Financial and Managerial Accounting, 13th Edition PDF by Carl Warren, James M. Reeve, Jonathan Duchac

8:08 PM
Financial and Managerial Accounting, 13th Edition
By Carl Warren, James M. Reeve, Jonathan Duchac
Financial and Managerial Accounting, 13th Edition

Contents

Chapter 1 Introduction to Accounting and Business 1
Nature of Business and Accounting 2
Types of Businesses 2
Role of Accounting in Business 3
Role of Ethics in Accounting and Business 4
Integrity, Objectivity, and Ethics in Business: Bernie Madoff 5
Opportunities for Accountants 5
Business Connection: Pathways Commission 6
Generally Accepted Accounting Principles 7
International Connection: International Financial
Reporting Standards (IFRS) 7
Business Entity Concept 7
Cost Concept 8
The Accounting Equation 9
Business Connection: The Accounting Equation 9
Business Transactions and the Accounting Equation 10
Summary 13
Classifications of Stockholders’ Equity 14
Financial Statements 15
Income Statement 16
Retained Earnings Statement 16
Balance Sheet 17
Statement of Cash Flows 19
Interrelationships Among Financial Statements 21
Financial Analysis and Interpretation:
Ratio of Liabilities to Stockholders’ Equity 22

 
Chapter 2 Analyzing Transactions 51
Using Accounts to Record Transactions 52
Chart of Accounts 54
Business Connection: The Hijacking Receivable 54
Double-Entry Accounting System 55
Balance Sheet Accounts 55
Income Statement Accounts 56
Dividends 56
Normal Balances 56
Journalizing 57
Integrity, Objectivity, and Ethics in Business:
Will Journalizing Prevent Fraud? 60
Posting Journal Entries to Accounts 61
Business Connection: Microsoft’s Unearned Revenue 63
Business Connection: Computerized Accounting
Systems 65
Trial Balance 70
Errors Affecting the Trial Balance 71
Errors Not Affecting the Trial Balance 72
Financial Analysis and Interpretation: Horizontal
Analysis 73

 
Chapter 3 The Adjusting Process 103
Nature of the Adjusting Process 104
The Adjusting Process 105
Types of Accounts Requiring Adjustment 105
Adjusting Entries 110
Prepaid Expenses 110
Integrity, Objectivity, and Ethics in Business: Free Issue 112
Unearned Revenues 113
Business Connection: National Fitness Center: Upfront
Fees 114
Accrued Revenues 114
Accrued Expenses 115
Depreciation Expense 117
Summary of Adjustment Process 118
Business Connection: Microsoft Corporation 120
Adjusted Trial Balance 123
Financial Analysis and Interpretation:
Vertical Analysis 124

 
Chapter 4 Completing the
Accounting Cycle 151
Flow of Accounting Information 152
Financial Statements 154
Income Statement 154
Integrity, Objectivity, and Ethics in Business:
CEO’s Health? 156
Retained Earnings Statement 156
Balance Sheet 157
International Connection: International Differences 158
Closing Entries 158
Journalizing and Posting Closing Entries 160
Post-Closing Trial Balance 161
Accounting Cycle 164
Illustration of the Accounting Cycle 165
Step 1. Analyzing and Recording Transactions in
the Journal 166
Step 2. Posting Transactions to the Ledger 166
Step 3. Preparing an Unadjusted Trial Balance 168
Step 4. Assembling and Analyzing Adjustment
Data 168
Step 5. Preparing an Optional End-of-Period
Spreadsheet 169
Step 6. Journalizing and Posting Adjusting
Entries 170
Step 7. Preparing an Adjusted Trial Balance 170
Step 8. Preparing the Financial Statements 170
Step 9. Journalizing and Posting Closing Entries
172
Step 10. Preparing a Post-Closing Trial Balance 172
Fiscal Year 175
Business Connection: Choosing a Fiscal Year 176
Financial Analysis and Interpretation:
Working Capital and Current Ratio 176
Appendix 1: End-of-Period Spreadsheet 178
Step 1. Enter the Title 178
Step 2. Enter the Unadjusted Trial Balance 179
Step 3. Enter the Adjustments 179
Step 4. Enter the Adjusted Trial Balance 180
Step 5. Extend the Accounts to the Income
Statement and Balance Sheet Columns 181
Step 6. Total the Income Statement and Balance
Sheet Columns, Compute the Net Income
or Net Loss, and Complete the
Spreadsheet 182
Preparing the Financial Statements from the
Spreadsheet 184
Comprehensive Problem 1 210
Chapter 5 Accounting for
Merchandising Businesses 213
Nature of Merchandising Businesses 214
Operating Cycle 214
Financial Statements 215
Business Connection: H&R Block Versus The Home Depot 215
Merchandising Transactions 216
Purchases Transactions 217
Sales Transactions 221
Integrity, Objectivity, and Ethics in Business:
The Case of the Fraudulent Price Tags 224
Freight 225
Summary: Recording Merchandise Inventory
Transactions 227
Dual Nature of Merchandise Transactions 228
Chart of Accounts for a Merchandising Business 229
Sales Taxes and Trade Discounts 230
Business Connection: Sales Taxes 231
Financial Statements for a Merchandising Business 231
Multiple-Step Income Statement 231
Single-Step Income Statement 233
Retained Earnings Statement 233
Balance Sheet 233
The Adjusting and Closing Process 234
Adjusting Entry for Inventory Shrinkage 234
Integrity, Objectivity, and Ethics in Business:
The Cost of Employee Theft 235
Closing Entries 235
Financial Analysis and Interpretation:
Ratio of Sales to Assets 237
Appendix: The Periodic Inventory System 238
Chart of Accounts Under the Periodic Inventory
System 239
Recording Merchandise Transactions Under the
Periodic Inventory System 239
Adjusting Process Under the Periodic Inventory
System 240
Financial Statements Under the Periodic Inventory
System 241
Closing Entries Under the Periodic Inventory
System 241
Practice Set: Lawn Ranger Landscaping
This set is a service business operated as a proprietorship.
It includes a narrative of transactions and
instructions for an optional solution with no debits
and credits. This set can be solved manually or with
the General Ledger software.

 
Chapter 6 Inventories 271
Control of Inventory 272
Safeguarding Inventory 272
Reporting Inventory 273
Inventory Cost Flow Assumptions 273
Inventory Costing Methods Under
a Perpetual Inventory System 276
First-In, First-Out Method 276
Last-In, First-Out Method 277
International Connection: International Financial
Reporting Standards (IFRS) 279
Weighted Average Cost Method 279
Computerized Perpetual Inventory Systems
280
Inventory Costing Methods Under a Periodic
Inventory System 280
First-In, First-Out Method 281
Last-In, First-Out Method 282
Weighted Average Cost Method 282
Comparing Inventory Costing Methods 283
Integrity, Objectivity, and Ethics in Business: Where’s the
Bonus? 285
Reporting Merchandise Inventory in the Financial
Statements 285
Valuation at Lower of Cost or Market 285
Business Connection: Inventory Write-Downs 287
Merchandise Inventory on the Balance Sheet 287
Effect of Inventory Errors on the Financial
Statements 287
Financial Analysis and Interpretation: Inventory
Turnover and Number of Days’ Sales in Inventory 290
Business Connection: Rapid Inventory at Costco 291
Appendix: Estimating Inventory Cost 293
Retail Method of Inventory Costing 293
Gross Profit Method of Inventory Costing 294
Chapter 7 Sarbanes-Oxley, Internal
Control, and Cash 319
Sarbanes-Oxley Act 320
Internal Control 322
Objectives of Internal Control 322
Business Connection: Employee Fraud 322
Elements of Internal Control 322
Control Environment 323
Risk Assessment 324
Control Procedures 324
Integrity, Objectivity, and Ethics in Business: Tips on
Preventing Employee Fraud in Small Companies 325
Monitoring 326
Information and Communication 326
Limitations of Internal Control 327
Cash Controls over Receipts and Payments 327
Control of Cash Receipts 328
Control of Cash Payments 330
Bank Accounts 330
Bank Statement 330
Using the Bank Statement as a Control over
Cash 333
Bank Reconciliation 333
Integrity, Objectivity, and Ethics in Business:
Bank Error in Your Favor 337
Special-Purpose Cash Funds 337
Financial Statement Reporting of Cash 338
Financial Analysis and Interpretation:
Ratio of Cash to Monthly Cash Expenses 339
Business Connection: Microsoft Corporation 341
Chapter 8 Receivables 365
Classification of Receivables 366
Accounts Receivable 366
Notes Receivable 366
Other Receivables 367
Uncollectible Receivables 367
Direct Write-Off Method for Uncollectible Accounts 367
Allowance Method for Uncollectible Accounts 368
Integrity, Objectivity, and Ethics in Business: Seller Beware 369
Write-Offs to the Allowance Account 369
Estimating Uncollectibles 371
Business Connection: Allowance Percentages Across
Companies 371
Comparing Direct Write-Off and Allowance
Methods 376
Notes Receivable 377
Characteristics of Notes Receivable 377
Accounting for Notes Receivable 378
Reporting Receivables on the Balance Sheet 380
Financial Analysis and Interpretation:
Accounts Receivable Turnover and Number of Days’
Sales in Receivables 380
Business Connection: Delta Air Lines 382
Chapter 9 Fixed Assets and
Intangible Assets 409
Nature of Fixed Assets 410
Classifying Costs 411
The Cost of Fixed Assets 412
Capital and Revenue Expenditures 413
Integrity, Objectivity, and Ethics in Business: Capital Crime 413
Leasing Fixed Assets 414
Accounting for Depreciation 415
Factors in Computing Depreciation Expense 415
Straight-Line Method 417
Units-of-Output Method 418
Double-Declining-Balance Method 419
Comparing Depreciation Methods 420
Depreciation for Federal Income Tax 421
Business Connection: Depreciating Animals? 421
Revising Depreciation Estimates 422
Disposal of Fixed Assets 423
Discarding Fixed Assets 423
Selling Fixed Assets 424
Natural Resources 425
Intangible Assets 426
Patents 426
International Connection: International Financial
Reporting Standards (IFRS) 427
Copyrights and Trademarks 427
Goodwill 427
Financial Reporting for Fixed Assets and Intangible
Assets 429
Financial Analysis and Interpretation:
Fixed Asset Turnover Ratio 430
Business Connection: Hub-and-Spoke or Point-to-Point? 430
Appendix: Exchanging Similar Fixed Assets 432
Gain on Exchange 432
Loss on Exchange 433
Chapter 10 Current Liabilities and
Payroll 453
Current Liabilities 454
Accounts Payable 454
Current Portion of Long-Term Debt 455
Short-Term Notes Payable 455
Payroll and Payroll Taxes 457
Liability for Employee Earnings 457
Deductions from Employee Earnings 458
Computing Employee Net Pay 460
Liability for Employer’s Payroll Taxes 461
Business Connection: The Most You Will Ever Pay 461
Accounting Systems for Payroll and Payroll Taxes 461
Payroll Register 462
Employee’s Earnings Record 465
Payroll Checks 466
Computerized Payroll System 467
Internal Controls for Payroll Systems 467
Integrity, Objectivity, and Ethics in Business:
$8 Milion for 18 Minutes of Work 468
Employees’ Fringe Benefits 468
Vacation Pay 468
Pensions 468
Postretirement Benefits Other than Pensions 470
Current Liabilities on the Balance Sheet 470
Business Connection: City Pension Problems 471
Contingent Liabilities 471
Probable and Estimable 471
Probable and Not Estimable 472
Reasonably Possible 472
Remote 472
Financial Analysis and Interpretation: Quick Ratio 473
Comprehensive Problem 3 495
Paid-In Capital from Issuing Stock 502
Characteristics of Stock 502
Classes of Stock 503
Issuing Stock 504
Premium on Stock 505
No-Par Stock 506
Business Connection: Google Inc. 507
Accounting for Dividends 508
Cash Dividends 508
International Connection: IFRS for SMEs 508
Integrity, Objectivity, and Ethics in Business:
The Professor Who Knew Too Much 510
Stock Dividends 510
Treasury Stock Transactions 511
Reporting Stockholders’ Equity 513
Stockholders’ Equity on the Balance Sheet 513
Reporting Retained Earnings 514
Statement of Stockholders’ Equity 516
Reporting Stockholders’ Equity for Mornin’ Joe 516
Stock Splits 517
Business Connection: Buffett on Stock Splits 518
Financial Analysis and Interpretation:
Earnings per Share 518
Practice Set: Fit & Fashionable
This set is a merchandising business operated as a
proprietorship. It includes business documents, and
it can be solved manually or with the General Ledger
software.
Practice Set: Chic Events by Jada
This set includes payroll transactions for a merchandising
business operated as a proprietorship. It
includes business documents, and it can be solved
manually or with the General Ledger software.
Chapter 11 Corporations:
Organization, Stock Transactions,
and Dividends 499
Nature of a Corporation 500
Characteristics of a Corporation 500
Forming a Corporation 501
Practice Set: My Place, House of Décor
This set is a service and merchandising business operated
as a corporation. It includes narrative for six
months of transactions, which are to be recorded in
a general journal. The set can be solved manually or
with the General Ledger software.
Practice Set: JP’s Tech Solutions
This set is a departmentalized merchandising business
operated as a corporation. It includes a narrative
of transactions, which are to be recorded in special
journals. The set can be solved manually or with the
General Ledger software.
Chapter 12 Long-Term Liabilities:
Bonds and Notes 543
Financing Corporations 544
Nature of Bonds Payable 546
Bond Characteristics and Terminology 547
Proceeds from Issuing Bonds 547
Business Connection: U.S. Government Debt 548
Accounting for Bonds Payable 548
Bonds Issued at Face Amount 548
Bonds Issued at a Discount 549
Amortizing a Bond Discount 550
Bonds Issued at a Premium 551
Amortizing a Bond Premium 552
Business Connection: Bond Ratings 553
Bond Redemption 554
Installment Notes 555
Issuing an Installment Note 555
Annual Payments 555
Integrity, Objectivity, and Ethics in Business:
The Ratings Game 557
Reporting Long-Term Liabilities 557
Financial Analysis and Interpretation: Number of
Times Interest Charges Are Earned 558
Appendix 1: Present Value Concepts and Pricing
Bonds Payable 559
Present Value Concepts 560
Pricing Bonds 562
Appendix 2: Effective Interest Rate Method of
Amortization 563
Amortization of Discount by the Interest Method 564
Amortization of Premium by the Interest Method 565
Chapter 13 Investments and Fair
Value Accounting 585
Why Companies Invest 586
Investing Cash in Current Operations 586
Investing Cash in Temporary Investments 587
Investing Cash in Long-Term Investments 587
Accounting for Debt Investments 587
Purchase of Bonds 588
Interest Revenue 588
Sale of Bonds 589
Accounting for Equity Investments 590
Cost Method: Less Than 20% Ownership 590
Equity Method: Between 20%–50% Ownership 592
Consolidation: More Than 50% Ownership 594
Business Connection: More Cash Means More Investments
for Drug Companies 595
Valuing and Reporting Investments 595
Trading Securities 595
Integrity, Objectivity, and Ethics in Business: Socially
Responsible Investing 597
Available-for-Sale Securities 597
Held-to-Maturity Securities 599
Summary 599
Business Connection: Warren Buffett: The Sage of
Omaha 601
Fair Value Accounting 602
Effect of Fair Value Accounting on the Financial
Statements 602
Financial Analysis and Interpretation: Dividend
Yield 602
Appendix: Comprehensive Income 604
Comprehensive Problem 4 625
Mornin’ Joe 629
Financial Statements for Mornin’ Joe 630
Financial Statements for Mornin’ Joe International 633
Key Reporting Differences between IFRS and U.S.
GAAP 633
Chapter 14 Statement of Cash
Flows 641
Reporting Cash Flows 642
Cash Flows from Operating Activities 643
Business Connection: Cash Crunch! 644
Cash Flows from Investing Activities 645
Cash Flows from Financing Activities 645
Noncash Investing and Financing Activities 645
Format of the Statement of Cash Flows 645
No Cash Flow per Share 646
Preparing the Statement of Cash Flows—The
Indirect Method 646
Retained Earnings 648
Adjustments to Net Income 648
Integrity, Objectivity, and Ethics in Business:
Credit Policy and Cash Flow 651
Dividends 652
Common Stock 653
Bonds Payable 653
Building 654
Land 654
Preparing the Statement of Cash Flows 655
Preparing the Statement of Cash Flows—The Direct
Method 656
Cash Received from Customers 656
Cash Payments for Merchandise 657
Cash Payments for Operating Expenses 658
Gain on Sale of Land 659
Interest Expense 659
Cash Payments for Income Taxes 659
Reporting Cash Flows from Operating
Activities—Direct Method 660
International Connection: IFRS for Statement of Cash
Flows 661
Financial Analysis and Interpretation:
Free Cash Flow 661
Appendix: Spreadsheet (Work Sheet) for Statement
of Cash Flows—The Indirect Method 663
Analyzing Accounts 663
Retained Earnings 663
Other Accounts 665
Preparing the Statement of Cash Flows 665
Chapter 15 Financial Statement
Analysis 697
Basic Analytical Methods 698
Horizontal Analysis 698
Vertical Analysis 701
Common-Sized Statements 702
Other Analytical Measures 703
Liquidity and Solvency Analysis 703
Current Position Analysis 704
Accounts Receivable Analysis 706
Inventory Analysis 708
Ratio of Fixed Assets to Long-Term Liabilities 709
Ratio of Liabilities to Stockholders’ Equity 709
Number of Times Interest Charges Are Earned 710
Profitability Analysis 711
Ratio of Sales to Assets 711
Rate Earned on Total Assets 712
Rate Earned on Stockholders’ Equity 713
Rate Earned on Common Stockholders’
Equity 713
Earnings per Share on Common Stock 715
Price-Earnings Ratio 716
Dividends per Share 716
Dividend Yield 717
Summary of Analytical Measures 717
Integrity, Objectivity, and Ethics in Business:
Characteristics of Financial Statement Fraud 719
Corporate Annual Reports 719
Management Discussion and Analysis 719
Report on Internal Control 719
Report on Fairness of the Financial
Statements 720
Integrity, Objectivity, and Ethics in Business:
Buy Low, Sell High 720
Appendix: Unusual Items on the Income
Statement 720
Unusual Items Affecting the Current Period’s
Income Statement 720
Unusual Items Affecting the Prior Period’s Income
Statement 722
Chapter 16 Managerial Accounting
Concepts and Principles 753
Managerial Accounting 754
Differences Between Managerial and Financial
Accounting 754
The Management Accountant in the
Organization 755
Managerial Accounting in the Management
Process 757
Integrity, Objectivity, and Ethics in Business:
Environmental Managerial Accounting 758
Manufacturing Operations: Costs and
Terminology 758
Direct and Indirect Costs 759
Manufacturing Costs 760
Business Connection: Overhead Costs 764
Financial Statements for a
Manufacturing Business 764
Balance Sheet for a Manufacturing
Business 764
Income Statement for a Manufacturing
Business 765
Uses of Managerial Accounting 769
Service Focus: Managerial Accounting in the Service
Industry 770
Chapter 17 Job Order Costing 791
Cost Accounting Systems Overview 792
Job Order Cost Systems for Manufacturing
Businesses 793
Materials 794
Integrity, Objectivity, and Ethics in Business:
Phony Invoice Scams 795
Factory Labor 796
Business Connection: Bmw’s Factory Labor
Experiment 797
Factory Overhead 798
Work in Process 802
Finished Goods 803
Sales and Cost of Goods Sold 804
Period Costs 804
Summary of Cost Flows for Legend Guitars 804
Job Order Costing for Decision Making 806
Job Order Cost Systems for Professional Service
Businesses 807
Service Focus: Job Order Costing in a Law Firm 808
Practice Set: Hydro Paddle Boards
This set is a manufacturing business operated as a
corporation that uses a job order cost system. The set
can be solved manually or with the General Ledger
software.
Chapter 18 Process Cost Systems 833
Process Cost Systems 834
Integrity, Objectivity, and Ethics in Business:
On Being Green 834
Comparing Job Order and Process Cost
Systems 835
Cost Flows for a Process Manufacturer 837
Cost of Production Report 839
Step 1: Determine the Units to Be Assigned Costs
840
Step 2: Compute Equivalent Units of
Production 841
Step 3: Determine the Cost per Equivalent Unit 844
Step 4: Allocate Costs to Units Transferred Out
and Partially Completed Units 845
Preparing the Cost of Production Report 848
Journal Entries for a Process Cost System 849
Service Focus: Costing the Power Stack 851
Using the Cost of Production Report for Decision
Making 852
Frozen Delight 852
Holland Beverage Company 852
Yield 853
Lean Manufacturing 854
Traditional Production Process 854
Lean Manufacturing 855
Business Connection: Radical Improvement: Just in Time
for Pulaski’s Customers 856
Appendix: Average Cost Method 856
Determining Costs Using the Average Cost
Method 856
The Cost of Production Report 858
Chapter 19 Cost Behavior and
Cost-Volume-Profit Analysis 883
Cost Behavior 884
Variable Costs 885
Fixed Costs 886
Mixed Costs 886
Summary of Cost Behavior Concepts 889
Business Connection: Franchising 890
Cost-Volume-Profit Relationships 890
Contribution Margin 890
Contribution Margin Ratio 891
Unit Contribution Margin 892
Mathematical Approach to Cost-Volume-Profit
Analysis 893
Break-Even Point 893
Business Connection: Breaking Even in the Airline
Industry 897
Target Profit 898
Integrity, Objectivity, and Ethics in Business: Orphan
Drugs 899
Graphic Approach to Cost-Volume-Profit Analysis 899
Cost-Volume-Profit (Break-Even) Chart 899
Profit-Volume Chart 900
Use of Computers in Cost-Volume-Profit Analysis 902
Assumptions of Cost-Volume-Profit Analysis 903
Service Focus: Profit, Loss, and Break-even in Major League
Baseball 904
Special Cost-Volume-Profit Relationships 904
Sales Mix Considerations 904
Operating Leverage 906
Margin of Safety 908
Appendix: Variable Costing 908
Chapter 20 Variable Costing for
Management Analysis 933
Income from Operations Under Absorption Costing
and Variable Costing 934
Absorption Costing 934
Variable Costing 935
Units Manufactured Equal Units Sold 937
Units Manufactured Exceed Units Sold 937
Units Manufactured Less Than Units Sold 938
Effects on Income from Operations 940
Income Analysis Under Absorption and Variable
Costing 940
Integrity, Objectivity, and Ethics in Business: Taking An
“Absorption Hit” 942
Using Absorption and Variable Costing 943
Controlling Costs 944
Pricing Products 944
Planning Production 944
Analyzing Contribution Margins 944
Analyzing Market Segments 944
Business Connection: Direct Materials Cost 945
Analyzing Market Segments 945
Sales Territory Profitability Analysis 946
Product Profitability Analysis 947
Salesperson Profitability Analysis 947
Service Focus: Chipotle Mexican Gril Contribution Margin
by Store 949
Contribution Margin Analysis 949
Variable Costing for Service Firms 951
Reporting Income from Operations Using Variable
Costing for a Service Company 951
Market Segment Analysis for Service Company 952
Contribution Margin Analysis 953
Chapter 21 Budgeting 981
Nature and Objectives of Budgeting 982
Objectives of Budgeting 982
Human Behavior and Budgeting 983
Integrity, Objectivity, and Ethics in Business: Budget
Games 984
Budgeting Systems 984
Static Budget 985
Service Focus: Film Budgeting 986
Flexible Budget 986
Computerized Budgeting Systems 987
Business Connection: Build Versus Harvest 988
Master Budget 988
Operating Budgets 989
Sales Budget 989
Production Budget 990
Direct Materials Purchases Budget 991
Direct Labor Cost Budget 992
Factory Overhead Cost Budget 994
Cost of Goods Sold Budget 994
Selling and Administrative Expenses Budget 996
Budgeted Income Statement 997
Financial Budgets 997
Cash Budget 997
Capital Expenditures Budget 1001
Budgeted Balance Sheet 1002
Chapter 22 Performance Evaluation
Using Variances from Standard
Costs 1029
Standards 1030
Setting Standards 1031
Types of Standards 1031
Reviewing and Revising Standards 1031
Integrity, Objectivity, and Ethics in Business: Company
Reputation: The Best of the Best 1031
Criticisms of Standard Costs 1032
Business Connection: Standard Costing in Action:
Expanding Brewing Operations 1032
Budgetary Performance Evaluation 1032
Budget Performance Report 1033
Manufacturing Cost Variances 1034
Direct Materials and Direct Labor Variances 1035
Direct Materials Variances 1035
Service Focus: Standard Costing in the Restaurant
Industry 1037
Direct Labor Variances 1038
Factory Overhead Variances 1040
The Factory Overhead Flexible Budget 1040
Variable Factory Overhead Controllable
Variance 1042
Fixed Factory Overhead Volume Variance 1043
Reporting Factory Overhead Variances 1045
Factory Overhead Account 1046
Recording and Reporting Variances from Standards 1047
Nonfinancial Performance Measures 1050
Comprehensive Problem 5 1070
Chapter 23 Performance Evaluation
for Decentralized Operations 1075
Centralized and Decentralized Operations 1076
Advantages of Decentralization 1076
Disadvantages of Decentralization 1077
Business Connection: Steve Jobs: Centralized Operations at
Apple 1077
Responsibility Accounting 1077
Responsibility Accounting for Cost Centers 1078
Responsibility Accounting for Profit Centers 1080
Service Department Charges 1080
Profit Center Reporting 1082
Responsibility Accounting for Investment Centers 1083
Rate of Return on Investment 1084
Residual Income 1087
The Balanced Scorecard 1088
Service Focus: Turning Around Charles Schwab 1089
Transfer Pricing 1090
Market Price Approach 1091
Negotiated Price Approach 1091
Cost Price Approach 1093
Integrity, Objectivity, and Ethics in Business: The Ethics of
Transfer Prices 1094
Chapter 24 Differential Analysis and
Product Pricing 1117
Differential Analysis 1118
Lease or Sell 1120
Discontinue a Segment or Product 1121
Make or Buy 1123
Replace Equipment 1124
Process or Sell 1126
Accept Business at a Special Price 1127
Business Connection: 60% Off! 1128
Setting Normal Product Selling Prices 1129
Service Focus: Revenue Management 1130
Product Cost Concept 1130
Integrity, Objectivity, and Ethics in Business:
Price Fixing 1132
Target Costing 1132
Production Bottlenecks 1133
Appendix: Total and Variable Cost Concepts to
Setting Normal Price 1135
Total Cost Concept 1135
Variable Cost Concept 1137
Chapter 25 Capital Investment
Analysis 1161
Nature of Capital Investment Analysis 1162
Business Connection: Business Use of Investment Analysis
Methods 1163
Methods Not Using Present Values 1163
Average Rate of Return Method 1163
Cash Payback Method 1164
Methods Using Present Values 1166
Present Value Concepts 1166
Net Present Value Method and Index 1169
Internal Rate of Return Method 1171
Business Connection: Panera Bread Store Rate of
Return 1174
Factors That Complicate Capital Investment
Analysis 1174
Income Tax 1174
Unequal Proposal Lives 1174
Lease Versus Capital Investment 1176
Uncertainty 1176
Service Focus: If You Build It, They Will Come 1177
Changes in Price Levels 1177
Qualitative Considerations 1177
Integrity, Objectivity, and Ethics in Business: Assumption
Fudging 1177
Capital Rationing 1178
Chapter 26 Cost Allocation and
Activity-Based Costing 1199
Product Costing Allocation Methods 1200
Single Plantwide Factory Overhead Rate
Method 1201
Integrity, Objectivity, and Ethics in Business: Fraud Against
You and me 1203
Multiple Production Department Factory Overhead
Rate Method 1203
Department Overhead Rates and Allocation 1204
Distortion of Product Costs 1205
Activity-Based Costing Method 1207
Activity Rates and Allocation 1208
Distortion in Product Costs 1211
Dangers of Product Cost Distortion 1211
Activity-Based Costing for Selling and
Administrative Expenses 1212
Activity-Based Costing in Service Businesses 1214
Service Focus: University and Community Partnership—
Learning Your ABC’S 1215
Business Connection: Finding The Right Niche 1217
Chapter 27 Lean Principles,
Lean Accounting, and Activity
Analysis 1245
Lean Principles 1246
Reducing Inventory 1247
Integrity, Objectivity, and Ethics in Business: The
Inventory Shift 1247
Reducing Lead Times 1247
Reducing Setup Time 1249
Business Connection: P&G’S “PIT STOPS” 1251
Emphasizing Product-Oriented Layout 1251
Emphasizing Employee Involvement 1252
Emphasizing Pull Manufacturing 1252
Emphasizing Zero Defects 1252
Emphasizing Supply Chain Management 1252
Business Connection: Lean Manufacturing in Action” 1253
Lean Principles for Nonmanufacturing Processes 1253
Service Focus: Lean Healthcare 1253
Lean Accounting 1254
Fewer Transactions 1254
Combined Accounts 1254
Nonfinancial Performance Measures 1256
Direct Tracing of Overhead 1256
Activity Analysis 1257
Costs of Quality 1257
Quality Activity Analysis 1258
Value-Added Activity Analysis 1260
Process Activity Analysis 1261
Appendix A: Interest Tables A-2
Appendix B: Nike Inc., Form 10-K For the Fiscal Year
Ended May 31, 2013 B-1
Appendix C: International Financial Reporting
Standards (IFRS) C-1
Appendix D: Revenue Recognition D-1
Appendix E: Reversing Entries (online)
Visit the companion Web site at
www.cengagebrain.com
Appendix F: Special Journals and Subsidiary
Ledgers (online)
Visit the companion Web site at
www.cengagebrain.com
Glossary G-1
Index I-1

It is US$10. To get this book send email: textileebooks@gmail.com

Share This

Related Posts

Previous
Next Post »