Cost accounting: traditions and innovations
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| Main Authors: | , , |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Minneapolis/St. Paul <<[u.a.]>>
West Publ. Co.
1994
|
| Edition: | 2. ed. |
| Series: | Accounting textbooks
|
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XXXVI, 1067 S. Ill., graph. Darst. |
| ISBN: | 0314029044 0314028781 |
Staff View
MARC
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| 100 | 1 | |a Barfield, Jesse T. |e Verfasser |4 aut | |
| 245 | 1 | 0 | |a Cost accounting |b traditions and innovations |c Jesse T. Barfield ; Cecily A. Raiborn ; Michael R. Kinney |
| 250 | |a 2. ed. | ||
| 264 | 1 | |a Minneapolis/St. Paul <<[u.a.]>> |b West Publ. Co. |c 1994 | |
| 300 | |a XXXVI, 1067 S. |b Ill., graph. Darst. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 490 | 0 | |a Accounting textbooks | |
| 650 | 4 | |a Cost accounting | |
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| 700 | 1 | |a Raiborn, Cecily A. |d 1949- |e Verfasser |0 (DE-588)128583436 |4 aut | |
| 700 | 1 | |a Kinney, Michael R. |e Verfasser |4 aut | |
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Record in the Search Index
| _version_ | 1804138142264983552 |
|---|---|
| adam_text | Part 1
Cost Accounting Fundamentals 1
1 The Role of Cost Accounting 3
2 Basic Cost Terms and Concepts 27
3 Cost-Volume-Profit Analysis
and Pricing Decisions 56
Part 2
Product and Service Costing 101
4 Product-Costing Systems and
Job-Order Costing 103
5 Process Costing 132
6 Overhead Accounting in a Modern
Manufacturing Environment 167
Part 3
Budgets and Standard Costing 209
7 Budgeting and Responsibility
Accounting 210
8 Standard Costing: Direct Materials
and Direct Labor 256
9 Standard Overhead Costs and Applications
of Standard Costing 287
Part 4
Identifying and Estimating
Costs for Decisions 327
10 Decision Making: Analysis of Relevant
Costs and Benefits 328
11 Analysis and Control of
Nonmanufacturing Costs 365
12 Cost Estimation 388
Part 5
Special Cost Allocation Problems 415
13 Allocation of Service
Department Costs 416
14 Joint Costs and Joint Products 439
15 Accounting for Spoilage,
Rework, and Scrap 471
Part 6
Using Cost Information
in Making Decisions 499
16 Linear Programming and
Cost Accounting 500
17 Inventory Management and Control 523
18 Introduction to Capital Budgeting 549
19 Additional Topics in
Capital Budgeting 580
20 Using Cost Information in Making
Decisions Under Uncertainty 615
Part 7
Cost Accounting and Control in
Decentralized Organizations 649
21 Decentralization and Performance
Measurment 650
22 Transfer Pricing 688
Part 8
Special Topics in C o 7 Accounting , 09
23 Product Quality Costs and Productivity
Measurement 710
24 Behavioral Issues in Budgeting and
Responsibility Accounting 733
25 Learning Curves and Cost Behavior 757
26 Additional Topics in Cost-Variance
Investigation 776
Chapter 1: The Rote of Cost Accounting 3
THE IMPACT OF COST ACCOUNTING EXCELLENCE 4
THE ROLE OF COST ACCOUNTING IN AN ORGANIZATION 5
Relationship Between Cost, Financial, and Managerial Accounting Systems 5 Organizatiotial
Goals 6 Implementing Organizational Objectives 7 Cost Accountants Within an Organization 9
COST ACCOUNTING THEMES OF THIS BOOK 11
Cost Accounting and Decision Making 12 Importance of Economic Tlieory and
Behavioral Science 13 Ethical Considerations 13 Adapting to Change 15
SUMMARY OF LEARNING OBJECTIVES 16
KEY TERMS TO REVIEW 17
REVIEW PROBLEM 18
APPENDIX: PROFESSIONAL ORGANIZATIONS
AND CERTIFICATION 19
REVIEW QUESTIONS 20
EXERCISES 21
PROBLEMS 22
DISCUSSION CASE 25
Chapter 2: Basic Cost lenns and (Concepts 2~
DIFFERENT COSTS FOR DIFFERENT OBJECTIVES 28
COST CLASSIFICATIONS FOR PLANNING DECISIONS 28
xiii
xjv Contents
Fixed/Variable Costs 30 Marginal /Average /Sunk Costs 33 Opportunity Cost 34
Incremental Cost 35
COST CLASSIFICATIONS FOR MOTIVATING MANAGERS 35
Controllable/Uncontrollable Costs 35
COST CLASSIFICATIONS FOR CONTROLLING COSTS 36
Direct/Indirect Costs 36 Unit/Batch/Line/Facility Costs 31 Administrative /Marketing/
Manufacturing/Service Costs 38
COST CLASSIFICATIONS FOR EVALUATING PERFORMANCE 39
COST CLASSIFICATIONS FOR FINANCIAL REPORTING 39
Product-Costs/Period-Costs Expense 40
RELEVANT COST 44
SUMMARY OF LEARNING OBJECTIVES 46
KEY TERMS TO REVIEW 46
REVIEW PROBLEM 47
REVIEW QUESTIONS 47
EXERCISES 48
PROBLEMS 51
DISCUSSION CASE 55
Chapter 3: Cost-Volume-Profit Analysis
and Pricing Decisions 56
BREAK-EVEN ANALYSIS 57
Finding the Break-Even Point 58 Sales Required to Earn a Given Profit 60 Illustrations of
Break-Even Analysis 61
USING BREAK-EVEN ANALYSIS TO MAKE PLANNING DECISIONS 64
Changes in the Cost Structure 64 Computer-Integrated Manufacturing 65 Multiproduct
Break-Even Analysis 65
BREAK-EVEN ANALYSIS AND COST CONTROL 67
PRICING 68
Cost-Pius and Retum-on-Investment Pricing 10 Break-Even Analysis and Pricing 13
Target Costing and Pricing 14 Evaluation of Pricing Systems 14
SUMMARY OF LEARNING OBJECTIVES 75
KEY TERMS TO REVIEW 76
REVIEW PROBLEM 76
APPENDIX 3A: AN ECONOMIC PERSPECTIVE
ON COST-VOLUME-PROFIT ANALYSIS 79
APPENDIX 3B: PRICING UNDER THE ROBINSON-PATMAN ACT 82
REVIEW QUESTIONS 83
EXERCISES 84
Contents XV
PROBLEMS 89
DISCUSSION CASE 97
Chapter 4: Product-Costing Systems and Job-Order Costing 103
OVERVIEW OF PRODUCT-COSTING SYSTEMS 104
Product Costing in Manufacturing Firms 1 04 Product Costing and Service Costing in
Nonmanufacturing Firms 104 Overhead and Application of Overhead 105 Different Types of
Product-Costing Systems 108
JOB-ORDER COST ACCOUNTING SYSTEMS 112
The Job-Cost Sheet 112 Accounting for Prime Costs 112 Application of Overhead to a Job
Order: An Overview 112 An Illustration of Job-Order Costing 114 Using Job-Order Cost
Information 119 Computer-Integrated Manufacturing 119
SUMMARY OF LEARNING OBJECTIVES 120
KEY TERMS TO REVIEW 120
REVIEW PROBLEM 120
REVIEW QUESTIONS 121
EXERCISES 122
PROBLEMS 124
DISCUSSION CASE 131
Chapter 5: Process Costing 132
BASIC CONCEPTUAL STEPS OF PROCESS COSTING 133
Choice of Process Centers 133 Analysis of Process-Center Unit Flows 134 Determination
of Productive Output 136 Determination of Process-Center Costs 138 Calculation of the
Cost per Equivalent Unit at Each Process Center 138 Application of Costs to Work-in-
Process and Work Transferred Out 139 FIFO versus Weighted Average: A Graphical
Approach 140 An Illustration of Process Costing 141 Process Costing with Multiple
Processes 145 Complications in Process Costing 141
DECISION MAKING AND PROCESS COSTS 148
OPERATION COSTING 149
PROCESS COSTING AT HEWLETT-PACKARD 150
Product 152 Process 152 Accounting System 152
SUMMARY OF LEARNING OBJECTIVES 156
KEY TERMS TO REVIEW 157
REVIEW PROBLEM 157
REVIEW QUESTIONS 158
EXERCISES 159
PROBLEMS 162
DISCUSSION CASE 166
2£y^ Contents
Chapter 6: Overhead Accounting in a Modern
Manufacturing Environment 161
WIDESPREAD USE OF ALLOCATIONS 168
PURPOSE OF OVERHEAD ALLOCATION
TO PRODUCTS OR SERVICES 169
Inventory Valuation and Income Determination 170 Cost Reimbursement 111 Pricing and
Bidding 171 Communicating the Costs of Internally Produced Services 111 Product Introduction
and Termination 171 Performance Measurement and Cost Control 172 Taxes 112 Proxies
for Externalities 172
APPLICATION OF OVERHEAD COSTS
USING A SINGLE ACTIVITY 173
Cost Distribution 173 Allocation of Service Department Costs 174 Overhead Application 115
Actual versus Applied Overhead 177 Levels of Activity 179
COMPREHENSIVE REVIEW PROBLEM 180
ACTIVITY-BASED COSTING 184
Choosing Appropriate Activities 184 Tracing Costs to Activities 185 Determining Cost Drivers
for Activities 185 Estimating Application Rates for Each Activity Driver 186 Applying Costs to
Products 186 Examples of Activity-Based Costing 186 Other Benefits of Activity-Based
Costing 189 Weaknesses of Activity-Based Costing 189
OVERHEAD APPLICATION WITH PROCESS COSTING 189
OVERHEAD APPLICATION WITH MODERN
MANUFACTURING TECHNIQUES 190
SUMMARY OF LEARNING OBJECTIVES 190
KEY TERMS TO REVIEW 191
REVIEW PROBLEM 191
APPENDIX: VARIABLE AND FIXED OVERHEAD RATES 193
REVIEW QUESTIONS 193
EXERCISES 194
PROBLEMS 197
DISCUSSION CASE 206
Chapter 7: Budgeting and Responsibility Accounting 210
THE BUDGETING PROCESS 213
Purposes of Budgeting 214 Budget Administration 214 Types of Budgets 214 The Budget
Process 215 Example of Master Budget Preparation 217
RESPONSIBILITY ACCOUNTING 224
Cost, Profit, Revenue, and Investment Centers 225 Subunits versus Subunit Managers 226
Performance Reporting 226 Product-Line Reports 227 Cost Reduction 228 Nonfinancial
Information 229
SUMMARY OF LEARNING OBJECTIVES 229
Contents xvii
KEY TERMS TO REVIEW 230
REVIEW PROBLEM 230
APPENDIX: ZERO-BASE BUDGETING 233
REVIEW QUESTIONS 233
EXERCISES 233
PROBLEMS 237
DISCUSSION CASE 253
Chapter 8: Standard Costing: Direct
Materials and Direct Labor 256
COST CONTROL 257
SETTING STANDARDS 258
Use of Standards in the Service Industry 259
COST VARIANCES 259
Direct-Materials Variances 261 Direct-Labor Variances 264
INTERPRETATION OF MATERIALS AND LABOR VARIANCES 265
SIGNIFICANCE OF COST VARIANCES 267
Behavioral and Economic Effects of Variances 261 Computer-Integrated Manufacturing:
Real-Time Variance Data 261 The Uncertain Future of Standard Cost Systems and
Variances 268
SUMMARY OF LEARNING OBJECTIVES 268
KEY TERMS TO REVIEW 269
REVIEW PROBLEM 269
APPENDIX 8A: MIX AND YIELD VARIANCES
FOR MATERIALS AND LABOR 271
APPENDIX 8B: MIX AND QUANTITY VARIANCES
FOR ANALYZING SALES PERFORMANCE 274
APPENDIX 8C: A THREE-WAY BREAKDOWN
OF DIRECT-MATERIALS VARIANCE 276
REVIEW QUESTIONS 277
EXERCISES 277
PROBLEMS 279
DISCUSSION CASE 285
Chapter 9: Standard Overhead Costs and
Applications of Standard Costing 281
OVERHEAD BUDGETS 288
Flexible Budgets 288
jjyjjj Contents
VARIABLE-OVERHEAD VARIANCES 291
FIXED-OVERHEAD VARIANCES 294
INTERPRETATION OF OVERHEAD VARIANCES 297
USING STANDARD COSTS WITH JOB-ORDER COSTING 298
Disposition of Cost Variables 299 Overview of Standard Costing Systems 299
USING STANDARD COSTS WITH PROCESS COSTING 303
ADVANTAGES OF STANDARD COSTING 304
STANDARD COSTING AND VARIANCE ANALYSIS
AT CHRYSLER MOTORS CORPORATION 306
Materials Price Variance 306 Materials Quantity Variance 307 Labor Rate Variance 307
Labor Efficiency Variance 307 Standard Variable-Overhead Rate 308 Standard Fixed-Overhead
Rate 308 Fixed-Overhead Budget Variance 308 Fixed-Overhead Application Variance 308
SUMMARY OF LEARNING OBJECTIVES 308
KEY TERMS TO REVIEW 309
REVIEW PROBLEM 309
APPENDIX: STANDARD COST VARIANCE PRORATION 311
REVIEW QUESTIONS 313
EXERCISES 313
PROBLEMS 315
DISCUSSION CASE 322
Chapter 10: Decision Making: Analysis of
Relevant Costs and Benefits 328
DECISION MAKING 329
Decisions Under Certainty and Uncertainty 329 Full (Absorption) versus Variable
Costing 329 Historical Cost (Book Value) versus Opportunity Cost 331
FINDING THE RELEVANT COSTS FOR VARIOUS DECISIONS 331
Product or Service Introduction 332 Product or Service Termination 334
Make or Buy (Sourcing) 335 Product Promotion 33 7 Bidding for a Special Order 338
Use of Scarce Resources 338
ANALYSIS OF RELEVANT COSTS AND
BENEFITS IN A UNIVERSITY 339
SUMMARY OF LEARNING OBJECTIVES 344
KEY TERMS TO REVIEW 345
REVIEW PROBLEM 345
APPENDIX: RECONCILIATION OF VARIABLE
AND ABSORPTION COSTING 347
REVIEW QUESTIONS 349
Contents xix
EXERCISES 349
PROBLEMS 354
DISCUSSION CASE 363
Chapter 11: Analysis and Control of
Nonmanufacturing Costs 365
SERVICE ORGANIZATIONS 366
Services and Job-Order Costing 366 Illustration of Job Costing for a Service
Organization 368 Pricing of Services 369
RETAIL AND WHOLESALE ORGANIZATIONS 369
NONMANUFACTURING DEPARTMENTS 371
Distribution Costs 371 Administrative Costs 315 Research and Development Costs 316
Work Measurement 311
SUMMARY OF LEARNING OBJECTIVES 379
KEY TERMS TO REVIEW 379
REVIEW PROBLEM 379
REVIEW QUESTIONS 380
EXERCISES 380
PROBLEMS 382
DISCUSSION CASE 386
Chapter 12: Cost Estimation 388
TIME-SERIES ANALYSIS 389
Visual Time-Series Methods 390 Using Term-Series Models 390
ESTIMATING VARIABLE AND FIXED COSTS 391
Account Classification Method 391 Visual-Fit Method 392 High-Low Method 393
Regression Analysis 394
COST ESTIMATION WITH ACTIVITY-BASED COSTING 397
COMPUTERIZED COST-ESTIMATION SYSTEMS 398
SUMMARY OF LEARNING OBJECTIVES 399
KEY TERMS TO REVIEW 400
REVIEW PROBLEM 400
APPENDIX 12A: EXPONENTIAL SMOOTHING 401
APPENDIX 12B: COST ESTIMATION USING
MULTIPLE REGRESSION ANALYSIS 403
REVIEW QUESTIONS 405
EXERCISES 405
PROBLEMS 408
DISCUSSION CASE 413
-j£X Contents
Chapter 13: Allocation of Service Department Costs 416
COST DRIVERS FOR SERVICE DEPARTMENT COSTS 417
ALLOCATION OF SERVICE DEPARTMENT
COSTS WITH RECIPROCAL SERVICES 418
Direct Method 418 Step-Down Method 419 Reciprocal-Services Method 421
DUAL ALLOCATION 422
MAKING DECISIONS WITH ALLOCATED
SERVICE DEPARTMENT COSTS 424
SUMMARY OF LEARNING OBJECTIVES 424
KEY TERMS TO REVIEW 425
REVIEW PROBLEM 425
APPENDIX: COST ACCOUNTING STANDARDS BOARD 427
REVIEW QUESTIONS 428
EXERCISES 428
PROBLEMS 431
DISCUSSION CASE 438
Chapter 14: Joint Costs and Joint Products 439
EXAMPLES OF JOINT AND INDIRECT COSTS 440
ALLOCATING JOINT AND INDIRECT COSTS
AND FINANCIAL REPORTING 442
Joint and Indirect Cost Allocation Methods 443 Comparison of Allocation Methods 445
BY-PRODUCTS 446
JOINT COSTS AND DECISION MAKING 447
Decision to Process Further 441 Decision to Perform the Joint Process 448 Promotion of Joint
Products 449
ILLUSTRATION OF JOINT-COST ALLOCATION 449
SUMMARY OF LEARNING OBJECTIVES 453
KEY TERMS TO REVIEW 454
REVIEW PROBLEM 454
APPENDIX: DETERMINING THE PRICE OF JOINT PRODUCTS 455
REVIEW QUESTIONS 460
EXERCISES 461
PROBLEMS 464
DISCUSSION CASE 469
Contents xxi
Chapter 15: Accounting for Spoilage, Rework, and Scrap 471
TERMINOLOGY 472
SPOILAGE 473
Treatment of Spoilage Under Process Costing 473 Treatment of Spoilage Under Job-Order
Costing 480 Standard Costing and Spoilage 481 Determing Normal Spoilage 483
Interpretation of Normal Spoilage 484
ACCOUNTING FOR REWORKED UNITS 484
ACCOUNTING FOR SCRAP 486
MAKING DECISIONS ON SPOILAGE,
REWORKED UNITS, AND SCRAP 486
Making Decisions on Spoilage 487 Making Decisions on Reworked Units 487 Making
Decisions on Scrap 487
EMPHASIS ON QUALITY 488
SUMMARY OF LEARNING OBJECTIVES 488
KEY TERMS TO REVIEW 489
REVIEW PROBLEM 489
REVIEW QUESTIONS 490
EXERCISES 490
PROBLEMS 493
DISCUSSION CASE 497
Chapter 16: Linear Programming and Cost Accounting 500
LINEAR PROGRAMMING 501
Objective Function 502 Constraints 503 Graphical Solution 503
DUAL LINEAR PROGRAMMING PROBLEM 506
IMPLICATIONS FOR MANAGERIAL ACCOUNTING 508
Estimation of Variables 510 Role of Cost Accounting Information 510
SUMMARY OF LEARNING OBJECTIVES 512
KEY TERMS TO REVIEW 513
REVIEW PROBLEM 513
APPENDIX: THE SIMPLEX METHOD 515
REVIEW QUESTIONS 516
EXERCISES 517
PROBLEMS 517
Chapter 17: Inventory Management and Control 52J
REASONS FOR HOLDING INVENTORIES 525
xxii Contents
THE ECONOMIC-ORDER-QUANTITY (EOQ) MODEL 526
REORDER POINTS 528
COST DETERMINATION FOR INVENTORY CONTROL 529
Fixed Costs and Inventory Decisions 530
COST ACCOUNTING AND JIT PRODUCTION METHODS 530
Accounting for JIT 532 Internal Control and JIT 535
PERFORMANCE MEASUREMENT AND JIT 535
Flexible Manufacturing Systems 535
INVENTORY CONTROL IN COMPLEX PRODUCTION SYSTEMS 536
SUMMARY OF LEARNING OBJECTIVES 537
KEY TERMS TO REVIEW 538
REVIEW PROBLEM 538
APPENDIX: INVENTORY POLICY AT FORD MOTOR COMPANY 539
REVIEW QUESTIONS 543
EXERCISES 544
PROBLEMS 545
DISCUSSION CASE 547
Chapter 18: Introduction to Capital Budgeting 549
TIME-VALUE CALCULATIONS: PRESENT
VALUE AND FUTURE VALUE 552
Annuity Calcualtions 553
CAPITAL-BUDGETING EVALUATION METHODS
THAT IGNORE THE TIME VALUE OF MONEY 554
Payback Period 554 Return on Investment 555
NET-PRESENT-VALUE (NPV) METHOD 556
Estimating Cash Flows 556 Determining the Appropriate Discount Rate 551 Decision Rule
Using Net Present Value 558
INTERNAL RATE OF RETURN 558
Ranking of Investments: Capital Rationing 560
EVALUATING THE METHODS OF
INVESTMENT DECISION MAKING 561
ECONOMIC EVALUATION OF INVESTMENT PROJECTS 562
Independent and Dependent Projects 562 Mutually Exclusive Investments 563
CAPITAL BUDGETING IN NONPROFIT ORGANIZATIONS 565
GEORGIA-PACIFIC 572
SUMMARY OF LEARNING OBJECTIVES 573
KEY TERMS TO REVIEW 573
REVIEW PROBLEM 574
Contents xxiii
REVIEW QUESTIONS 574
EXERCISES 575
PROBLEMS 577
DISCUSSION CASE 578
Chapter 19: Additional Topics in Capital Budgeting 580
CASH FLOW AND TAXES 581
Taxes: An Easy Solution 582 Taxes: An Expanded Solution 584
ESTIMATING THE CASH FLOWS FOR INVESTMENT DECISIONS 585
DETERMINING THE COST OF MONEY 585
NONCONSTANT CASH FLOWS 586
ANNUAL EQUIVALENT COST 588
Comparing Projects with Unequal Lives 589 The Reinvestment Assumption 590
BREAK-EVEN ANALYSIS WITH TIME VALUE 592
Unit Costs and the Make-or-Buy Decision 593 Including Working Capital 594
REVIEW PROCESS FOR CAPITAL-BUDGETING DECISIONS 594
Controlling Investment Expenditures 594 Cost Performance Reporting 595 Reappraisal or
Postaudit of Operating Results 598
EVALUATION OF COMPUTER-INTEGRATED
MANUFACTURING (CIM) SYSTEMS 599
SUMMARY OF LEARNING OBJECTIVES 600
KEY TERMS TO REVIEW 601
REVIEW PROBLEM 601
REVIEW QUESTIONS 602
EXERCISES 602
PROBLEMS 606
DISCUSSION CASE 613
Chapter 20: Using Cost Information in
Make Decisions Under Uncertainty 615
SENSITIVITY ANALYSIS 616
EXPECTED-VALUE CALCULATIONS 617
Expected Costs and Cost-Volume-Profit (CVP) Analysis 619 Decision Trees 620
SIMULATION 622
RISK ATTITUDES AND EXPECTED UTILITY 623
Utility and Risk Attitudes 625 Appraisal of Utility Theory 626
INFORMATION AND DECISIONS WITH UNCERTAINTY 627
Decision Analysis Without Obtaining Additional Information 621 Modeling Additional
Information 628 Expected Value of Perfect Information 629
jojjy Contents
COST ACCOUNTING AND DECISIONS
UNDER UNCERTAINTY 630
SUMMARY OF LEARNING OBJECTIVES 630
KEY TERMS TO REVIEW 631
REVIEW PROBLEM 631
APPENDIX 20A: BREAK-EVEN ANALYSIS
WITH UNCERTAIN DEMAND 633
APPENDIX 20B: THE VALUE OF AN INFORMATION SYSTEM 636
REVIEW QUESTIONS 638
EXERCISES 639
PROBLEMS 642
DISCUSSION CASE 647
Chapter 21: Decentralization and Performance Measurement 650
DELEGATION OF DECISION MAKING 651
Setting Objectives 652 Performance Evaluation and Managerial Incentives 653
THE PRINCIPLE-AGENT PROBLEM 654
MEASURING PERFORMANCE ON DIFFERENT
LEVELS OF AN ORGANIZATION 655
Department or Cost Center 655 Plant or Operating Unit 656 Division 651 Company 657
ROI AND RESIDUAL INCOME AS PERFORMANCE MEASURES 658
Calculation of Return on Investment (ROI) 658 Calculation of Residual Income 662
PERFORMANCE MEASUREMENT, ROI, AND
CAPITAL-BUDGETING DECISIONS 664
NONFINANCIAL PERFORMANCE MEASURES 665
EXECUTIVE COMPENSATION PLANS 666
PERFORMANCE MEASUREMENT AND INFLATION 667
Price-Level Adjustments and Unexpected Inflation 670
SEGMENT PERFORMANCE EVALUATION
IN MULTINATIONAL FIRMS 671
Example 672
SUMMARY OF THE LEARNING OBJECTIVES 674
KEY TERMS TO REVIEW 675
REVIEW PROBLEM 675
Contents XXV
APPENDIX: PRESENT VALUE DEPRECIATION AND THE
EVALUATION OF CAPITAL-BUDGETING DECISIONS 677
REVIEW QUESTIONS 679
EXERCISES 680
PROBLEMS 682
DISCUSSION CASE 687
Chapter 22: Transfer Pricing 688
NEED FOR TRANSFER PRICES 689
Conflict of Interests 689 Uses of Divisionalized Data 690
TRANSFER-PRICING ALTERNATIVES 690
General Transfer-Pricing Rule 690 Market Price 691 Marginal Cost 693 Variable Cost 694
Full Cost 694 Negotiated Price 696 Forced Internal Buying versus Autonomy 696
MEASURING PERFORMANCE 697
DECISION MAKING AND TRANSFER PRICING 698
FINANCIAL ACCOUNTING 700
MULTINATIONAL FIRMS 700
COMPARING TRANSFER-PRICING METHODS 701
SUMMARY OF LEARNING OBJECTIVES 701
KEY TERMS TO REVIEW 702
REVIEW PROBLEM 702
REVIEW QUESTIONS 702
EXERCISES 703
PROBLEMS 705
DISCUSSION CASE 707
Chapter 23: Product Quality Costs
and Productivity Measurement 710
QUALITY COSTING 711
Measuring Quality Costs 711 Total Quality Control 715
PRODUCTIVITY 716
Productivity Measures 717 Illustration of Productivity Measurement in a Government
Unit 718 A Multidimensional View of Productivity Analysis 718 Productivity Through
Activity Management 723
QUALITY AND PRODUCTIVITY 723
SUMMARY OF THE LEARNING OBJECTIVES 724
xxv[ Contents
KEY TERMS TO REVIEW 724
REVIEW PROBLEM 724
REVIEW QUESTIONS 725
EXERCISES 725
PROBLEMS 727
DISCUSSION CASE 732
Chapter 24: Behavioral Issues in Budgeting
and Responsibility Accounting 733
IMPORTANCE OF BEHAVIORAL ISSUES 734
MOTIVATION 735
Expectancy Theory and the Motivational Impacts of Budgets 735 Motivating Desired Behavior
with Responsibility Accounting 736
PARTICIPATORY MANAGEMENT 737
Determinants of the Effectiveness of Participative Budgeting 738 Methods of Obtaining Goal
Congruence 740 Contingency View of Managerial Accounting System Design 741
BEHAVIORAL EFFECTS OF BUDGETS 742
SUMMARY OF LEARNING OBJECTIVES 743
KEY TERMS TO REVIEW 744
REVIEW PROBLEM 744
REVIEW QUESTIONS 745
EXERCISES 745
PROBLEMS 748
DISCUSSION CASE 756
Chapter 25: Learning Curves and Cost Behavior 757
ECONOMIC COST CURVES 758
THE LEARNING-CURVE MODEL 759
A Related Model of Learning 759 Use of Learning Curves in Decision Making: An
Example 761 Difficulties in Obtaining Data 761
LEARNING-CURVE APPLICATIONS 762
Pricing and Target Costing 763 Work Scheduling 764 Capital Budgeting 764
Motivation 764 Overtime Decisions 764 External Financial Reporting 764
SUMMARY OF LEARNING OBJECTIVES 768
KEY TERMS TO REVIEW 768
REVIEW PROBLEM 768
APPENDIX: ESTIMATING LEARNING RATES 769
REVIEW QUESTIONS 770
Contents xxvii
EXERCISES 770
PROBLEMS 772
DISCUSSION CASE 774
Chapter 26: Additional Topics in Cost-Variance Investigation 776
COST VARIANCE INVESTIGATION 777
Use of Information on Variability 778 Control Charts 780
DECISION THEORETIC APPROACHES 782
Setting Up the Problem 783 Simple Investigation-Decision Situation 784 Break-Even
Probability 786 Variance Investigation in an Agency Framework 786
SUMMARY OF LEARNING OBJECTIVES 787
KEY TERMS TO REVIEW 788
REVIEW PROBLEM 788
APPENDIX 26A: EXPLORATORY INVESTIGATIONS
AND THE VALUE OF INFORMATION 789
APPENDIX 26B: EX POST VARIANCE ANALYSIS 791
Example 795 Evaluation of Ex Post Variance Analysis 798 Use of Ex Post Analysis 798
REVIEW QUESTIONS 799
EXERCISES 800
PROBLEMS 801
DISCUSSION CASE 810
Appendix A: Cost Accounting and Professional Examinations 811
Appendix B: Tables 814
Appendix C: Glossary 821
Index 831
|
| adam_txt |
Part 1
Cost Accounting Fundamentals 1
1 The Role of Cost Accounting 3
2 Basic Cost Terms and Concepts 27
3 Cost-Volume-Profit Analysis
and Pricing Decisions 56
Part 2
Product and Service Costing 101
4 Product-Costing Systems and
Job-Order Costing 103
5 Process Costing 132
6 Overhead Accounting in a Modern
Manufacturing Environment 167
Part 3
Budgets and Standard Costing 209
7 Budgeting and Responsibility
Accounting 210
8 Standard Costing: Direct Materials
and Direct Labor 256
9 Standard Overhead Costs and Applications
of Standard Costing 287
Part 4
Identifying and Estimating
Costs for Decisions 327
10 Decision Making: Analysis of Relevant
Costs and Benefits 328
11 Analysis and Control of
Nonmanufacturing Costs 365
12 Cost Estimation 388
Part 5
Special Cost Allocation Problems 415
13 Allocation of Service
Department Costs 416
14 Joint Costs and Joint Products 439
15 Accounting for Spoilage,
Rework, and Scrap 471
Part 6
Using Cost Information
in Making Decisions 499
16 Linear Programming and
Cost Accounting 500
17 Inventory Management and Control 523
18 Introduction to Capital Budgeting 549
19 Additional Topics in
Capital Budgeting 580
20 Using Cost Information in Making
Decisions Under Uncertainty 615
Part 7
Cost Accounting and Control in
Decentralized Organizations 649
21 Decentralization and Performance
Measurment 650
22 Transfer Pricing 688
Part 8
Special Topics in C'o 7 Accounting , 09
23 Product Quality Costs and Productivity
Measurement 710
24 Behavioral Issues in Budgeting and
Responsibility Accounting 733
25 Learning Curves and Cost Behavior 757
26 Additional Topics in Cost-Variance
Investigation 776
Chapter 1: The Rote of Cost Accounting 3
THE IMPACT OF COST ACCOUNTING EXCELLENCE 4
THE ROLE OF COST ACCOUNTING IN AN ORGANIZATION 5
Relationship Between Cost, Financial, and Managerial Accounting Systems 5 Organizatiotial
Goals 6 Implementing Organizational Objectives 7 Cost Accountants Within an Organization 9
COST ACCOUNTING THEMES OF THIS BOOK 11
Cost Accounting and Decision Making 12 Importance of Economic Tlieory and
Behavioral Science 13 Ethical Considerations 13 Adapting to Change 15
SUMMARY OF LEARNING OBJECTIVES 16
KEY TERMS TO REVIEW 17
REVIEW PROBLEM 18
APPENDIX: PROFESSIONAL ORGANIZATIONS
AND CERTIFICATION 19
REVIEW QUESTIONS 20
EXERCISES 21
PROBLEMS 22
DISCUSSION CASE 25
Chapter 2: Basic Cost lenns and (Concepts 2~
DIFFERENT COSTS FOR DIFFERENT OBJECTIVES 28
COST CLASSIFICATIONS FOR PLANNING DECISIONS 28
xiii
xjv Contents
Fixed/Variable Costs 30 Marginal /Average /Sunk Costs 33 Opportunity Cost 34
Incremental Cost 35
COST CLASSIFICATIONS FOR MOTIVATING MANAGERS 35
Controllable/Uncontrollable Costs 35
COST CLASSIFICATIONS FOR CONTROLLING COSTS 36
Direct/Indirect Costs 36 Unit/Batch/Line/Facility Costs 31 Administrative /Marketing/
Manufacturing/Service Costs 38
COST CLASSIFICATIONS FOR EVALUATING PERFORMANCE 39
COST CLASSIFICATIONS FOR FINANCIAL REPORTING 39
Product-Costs/Period-Costs Expense 40
RELEVANT COST 44
SUMMARY OF LEARNING OBJECTIVES 46
KEY TERMS TO REVIEW 46
REVIEW PROBLEM 47
REVIEW QUESTIONS 47
EXERCISES 48
PROBLEMS 51
DISCUSSION CASE 55
Chapter 3: Cost-Volume-Profit Analysis
and Pricing Decisions 56
BREAK-EVEN ANALYSIS 57
Finding the Break-Even Point 58 Sales Required to Earn a Given Profit 60 Illustrations of
Break-Even Analysis 61
USING BREAK-EVEN ANALYSIS TO MAKE PLANNING DECISIONS 64
Changes in the Cost Structure 64 Computer-Integrated Manufacturing 65 Multiproduct
Break-Even Analysis 65
BREAK-EVEN ANALYSIS AND COST CONTROL 67
PRICING 68
Cost-Pius and Retum-on-Investment Pricing 10 Break-Even Analysis and Pricing 13
Target Costing and Pricing 14 Evaluation of Pricing Systems 14
SUMMARY OF LEARNING OBJECTIVES 75
KEY TERMS TO REVIEW 76
REVIEW PROBLEM 76
APPENDIX 3A: AN ECONOMIC PERSPECTIVE
ON COST-VOLUME-PROFIT ANALYSIS 79
APPENDIX 3B: PRICING UNDER THE ROBINSON-PATMAN ACT 82
REVIEW QUESTIONS 83
EXERCISES 84
Contents XV
PROBLEMS 89
DISCUSSION CASE 97
Chapter 4: Product-Costing Systems and Job-Order Costing 103
OVERVIEW OF PRODUCT-COSTING SYSTEMS 104
Product Costing in Manufacturing Firms 1 04 Product Costing and Service Costing in
Nonmanufacturing Firms 104 Overhead and Application of Overhead 105 Different Types of
Product-Costing Systems 108
JOB-ORDER COST ACCOUNTING SYSTEMS 112
The Job-Cost Sheet 112 Accounting for Prime Costs 112 Application of Overhead to a Job
Order: An Overview 112 An Illustration of Job-Order Costing 114 Using Job-Order Cost
Information 119 Computer-Integrated Manufacturing 119
SUMMARY OF LEARNING OBJECTIVES 120
KEY TERMS TO REVIEW 120
REVIEW PROBLEM 120
REVIEW QUESTIONS 121
EXERCISES 122
PROBLEMS 124
DISCUSSION CASE 131
Chapter 5: Process Costing 132
BASIC CONCEPTUAL STEPS OF PROCESS COSTING 133
Choice of Process Centers 133 Analysis of Process-Center Unit Flows 134 Determination
of Productive Output 136 Determination of Process-Center Costs 138 Calculation of the
Cost per Equivalent Unit at Each Process Center 138 Application of Costs to Work-in-
Process and Work Transferred Out 139 FIFO versus Weighted Average: A Graphical
Approach 140 An Illustration of Process Costing 141 Process Costing with Multiple
Processes 145 Complications in Process Costing 141
DECISION MAKING AND PROCESS COSTS 148
OPERATION COSTING 149
PROCESS COSTING AT HEWLETT-PACKARD 150
Product 152 Process 152 Accounting System 152
SUMMARY OF LEARNING OBJECTIVES 156
KEY TERMS TO REVIEW 157
REVIEW PROBLEM 157
REVIEW QUESTIONS 158
EXERCISES 159
PROBLEMS 162
DISCUSSION CASE 166
2£y^ Contents
Chapter 6: Overhead Accounting in a Modern
Manufacturing Environment 161
WIDESPREAD USE OF ALLOCATIONS 168
PURPOSE OF OVERHEAD ALLOCATION
TO PRODUCTS OR SERVICES 169
Inventory Valuation and Income Determination 170 Cost Reimbursement 111 Pricing and
Bidding 171 Communicating the Costs of Internally Produced Services 111 Product Introduction
and Termination 171 Performance Measurement and Cost Control 172 Taxes 112 Proxies
for Externalities 172
APPLICATION OF OVERHEAD COSTS
USING A SINGLE ACTIVITY 173
Cost Distribution 173 Allocation of Service Department Costs 174 Overhead Application 115
Actual versus Applied Overhead 177 Levels of Activity 179
COMPREHENSIVE REVIEW PROBLEM 180
ACTIVITY-BASED COSTING 184
Choosing Appropriate Activities 184 Tracing Costs to Activities 185 Determining Cost Drivers
for Activities 185 Estimating Application Rates for Each Activity Driver 186 Applying Costs to
Products 186 Examples of Activity-Based Costing 186 Other Benefits of Activity-Based
Costing 189 Weaknesses of Activity-Based Costing 189
OVERHEAD APPLICATION WITH PROCESS COSTING 189
OVERHEAD APPLICATION WITH MODERN
MANUFACTURING TECHNIQUES 190
SUMMARY OF LEARNING OBJECTIVES 190
KEY TERMS TO REVIEW 191
REVIEW PROBLEM 191
APPENDIX: VARIABLE AND FIXED OVERHEAD RATES 193
REVIEW QUESTIONS 193
EXERCISES 194
PROBLEMS 197
DISCUSSION CASE 206
Chapter 7: Budgeting and Responsibility Accounting 210
THE BUDGETING PROCESS 213
Purposes of Budgeting 214 Budget Administration 214 Types of Budgets 214 The Budget
Process 215 Example of Master Budget Preparation 217
RESPONSIBILITY ACCOUNTING 224
Cost, Profit, Revenue, and Investment Centers 225 Subunits versus Subunit Managers 226
Performance Reporting 226 Product-Line Reports 227 Cost Reduction 228 Nonfinancial
Information 229
SUMMARY OF LEARNING OBJECTIVES 229
Contents xvii
KEY TERMS TO REVIEW 230
REVIEW PROBLEM 230
APPENDIX: ZERO-BASE BUDGETING 233
REVIEW QUESTIONS 233
EXERCISES 233
PROBLEMS 237
DISCUSSION CASE 253
Chapter 8: Standard Costing: Direct
Materials and Direct Labor 256
COST CONTROL 257
SETTING STANDARDS 258
Use of Standards in the Service Industry 259
COST VARIANCES 259
Direct-Materials Variances 261 Direct-Labor Variances 264
INTERPRETATION OF MATERIALS AND LABOR VARIANCES 265
SIGNIFICANCE OF COST VARIANCES 267
Behavioral and Economic Effects of Variances 261 Computer-Integrated Manufacturing:
Real-Time Variance Data 261 The Uncertain Future of Standard Cost Systems and
Variances 268
SUMMARY OF LEARNING OBJECTIVES 268
KEY TERMS TO REVIEW 269
REVIEW PROBLEM 269
APPENDIX 8A: MIX AND YIELD VARIANCES
FOR MATERIALS AND LABOR 271
APPENDIX 8B: MIX AND QUANTITY VARIANCES
FOR ANALYZING SALES PERFORMANCE 274
APPENDIX 8C: A THREE-WAY BREAKDOWN
OF DIRECT-MATERIALS VARIANCE 276
REVIEW QUESTIONS 277
EXERCISES 277
PROBLEMS 279
DISCUSSION CASE 285
Chapter 9: Standard Overhead Costs and
Applications of Standard Costing 281
OVERHEAD BUDGETS 288
Flexible Budgets 288
jjyjjj Contents
VARIABLE-OVERHEAD VARIANCES 291
FIXED-OVERHEAD VARIANCES 294
INTERPRETATION OF OVERHEAD VARIANCES 297
USING STANDARD COSTS WITH JOB-ORDER COSTING 298
Disposition of Cost Variables 299 Overview of Standard Costing Systems 299
USING STANDARD COSTS WITH PROCESS COSTING 303
ADVANTAGES OF STANDARD COSTING 304
STANDARD COSTING AND VARIANCE ANALYSIS
AT CHRYSLER MOTORS CORPORATION 306
Materials Price Variance 306 Materials Quantity Variance 307 Labor Rate Variance 307
Labor Efficiency Variance 307 Standard Variable-Overhead Rate 308 Standard Fixed-Overhead
Rate 308 Fixed-Overhead Budget Variance 308 Fixed-Overhead Application Variance 308
SUMMARY OF LEARNING OBJECTIVES 308
KEY TERMS TO REVIEW 309
REVIEW PROBLEM 309
APPENDIX: STANDARD COST VARIANCE PRORATION 311
REVIEW QUESTIONS 313
EXERCISES 313
PROBLEMS 315
DISCUSSION CASE 322
Chapter 10: Decision Making: Analysis of
Relevant Costs and Benefits 328
DECISION MAKING 329
Decisions Under Certainty and Uncertainty 329 Full (Absorption) versus Variable
Costing 329 Historical Cost (Book Value) versus Opportunity Cost 331
FINDING THE RELEVANT COSTS FOR VARIOUS DECISIONS 331
Product or Service Introduction 332 Product or Service Termination 334
Make or Buy (Sourcing) 335 Product Promotion 33 7 Bidding for a Special Order 338
Use of Scarce Resources 338
ANALYSIS OF RELEVANT COSTS AND
BENEFITS IN A UNIVERSITY 339
SUMMARY OF LEARNING OBJECTIVES 344
KEY TERMS TO REVIEW 345
REVIEW PROBLEM 345
APPENDIX: RECONCILIATION OF VARIABLE
AND ABSORPTION COSTING 347
REVIEW QUESTIONS 349
Contents xix
EXERCISES 349
PROBLEMS 354
DISCUSSION CASE 363
Chapter 11: Analysis and Control of
Nonmanufacturing Costs 365
SERVICE ORGANIZATIONS 366
Services and Job-Order Costing 366 Illustration of Job Costing for a Service
Organization 368 Pricing of Services 369
RETAIL AND WHOLESALE ORGANIZATIONS 369
NONMANUFACTURING DEPARTMENTS 371
Distribution Costs 371 Administrative Costs 315 Research and Development Costs 316
Work Measurement 311
SUMMARY OF LEARNING OBJECTIVES 379
KEY TERMS TO REVIEW 379
REVIEW PROBLEM 379
REVIEW QUESTIONS 380
EXERCISES 380
PROBLEMS 382
DISCUSSION CASE 386
Chapter 12: Cost Estimation 388
TIME-SERIES ANALYSIS 389
Visual Time-Series Methods 390 Using Term-Series Models 390
ESTIMATING VARIABLE AND FIXED COSTS 391
Account Classification Method 391 Visual-Fit Method 392 High-Low Method 393
Regression Analysis 394
COST ESTIMATION WITH ACTIVITY-BASED COSTING 397
COMPUTERIZED COST-ESTIMATION SYSTEMS 398
SUMMARY OF LEARNING OBJECTIVES 399
KEY TERMS TO REVIEW 400
REVIEW PROBLEM 400
APPENDIX 12A: EXPONENTIAL SMOOTHING 401
APPENDIX 12B: COST ESTIMATION USING
MULTIPLE REGRESSION ANALYSIS 403
REVIEW QUESTIONS 405
EXERCISES 405
PROBLEMS 408
DISCUSSION CASE 413
-j£X Contents
Chapter 13: Allocation of Service Department Costs 416
COST DRIVERS FOR SERVICE DEPARTMENT COSTS 417
ALLOCATION OF SERVICE DEPARTMENT
COSTS WITH RECIPROCAL SERVICES 418
Direct Method 418 Step-Down Method 419 Reciprocal-Services Method 421
DUAL ALLOCATION 422
MAKING DECISIONS WITH ALLOCATED
SERVICE DEPARTMENT COSTS 424
SUMMARY OF LEARNING OBJECTIVES 424
KEY TERMS TO REVIEW 425
REVIEW PROBLEM 425
APPENDIX: COST ACCOUNTING STANDARDS BOARD 427
REVIEW QUESTIONS 428
EXERCISES 428
PROBLEMS 431
DISCUSSION CASE 438
Chapter 14: Joint Costs and Joint Products 439
EXAMPLES OF JOINT AND INDIRECT COSTS 440
ALLOCATING JOINT AND INDIRECT COSTS
AND FINANCIAL REPORTING 442
Joint and Indirect Cost Allocation Methods 443 Comparison of Allocation Methods 445
BY-PRODUCTS 446
JOINT COSTS AND DECISION MAKING 447
Decision to Process Further 441 Decision to Perform the Joint Process 448 Promotion of Joint
Products 449
ILLUSTRATION OF JOINT-COST ALLOCATION 449
SUMMARY OF LEARNING OBJECTIVES 453
KEY TERMS TO REVIEW 454
REVIEW PROBLEM 454
APPENDIX: DETERMINING THE PRICE OF JOINT PRODUCTS 455
REVIEW QUESTIONS 460
EXERCISES 461
PROBLEMS 464
DISCUSSION CASE 469
Contents xxi
Chapter 15: Accounting for Spoilage, Rework, and Scrap 471
TERMINOLOGY 472
SPOILAGE 473
Treatment of Spoilage Under Process Costing 473 Treatment of Spoilage Under Job-Order
Costing 480 Standard Costing and Spoilage 481 Determing Normal Spoilage 483
Interpretation of Normal Spoilage 484
ACCOUNTING FOR REWORKED UNITS 484
ACCOUNTING FOR SCRAP 486
MAKING DECISIONS ON SPOILAGE,
REWORKED UNITS, AND SCRAP 486
Making Decisions on Spoilage 487 Making Decisions on Reworked Units 487 Making
Decisions on Scrap 487
EMPHASIS ON QUALITY 488
SUMMARY OF LEARNING OBJECTIVES 488
KEY TERMS TO REVIEW 489
REVIEW PROBLEM 489
REVIEW QUESTIONS 490
EXERCISES 490
PROBLEMS 493
DISCUSSION CASE 497
Chapter 16: Linear Programming and Cost Accounting 500
LINEAR PROGRAMMING 501
Objective Function 502 Constraints 503 Graphical Solution 503
DUAL LINEAR PROGRAMMING PROBLEM 506
IMPLICATIONS FOR MANAGERIAL ACCOUNTING 508
Estimation of Variables 510 Role of Cost Accounting Information 510
SUMMARY OF LEARNING OBJECTIVES 512
KEY TERMS TO REVIEW 513
REVIEW PROBLEM 513
APPENDIX: THE SIMPLEX METHOD 515
REVIEW QUESTIONS 516
EXERCISES 517
PROBLEMS 517
Chapter 17: Inventory Management and Control 52J
REASONS FOR HOLDING INVENTORIES 525
xxii Contents
THE ECONOMIC-ORDER-QUANTITY (EOQ) MODEL 526
REORDER POINTS 528
COST DETERMINATION FOR INVENTORY CONTROL 529
Fixed Costs and Inventory Decisions 530
COST ACCOUNTING AND JIT PRODUCTION METHODS 530
Accounting for JIT 532 Internal Control and JIT 535
PERFORMANCE MEASUREMENT AND JIT 535
Flexible Manufacturing Systems 535
INVENTORY CONTROL IN COMPLEX PRODUCTION SYSTEMS 536
SUMMARY OF LEARNING OBJECTIVES 537
KEY TERMS TO REVIEW 538
REVIEW PROBLEM 538
APPENDIX: INVENTORY POLICY AT FORD MOTOR COMPANY 539
REVIEW QUESTIONS 543
EXERCISES 544
PROBLEMS 545
DISCUSSION CASE 547
Chapter 18: Introduction to Capital Budgeting 549
TIME-VALUE CALCULATIONS: PRESENT
VALUE AND FUTURE VALUE 552
Annuity Calcualtions 553
CAPITAL-BUDGETING EVALUATION METHODS
THAT IGNORE THE TIME VALUE OF MONEY 554
Payback Period 554 Return on Investment 555
NET-PRESENT-VALUE (NPV) METHOD 556
Estimating Cash Flows 556 Determining the Appropriate Discount Rate 551 Decision Rule
Using Net Present Value 558
INTERNAL RATE OF RETURN 558
Ranking of Investments: Capital Rationing 560
EVALUATING THE METHODS OF
INVESTMENT DECISION MAKING 561
ECONOMIC EVALUATION OF INVESTMENT PROJECTS 562
Independent and Dependent Projects 562 Mutually Exclusive Investments 563
CAPITAL BUDGETING IN NONPROFIT ORGANIZATIONS 565
GEORGIA-PACIFIC 572
SUMMARY OF LEARNING OBJECTIVES 573
KEY TERMS TO REVIEW 573
REVIEW PROBLEM 574
Contents xxiii
REVIEW QUESTIONS 574
EXERCISES 575
PROBLEMS 577
DISCUSSION CASE 578
Chapter 19: Additional Topics in Capital Budgeting 580
CASH FLOW AND TAXES 581
Taxes: An Easy Solution 582 Taxes: An Expanded Solution 584
ESTIMATING THE CASH FLOWS FOR INVESTMENT DECISIONS 585
DETERMINING THE COST OF MONEY 585
NONCONSTANT CASH FLOWS 586
ANNUAL EQUIVALENT COST 588
Comparing Projects with Unequal Lives 589 The Reinvestment Assumption 590
BREAK-EVEN ANALYSIS WITH TIME VALUE 592
Unit Costs and the Make-or-Buy Decision 593 Including Working Capital 594
REVIEW PROCESS FOR CAPITAL-BUDGETING DECISIONS 594
Controlling Investment Expenditures 594 Cost Performance Reporting 595 Reappraisal or
Postaudit of Operating Results 598
EVALUATION OF COMPUTER-INTEGRATED
MANUFACTURING (CIM) SYSTEMS 599
SUMMARY OF LEARNING OBJECTIVES 600
KEY TERMS TO REVIEW 601
REVIEW PROBLEM 601
REVIEW QUESTIONS 602
EXERCISES 602
PROBLEMS 606
DISCUSSION CASE 613
Chapter 20: Using Cost Information in
Make Decisions Under Uncertainty 615
SENSITIVITY ANALYSIS 616
EXPECTED-VALUE CALCULATIONS 617
Expected Costs and Cost-Volume-Profit (CVP) Analysis 619 Decision Trees 620
SIMULATION 622
RISK ATTITUDES AND EXPECTED UTILITY 623
Utility and Risk Attitudes 625 Appraisal of Utility Theory 626
INFORMATION AND DECISIONS WITH UNCERTAINTY 627
Decision Analysis Without Obtaining Additional Information 621 Modeling Additional
Information 628 Expected Value of Perfect Information 629
jojjy Contents
COST ACCOUNTING AND DECISIONS
UNDER UNCERTAINTY 630
SUMMARY OF LEARNING OBJECTIVES 630
KEY TERMS TO REVIEW 631
REVIEW PROBLEM 631
APPENDIX 20A: BREAK-EVEN ANALYSIS
WITH UNCERTAIN DEMAND 633
APPENDIX 20B: THE VALUE OF AN INFORMATION SYSTEM 636
REVIEW QUESTIONS 638
EXERCISES 639
PROBLEMS 642
DISCUSSION CASE 647
Chapter 21: Decentralization and Performance Measurement 650
DELEGATION OF DECISION MAKING 651
Setting Objectives 652 Performance Evaluation and Managerial Incentives 653
THE PRINCIPLE-AGENT PROBLEM 654
MEASURING PERFORMANCE ON DIFFERENT
LEVELS OF AN ORGANIZATION 655
Department or Cost Center 655 Plant or Operating Unit 656 Division 651 Company 657
ROI AND RESIDUAL INCOME AS PERFORMANCE MEASURES 658
Calculation of Return on Investment (ROI) 658 Calculation of Residual Income 662
PERFORMANCE MEASUREMENT, ROI, AND
CAPITAL-BUDGETING DECISIONS 664
NONFINANCIAL PERFORMANCE MEASURES 665
EXECUTIVE COMPENSATION PLANS 666
PERFORMANCE MEASUREMENT AND INFLATION 667
Price-Level Adjustments and Unexpected Inflation 670
SEGMENT PERFORMANCE EVALUATION
IN MULTINATIONAL FIRMS 671
Example 672
SUMMARY OF THE LEARNING OBJECTIVES 674
KEY TERMS TO REVIEW 675
REVIEW PROBLEM 675
Contents XXV
APPENDIX: PRESENT VALUE DEPRECIATION AND THE
EVALUATION OF CAPITAL-BUDGETING DECISIONS 677
REVIEW QUESTIONS 679
EXERCISES 680
PROBLEMS 682
DISCUSSION CASE 687
Chapter 22: Transfer Pricing 688
NEED FOR TRANSFER PRICES 689
Conflict of Interests 689 Uses of Divisionalized Data 690
TRANSFER-PRICING ALTERNATIVES 690
General Transfer-Pricing Rule 690 Market Price 691 Marginal Cost 693 Variable Cost 694
Full Cost 694 Negotiated Price 696 Forced Internal Buying versus Autonomy 696
MEASURING PERFORMANCE 697
DECISION MAKING AND TRANSFER PRICING 698
FINANCIAL ACCOUNTING 700
MULTINATIONAL FIRMS 700
COMPARING TRANSFER-PRICING METHODS 701
SUMMARY OF LEARNING OBJECTIVES 701
KEY TERMS TO REVIEW 702
REVIEW PROBLEM 702
REVIEW QUESTIONS 702
EXERCISES 703
PROBLEMS 705
DISCUSSION CASE 707
Chapter 23: Product Quality Costs
and Productivity Measurement 710
QUALITY COSTING 711
Measuring Quality Costs 711 Total Quality Control 715
PRODUCTIVITY 716
Productivity Measures 717 Illustration of Productivity Measurement in a Government
Unit 718 A Multidimensional View of Productivity Analysis 718 Productivity Through
Activity Management 723
QUALITY AND PRODUCTIVITY 723
SUMMARY OF THE LEARNING OBJECTIVES 724
xxv[ Contents
KEY TERMS TO REVIEW 724
REVIEW PROBLEM 724
REVIEW QUESTIONS 725
EXERCISES 725
PROBLEMS 727
DISCUSSION CASE 732
Chapter 24: Behavioral Issues in Budgeting
and Responsibility Accounting 733
IMPORTANCE OF BEHAVIORAL ISSUES 734
MOTIVATION 735
Expectancy Theory and the Motivational Impacts of Budgets 735 Motivating Desired Behavior
with Responsibility Accounting 736
PARTICIPATORY MANAGEMENT 737
Determinants of the Effectiveness of Participative Budgeting 738 Methods of Obtaining Goal
Congruence 740 Contingency View of Managerial Accounting System Design 741
BEHAVIORAL EFFECTS OF BUDGETS 742
SUMMARY OF LEARNING OBJECTIVES 743
KEY TERMS TO REVIEW 744
REVIEW PROBLEM 744
REVIEW QUESTIONS 745
EXERCISES 745
PROBLEMS 748
DISCUSSION CASE 756
Chapter 25: Learning Curves and Cost Behavior 757
ECONOMIC COST CURVES 758
THE LEARNING-CURVE MODEL 759
A Related Model of Learning 759 Use of Learning Curves in Decision Making: An
Example 761 Difficulties in Obtaining Data 761
LEARNING-CURVE APPLICATIONS 762
Pricing and Target Costing 763 Work Scheduling 764 Capital Budgeting 764
Motivation 764 Overtime Decisions 764 External Financial Reporting 764
SUMMARY OF LEARNING OBJECTIVES 768
KEY TERMS TO REVIEW 768
REVIEW PROBLEM 768
APPENDIX: ESTIMATING LEARNING RATES 769
REVIEW QUESTIONS 770
Contents xxvii
EXERCISES 770
PROBLEMS 772
DISCUSSION CASE 774
Chapter 26: Additional Topics in Cost-Variance Investigation 776
COST VARIANCE INVESTIGATION 777
Use of Information on Variability 778 Control Charts 780
DECISION THEORETIC APPROACHES 782
Setting Up the Problem 783 Simple Investigation-Decision Situation 784 Break-Even
Probability 786 Variance Investigation in an Agency Framework 786
SUMMARY OF LEARNING OBJECTIVES 787
KEY TERMS TO REVIEW 788
REVIEW PROBLEM 788
APPENDIX 26A: EXPLORATORY INVESTIGATIONS
AND THE VALUE OF INFORMATION 789
APPENDIX 26B: EX POST VARIANCE ANALYSIS 791
Example 795 Evaluation of Ex Post Variance Analysis 798 Use of Ex Post Analysis 798
REVIEW QUESTIONS 799
EXERCISES 800
PROBLEMS 801
DISCUSSION CASE 810
Appendix A: Cost Accounting and Professional Examinations 811
Appendix B: Tables 814
Appendix C: Glossary 821
Index 831 |
| any_adam_object | 1 |
| any_adam_object_boolean | 1 |
| author | Barfield, Jesse T. Raiborn, Cecily A. 1949- Kinney, Michael R. |
| author_GND | (DE-588)128583436 |
| author_facet | Barfield, Jesse T. Raiborn, Cecily A. 1949- Kinney, Michael R. |
| author_role | aut aut aut |
| author_sort | Barfield, Jesse T. |
| author_variant | j t b jt jtb c a r ca car m r k mr mrk |
| building | Verbundindex |
| bvnumber | BV023500457 |
| callnumber-first | H - Social Science |
| callnumber-label | HF5686 |
| callnumber-raw | HF5686.C8B2758 1994 |
| callnumber-search | HF5686.C8B2758 1994 |
| callnumber-sort | HF 45686 C8 B2758 41994 |
| callnumber-subject | HF - Commerce |
| classification_rvk | QP 830 |
| ctrlnum | (OCoLC)915787291 (DE-599)BVBBV023500457 |
| dewey-full | 657/.4220 |
| dewey-hundreds | 600 - Technology (Applied sciences) |
| dewey-ones | 657 - Accounting |
| dewey-raw | 657/.42 20 |
| dewey-search | 657/.42 20 |
| dewey-sort | 3657 242 220 |
| dewey-tens | 650 - Management and auxiliary services |
| discipline | Wirtschaftswissenschaften |
| discipline_str_mv | Wirtschaftswissenschaften |
| edition | 2. ed. |
| format | Book |
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| genre | (DE-588)4123623-3 Lehrbuch gnd-content |
| genre_facet | Lehrbuch |
| id | DE-604.BV023500457 |
| illustrated | Illustrated |
| index_date | 2024-07-02T22:30:22Z |
| indexdate | 2024-07-09T21:23:29Z |
| institution | BVB |
| isbn | 0314029044 0314028781 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-016828684 |
| oclc_num | 915787291 |
| open_access_boolean | |
| owner | DE-521 |
| owner_facet | DE-521 |
| physical | XXXVI, 1067 S. Ill., graph. Darst. |
| publishDate | 1994 |
| publishDateSearch | 1994 |
| publishDateSort | 1994 |
| publisher | West Publ. Co. |
| record_format | marc |
| series2 | Accounting textbooks |
| spelling | Barfield, Jesse T. Verfasser aut Cost accounting traditions and innovations Jesse T. Barfield ; Cecily A. Raiborn ; Michael R. Kinney 2. ed. Minneapolis/St. Paul <<[u.a.]>> West Publ. Co. 1994 XXXVI, 1067 S. Ill., graph. Darst. txt rdacontent n rdamedia nc rdacarrier Accounting textbooks Cost accounting Kostenrechnung (DE-588)4032592-1 gnd rswk-swf (DE-588)4123623-3 Lehrbuch gnd-content Kostenrechnung (DE-588)4032592-1 s DE-604 Raiborn, Cecily A. 1949- Verfasser (DE-588)128583436 aut Kinney, Michael R. Verfasser aut HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=016828684&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Barfield, Jesse T. Raiborn, Cecily A. 1949- Kinney, Michael R. Cost accounting traditions and innovations Cost accounting Kostenrechnung (DE-588)4032592-1 gnd |
| subject_GND | (DE-588)4032592-1 (DE-588)4123623-3 |
| title | Cost accounting traditions and innovations |
| title_auth | Cost accounting traditions and innovations |
| title_exact_search | Cost accounting traditions and innovations |
| title_exact_search_txtP | Cost accounting traditions and innovations |
| title_full | Cost accounting traditions and innovations Jesse T. Barfield ; Cecily A. Raiborn ; Michael R. Kinney |
| title_fullStr | Cost accounting traditions and innovations Jesse T. Barfield ; Cecily A. Raiborn ; Michael R. Kinney |
| title_full_unstemmed | Cost accounting traditions and innovations Jesse T. Barfield ; Cecily A. Raiborn ; Michael R. Kinney |
| title_short | Cost accounting |
| title_sort | cost accounting traditions and innovations |
| title_sub | traditions and innovations |
| topic | Cost accounting Kostenrechnung (DE-588)4032592-1 gnd |
| topic_facet | Cost accounting Kostenrechnung Lehrbuch |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=016828684&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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