CHAPTER 1 How Management Accounting Information Supports Decision Making — p. 25
What Is Management Accounting? — p. 26
Strategy — p. 29
Behavioral Implications of Management Accounting Information — p. 33
CHAPTER 2 The Balanced Scorecard and Strategy Map — p. 39
The Balanced Scorecard — p. 43
Strategy — p. 47
Balanced Scorecard Objectives, Measures, and Targets — p. 48
Creating a Strategy Map — p. 49
Strategy Map and Balanced Scorecard at Pioneer Petroleum — p. 60
Applying the Balanced Scorecard to Nonprofit and Government Organizations — p. 67
Managing with the Balanced Scorecard — p. 69
Barriers to Effective Use of the Balanced Scorecard — p. 70
Epilogue to Pioneer Petroleum — p. 72
CHAPTER 3 Using Costs in Decision Making — p. 86
How Management Accounting Supports Internal Decision Making — p. 87
Variable and Fixed Costs — p. 88
Cost-Volume-Profit Analysis — p. 90
Other Useful Cost Definitions — p. 96
Make-or-Buy—The Outsourcing Decision — p. 102
The Decision to Drop a Product — p. 106
Costing Orders — p. 109
Relevant Cost and Short-Term Product Mix Decisions — p. 111
Epilogue to Nolan Industries — p. 117
CHAPTER 4 Accumulating and Assigning Costs to Products — p. 145
Cost Management Systems — p. 147
Cost Flows in Organizations — p. 147
Some Important Cost Terms — p. 149
Handling Indirect Costs in a Manufacturing Environment — p. 152
Overhead Allocation: Further Issues — p. 158
Job Order and Process Systems — p. 162
Epilogue to Strict’s Custom Framing — p. 168
Appendix 4-1 Allocating Service Department Costs — p. 170
CHAPTER 5 Activity-Based Cost Systems — p. 189
Traditional Manufacturing Costing Systems — p. 191
Limitations of Madison’s Existing Standard Cost System — p. 194
Vanilla Factory and Multiflavor Factory — p. 194
Activity-Based Costing — p. 196
Service Companies — p. 211
Implementation Issues — p. 213
Epilogue to Madison Dairy — p. 216
Appendix 5-1 Historical Origins of Activity-Based Costing — p. 218
CHAPTER 6 Measuring and Managing Customer Relationships — p. 242
Measuring Customer Profitability: Extending the Madison Dairy Case — p. 244
Customer Costs in Service Companies — p. 248
Increasing Customer Profitability — p. 250
Salesperson Incentives — p. 256
Life-Cycle Profitability — p. 257
Measuring Customer Performance with Nonfinancial Metrics — p. 259
Epilogue to Madison Dairy — p. 263
CHAPTER 7 Measuring and Managing Process Performance — p. 276
Process Perspective and the Balanced Scorecard — p. 279
Facility Layout Systems — p. 279
Inventory Costs and Processing Time — p. 283
Cost of Nonconformance and Quality Issues — p. 292
Just-in-Time Manufacturing — p. 294
Kaizen Costing — p. 297
Benchmarking — p. 299
Epilogue to Blast from the Past Robot Company — p. 304
CHAPTER 8 Measuring and Managing Life-Cycle Costs — p. 325
Managing Products over Their Life Cycle — p. 326
Target Costing — p. 329
Breakeven Time: A Comprehensive Metric for New Product Development — p. 340
Innovation Measures on the Balanced Scorecard — p. 344
Environmental Costing — p. 348
CHAPTER 9 Behavioral and Organizational Issues in Management Accounting and Control Systems — p. 364
What Are Management Accounting and Control Systems? — p. 366
Characteristics of a Well-Designed MACS — p. 366
The Human Resource Management Model of Motivation — p. 368
The Organization’s Ethical Code of Conduct and MACS Design — p. 369
Using a Mix of Performance Measures: A Balanced Scorecard Approach — p. 377
Empowering Employees to Be Involved in MACS Design — p. 379
Behavioral Aspects of MACS Design: An Example from Budgeting — p. 381
Developing Appropriate Incentive Systems to Reward Performance — p. 384
Epilogue to Advanced Cellular International and Chapter Summary — p. 395
CHAPTER 10 Using Budgets for Planning and Coordination — p. 417
Determining the Levels of Capacity-Related and Flexible Resources — p. 418
The Budgeting Process — p. 419
The Budgeting Process Illustrated — p. 424
Interpreting the Production Plan — p. 432
What-If Analysis — p. 439
Comparing Actual and Planned Results — p. 441
The Role of Budgeting in Service and Not-For-Profit Organizations — p. 455
Periodic and Continuous Budgeting — p. 455
Controlling Discretionary Expenditures — p. 456
Managing the Budgeting Process — p. 458
Epilogue to the California Budget Crisis — p. 459
CHAPTER 11 Financial Control — p. 486
The Environment of Financial Control — p. 487
Financial Control — p. 488
The Motivation for Decentralization — p. 488
Responsibility Centers and Evaluating Unit Performance — p. 491
Transfer Pricing — p. 505
Assigning and Valuing Assets in Investment Centers — p. 510
The Efficiency and Productivity Elements of Return on Investment — p. 511
The Efficacy of Financial Control — p. 517
Epilogue to Adrian’s Home Services — p. 518
