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About the Book

Last updated

Mar 9, 2025
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- 1: Introduction

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This Managerial Accounting textbook provides a comprehensive introduction to key accounting principles and techniques used for decision-making in business management.

The book begins with an Introduction to Managerial Accounting, covering the role of accounting in business processes, cost classifications, and the statement of cost of goods manufactured. It then delves into costing systems, including process costing and job order costing, highlighting different cost-flow methodologies such as weighted average and FIFO.

A major focus is on cost behavior and cost-volume-profit (CVP) analysis, exploring fixed, variable, and mixed costs, break-even analysis, and the impact of cost structures on profitability. The text also examines Activity-Based Costing (ABC) and its applications in cost allocation for better decision-making.

The book provides in-depth coverage of budgeting techniques, including master, operating, and cash budgets, along with flexible budgeting for performance evaluation. It further explores standard costing and variance analysis, helping managers assess cost control and efficiency.

Key managerial accounting concepts like responsibility accounting, investment center analysis, and transfer pricing are discussed to enhance financial decision-making. Additionally, capital investment analysis and differential analysis are presented to guide managers in evaluating long-term financial decisions.

The final sections cover financial statement analysis, introducing tools like trend percentages, ratio analysis, and comparative financial statements to assess a company’s financial health. An appendix on service department cost allocation methods provides insight into cost-sharing strategies.

Instructor resources include additional materials on job order costing, subsidiary ledgers, and factory overhead accounting.

This textbook serves as a valuable resource for students and professionals looking to develop a strong foundation in managerial accounting concepts and their real-world applications.

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