CHAPTER 1 How Management Accounting Information Supports Decision Making — p. 1
What Is Management Accounting? — p. 2
Strategy — p. 5
Behavioral Implications of Management Accounting Information — p. 9
CHAPTER 2 The Balanced Scorecard and Strategy Map — p. 15
The Balanced Scorecard — p. 19
Strategy — p. 23
Balanced Scorecard Objectives, Measures, and Targets — p. 24
Creating a Strategy Map — p. 25
Strategy Map and Balanced Scorecard at Pioneer Petroleum — p. 36
Applying the Balanced Scorecard to Nonprofit and Government Organizations — p. 43
Managing with the Balanced Scorecard — p. 45
Barriers to Effective Use of the Balanced Scorecard — p. 46
Epilogue to Pioneer Petroleum — p. 48
CHAPTER 3 Using Costs in Decision Making — p. 62
How Management Accounting Supports Internal Decision Making — p. 63
Variable and Fixed Costs — p. 64
Cost-Volume-Profit Analysis — p. 66
Other Useful Cost Definitions — p. 72
Make-or-Buy—The Outsourcing Decision — p. 78
The Decision to Drop a Product — p. 82
Costing Orders — p. 85
Relevant Cost and Short-Term Product Mix Decisions — p. 87
Epilogue to Nolan Industries — p. 93
CHAPTER 4 Accumulating and Assigning Costs to Products — p. 121
Cost Management Systems — p. 123
Cost Flows in Organizations — p. 123
Some Important Cost Terms — p. 125
Cost Classification and Context — p. 127
Handling Indirect Costs in a Manufacturing Environment — p. 128
Overhead Allocation: Further Issues — p. 134
Job Order and Process Systems — p. 138
Epilogue to Strict’s Custom Framing — p. 144
Appendix 4-1 Allocating Service Department Costs — p. 146
CHAPTER 5 Activity-Based Cost Systems — p. 165
Traditional Manufacturing Costing Systems — p. 167
Limitations of Madison’s Existing Standard Cost System — p. 170
Vanilla Factory and Multiflavor Factory — p. 170
Activity-Based Costing — p. 172
Measuring the Cost of Unused Resource Capacity — p. 179
Fixed Costs and Variable Costs in Activity-Based Cost Systems — p. 179
Using the ABC Model to Forecast Resource Capacity — p. 181
Updating the ABC Model — p. 184
Service Companies — p. 187
Implementation Issues — p. 189
Epilogue to Madison Dairy — p. 192
Appendix 5-1 Historical Origins of Activity-Based Costing — p. 194
CHAPTER 6 Measuring and Managing Customer Relationships — p. 218
Measuring Customer Profitability: Extending the Madison Dairy Case — p. 220
Reporting and Displaying Customer Profitability — p. 222
Customer Costs in Service Companies — p. 224
Increasing Customer Profitability — p. 226
Salesperson Incentives — p. 232
Life-Cycle Profitability — p. 233
Measuring Customer Performance with Nonfinancial Metrics — p. 235
Epilogue to Madison Dairy — p. 239
CHAPTER 7 Measuring and Managing Process Performance — p. 252
Process Perspective and the Balanced Scorecard — p. 255
Facility Layout Systems — p. 255
Inventory Costs and Processing Time — p. 259
Cost of Nonconformance and Quality Issues — p. 268
Just-in-Time Manufacturing — p. 270
Kaizen Costing — p. 273
Benchmarking — p. 275
Epilogue to Blast from the Past Robot Company — p. 280
CHAPTER 8 Measuring and Managing Life-Cycle Costs — p. 301
Managing Products over Their Life Cycle — p. 302
Target Costing — p. 305
Breakeven Time: A Comprehensive Metric for New Product Development — p. 316
Innovation Measures on the Balanced Scorecard — p. 320
Environmental Costing — p. 324
CHAPTER 9 Behavioral and Organizational Issues in Management Accounting and Control Systems — p. 340
What Are Management Accounting and Control Systems? — p. 342
Characteristics of a Well-Designed MACS — p. 342
The Human Resource Management Model of Motivation — p. 344
The Organization’s Ethical Code of Conduct and MACS Design — p. 345
Motivation and Congruence — p. 349
Task and Results Control Methods — p. 351
Using a Mix of Performance Measures: A Balanced Scorecard Approach — p. 353
Empowering Employees to Be Involved in MACS Design — p. 355
Behavioral Aspects of MACS Design: An Example from Budgeting — p. 357
Developing Appropriate Incentive Systems to Reward Performance — p. 360
Epilogue to Advanced Cellular International and Chapter Summary — p. 371
CHAPTER 10 Using Budgets for Planning and Coordination — p. 393
Determining the Levels of Capacity-Related and Flexible Resources — p. 394
The Budgeting Process — p. 395
The Budgeting Process Illustrated — p. 400
Interpreting the Production Plan — p. 408
What-If Analysis — p. 415
Comparing Actual and Planned Results — p. 417
The Role of Budgeting in Service and Not-For-Profit Organizations — p. 431
Periodic and Continuous Budgeting — p. 431
Controlling Discretionary Expenditures — p. 432
Managing the Budgeting Process — p. 434
Epilogue to the California Budget Crisis — p. 435
CHAPTER 11 Financial Control — p. 462
The Environment of Financial Control — p. 463
Financial Control — p. 464
The Motivation for Decentralization — p. 464
Responsibility Centers and Evaluating Unit Performance — p. 467
Evaluating Responsibility Centers — p. 474
Transfer Pricing — p. 481
Assigning and Valuing Assets in Investment Centers — p. 486
The Efficiency and Productivity Elements of Return on Investment — p. 487
Using Residual Income — p. 490
The Efficacy of Financial Control — p. 493
Epilogue to Adrian’s Home Services — p. 494
