Horngren's Cost Accounting, 16th edition

About the book

Use the most current information to prepare students for their field

• Emphasis on Global Issues reflect today’s increasingly global business environment, including:
• The special challenges of budgeting in multinational companies (Chapter 6).
• NEW! The importance of joint cost allocation in creating a trade war between poultry farms in the United States and South Africa (Chapter 16).
• The importance of transfer pricing in minimizing the tax burden faced by multinational companies (Chapter 22).
• The challenges of evaluating the performance of divisions located in different countries (Chapter 23).
• NEW! The text’s examples of management accounting applications in companies are drawn from international settings.
• Focus on merchandising and service sectors (versus traditional manufacturing settings) highlight the shifts in the US and world economies, including:
• Linear cost functions in the context of payments for cloud computing services (Chapter 10).
• Inventory management in retail organizations, with an example based on a seller of sunglasses (Chapter 20).
• A running example that looks at capital budgeting in the context of a transportation company (Chapter 21).
• NEW! Several Concepts in Action boxes focus on the merchandising and service sectors, including achieving cost leadership at Trader Joe's, using activity-based costing to reduce the costs of health care delivery at the Mayo Clinic (Chapter 5), reducing fixed costs at Twitter (Chapter 2), and analyzing operating income performance at Best Buy (Chapter 12) and web-based budgeting at 24 Hour Fitness.
• Emphasis on sustainability as one of the critical managerial challenges of the coming decades, including:
• The promotion of developing and implementing strategies to achieve long-term financial, social, and environmental performance as key imperatives.
• The benefits to companies from measuring social and environmental performance and how such measures can be incorporated in a balanced scorecard (Chapter 12).
• Examples of companies that mandate disclosures and evaluate managers on environmental and social metrics (Chapter 23).
• NEW! Material that stress themes of recognizing and accounting for environmental costs, energy independence and the smart grid, setting stretch targets to motivate greater carbon reductions, using cost analysis, carbon tax, and cap-and-trade auctions to reduce environmental footprints, and constructing “green” homes in a cost-effective manner.
• More focus on the role of accounting concepts and systems in fostering and supporting innovation and entrepreneurial activities in firms including:
• NEW! The challenges posed by recognizing R&D costs as period expenses even though the benefits of innovation accrue in later periods.
• NEW! How companies budget for innovation expenses and develop measures to monitor success of the innovation efforts delinked from operational performance in the current period (Chapter 6).
• NEW! The importance of nonfinancial measures when making decisions about innovation (Chapter 11).
• NEW! The concept that innovation starts with understanding customer needs (Chapter 13).
• NEW! Process innovations for improving quality (Chapter 19).
• Cutting-edge topics are covered, including:
• NEW! Material around recent trends in big data and data analytics in predicting costs and when making demand forecasts.
• Ideas based on academic research regarding the weights to be placed on performance measures in a balanced scorecard.
• Details on the transfer pricing strategies used by multinational technology firms such as Apple and Google to minimize income taxes.
• Current trends in the regulation of executive compensation.
• The evolution of enterprise resource planning systems and newer simplified costing systems that practice lean accounting.

Provide a solid presentation of accounting hallmarks with a great emphasis on strategy

• Features of the text give students a clear picture of accounting:
• Exceptionally strong emphasis on managerial uses of cost information.
• Clarity and understandability of the text.
• Excellent balance in integrating modern topics with traditional coverage.
• Emphasis on human behavior aspects.
• Extensive use of real-world examples.
• Ability to teach chapters in different sequences.
• Excellent quantity, quality, and range of assignment material.
• UPDATED! Strategy maps are presented as a useful tool to implement the balanced scorecard and a simplified presentation of how income statements of companies can be analyzed from the strategic perspective of product differentiation or cost leadership. A new section helps students evaluate strategy maps such as the strength of links, differentiators, focal points and trigger points.
• NEW! Try It examples are simple and focus on key ideas or concepts. They are located after a particular concept or calculation, and invite students to practice what they have just learned.
• NEW! Becker Multiple Choice Questions in the assignment material probe students’ knowledge of the chapter material and their ability to think critically about key concepts.  
• Strategy considerations in the design of activity-based costing systems are covered.
• The strategy of preparation of budgets is included.
• The strategy involved in decision-making is comprehensively covered.
• NEW! Opening Vignettes. Each chapter opens with a vignette on a real company situation. The vignettes get students engaged in a business situation, or dilemma, illustrating why and how the concepts in the chapter are relevant in business. New examples on Quiksilver, General Motors, Boeing, Delta, Honda, and Viacom have been incorporated.
• NEW! Concepts in Action Boxes. Found in every chapter, these boxes cover real-world cost accounting issues across a variety of industries including automobile racing, defense contracting, entertainment, manufacturing, and retailing. New examples include Subway, Chipotle, H&M, Amazon, Under Armour, and Netflix.
• Streamlined Presentation. The authors continue to simplify and streamline the presentation of various topics in order to make it as easy as possible for a student to learn the concepts, tools, and frameworks introduced in different chapters.

Tailor the material to suit your needs

• This text’s modular, flexible organization can be used to suit a number of different approaches to teaching and learning.

Also available with MyLab Accounting

MyLab™ Accounting is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.

• A simplified user interface. The new user interface offers quick and easy access to Assignments, the Study Plan, the eText & Results, as well as additional options for course customization.
• Enhanced eText. The Enhanced eText keeps students engaged in learning on their own time, while helping them achieve greater conceptual understanding of course material. The worked examples (in select titles) bring learning to life, and algorithmic practice allows students to apply the very concepts they are reading about. Combining resources that illuminate content with accessible self-assessment, MyLab with Enhanced eText provides students with a complete digital learning experience—all in one place.
• Auto-Graded Homework with Learning Aids. MyLab Accounting homework and practice questions are correlated to the textbook, regenerate algorithmically to give students unlimited opportunity for practice and mastery, and offer helpful feedback when students enter incorrect answers. Learning aids, such as Help Me Solve This, DemoDoc Examples, and concept videos provide extra help for students at the point-of-use.
• EXCEL^® in MyLab Accounting:
• Students get real-world Excel practice in their classes.
• Instructors have the option to assign students End-of-Chapter Questions that can be completed in an Excel spreadsheet and uploaded for instant, automatic grading that will flow to a gradebook.
• Worked Out Solutions. Sometimes students need more than just the correct answer to understand their mistakes; they need to understand how to get to that correct answer. Worked Out Solutions will now be available to students when they are reviewing their submitted and graded homework. The Worked Out Solutions provide step-by-step explanations on how to solve the problem using the exact numbers and data that was presented to the student in the problem. Instructors will also have access to the Worked Out Solutions in preview and review mode.
• The Study Plan acts as a tutor, providing personalized recommendations for each of your students based on his or her ability to master the learning objectives in your course. This allows students to focus their study time by pinpointing the precise areas they need to review, and allowing them to use customized practice and learning aids—such as videos, an interactive eText, tutorials, and more—to get them back on track. Using the report available in the Gradebook, you can then tailor course lectures to prioritize the content where students need the most support—offering you better insight into classroom and individual performance.
• Dynamic Study Modules help students study effectively on their own by continuously assessing their activity and performance in real time. Here's how it works: students complete a set of questions with a unique answer format that also asks them to indicate their confidence level. Questions repeat until the student can answer them all correctly and confidently. Once completed, Dynamic Study Modules explain the concept using materials from the text. These are available as graded assignments prior to class, and accessible on smartphones, tablets, and computers. NEW! Instructors can now remove questions from Dynamic Study Modules to better fit their course.
• Reporting Dashboard. View, analyze, and report learning outcomes clearly and easily, and get the information you need to keep your students on track throughout the course, with the new Reporting Dashboard. Available via the MyLab Accounting Gradebook and fully mobile-ready, the Reporting Dashboard presents student performance data at the class, section, and program levels in an accessible, visual manner.
• UPDATED! HTML5 Player. In addition to matching the Flash player’s support of Accessibility requirements, the HTML5 player has a new “Show Work” feature to allow students to enter text either from a keyboard or stylus and to draw freehand on different backgrounds, such as a coordinate graph, with multiple fonts and colors. Students can also continue to upload images such as phone-photos of handwritten work. Printing enhancements include:
• a more pen-and-paper-friendly layout of exercises
• the ability for instructors to choose whether to print the header; to include an honor statement; and to print with answers in line, after each question, or on a separate sheet
• Learning Management System (LMS) Integration. You can now link from Blackboard Learn, Brightspace by D2L, Canvas, or Moodle to MyLab Accounting. Access assignments, rosters, and resources, and synchronize grades with your LMS Gradebook. For students, single sign-on provides access to all the personalized learning resources that make studying more efficient and effective.
• Learning Catalytics™ helps you generate class discussion, customize your lecture, and promote peer-to-peer learning with real-time analytics. As a student response tool, Learning Catalytics uses students’ smartphones, tablets, or laptops to engage them in more interactive tasks and thinking.
• NEW! Upload a full PowerPoint^® deck for easy creation of slide questions.
• NEW! Team names are no longer case sensitive.
• Help your students develop critical thinking skills.
• Monitor responses to find out where your students are struggling.
• Rely on real-time data to adjust your teaching strategy.
• Automatically group students for discussion, teamwork, and peer-to-peer learning.
• Additional instructor resources (including a Solutions Manual; Test Bank in Word^® and TestGen, including algorithmic questions; Instructors Manual; and PowerPoint Presentations Image Library) are available in MyLab Accounting and on the Instructors Resource Center at www.pearsonhighered.com/horngren.

Horngren’s Cost Accounting,16th Edition is also available via Revel™, an interactive learning environment that enables students to read, practice, and study in one continuous experience. Learn more.