For MBA-level managerial accounting courses.
In today's troubled economy, it's important to show students how managerial decisions can affect business costs.
Introduction to Management Accounting helps to enhance students' ability to make effective economic decisions by encouraging them to understand the inner-workings of the concepts, rather than solely focusing on technique memorisation. Overall, this text describes both theory and common practices in a way that will help students produce information that's useful in day-to-day decision-making.
Understanding Why: Most managers would likely agree that understanding concepts is more important than memorising techniques. This text focuses on why companies use various techniques, rather than have students blindly apply the concepts.
Seeing the concepts in many areas of the field: All business sectors discussed. The concepts found in this text do not solely apply to large corporations, which is why non-profit, retail, wholesale, service, selling, manufacturing, and administrative situations are addressed throughout.
Presenting the basics up-front: The core concepts and principles are explained in the first few chapters and are then revisited, where applicable, at more complex levels throughout the remainder of the text. Covering the fundamental concepts in the first few chapters helps to equip students with a foundation that they can use to apply to the more challenging material.
Taking out the guesswork: Real-world business examples are provided so that students don't have to imagine how techniques will work in today's businesses. These examples - which are drawn from actual companies that students know and trust such as Starbucks, Boeing, AT&T, McDonald's, and Microsoft - are presented with relevant subject matter, clearly and accessibly, throughout the text.
Learning in progression: Concepts that build. This text begins by presenting material that helps students answer the question: 'How will my decisions affect the costs and revenues of the organisation?' The text then progresses to answering more complex questions such as: 'What is the most appropriate cost-management system for the company?' 'What products or services should we emphasise?' 'What do our budget variances mean?'
- New and revised 'Business First' boxes provide insights into operations at well-known organisations, including Microsoft, General Electric, Southwest Airlines, Harley-Davidson, Nortel Networks, and Harvard University.
- New and revised chapter-opening vignettes help students understand accounting's role in current business practice. We revisit the chapter-opening company throughout the chapter so that students can see how accounting influences managers in real companies. Students will recognise many of the companies, such as Starbucks, Boeing, US Airways, McDonald's, Nike, and Dell.
- A problem in each chapter based on Nike's Form 10-K. These problems illustrate how publicly available information can lead to insights about a company, its costs, and its management decisions.
- Increased coverage of ethics, including an ethics problem in each chapter's assignment material.
- End-of-chapter material includes many new and significantly revised exercises and problems to provide fresh, new examples.
I. FOCUS ON DECISION MAKING
1. Managerial Accounting, the Business Organization, andProfessional Ethics
2. Introduction to Cost Behavior and Cost-Volume Relationships
3. Measurement of Cost Behavior
4. Cost Management Systems and Activity-Based Costing
5. Relevant Information for Decision Making with a Focus on Pricing Decisions
6. Relevant Information for Decision Making with a Focus on OperationalDecisions
II. ACCOUNTING FOR PLANNING AND CONTROL
7. Introduction to Budgets and Preparing the Master Budget
8. Flexible Budgets and Variance Analysis
9. Management Control Systems and Responsibility Accounting
10. Management Control in Decentralized Organizations
III. CAPITAL BUDGETING
11. Capital Budgeting
IV. PRODUCT COSTING
12. Cost Allocation
13. Accounting for Overhead Costs
14. Job-Costing and Process-Costing Systems
V. BASIC FINANCIAL ACCOUNTING
15. Basic Accounting: Concepts, Techniques, and Conventions
16. Understanding Corporate Annual Reports: Basic Financial Statements
17. Understanding and Analyzing Consolidated Financial Statements
This resource is supported by MyLab Accounting, an online homework and tutorial system, designed to test and build your students understanding.
If you'd like to arrange a demonstration of MyLab Accounting, let us know by contacting us at docent@pearson.com and we can get a Pearson representative to contact you.
Charles T. Horngren was the Edmund W. Littlefield Professor of Accounting, emeritus, at Stanford University. A graduate of Marquette University, he received his MBA from Harvard University and his PhD from the University of Chicago. He also received honorary doctorates from Marquette University and DePaul University. A certified public accountant, Horngren served on the Accounting Principles Board, the Financial Accounting Standards Board Advisory Council, and the Council of the American Institute of Certified Public Accountants and served as a trustee of the Financial Accounting Foundation, which oversees the Financial Accounting Standards Board and the Government Accounting Standards Board. He is a member of the Accounting Hall of Fame. Horngren served the American Accounting Association as its president and as director of research. He received the association's first annual Outstanding Accounting Educator Award. He also received its Lifetime Contribution to Management Accounting Award. The California Certified Public Accountants Foundation gave Horngren its Faculty Excellence Award and its Distinguished Professor Award. He is the first person to have received both awards. The American Institute of Certified Public Accountants presented him with its first Outstanding Educator Award. He was also named Accountant of the Year, Education, by the national professional accounting fraternity, Beta Alpha Psi. Professor Horngren was a member of the Institute of Management Accountants, where he received its Distinguished Service Award. He was a member of the Institute's Board of Regents, which administers the Certified Management Accountant examinations. Horngren authored several other accounting books published by Prentice Hall: Cost Accounting: A Managerial Emphasis, Introduction to Financial Accounting, Accounting, and Financial Accounting. He was also the Consulting Editor for the Charles T. Horngren Series in Accounting.
Gary L. Sundem is professor of accounting emeritus at the University of Washington, Seattle. He received his BA from Carleton College and his MBA and PhD from Stanford University. Professor Sundem has served as President of the American Accounting Association, Executive Director of the Accounting Education Change Commission, and Editor of The Accounting Review. He is currently president of the International Association for Accounting Education and Research. Sundem is a past president of the Seattle chapter of the IMA (formerly the Institute of Management Accountants). He has served on IMA's national board of directors and chaired its Academic Relations and Professional Development committees. He has chaired the AACSB's Accounting Accreditation Committee He currently serves on the Board of Trustees of Rainier Mutual Funds and the Board of Trustees of Carleton College, where he chairs the audit committee. He received the Carleton College Outstanding Alumni award in2002. Professor Sundem has numerous publications in accounting and finance journals including Issues in Accounting Education, The Accounting Review, Journal of Accounting Research, and Journal of Finance. He was selected as the Outstanding Accounting Educator by the American Accounting Association in 1998 and by the Washington Society of CPA since 1987.
David Burgstahler was the President of the American Accounting Association (2016-17) and is the Julius A. Roller Professor of Accounting at the University of Washington, Seattle. He received his BA degree from the University of Minnesota-Duluth, and his PhD from the University of Iowa. He has been associate dean for masters programs and executive education and acting dean at the University of Washington Business School. He has served on more than 40 PhD supervisory committees and has been recognised multiple times as Beta Alpha Psi Professor of the Year and as MBA Professor of the Quarter at the University of Washington. Professor Burgstahler was 2007-2009 vice president of publications of the American Accounting Association and has served on several Association committees. Professor Burgstahler received the American Accounting Association's American Institute of Certified Public Accountants Notable Contributions to Accounting Literature Award in 2002. He has numerous publications in journals including The Accounting Review, Journal of Management Accounting Research, Journal of Accounting Research, Journal of Accounting and Economics, Contemporary Accounting Research, Auditing: A Journal of Practice and Theory, Behavioral Research in Accounting, and The CPA Journal.
Jeffrey Schatzberg is the department head (Department of Accounting) at the University of Arizona and has served as the Dean of the University of Arizona, Eller College of Management (2015-2016). Professor Schatzberg received his BA (in philosophy), MA (in accounting), and PhD (in business administration), all at the University of Iowa. Professor Schatzberg has numerous publications in the most prestigious accounting and business journals, including the Journal of Accounting Research, The Accounting Review, Contemporary Accounting Research, Auditing: A Journal of Practice and Theory, Journal of Management Accounting Research, and Issues in Accounting Education. His teaching and research interests are in managerial accounting and auditing. He has given numerous seminars at several U.S. universities and international schools in Canada, England, Wales, Norway, France, Germany, and Switzerland. Schatzberg has also served on the editorial board of several scholarly accounting journals. Professor Schatzberg has been teaching undergraduate, graduate, and MBA managerial accounting courses at the University of Arizona for the past 26 years. He has extensive experience in executive education worldwide (e.g., United States, China, Korea, Taiwan, Mexico, and Peru), has developed customised managerial accounting programs and performed consulting for numerous companies (e.g., Raytheon, Honeywell, Microsoft, and Intel), and has taught executives from many multinational firms (e.g., IBM, Motorola, LG, BenQ, Acer, and Mattel). Professor Schatzberg has received the MBA Faculty of the Year Award from the Eller Graduate School of Business at the University of Arizona on seven occasions and is the recipient of the Arizona Society of CPA's Excellence in Teaching Award. He is a CPA and worked for several years as an auditor and tax accountant in the Phoenix office of KPMG Peat Marwick. His work experience includes both manufacturing and service industry firms, as well as not-for-profit institutions.