Management and Cost Accounting 7e

Packed with illustrations, examples and real-life applications, Management and Cost Accounting brings together techniques, concepts and practices in a highly readable way. Keeping its international focus, the text includes a wealth of case studies featuring companies from around the world, and includes up-to-date coverage of AI and robotics and other technology which affects management accounting. Applications are explained using illustrations from real corporations, plus the text includes professional accountancy examination questions to help you practice. This book will help you learn about the aspects of management accounting that are essential in your study and your future performance in the workplace.

Table of Contents

Contents ix

Guide to the case studies xvi

Preface xix

Authors’ acknowledgements xxii

Publisher’s acknowledgements xxv

PART I Management and cost accounting fundamentals

1 The manager and management accounting 2

2 An introduction to cost terms and purposes 30

3 Job costing 55

4 Process costing 85

5 Cost allocation 124

6 Cost allocation: joint-cost situations 153

7 Income effects of alternative stock-costing methods 179

Part I Case study problems 208

PART II Accounting information for decision making

8 Cost–volume–profit analysis 216

9 Determining how costs behave 244

10 Relevant information for decision making 284

11 Activity-based costing 316

12 Pricing, target costing and customer profitability analysis 349

13 Capital investment decisions 386

Part II Case study problems 416

PART III Planning and budgetary control systems

14 Motivation, budgets and responsibility accounting 424

15 Flexible budgets, variances and management control: I 462

16 Flexible budgets, variances and management control: II 492

17 Measuring yield, mix and quantity effects 526

Part III Case study problems 550

PART IV Management control systems and performance issues

18 Control systems and transfer pricing 556

19 Control systems and performance measurement 585

Part IV Case study problems 615

PART V Strategy, quality, time and emerging issues

20 Strategy, the balanced scorecard and quality 622

21 Accounting, time and efficiency 661

22 Emerging issues: digital technologies, governance and sustainability 704

Part V Case study problems 726

Appendix A: Solutions to selected exercises 742

Appendix B: Notes on compound interest and interest tables 809

Glossary 817

Names index 830

Subject index 832