Managerial Accounting for Managers 3rd edition
Authors: Eric Noreen, Noreen, Brewer, Peter Brewer, Garrison, Ray Garrison
Details of the book:
Managerial Accounting for Managers, 3rd edition is a revised edition of Management Accounting gives introductory level instruction and a have a highly user-oriented approach for management accounting concepts and techniques that assist students to understand managerial work. This book includes information of the role of management accounting in every organization, the impact of the Affordable steps on managerial responsibilities. It includes latest changes in operational budgeting practices around the world-include special focus on "budget drivers," It clear the concept on revenue cycle, and other factors that have basically use for management accounting in health care organizations over the last decades. This edition, talks about how author clears the concepts and techniques regarding identifying, analyzing, and applying key management accounting principles in mind of students. It has practice case studies in the end of all chapters that trains students to achieve the master in the techniques insist of simply memorize them.
This book mentions the market-leading managerial accounting solution. The author Noreen solution represents integrated and highly confirmed explanations considered to achieve goals of readers willingness, understanding of topics, & implication of key notions in the managerial accounting lessons, whereas Garrison solution address the requirements of mentors who do not want to instruct the financial accounting leaning topics like others. Apart from this edition is the mainly highly management accounting syllabus.
The book contains the following:
Chapter1: Managerial Accounting: An Overview
Managing accounting is forward-looking approach for management and control functions. It focuses on managers within the organization, instead on shareholders, creditors, and public regulators; It talks about Strategic management, Performance management, Risk management. It introduces new accountancy than traditional one.
Chapter2: Managerial Accounting and Cost Concepts
It elaborates preparation of quality cost report, product costs and period costs variable costs, fixed costs, and mixed costs differences between direct and indirect costs, differential costs, opportunity costs, and sunk costs.
Chapter 3: Cost-Volume-Profit Relationships
It provides detail information provided on breakeven analysis, where a company will experience no income or loss. It focus on assumption of Constant sales; Constant variable cost per unit; Constant total fixed cost; Constant sales mix.
Chapter 4: Job-Order Costing
This chapter provide material regarding costs involved in a construction "job or in the manufacturing of goods. It provides detail instruction on summarization in the final trial balance.
Chapter 5: Variable Costing and Segment Reporting: Tools for Management
This chapter has detail description about absorption costing, variable costing techniques. It elaborates deep instruction on preparation INCOME STATEMENT by easy methods as well impact on inventory.
Chapter 6: Activity-Based-Costing: A Tool to Aid Decision Making
Assigning the cost for each activity to all products and services with resources related to them is been described in this chapter by these authors.
Chapter 7: Differential Analysis: The Key to Decision Making
This chapter is about Decision making techniques in which calculation is limited to those factors which are consider as unusual or unique among various possible alternatives. The discuss is made on computation costs with each alternative belonging to it. The author tries to focus on selecting the alternative that offers the best cost-to-benefit ratio.
Chapter 8: Capital Budgeting Decisions
It is very important chapter as it describes the planning process determining organization's long term investments . It describes allocation resources for foremost expenditures like capital, or investment, expenditures. It highlights that the main goal add the value of the firm to its shareholders. It is based on techniques called payback period and discounted payback period.
Chapter 9: Profit Planning
After capital budgeting decision, profit planning takes place which is all about determining how to position the operational budget so that it enables maximum profit that gets generated. There are several steps mentioned in process of profit planning involves effecting several key factors relevant to operational expenses.
Chapter 10: Flexible Budgets and Performance Analysis
In flexible budget reflects level's of activity-together with the actual level of activity. It can be recalled as a static planning budget which is prepared at single level of activity and is not tried out to be subsequently adjusted. this chapter focus on how budget report is to be prepared and how actual results are different with the budgeted numbers.
Chapter 11: Standard Costs and Variances
Here Standard costs is studied which is usually connected with a manufacturing company's who incurred costs of direct material, direct labor, and manufacturing overhead. Author tries to prove that a manufacturer's inventories and cost of goods sold will be amounts that reveal the standard costs, not the actual costs, of a product. It should be noted that Standard costing and the related variances is a valuable management tool because when variance arises, management becomes conscious about the manufacturing costs have differed from the standard costs.
Chapter 12: Performance Measurement in Decentralized Organizations
Last but not the least, author focus on performance management in decentralized organization. As it is difficult to evaluate in this kind of organization as decision-making authority is spread throughout the organization instead of only belonging to top management. The various advantages /disadvantages are mentioned in regard of performance evaluation in decentralized organization.