Horngren's Cost Accounting: A Managerial Emphasis, Canadian Edition, 9th edition

Published by Pearson Canada (January 14, 2021) © 2022

  • Srikant M. Datar Harvard University
  • Madhav V. Rajan Stanford University
  • Louis Beaubien Dalhousie University
  • Steve Janz Stanford University

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For undergraduate and MBA cost or management accounting courses.

The text that defined the cost accounting market

Horngren's Cost Accounting spells out the cost accounting market and continues to innovate by consistently integrating the most current practice and theory into the text. This acclaimed, market-leading text emphasizes the basic theme of “different costs for different purposes,” and reaches beyond cost accounting procedures to consider concepts, analyses, and management. Cost Accounting incorporates the latest research and most up-to-date thinking into all relevant chapters, so that students are prepared for the rewards and challenges they will face in the professional cost accounting world of today and tomorrow.

Hallmark features of this title

  • Global issues. Businesses today integrate into an increasingly global ecosystem, including supply chains, product markets, and the market for managerial talent, and have become more international in their outlook. To illustrate this, we incorporate global considerations into many of the chapters. 
  • Sustainability. This edition places significant emphasis on sustainability as one of the critical managerial challenges of the coming decades. Many managers are promoting the development and implementation of strategies to achieve long-term financial, social, and environmental performance as key imperatives.
  • Innovation. We discuss the role of accounting concepts and systems in fostering and supporting innovation and entrepreneurial activities in firms. In particular, we discuss the challenges posed by recognizing R&D costs as period expenses even though the benefits of innovation accrue in later periods. 
  • CPA competencies. We have increased the focus on covering the competencies outlined in the new CPA Competency Map and Knowledge Supplement. Each chapter now includes a list of professional competencies and levels covered in that chapter. 

New and updated features of this title

  • Analytics! A modern organization is rich with possibilities and tools that can be deployed for greater understanding of the organization's data and the insights it can provide.
    • Chapter 12 is a new chapter focused on analytics and the tools needed to understand concepts such as analytic programming, big data, probabilistic analysis, and artificial intelligence. This chapter is not a degree in data science. It does teach a powerful set of data-science tools relevant to the cost and management accountant to help them continue to add value and evolve with modern organizations.
    • In-chapter coverage of analytics has been expanded, including a new Analytics Insights box to enhance focus on certain tasks of data analysis that help identify how cost accountants can use new technology (including artificial intelligence) to expand the reach and impact of the profession.
  • Power BI Appendix. Power BI is analytics tool that is providing organizations with opportunities to effectively review their past performance results and make improved business decisions going forward. In MyLab Accounting (Appendix B), you have an opportunity to develop your own set of Power BI skills by working through a short, easy to follow (including multiple screenshots) set of instructions that will show you how to convert your raw data to a table, clean and improve your data, organize your data into appropriate groupings, build relationship models, and create amazing visual presentations.
  1. The Accountant's Vital Role in Decision Making
  2. An Introduction to Cost Terms and Purposes
  3. Cost–Volume–Profit Analysis
  4. Job Costing
  5. Activity-Based Costing and Management
  6. Master Budget and Responsibility Accounting
  7. Flexible Budgets, Variances, and Management Control: I
  8. Flexible Budgets, Variances, and Management Control: II
  9. Income Effects of Denominator Level on Inventory Valuation
  10. Analysis of Cost Behaviour
  11. Decision Making and Relevant Information
  12. Data Analytic Thinking and Prediction
  13. Pricing Decisions: Profitability and Cost Management
  14. Strategy, the Balanced Scorecard, and Profitability Analysis
  15. Period Cost Application
  16. Cost Allocation: Joint Products and Byproducts
  17. Revenue and Customer Profitability Analysis
  18. Process Costing
  19. Spoilage, Rework, and Scrap
  20. Inventory Cost Management Strategies
  21. Capital Budgeting: Methods of Investment Analysis
  22. Transfer Pricing and Multinational Management Control Systems
  23. Multinational Performance Measurement and Compensation

Srikant M. Datar is the Arthur Lowes Dickinson Professor of Business Administration at the Harvard Business School, Faculty Chair of the Harvard University Innovation Labs, and Senior Associate Dean for University Affairs. He previously served as Senior Associate Dean from 2000 to 2010. A graduate with distinction from the University of Bombay, he received gold medals upon graduation from the Indian Institute of Management, Ahmedabad, and the Institute of Cost and Works Accountants of India. A chartered accountant, he holds two master's degrees and a PhD from Stanford University.

Datar has published his research in leading accounting, marketing, and operations management journals, including The Accounting Review, Contemporary Accounting Research, Journal of Accounting, Auditing and Finance, Journal of Accounting and Economics, Journal of Accounting Research, and Management Science. He has served as an associate editor and on the editorial board of several journals and has presented his research to corporate executives and academic audiences in North America, South America, Asia, Africa, Australia, and Europe. He is a coauthor of three other books: Managerial Accounting: Making Decisions and Motivating Performance, Rethinking the MBA: Business Education at a Crossroads, and Rethinking Graduate Management Education in Latin America.

Cited by his students as a dedicated and innovative teacher, Datar received the George Leland Bach Award for Excellence in the Classroom at Carnegie Mellon University and the Distinguished Teaching Award at Stanford University.

Datar is a member of the board of directors of Novartis A.G., ICF International, T-Mobile US, and Stryker Corporation, and Senior Strategic Advisor to HCL Technologies. He has worked with many organizations, including Apple Computer, Boeing, DuPont, Ford, General Motors, Morgan Stanley, PepsiCo, Visa, and the World Bank. He is a member of the American Accounting Association and the Institute of Management Accountants.

Madhav V. Rajan is the Robert K. Jaedicke Professor of Accounting at Stanford University's Graduate School of Business. He is also Professor of Law (by courtesy) at Stanford Law School. From 2010 to 2016, he was Senior Associate Dean for Academic Affairs and head of the MBA program at the Stanford GSB.

Rajan received his undergraduate degree in commerce from the University of Madras, India, and his MS in accounting, MBA, and PhD degrees from Carnegie Mellon University. In 1990, his dissertation won the Alexander Henderson Award for Excellence in Economic Theory.

Rajan's primary area of research interest is the economics-based analysis of management accounting issues, especially as they relate to internal control, capital budgeting, quality management, supply chain and performance systems in firms. He has published his research in a variety of leading journals, including The Accounting Review, Journal of Accounting and Economics, Journal of Accounting Research, Management Science, and Review of Financial Studies. In 2004, he received the Notable Contribution to Management Accounting Literature award. He is a coauthor of Managerial Accounting: Making Decisions and Motivating Performance.

Rajan has served as the Departmental Editor for Accounting at Management Science as well as associate editor for both the accounting and operations areas. From 2002 to 2008, Rajan served as an editor of The Accounting Review. Rajan has twice been a plenary speaker at the AAA Management Accounting Conference.

Rajan has received several teaching honors at Wharton and Stanford, including the David W. Hauck Award, the highest undergraduate teaching award at Wharton. He teaches in the flagship Stanford Executive Program and is co-director of Finance and Accounting for the Nonfinancial Executive.He has participated in custom programs for many companies, including Genentech, Hewlett-Packard, and nVidia, and is faculty director for the Infosys Global Leadership Program.

Rajan is a director of Cavium, Inc. and iShares, Inc., a trustee of the iShares Trust, and a member of the C.M. Capital Investment Advisory Board.

Louis Beaubien is a Chartered Professional Accountant and holds a PhD from the Ivey School of Business at the University of Western Ontario. Dr. Beaubien's professional experience includes the financial services, information technology, and healthcare industries. He is an Associate Professor of Accounting at both the Rowe School of Business, Dalhousie University, and the Department of Community Health and Epidemiology in the Faculty of Medicine at Dalhousie University, as well as the Academic Director of the Creative Destruction Lab - Atlantic. His research is focused on the effective, efficient, and equitable delivery of innovations health care, as well as new ventures.

Steve Janz is a Chartered Professional Accountant and holds a MBA from Edinburgh Business School at Heriot-Watt University. Steve's professional experience includes the property management, post-secondary, and financial industries. He is a full-time instructor within the School of Business at the Southern Alberta Institute of Technology (SAIT), part-time instructor at the University of Calgary (MBA), and facilitator for the CPA Western School of Business (CPA PEP). His curriculum development and research interests are focused on effective teaching and learning strategies, data analytics, artificial intelligence, and virtual reality.

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