Principles of Accounting is designed to meet the scope and sequence requirements of a two-semester accounting course that covers the fundamentals of financial and managerial accounting. Due to the comprehensive nature of the material, we are offering the book in two volumes. This book is specifically designed to appeal to both accounting and non-accounting majors, exposing students to the core concepts of accounting in familiar ways to build a strong foundation that can be applied across business fields. Each chapter opens with a relatable real-life scenario for today’s college student. Thoughtfully designed examples are presented throughout each chapter, allowing students to build on emerging accounting knowledge. Concepts are further reinforced through applicable connections to more detailed business processes. Students are immersed in the “why” as well as the “how” aspects of accounting in order to reinforce concepts and promote comprehension over rote memorization.
Conditions of Use
This book is licensed under a Creative Commons License (CC BY-NC-SA). You can download the ebook Principles of Accounting Volume 2 for free.
- Title
- Principles of Accounting Volume 2
- Subtitle
- Managerial Accounting
- Publisher
- OpenStax
- Author(s)
- Dixon Cooper, Mitchell Franklin, OpenStax, Patty Graybeal
- Published
- 2019-02-14
- Edition
- 1
- Format
- eBook (pdf, epub, mobi)
- Pages
- 736
- Language
- English
- ISBN-10
- 1593995954
- ISBN-13
- 9781593995959
- License
- CC BY-NC-SA
- Book Homepage
- Free eBook, Errata, Code, Solutions, etc.
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