Horngren's Cost Accounting, 17th edition

Published by Pearson (July 24, 2020) © 2021

  • Srikant M. Datar Harvard University
  • Madhav V. Rajan 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 expertly explains the cost accounting market. This acclaimed text emphasizes the basic theme of “different costs for different purposes". It reaches beyond cost accounting procedures to consider concepts, analyses and management.

The authors continue to innovate with the 17th Edition by consistently integrating the most current research, practice and theory. Each chapter will prepare students for the rewards and challenges they'll face in the professional cost accounting world of today and tomorrow.

Hallmark features of this title

  • An emphasis on important issues and events reflects today's increasingly global business environment, including critical managerial challenges and shifts in US and world economies.
  • A balance of modern topics with traditional coverage, emphasis on human behavior aspects, and real-world examples give students a clear picture of accounting.
  • Strategy maps show how income statements of companies can be analyzed from the strategic perspective of product differentiation or cost leadership.
  • Becker multiple-choice questions test students' knowledge of the material and their critical thinking.
  • The quality of assignment materials and ability to teach chapters in different sequences satisfies a number of different approaches to teaching.

New and updated features of this title

  • UPDATED: An increased focus on the role of accounting concepts and systems examines how to foster and support innovation and entrepreneurial activities in firms.
  • NEW: Chapter on data analytics (Ch. 11) looks at recent trends in big data and data analytics in predicting costs and making demand forecasts.
  • UPDATED: Try It exercises, located after a particular concept or calculation, invite students to practice what they've just learned.
  • UPDATED: Chapter-Opening Cases get students engaged in a business situation or dilemma, by focusing on real company situations and illustrating why and how the concepts in the chapter are relevant in business.
  • UPDATED: Concepts in Action boxes cover real-world cost accounting issues across a variety of industries.
  • NEW and UPDATED: End-of-chapter problems, featuring new data analytics examples, help students learn and practice chapter concepts.

Highlights of the DIGITAL UPDATE for MyLab Accounting (available for Spring 2024 classes)

  • NEW: Mini Sims put students in professional roles and give them the opportunity to apply course concepts and develop decision-making skills through real-world business challenges.
  • NEW: With Data Analytics Projects, accounting students analyze and manipulate real company data to make important decisions.
  • NEW: End-of-Chapter Problems are now available in MyLab.
  • NEW: Freehand Grader provides an effective way to quickly grade any type of problem and handwritten solution. Authentically assess students and provide meaningful feedback, using the grade-as-you go rubric.
  • Pearson eText is an easy-to-use digital textbook, available with MyLab, which lets students read, highlight and take notes all in one place, even when offline.
  1. The Manager and Management Accounting
  2. An Introduction to Cost Terms and Purposes
  3. Cost–Volume–Profit Analysis
  4. Job Costing
  5. Activity-Based Costing and Activity-Based Management
  6. Master Budget and Responsibility Accounting
  7. Flexible Budgets, Direct-Cost Variances, and Management Control
  8. Flexible Budgets, Overhead Cost Variances, and Management Control
  9. Inventory Costing and Capacity Analysis
  10. Determining How Costs Behave
  11. Data Analytic Thinking and Prediction
  12. Decision Making and Relevant Information
  13. Strategy, Balanced Scorecard, and Strategic Profitability Analysis
  14. Pricing Decisions and Cost Management
  15. Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
  16. Allocation of Support-Department Costs, Common Costs, and Revenues
  17. Cost Allocation: Joint Products and Byproducts
  18. Process Costing
  19. Spoilage, Rework, and Scrap
  20. Balanced Scorecard: Quality and Time
  21. Inventory Management, Just-in-Time, and Simplified Costing Methods
  22. Capital Budgeting and Cost Analysis
  23. Management Control Systems, Transfer Pricing, and Multinational Considerations
  24. Performance Measurement, Compensation, and Multi-national Considerations

About our authors

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 2 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 3 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.

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