter

Chapter 12 Pricing Decisions, Including Target Costing and Transfer Pricing

• LO1 reorganized and shortened

• Updated Focus on Business Practice box on Internet fraud

• Discussions of steps followed in gross margin pricing and return on assets pricing in LO3 reformatted for greater clarity

• Discussion of the differences between cost-based pricing and target costing in LO4 revised and made more succinct

• Section on developing a transfer price in LO5 revised

Chapter 13 Quality Management and Measurement

• In LO2, formula for computing delivery cycle time added and displayed; formula for computing waste time also displayed

• In LO4, discussion of Motorola’s Sigma Six quality goal revised, with disadvantages noted

Chapter 14 Financial Analysis of Performance

• Section on the management process in LO1 revised to increase the focus on management’s objectives

• Revised Focus on Business Practice box on pro forma earnings

• In LO3, two-year coverage of the comprehensive ratio analysis extended to three years

• Revised Focus on Business Practice box on performance measurement and management compensation