PART ONE Introduction to management and cost accounting — p. 2
1 Introduction to management accounting — p. 4
The users of accounting information — p. 5
Differences between management accounting and financial accounting — p. 6
The decision-making process — p. 7
The impact of the changing business environment on management accounting — p. 9
Focus on customer satisfaction and new management approaches — p. 13
Management accounting and ethical behaviour — p. 14
International convergence of management accounting practices — p. 15
Functions of management accounting — p. 16
A brief historical review of management accounting — p. 17
2 An introduction to cost terms and concepts — p. 23
Cost objects — p. 23
Manufacturing, merchandising and service organizations — p. 24
Direct and indirect costs — p. 24
Period and product costs — p. 27
Cost behaviour — p. 29
Relevant and irrelevant costs and revenues — p. 32
Avoidable and unavoidable costs — p. 32
Sunk costs — p. 33
Opportunity costs — p. 33
Incremental and marginal costs — p. 35
The cost and management accounting information system — p. 36
PART TWO Cost accumulation for inventory valuation and profit measurement — p. 42
3 Cost assignment — p. 44
Assignment of direct and indirect costs — p. 45
Different costs for different purposes — p. 46
Cost-benefit issues and cost systems design — p. 47
Assigning direct costs to cost objects — p. 48
Plant-wide (blanket) overhead rates — p. 49
The two-stage allocation process — p. 50
An illustration of the two-stage process for a traditional costing system — p. 52
An illustration of the two-stage process for an ABC system — p. 57
4 Accounting entries for a job costing system — p. 80
Materials recording procedure — p. 81
Pricing the issues of materials — p. 82
Control accounts — p. 83
5 Process costing — p. 102
Flow of production and costs in a process costing system — p. 102
6 Joint and by-product costing — p. 129
Joint products and by-products — p. 129
7 Income effects of alternative cost accumulation systems — p. 146
Variable costing — p. 148
Absorption costing — p. 150
PART THREE Information for decision-making — p. 166
8 Cost–volume–profit analysis — p. 168
9 Measuring relevant costs and revenues for decision-making — p. 194
10 Pricing decisions and profitability analysis — p. 227
11 Activity-based costing — p. 251
12 Decision-making under conditions of risk and uncertainty — p. 278
13 Capital investment decisions: appraisal methods — p. 300
14 Capital investment decisions: the impact of capital rationing, taxation, inflation and risk — p. 329
PART FOUR Information for planning, control and performance measurement — p. 356
15 The budgeting process — p. 358
16 Management control systems — p. 393
17 Standard costing and variance analysis 1 — p. 423
18 Standard costing and variance analysis 2: further aspects — p. 458
19 Divisional financial performance measures — p. 484
20 Transfer pricing in divisionalized companies — p. 509
PART FIVE Strategic cost management and strategic management accounting — p. 540
21 Strategic cost management — p. 542
22 Strategic management accounting — p. 578
PART SIX The application of quantitative methods to management accounting — p. 606
23 Cost estimation and cost behaviour — p. 608
24 Quantitative models for the planning and control of inventories — p. 632
25 The application of linear programming to management accounting — p. 655
