Management Accounting 9th Edition by Kim Langfield-Smith, David Smith, Paul Andon

PART 1 Introduction to management accounting — p. 1 CHAPTER 1 Management accounting: information for creating value and managing resources — p. 3 Australasian organisations in the twenty-first century — p. 4 What is management accounting? — p. 6 Management accountants within organisations — p. 11 Management accounting processes and techniques — p. 11 Management accounting and strategy — p. 13 Management accounting for planning and control — p. 16 Costing for decision making — p. 18 Some important considerations in the design of management accounting systems — p. 19 Management accounting responses to the changing business environment — p. 20 CHAPTER 2 Management accounting: cost terms and concepts — p. 35 Management accounting information — p. 36 Cost classifications: different classifications for different purposes — p. 39 Costs across the value chain — p. 42 Manufacturing costs — p. 44 Product costs — p. 45 Cost flows in a manufacturing business — p. 47 PART 2 Costs and costing systems — p. 67 CHAPTER 3 Cost behaviour, cost drivers and cost estimation — p. 70 What are cost behaviour, cost estimation and cost prediction? — p. 71 Cost drivers — p. 72 Cost behaviour patterns — p. 78 Using cost behaviour patterns to predict costs — p. 86 Cost estimation — p. 87 Practical issues in cost estimation — p. 93 Big data, data analytics and data visualisation — p. 95 CHAPTER 4 Product costing systems — p. 125 Product costing — p. 126 Flow of costs in manufacturing businesses — p. 131 Allocating overhead costs to products — p. 132 Types of product costing systems — p. 135 Job costing: Williams Elevators — p. 138 Process costing: Spritz — p. 151 CHAPTER 5 Process costing and operation costing — p. 177 Process costing at Spritz — p. 178 Process costing with work in process inventories — p. 178 Process costing using the weighted average method — p. 181 Process costing using the FIFO method — p. 184 Process costing and spoilage — p. 188 Hybrid costing systems — p. 192 Operation costing for batch manufacturing processes — p. 192 Other issues in process costing — p. 197 CHAPTER 6 Service costing — p. 223 What are service organisations? — p. 224 Cost classifications in service organisations — p. 226 Estimating service costs — p. 230 Costing services at Adelaide Bank — p. 235 When should firms estimate their service costs? — p. 245 Flow of costs in service firms — p. 248 Costing in retail and wholesale businesses — p. 249 CHAPTER 7 A closer look at overhead costs — p. 277 What are overhead costs? — p. 278 Allocating indirect costs: some general principles — p. 279 Allocating overhead costs to products — p. 281 Issues in estimating overhead rates — p. 288 Allocating indirect costs to responsibility centres — p. 293 Allocating support department costs — p. 294 CHAPTER 8 Activity-based costing — p. 329 Problems with conventional product costing systems — p. 330 Product costing at Mason & Cox — p. 333 Activity-based costing at Mason & Cox — p. 335 Initial decisions about ABC at Mason & Cox — p. 336 Step one: measuring the costs of the manufacturing overhead activities — p. 337 Step two: assigning the costs of manufacturing overhead activities to products — p. 339 Activity-based versus traditional product costs at Mason & Cox — p. 342 Costs versus benefits of ABC at Mason & Cox — p. 343 When should ABC be used? — p. 345 Other activity-based costing issues — p. 346 Activity-based costing in service organisations — p. 348 PART 3 INFORMATION FOR MANAGING RESOURCES — p. 383 CHAPTER 9 Budgeting systems — p. 386 Strategic planning and budgeting systems — p. 387 Purposes of budgeting — p. 387 Responsibility accounting — p. 389 The annual budget: a planning tool — p. 389 Budgeting at Casa Dale Homes Ltd — p. 395 Budget administration — p. 406 Behavioural consequences of budgeting — p. 406 Zero-base budgeting — p. 409 Program budgeting — p. 410 CHAPTER 10 Standard costs for control: direct material and direct labour — p. 449 Controlling costs — p. 450 Setting standards — p. 451 Developing standards at R.M. Williams — p. 453 Calculating standard cost variances — p. 456 Investigating significant variances — p. 460 Cost control through assigning responsibility — p. 466 Standard costing and behaviour — p. 468 Standard costs for product costing — p. 468 CHAPTER 11 Standard costs for control: flexible budgets and manufacturing overhead — p. 493 Flexible budgets — p. 494 Flexible overhead budget: R.M. Williams — p. 497 Overhead application in a standard costing system — p. 498 Calculating overhead cost variances — p. 499 Overhead cost performance report — p. 505 Standard costs for product costing — p. 505 Flexible budgets in service organisations — p. 508 An appraisal of standard costing systems — p. 509 Activity-based budgeting — p. 512 CHAPTER 12 Managing and reporting performance — p. 539 Purposes of performance measurement — p. 540 Characteristics of effective performance measurement systems — p. 540 Structuring for control: decentralisation — p. 542 Responsibility centres — p. 543 More complex structures — p. 545 Financial performance reporting — p. 547 Transfer pricing — p. 552 CHAPTER 13 Financial performance measures and incentive schemes — p. 587 Financial measures in investment centres — p. 588 Return on investment — p. 588 Residual income — p. 592 Measuring profit and invested capital — p. 593 Measures of shareholder value — p. 596 Incentive schemes — p. 599 CHAPTER 14 Strategic performance measurement systems — p. 625 The problems with using traditional financial performance measures in isolation — p. 626 The advantages of non-financial measures — p. 627 Selecting operational measures — p. 627 The limitations of non-financial performance measures — p. 630 The balanced scorecard — p. 631 Strategy maps — p. 635 Developing a balanced scorecard for the Cooktown Bus Company — p. 638 How successful are balanced scorecards? — p. 640 Does non-financial performance lead to financial performance? — p. 641 Benchmarking — p. 644 Measuring impact in charitable organisations — p. 634 Customising the balanced scorecard — p. 637 CHAPTER 15 Managing suppliers and customers — p. 665 Supply chain management — p. 666 Managing suppliers — p. 669 Managing inventory — p. 674 Managing customers — p. 682 Managing time — p. 690 CHAPTER 16 Managing costs and quality — p. 723 Cost management — p. 724 Activity-based management — p. 724 Business process re-engineering — p. 732 Life cycle costing — p. 734 Target costing — p. 737 Managing throughput — p. 741 Managing quality — p. 743 PART 4 INFORMATION FOR CREATING VALUE — p. 775 CHAPTER 17 Sustainability and management accounting — p. 778 Corporate sustainability — p. 779 Sustainability and stakeholders — p. 784 Sustainability and management accounting — p. 786 Recognising and measuring economic, environmental and social impacts — p. 787 Environmental management accounting — p. 791 Environmental costs — p. 791 A life cycle analysis of carbon emissions — p. 795 A sustainability scorecard at Westpac — p. 798 Sustainability and supply chain management — p. 795 Strategic performance measurement systems and sustainability — p. 800 Sustainability and capital expenditure analysis — p. 803 CHAPTER 18 Cost volume profit analysis — p. 823 CVP analysis at the Melbourne Theatre Company — p. 824 The break-even point — p. 826 The break-even formula — p. 827 Graphing cost volume profit relationships — p. 829 Target net profit — p. 832 Using CVP analysis for management decision making — p. 833 CVP analysis with multiple products — p. 837 Including income taxes in CVP analysis — p. 840 Practical issues in CVP analysis — p. 841 An activity-based approach to CVP analysis — p. 843 Financial planning models — p. 845 CHAPTER 19 Information for decisions: relevant costs and benefits — p. 871 The management accountant's role in decision making — p. 872 Relevant information — p. 876 Identifying relevant costs and benefits — p. 877 Relevant information for some common decisions — p. 881 Implications of activity-based cost analysis for decisions — p. 896 Incentives for decision makers — p. 898 Pitfalls to avoid when using accounting data for decisions — p. 898 CHAPTER 20 Pricing and product mix decisions — p. 927 Major influences on pricing decisions — p. 928 Economic profit-maximising models — p. 931 Pricing strategies — p. 933 Strategic pricing of new products — p. 941 Competitive bidding — p. 941 Legal restrictions on setting prices — p. 943 Product mix decisions — p. 945 CHAPTER 21 Information for capital expenditure decisions — p. 973 Capital expenditure decisions — p. 974 Cash flows — p. 974 The capital expenditure approval process — p. 974 Capital expenditure decisions at the Meadowleigh Medical Centre — p. 975 Discounted cash flow analysis — p. 978 Comparing two alternative investment projects — p. 984 Accounting for uncertainty using real-options analysis — p. 988 Other techniques for analysing capital expenditure proposals — p. 989 Performance evaluation: a behavioural issue — p. 992 Income taxes and capital expenditure analysis — p. 994 Post-completion audits of capital expenditure decisions — p. 1003 Justification of investments in advanced technologies — p. 1003 The limitations of traditional capital expenditure analysis — p. 1006