Accounting Principles

Accounting principles explores the "language of business" so you understand accounting terms and concepts used in business decisions. If you understand how accounting information is prepared, you will be in an even stronger position when faced with a management decision based on accounting information

1. Process: Cost systems

Nature of a process cost system

Process costing illustration

Process costing in service organizations


2. Using accounting for quality and cost management

Importance of good accounting information

Quality and customer satisfaction measures

Just-in-time method

Activity-based costing and management

Methods used for activity-based costing

Impact of new production environment on cost drivers

Activity-based costing in marketing

Strategic use of activity-based management

Behavioral and implementation issues

Opportunities to improve activity-based costing in practice

3. Cost-volume-profit analysis

Cost behavior patterns

Methods for analyzing costs

Cost-volume-profit (CVP) analysis

Finding the break-even point

Cost-volume-profit analysis illustrated

Assumptions made in cost-volume-profit analysis

Using computer spreadsheets for CVP analysis

Effect of automation on cost-volume-profit analysis

4. Short-term decision making: Differential analysis

Contribution margin income statements

Differential analysis Applications of differential analysis

Applying differential analysis to quality

5. Budgeting for planning and control

The budget—For planning and control

The master budget illustrated

Budgeting in merchandising companies

Budgeting in service companies

Additional concepts related to budgeting

6. Control through standard costs

Uses of standard costs

Advantages and disadvantages of using standard costs

Computing variances

Goods completed and sold

Investigating variances from standard

Disposing of variances from standard

Nonfinancial performance measures

Activity-based costing, standards, and variances

Accounting Principles: A Business Perspective 4 A Global Text

7. Responsibility accounting: Segmental analysis

Responsibility accounting

Responsibility reports

Responsibility centers

Transfer prices

Use of segmental analysis

Concepts used in segmental analysis

Investment center analysis

Economic value added and residual income

Segmental reporting in external financial statements

8. Capital budgeting: Long-range planning

Capital budgeting defined

Profitability index

Investments in working capital

The post-audit

Investing in high technology projects

Capital budgeting in not-for-profit organizations