About the Authors
Preface
Brief Table of Contents
Contents
Chapter 1: How Management Accounting Information Supports Decision Making
What Is Management Accounting?
The Balanced Scorecard: Management Accounting’s Solution for Measuring Intangible Assets
Behavioral Implications of Management Accounting Information
Chapter 2: Using Costs in Decision Making
How Management Accounting Supports Internal Decision Making
Cost-Volume-Profit Analysis
Epilogue to Kitchen Magic
Chapter 3: Decision Making and Management Accounting Information
Cost Definitions Important in Decision Making
Relevant Cost Analysis in Decision Making
Chapter 4: Accumulating and Assigning Costs to Products
Handling Indirect Costs in a Manufacturing Environment
Overhead Allocation: Further Issues
Job Order Costing Systems
Epilogue to Lin’s Custom Framing
Chapter 5: Activity-Based Costing Systems
Traditional Manufacturing Costing Systems
Limitations of Madison’s Existing Standard Cost System
Epilogue to Madison Dairy
Chapter 6: Measuring and Managing Customer Relationships
Measuring Customer Profitability: Extending the Madison Dairy Case
Increasing Customer Profitability
Measuring Customer Performance with Nonfinancial Metrics
Epilogue to Madison Dairy
Chapter 7: Measuring and Managing Process Performance
Process Perspective and Management Accounting Information
Inventory Costs and Processing Time
Cost of Nonconformance and Quality Issues
Just-in-Time Manufacturing
Epilogue to Blast from the Past Robot Company
Chapter 8: Measuring and Managing Innovation and Life-Cycle Costs
Managing Products over Their Life Cycle
Breakeven Time: A Comprehensive Metric for New Product Development
Chapter 9: Behavioral and Organizational Issues in Management Accounting and Control Systems
What Are Management Accounting and Control Systems?
Characteristics of a Well-Designed MACS
The Human Resource Management Model of Motivation
The Organization’s Ethical Code of Conduct and MACS Design
Motivation and Congruence
Using a Mix of Performance Measures: A Balanced Scorecard Approach
Empowering Employees to Be Involved in MACS Design
Behavioral Aspects of MACS Design: An Example from Budgeting
Developing Appropriate Incentive Systems to Reward Performance
Epilogue to Advanced Cellular International and Chapter Summary
Chapter 10: The Balanced Scorecard and Strategy Map
Balanced Scorecard Objectives, Measures, and Targets
Strategy Map and Balanced Scorecard at Pioneer Petroleum
Applying the Balanced Scorecard to Nonprofit and Government Organizations
Barriers to Effective Use of the Balanced Scorecard
Epilogue to Pioneer Petroleum
Chapter 11: Using Budgets for Planning and Coordination
Determining the Levels of Capacity-Related and Flexible Resources
Behavioral Considerations in Budgeting
The Budgeting Process Illustrated
Comparing Actual and Planned Results
The Role of Budgeting in Service and Not-for-Profit Organizations
Periodic and Continuous Budgeting
Controlling the Discretionary Expenditures
Managing the Budgeting Process
Southwest Regional Health Center-Epilogue
Chapter 12: Financial Control
The Environment of Financial Control
The Motivation for Decentralization
Responsibility Centers and Evaluating Unit Performance
Assigning and Valuing Assets in Investment Centers
The Efficiency and Productivity Elements of Return on Investment
The Efficacy of Financial Control
Epilogue to Adrian’s Home Services
Index
