Preface
Chapter 1  Accounting as a Tool for Managers
	Why It Matters
	1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
	1.2 Distinguish between Financial and Managerial Accounting
	1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
	1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
	1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Thought Provokers
Chapter 2  Building Blocks of Managerial Accounting
	Why It Matters
	2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
	2.2 Identify and Apply Basic Cost Behavior Patterns
	2.3 Estimate a Variable and Fixed Cost Equation and Predict Future Costs
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 3  Cost-Volume-Profit Analysis
	Why It Matters
	3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin
	3.2 Calculate a Break-Even Point in Units and Dollars
	3.3 Perform Break-Even Sensitivity Analysis for a Single Product Under Changing Business Situations
	3.4 Perform Break-Even Sensitivity Analysis for a Multi-Product Environment Under Changing Business Situations
	3.5 Calculate and Interpret a Company’s Margin of Safety and Operating Leverage
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 4  Job Order Costing
	Why It Matters
	4.1 Distinguish between Job Order Costing and Process Costing
	4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
	4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts
	4.4 Compute a Predetermined Overhead Rate and Apply Overhead to Production
	4.5 Compute the Cost of a Job Using Job Order Costing
	4.6 Determine and Dispose of Underapplied or Overapplied Overhead
	4.7 Prepare Journal Entries for a Job Order Cost System
	4.8 Explain How a Job Order Cost System Applies to a Nonmanufacturing Environment
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 5  Process Costing
	Why It Matters
	5.1 Compare and Contrast Job Order Costing and Process Costing
	5.2 Explain and Identify Conversion Costs
	5.3 Explain and Compute Equivalent Units and Total Cost of Production in an Initial Processing Stage
	5.4 Explain and Compute Equivalent Units and Total Cost of Production in a Subsequent Processing Stage
	5.5 Prepare Journal Entries for a Process Costing System
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 6  Activity-Based, Variable, and Absorption Costing
	Why It Matters
	6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
	6.2 Describe and Identify Cost Drivers
	6.3 Calculate Activity-Based Product Costs
	6.4 Compare and Contrast Traditional and Activity-Based Costing Systems
	6.5 Compare and Contrast Variable and Absorption Costing
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 7  Budgeting
	Why It Matters
	7.1 Describe How and Why Managers Use Budgets
	7.2 Prepare Operating Budgets
	7.3 Prepare Financial Budgets
	7.4 Prepare Flexible Budgets
	7.5 Explain How Budgets Are Used to Evaluate Goals
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 8  Standard Costs and Variances
	Why It Matters
	8.1 Explain How and Why a Standard Cost Is Developed
	8.2 Compute and Evaluate Materials Variances
	8.3 Compute and Evaluate Labor Variances
	8.4 Compute and Evaluate Overhead Variances
	8.5 Describe How Companies Use Variance Analysis
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 9  Responsibility Accounting and Decentralization
	Why It Matters
	9.1 Differentiate between Centralized and Decentralized Management
	9.2 Describe How Decision-Making Differs between Centralized and Decentralized Environments
	9.3 Describe the Types of Responsibility Centers
	9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 10  Short-Term Decision Making
	Why It Matters
	10.1 Identify Relevant Information for Decision-Making
	10.2 Evaluate and Determine Whether to Accept or Reject a Special Order
	10.3 Evaluate and Determine Whether to Make or Buy a Component
	10.4 Evaluate and Determine Whether to Keep or Discontinue a Segment or Product
	10.5 Evaluate and Determine Whether to Sell or Process Further
	10.6 Evaluate and Determine How to Make Decisions When Resources Are Constrained
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 11  Capital Budgeting Decisions
	Why It Matters
	11.1 Describe Capital Investment Decisions and How They Are Applied
	11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
	11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
	11.4 Use Discounted Cash Flow Models to Make Capital Investment Decisions
	11.5 Compare and Contrast Non-Time Value-Based Methods and Time Value-Based Methods in Capital Investment Decisions
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 12  Balanced Scorecard and Other Performance Measures
	Why It Matters
	12.1 Explain the Importance of Performance Measurement
	12.2 Identify the Characteristics of an Effective Performance Measure
	12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
	12.4 Describe the Balanced Scorecard and Explain How It Is Used
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 13  Sustainability Reporting
	Why It Matters
	13.1 Describe Sustainability and the Way It Creates Business Value
	13.2 Identify User Needs for Information
	13.3 Discuss Examples of Major Sustainability Initiatives
	13.4 Future Issues in Sustainability
	Key Terms
	Summary
	Multiple Choice
	Questions
	Thought Provokers
Appendix A Financial Statement Analysis
Appendix B Time Value of Money
Appendix C Suggested Resources
Answer Key
	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
Index