Introduction to Managerial Accounting and Job Order Cost Systems p. 1 The Differences Between Managerial and Financial Accounting p.

Transcription

1 Introduction to Managerial Accounting and Job Order Cost Systems p. 1 The Differences Between Managerial and Financial Accounting p. 2 The Management Accountant in the Organization p. 4 Manufacturing Cost Terms p. 5 Materials p. 5 Factory Labor p. 6 Factory Overhead Cost p. 7 Cost Accounting System Overview p. 7 Job Order Cost Systems for Manufacturing Businesses p. 8 Materials p. 9 Factory Labor p. 10 Factory Overhead Cost p. 12 Work in Process p. 15 Finished Goods and Cost of Goods Sold p. 16 Sales p. 17 Period Costs p. 17 Summary of Cost Flows for Goodwell Printers p. 18 Job Order Costing for Decision Making p. 18 Job Order Cost Systems for Professional Service Businesses p. 21 Practice Set: Sunblaze Inc. Process Cost Systems p. 51 Comparing Job Order Costing and Process Costing p. 52 Physical Flows and Cost Flows for a Process Manufacturer p. 53 The First-In, First-Out (Fifo) Method p. 55 Determine the Units to Be Assigned Costs p. 56 Calculate Equivalent Units of Production p. 57 Determine the Cost per Equivalent Unit p. 59 Allocate Costs to Transferred and Partially Completed Units p. 60 Bringing It All Together: The Cost of Production Report p. 61 Journal Entries for a Process Cost System p. 62 Using the Cost of Production Report for Decision Making p. 64 Just-in-Time Processing p. 65 Cost Behavior and Cost-Volume-Profit Analysis p. 87 Cost Behavior p. 88 Variable Costs p. 88 Fixed Costs p. 90 Mixed Costs p. 90 Summary of Cost Behavior Concepts p. 93 Reporting Variable and Fixed Costs p. 94 Cost-Volume-Profit Relationships p. 94 Contribution Margin Concept p. 94

2 Mathematical Approach to Cost-Volume-Profit Analysis p. 96 Break-Even Point p. 97 Target Profit p. 100 Graphic Approach to Cost-Volume-Profit Analysis p. 101 Cost-Volume-Profit (Break-Even) Chart p. 101 Profit-Volume Chart p. 103 Use of Computers in Cost-Volume-Profit Analysis p. 104 Sales Mix Considerations p. 105 Special Cost-Volume-Profit Relationships p. 107 Margin of Safety p. 107 Operating Leverage p. 107 Assumptions of Cost-Volume-Profit Analysis p. 108 Profit Reporting for Management Analysis p. 131 The Income Statement Under Variable Costing and Absorption Costing p. 132 Income from Operations When Units Manufactured Equal Units Sold p. 134 Income from Operations When Units Manufactured Exceed Units Sold p. 134 Income from Operations When Units Manufactured Are Less Than Units Sold p. 135 Comparing Income from Operations Under the Two Concepts p. 136 Income Analysis Under Variable Costing and Absorption Costing p. 137 Management's Use of Variable Costing and Absorption Costing p. 139 Controlling Costs p. 139 Pricing Products p. 140 Planning Production p. 141 Analyzing Market Segments p. 141 Analyzing Contribution Margins p. 145 Budgeting p. 173 Nature and Objectives of Budgeting p. 174 Objectives of Budgeting p. 174 Human Behavior and Budgeting p. 176 Budgeting Systems p. 177 Static Budget p. 178 Flexible Budget p. 179 Computerized Budgeting Systems p. 180 Master Budget p. 181 Income Statement Budgets p. 181 Sales Budget p. 182 Production Budget p. 183 Direct Materials Purchases Budget p. 184 Direct Labor Cost Budget p. 185 Factory Overhead Cost Budget p. 185 Cost of Goods Sold Budget p. 186

3 Selling and Administrative Expenses Budget p. 187 Budgeted Income Statement p. 187 Balance Sheet Budgets p. 188 Cash Budget p. 188 Capital Expenditures Budget p. 191 Budgeted Balance Sheet p. 192 Performance Evaluation Using Variances from Standard Costs p. 221 Standards p. 222 Setting Standards p. 222 Types of Standards p. 223 Reviewing and Revising Standards p. 223 Support and Criticism of Standards p. 224 Budgetary Performance Evaluation p. 224 Direct Materials Variances p. 226 Direct Materials Price Variance p. 227 Direct Materials Quantity Variance p. 227 Direct Materials Variance Relationships p. 227 Reporting Direct Materials Variances p. 227 Direct Labor Variances p. 228 Direct Labor Rate Variance p. 229 Direct Labor Time Variance p. 229 Direct Labor Variance Relationships p. 229 Reporting Direct Labor Variances p. 229 Factory Overhead Variances p. 230 The Factory Overhead Flexible Budget p. 231 Variable Factory Overhead Controllable Variance p. 232 Fixed Factory Overhead Volume Variance p. 232 Reporting Factory Overhead Variances p. 234 Recording and Reporting Variances from Standards p. 235 Standards for Nonmanufacturing Expenses p. 236 Nonfinancial Performance Measures p. 237 Performance Evaluation for Decentralized Operations p. 257 Centralized and Decentralized Operations p. 258 Advantages of Decentralization p. 258 Disadvantages of Decentralization p. 259 Responsibility Accounting p. 260 Responsibility Accounting for Cost Centers p. 260 Responsibility Accounting for Profit Centers p. 262 Service Department Charges p. 262 Profit Center Reporting p. 265 Responsibility Accounting for Investment Centers p. 265

4 Rate of Return on Investment p. 266 Residual Income p. 269 The Balanced Scorecard p. 270 Transfer Pricing p. 271 Market Price Approach p. 272 Negotiated Price Approach p. 273 Cost Price Approach p. 274 Differential Analysis and Product Pricing p. 299 Differential Analysis p. 300 Lease or Sell p. 301 Discontinue a Segment or Product p. 302 Make or Buy p. 304 Replace Equipment p. 305 Process or Sell p. 306 Accept Business at a Special Price p. 307 Setting Normal Product Selling Prices p. 308 Total Cost Concept p. 309 Product Cost Concept p. 310 Variable Cost Concept p. 311 Choosing a Cost-Plus Approach Cost Concept p. 312 Activity-Based Costing p. 313 Product Profitability and Pricing Under Production Bottlenecks p. 314 Product Profitability Under Production Bottlenecks p. 314 Product Pricing Under Production Bottlenecks p. 315 Capital Investment Analysis p. 335 Nature of Capital Investment Analysis p. 336 Methods of Evaluating Capital Investment Proposals p. 337 Methods That Ignore Present Value p. 337 Present Value Methods p. 339 Factors That Complicate Capital Investment Analysis p. 346 Income Tax p. 346 Unequal Proposal Lives p. 346 Lease versus Capital Investment p. 346 Uncertainty p. 347 Changes in Price Levels p. 348 Qualitative Considerations p. 348 Capital Rationing p. 348 Cost Allocation and Activity-Based Costing p. 369 Product Costing Allocation Methods p. 370 Single Plantwide Factory Overhead Rate Method p. 371 Multiple Production Department Factory Overhead Rate Method p. 373

5 Production Department Factory Overhead Rates and Allocation p. 374 Distortion in Product Costs--Single Plantwide versus Multiple Production Department Factory Overhead Rates p. 375 Activity-Based Costing Method p. 376 Activity Rates and Allocation p. 378 Distortion in Product Costs--Multiple Production Department Factory Overhead Rate Method versus Activity-Based Costing p. 380 The Dangers of Product Cost Distortion p. 381 Activity-Based Costing for Selling and Administrative Expenses p. 381 Activity-Based Costing in Service Businesses p. 383 Cost Management for Just-in-Time Environments p. 411 Just-in-Time Principles p. 412 Reducing Inventory p. 413 Reducing Lead Times p. 413 Reducing Setup Time p. 414 Emphasizing Product-Oriented Layout p. 416 Emphasizing Employee Involvement p. 417 Emphasizing Pull Manufacturing p. 417 Emphasizing Zero Defect p. 418 Emphasizing Supplier Partnering p. 418 Applying a Just-in-Time Approach to Anderson Metal Fabricators p. 418 Traditional Operations--AMF p. 418 Just-in-Time Operations--AMF p. 419 Accounting for Just-in-Time Operations p. 421 Fewer Transactions p. 421 Combined Accounts p. 421 Nonfinancial Performance Measures p. 423 Direct Tracing of Overhead p. 423 Just-in-Time for Service Processes p. 423 Accounting for the Costs of Quality p. 425 Costs of Controlling Quality p. 426 Costs of Failing to Control Quality p. 426 The Relationship Between the Costs of Quality p. 426 Determining the Costs of Quality p. 427 Pareto Chart p. 427 Cost of Quality Report p. 429 Value-Added/Nonvalue-Added Activity Analysis p. 429 Statement of Cash Flows p. 447 Purpose of the Statement of Cash Flows p. 448 Reporting Cash Flows p. 448 Cash Flows from Operating Activities p. 450 Cash Flows from Investing Activities p. 450

6 Cash Flows from Financing Activities p. 451 Noncash Investing and Financing Activities p. 451 No Cash Flow per Share p. 452 Statement of Cash Flows--The Indirect Method p. 452 Retained Earnings p. 453 Common Stock p. 458 Bonds Payable p. 458 Building p. 458 Land p. 459 Preparing the Statement of Cash Flows p. 460 Statement of Cash Flows--The Direct Method p. 461 Cash Received from Customers p. 462 Cash Payments for Merchandise p. 462 Cash Payments for Operating Expenses p. 463 Gain on Sale of Land p. 463 Interest Expense p. 464 Cash Payments for Income Taxes p. 464 Reporting Cash Flows from Operating Activities--Direct Method p. 464 Financial Analysis and Interpretation p. 465 Work Sheet for Statement of Cash Flows p. 467 Work Sheet--Indirect Method p. 467 Work Sheet--Direct Method p. 469 Financial Statement Analysis p. 499 Basic Analytical Procedures p. 500 Horizontal Analysis p. 500 Vertical Analysis p. 503 Common-Size Statements p. 503 Other Analytical Measures p. 505 Solvency Analysis p. 505 Current Position Analysis p. 506 Accounts Receivable Analysis p. 508 Inventory Analysis p. 509 Ratio of Fixed Assets to Long-Term Liabilities p. 510 Ratio of Liabilities to Stockholders' Equity p. 510 Number of Times Interest Charges Earned p. 511 Profitability Analysis p. 511 Ratio of Net Sales to Assets p. 511 Rate Earned on Total Assets p. 512 Rate Earned on Stockholders' Equity p. 513 Rate Earned on Common Stockholders' Equity p. 513 Earnings per Share on Common Stock p. 515

7 Price-Earnings Ratio p. 515 Dividends per Share and Dividend Yield p. 515 Summary of Analytical Measures p. 516 Corporate Annual Reports p. 518 Financial Highlights p. 518 President's Letter to the Stockholders p. 518 Management Discussion and Analysis p. 518 Independent Auditors' Report p. 519 Historical Summary p. 519 Interest Tables p. 2 Codes of Professional Ethics for Accountants p. 1 Cisco Systems, Inc., Annual Report p. 1 Glossary p. 1 Subject Index p. 1 Company Index p. 1 Table of Contents provided by Blackwell's Book Services and R.R. Bowker. Used with permission.