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Introduction to Management Accounting, Chapters 1-19, 12/E
Charles T. Horngren, Stanford University
Gary L. Sundem, University of Washington
William O. Stratton, Pepperdine University

ISBN-10: 013032373X
ISBN-13: 9780130323736

Publisher: Prentice Hall
Copyright: 2002
Format: Cloth; 824 pp
Published: 07/13/2001
We're sorry, this product is no longer available and has been replaced withIntroduction to Management Accounting, Chap. 1-17, 13/E.
Please contact your Pearson rep if you are using this product and need instructor resources.

Get refreshed with Horngren/Sundem/Stratton's Introduction to Management Accounting, Twelfth Edition. This best-selling text offers a relevant, real-world approach to management accounting. Students develop a solid understanding of costs and cost behavior and the use of cost information for planning and control decisions not just inventory valuation. An exceptionally strong pedagogy and supplements package and flexible structure provide instructors with great latitude in choosing various combinations of breadth and depth, theory and procedures, simplicity and complexity. Chapters 1-15 cover only management accounting issues while Chapters 1-19 includes 4 chapters of finanical accounting. The Twelfth Edition now includes student-oriented real-world company examples such as Nantucket Nectars and McDonalds; new “Cognitive Exercises” and “Business First” boxes, new on-line courses and tutorial software package resources, and new CD-ROM series, Mastering Accounting.

NEW—Real world companies—Including Nantucket Nectars, McDonalds, Oracle, and more are highlighted in chapter openers, chapter discussions, and also appear in the On-Location! video package.
NEW—Software—(Available as a free download from the text website) Includes free PH Re-Enforcer tutorial software, PowerPoints, and Excel templates.
NEW—“Take Five” Study Breaks—Appear within the chapters.

Encourage students to pause and apply concepts.

NEW—“Cognitive Exercises” boxes—Provide short critical thinking exercises.

Helps students prepare for more complex problem and case material.

NEW—“Business First” boxes—Provide insights into real business domestic and international issues, as well as high-tech and e-Business industries.
NEW—Free on-line courses—Available in your choice of platforms: Standard WebCT, Blackboard, and Pearson CourseCompass.
NEW—“Mastering Accounting” CD-ROM—Students watch professionally written, acted, and filmed videos about a fictional Internet start-up company to see how accounting concepts are related to workplace events and challenges. They then complete a variety of interactive exercises. The topics covered are all linked to the core concepts in the first-year accounting sequence. Can be packaged with the textbook for a nominal price.

An excellent tool for cross-functional learning and to help students see the relevance of accounting in their future.

(NOTE: The alternate version of this text only contains chapters 1-15.)

I. FOCUS ON DECISION MAKING.

1. Managerial Accounting & the Business Organization.

Chapter Opener: Cisco Systems. Accounting and Decision Making. Effects of Government Regulation. Management Accounting in Service and Nonprofit Organizations. Cost-Benefit and Behavioral Considerations. The Management Process and Accounting. Illustration of Budgets and Performance Reports. Planning and Control for Product Life Cycles and the Value Chain. Accounting's Position in the Organization. Career Opportunities in Management Accounting. Adaptation to Change. Just-in-Time Philosophy and Computer-Integrated Manufacturing. Importance of Ethical Conduct. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

2. Introduction to Cost Behavior and Cost-Volume Relationships.

Chapter Opener: Boeing. Activities, Costs, and Cost Drivers. Comparison of Variable and Fixed Costs. Cost-Volume-Profit Analysis. Additional Uses of Cost-Volume Analysis. Nonprofit Application. Highlights to Remember. Appendix 2A: Sales-Mix Analysis. Appendix 2B: Impact of Income Taxes. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

3. Measurement of Cost Behavior.

Chapter Opener: America West. Cost Drivers and Cost Behavior. Management Influence on Cost Behavior. Cost Functions. Methods of Measuring Cost Functions. Highlights to Remember. Appendix 3: Use and Interpretation of Least-Squares Regression. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

4. Cost Management Systems and Activity-Based Costing.

Chapter Opener: AT&T. Cost Management Systems. Different Costs for Different Decisions. Activity-Based Costing. Illustration of Activity-Based Costing. Activity-Based Management. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

5. Relevant Information and Decision Making: Marketing Decisions.

Chapter Opener: Grand Canyon Railway. The Concept of Relevance. The Special Sales Order. Deletion or Addition of Products, Services, or Departments. Optimal Use of Limited Resources. Pricing Decisions. General Influences on Pricing in Practice. Role of Costs in Pricing Decisions. Target Costing. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

6. Relevant Information and Decision Making: Production Decisions.

Chapter Opener: Nantucket Nectars. Opportunity, Outlay, and Differential Costs. Make-or-Buy Decisions. Joint Product Costs. Irrelevance of Past Costs. Irrelevance of Future Costs That Will Not Differ. Beware of Unit Costs. Conflicts Between Decision Making and Performance Evaluation. How Income Statements Influence Decision Making. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

II. ACCOUNTING FOR PLANNING AND CONTROL.

7. The Master Budget.

Chapter Opener: The Ritz-Canton. Budgets and the Organization. Preparing the Master Budget. Difficulties of Sales Forecasting. Getting Employees to Accept the Budget. Financial Planning Models. Highlights to Remember. Appendix 7: Use of Spreadsheets for Budgeting. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

8. Flexible Budgets and Variance Analysis.

Chapter Opener: McDonald's. Flexible Budgets: Bridge Between Static Budgets and Actual Results. Isolating the Causes of Variances. Flexible-Budget Variances in Detail. Overhead Variances. General Approach. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

9. Management Control Systems and Responsibility Accounting.

Chapter Opener: Foundation Health Systems. Management Control Systems. Designing Management Control Systems. Controllability and Measurement of Financial Performance. Nonfinancial Measures of Performance. Management Control Systems in Service, Government, and Nonprofit Organizations. Future of Management Control Systems. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

10. Management Control in Decentralized Organizations.

Chapter Opener: Nike. Centralization Versus Decentralization. Transfer Pricing. Performance Measures and Management Control. Measures of Profitability. ROI or Residual Income? A Closer Look at Invested Capital. Keys to Successful Management Control Systems. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

III. CAPITAL BUDGETING.

11. Capital Budgeting.

Chapter Opener: Deer Valley Lodge. Capital Budgeting for Programs or Projects. Discounted-Cash-Flow Models. Sensitivity Analysis and Risk Assessment in DCF Models. The NPV Comparison of Two Projects. Income Taxes and Capital Budgeting. Confusion About Depreciation. Capital Budgeting and Inflation. Other Models for Analyzing Long-Range Decisions. Performance Evaluation. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

IV. PRODUCT COSTING.

12. Cost Allocation.

Chapter Opener: Dell Computer Corporation. Cost Allocation in General. Allocation of Service Department Costs. Allocation of Costs to Final Cost Objects. Activity-Based-Costing (ABC) Approach. Allocation of Joint Costs and By-Product Costs. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

13. Job-Costing Systems.

Chapter Opener: Dell Computer Corporation. Distinction Between Job Costing and Process Costing. Illustration of Job Costing. Accounting for Factory Overhead. Illustration of Overhead Application. Problems of Overhead Application. Activity-Based Costing/Management in a Job-Costing Environment. Product Costing in Service and Nonprofit Organizations. Highlights to Remember. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

14. Process-Costing Systems.

Chapter Opener: Nally and Gibson Georgetown, Inc. Process Costing Basics. Application of Process Costing. Physical Units and Equivalent Units (Steps 1 and 2). Calculation of Product Costs (Steps 3 to 5). Effects of Beginning Inventories. Weighted-Average Method. First-In, First-Out Method. Process Costing in a JIT System: Backflush Costing. Highlights to Remember. Appendix 14: Hybrid Systems-Operation Costing. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

15. Overhead Application: Variable and Absorption Costing.

Chapter Opener: L.A. Darling Company. Variable Versus Absorption Costing. Fixed Overhead and Absorption Costs of Product. Effect of Other Variances. Highlights to Remember. Appendix 15: Comparisons of Production-Volume Variance with Other Variances. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

V. BASIC FINANCIAL ACCOUNTING.

16. Basic Accounting: Concepts, Techniques, & Conventions.

Chapter Opener: Lands' End. The Need for Accounting. Financial Statements. Accrual Basis and Cash Basis. Adjustments to the Accounts. Adjustment Type I: Expiration of Unexpired Costs. Adjustment Type II: Recognition (Earning) of Unearned Revenues. Adjustment Type III: Accrual of Unrecorded Expenses. Adjustment Type IV: Accrual of Unrecorded Revenues. Dividends and Retained Income. Preparing Financial Statements. Sole Proprietorships and Partnerships. Generally Accepted Accounting Principles. Three Measurement Conventions. Highlights to Remember. Appendix 16A: Additional Accounting Concepts. Appendix 16B: Using Ledger Accounts. Accounting Vocabulary. Assignment Material. Fundamental Assignment Material. Additional Assignment Material.

17. Understanding Corporate Annual Reports: Basic Financial Statements.

Chapter Opener: Oracle Corporation. Classified Balance Sheet. Income Statement. Statement of Retained Earnings. Statement of Cash Flows. Interpretation of a Statement of Cash Flows: The Direct Method. Interpretation of a Statement of Cash Flows: The Indirect Method. Highlights to Remember. Appendix 17: Shareholder Reporting, Income Tax Reporting, and Deferred Taxes. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

18. More on Understanding Corporate Annual Reports.

Chapter Opener: General Motors. Part One: Intercorporate Investments Including Consolidations. Market and Equity Methods. Consolidated Financial Statements. Highlights to Remember: Part One. Accounting Vocabulary. Part Two: Analysis of Financial Statements. Uses of Ratios. Efficient Markets and Investor Decisions. Highlights to Remember: Part Two. Accounting Vocabulary. Fundamental Assignment Material. Additional Assignment Material.

19. Difficulties in Measuring Net Income.

Chapter Opener: Home Depot. Part One: Principal Inventory Methods. Four Major Inventory Methods. Lower-of-Cost-or-Market (LCM) Method. Highlights to Remember: Part One. Accounting Vocabulary: Part One. Part Two: Changing Prices and Income Measurement. Income or Capital. Measurement Alternatives Under Inflation. Highlights to Remember: Part Two. Accounting Vocabulary: Part Two. Fundamental Assignment Material. Additional Assignment Material.

Appendix A.
Appendix B.
Glossary.
Index.
Photo Credits.

Introduction to Management Accounting, 12/E,
Chapters 1-19

Introduction to Management Accounting (Accounting and Taxation)

Author Bios
Backcover Copy

Charles T. Horngren is the Edmund W. Littlefield Professor of Accounting, Emeritus, at Stanford University. A graduate of Marquette University, he received his MBA from Harvard University and his Ph.D. from the University of Chicago. He is also the recipient of honorary doctorates from Marquette University and DePaul University.

A Certified Public Accountant, Horngren served on the Accounting Principles Board for six years, the Financial Accounting Standards Board Advisory Council for five years, and the Council of the American Institute of Certified Public Accountants for three years. For six years, he served as a trustee of the Financial Accounting Foundation, which oversees the Financial Accounting Standards Board and the Government Accounting Standards Board.

Horngren is a member of the Accounting Hall of Fame.

A member of the American Accounting Association, Horngren has been its President and its Director of Research. He received its first annual Outstanding Accounting Educator Award.

The California Certified Public Accountants Foundation gave Horngren its Faculty Excellence Award and its Distinguished Professor Award. He is the first person to have received both awards.

The American Institute of Certified Public Accountants presented its first Outstanding Educator Award to Horngren.

Horngren was named Accountant of the Year, Education, by the national professional accounting fraternity, Beta Alpha Psi.

Professor Horngren is also a member of the Institute of Management Accountants, where he has received its Distinguished Service Award. He was a member of the Institute's Board of Regents, which administers the Certified Management Accountant examinations.

Horngren is the author of other accounting books published by Prentice-Hall: Cost Accounting: A Managerial Emphasis, Tenth Edition, 2000 (with George Foster and Srikant Datar); Introduction to Financial Accounting, Eighth Edition, 2002 (with Gary L. Sundem and John A. Elliott); Accounting, Fifth Edition, 2002 (with Walter T. Harrison, Jr., and Linda Bamber); and Financial Accounting, Fourth Edition, 2001 (with Walter T. Harrison, Jr.).

Horngren is the Consulting Editor for the Charles T. Horngren Series in Accounting.

Gary L. Sundem is the Julius A. Roller Professor of Accounting and Associate Dean at the University of Washington, Seattle. He received his B.A. degree from Carleton College and his MBA and Ph.D. degrees from Stanford University.

Professor Sundem was the 1992-93 President of the American Accounting Association. He was Executive Director of the Accounting Education Change Commission, 1989-91, and served as Editor of The Accounting Review, 1982-86.

A member of the Institute of Management Accountants, Sundem is past president of the Seattle chapter. He has served on IMA's national Board of Directors, and chaired its Academic Relations and Professional Development Committees.

Professor Sundem has numerous publications in accounting and finance journals including Issues in Accounting Education, The Accounting Review, Journal of Accounting Research, and The Journal of Finance. He was selected as the Outstanding Accounting Educator by the American Accounting Association in 1998 and by the Washington Society of CPAs in 1987. He has made more than 200 presentations at universities in the United States and abroad.

William O. Stratton is Professor of Accounting at Pepperdine University. He received B.S. degrees from Florida State University and Pennsylvania State University, his MBA from Boston University, and his Ph.D. from the Claremont Graduate University.

A Certified Management Accountant, Stratton has lectured extensively at management accounting conferences in North America, South America, and Europe. He has developed and delivered professional workshops on activity-based management and performance achievement to manufacturing and service organizations throughout the United States and South America. In 1993, Professor Stratton was awarded the Boeing Competition prize for classroom innovation.

Stratton has numerous publications in accounting and international business journals including Management Accounting, Decision Sciences, IIE Transactions, and Synergie.

Get Refreshed . . . with Horngren/Sundem/Stratton's Introduction to Management Accounting, Twelfth Edition

NEW Real world companies including Nantucket Nectars, McDonald's, Cisco, Teva Sandals, and more are highlighted in chapter openers, chapter discussions, and many of these also appear in the On Location! Video package
NEW Free Software (available to download from the text web site) includes free tutorial and general ledger software!
NEW "Take Five" Study Breaks appear within the chapters and encourage students to apply concepts
NEW Assignment Options include new critical thinking exercises (Cognitive exercises) for each chapter
NEW "Business First" Boxes provide insights into domestic and international business, as well as high-tech and e-Business industries.
NEW Free On-Line Courses available in your choice of platforms: WebCT, Blackboard, and Pearson CourseCompass

And, students can get FREE tutorial software, FREE general ledger software, FREE spreadsheet templates, FREE PowerPoints/ready notes, FREE Excel tutorial, FREE on-line Tutor, and FREE on-line Study Guides at www.prenhall.com/horngren!

Mastering Accounting CD-ROM

Using video and interactive exercises, Mastering Accounting actively engages students in learning core accounting concepts. Through dramatic situations in the life of a fictional e-Business, the CD-ROM teaches your students how to apply the fundamental concepts of accounting to practical problems facing today's dynamic organizations.

Mastering Accounting can be shrink-wrapped to these texts for a nominal fee.

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