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This innovative, contemporary, and relevant text focuses on the use of accounting information for decision making and places students into situations where management decisions need to be made. Students learn both when and why accounting information is key to communicating important information within an organization, so that as managers they can make informed choices. The first half of the text demonstrates how organizations use accounting information to make financing, investing, and operating decisions. The second half emphasizes managerial accounting as a key communication process for management decision making.
Table of Contents
Section F1: THE ACCOUNTING INFORMATION SYSTEM.
1. Accounting and Organizations.
2. Business Activities - The Source of Accounting Information.
3. Measuring Revenues and Expenses.
4. Reporting Earnings and Financial Position.
5. Reporting Cash Flows.
6. Full and Fair Reporting.
7. Computerized Accounting Systems.
Section F2. ANALYSIS AND INTERPRETATION OF FINANCIAL ACCOUNTING INFORMATION.
8. The Time Value of Money.
9. Financing Activities.
10. Analysis of Financing Activities.
11. Investing Activities.
12. Analysis of Investing Activities.
13. Operating Activities.
14. Analysis of Operating Activities.
Section M1: PRODUCT COSTING AND DECISION MAKING.
1. Managerial Accounting Systems for Accounting and Management Decisions.
2. Cost Categories and Flows.
3. Producing Goods and Services: Batch Processing.
4. Producing Goods and Services: Continuous Processing.
5. Cost Allocation and Activity-Based Management.
6. Computerized Manufacturing Systems.
7. Analyzing Cost Behavior.
Section M2: COST EVALUATION AND PERFORMANCE.
8. The Budgeting Process: Planning Business Activities.
9. Cost Variances and Quality Management.
10. Managing Multi-Divisional Organizations.
11. Improving Operational Performance.
12. Capital Investment Decisions.
Section M3: EXPANDED TOPICS.
13. A Closer Look at Service Organizations.
Appendix A: Coca-Cola Annual Report: Letter to Shareholders.
Appendix B: General Mills, Inc. 2002 Annual Report.
Appendix C: Sources of Information About Companies and Industries.
Glossary.
Index.
·Alternate End-of-Chapter Material on CD-ROM. To provide additional end of chapter assignments, this edition will have a "B set" of problems and exercises on CD? bundled with the text for free or salable separately.</LI
·Dynamic Continuing Chapter-Opening "Story." Each financial chapter starts with a new installment of "Mom''s Cookie Company" and each managerial chapter opens with new information about "Young Designs, Inc." These on-going accounting cases illustrate chapter coverage. Each chapter opener starts with a question that provides a framework for applying key accounting concepts. This storytelling method helps enhance student understanding of their first course in accounting.</LI
·Extensively Revised Managerial Chapters: Section M1 has been streamlined and expanded. Ch. M1 has been simplified and includes an explanation of the scope of managerial accounting in business organizations. Ch. M2 has been streamlined and contains an increased focus on how managerial accounting systems support decision making. Job-order costing and process costing coverage is significantly revised and covered individually in two separate chapters (Ch. M3 and M4). Ch. M5 provides all new coverage of ABC. Ch. M7 is a significant revision of cost behavior coverage that had been presented primarily in Ch. M4 of the prior edition. The budgeting chapter (now Ch. M8) is substantially revised with more visuals for understanding the relationships of the budgets and where they fit in the business organization.</LI
·Optional Coverage of Computerized Accounting Systems: This extensively revised coverage, now Chapter F7, examines accounting systems, including the flow of data and processing in computerized systems. A goal of this chapter is to help students see accounting as a dynamic, technological process. Also included in this chapter is an optional tutorial involving a simple accounting database system to illustrate how basic accounting functions are automated and how computers facilitate the accounting process. The related database files are on the student CD that is bound in the new texts and available on the text''s Web site (http://ingram.swlearning.com).</LI
·Coverage of Job-Order Costing, Process Costing, and ABC: Each of these three topics is now presented in its own chapter to help students focus on them one at a time.</LI
·"Thinking Beyond the Question" Feature. To support the continuing story, the authors added a new EOC assignment entitled "Thinking Beyond the Question." These questions encourage students to think about the opening story and its conceptual question in order to test their understanding of chapter concepts.</LI
·Enhanced End-of-Chapter Material. Over 30% of the end-of-chapter problems and exercises have been revised to provide fresh opportunities for homework assignments. In addition, Internet projects are provided on the text''s website at http://ingram.swlearning.com.</LI
·Excel Activities: New Excel activities are integrated throughout the text and address the importance of this electronic tool.</LI
·Optional Coverage of Computerized Accounting Systems: Two new chapters (Ch. F7 and Ch. M6) examine accounting systems, including the flow of data and processing in computerized systems. A goal of these chapters is to help students see accounting as a dynamic, technological process used for both financial reporting purposes and for internal management decision making. Also included in each chapter is an optional tutorial (Mom''s Cookie Company in Ch. F7 and Kwiki Oil in Ch. M6). Each involves a simple accounting database system to illustrate how basic accounting functions are automated and how computers facilitate the accounting process. The related database files are on the student CD that is bound in the new texts and available on the text''s Web site (http://ingram.swlearning.com).</LI< ul>
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Robert W. Ingram
Robert W. Ingram is the Ross-Culverhouse Chair in the Culverhouse School of Accountancy at the University of Alabama. He teaches courses in financial accounting and has been actively involved in course curriculum development. He has served as Director of Education for the American Accounting Association, as a member of the Accounting Education Change Commission, and as editor of Issues in Accounting Education, a journal dedicated to accounting education research. Professor Ingram is a Certified Public Accountant and holds a Ph.D. from Texas Tech University. Prior to joining the faculty at the University of Alabama, he held positions at the University of South Carolina and the University of Iowa, and a visiting appointment at the University of Chicago. His research, which examines financial reporting and accounting education, has been published widely in accounting and business journals. He is the recipient of the National Alumni Association Outstanding Commitment to Teaching Award and the Burlington Northern Foundation Faculty Achievement in Research Award at the University of Alabama. He has also received the Notable Contribution to Literature Award of the Government and Nonprofit Section of the American Accounting Association and the Award for Excellence and Professional Contributions of the Alabama Association for Higher Education in Business. Professor Ingram is married and has two children. He and his family enjoy sports, travel, reading, music, and art. They live contentedly in Tuscaloosa, Alabama.
Thomas L. Albright
Thomas L. Albright is the J. Reese Phifer Faculty Fellow in the Culverhouse School of Accountancy at the University of Alabama. He teaches courses at the undergraduate and graduate level in financial and managerial accounting. Professor Albright has received the Professor of the Year award on seven occasions in relation to his work with the MBA and Executive MBA students. Professor Albright is a Certified Public Accountant (California) and holds a Ph.D. from the University of Tennessee. He has received the Certificate of Merit from the Institute of Management Accountants for his work in the area of quality costs. Dr. Albright is actively involved with manufacturing companies in both the United States and Mexico. His work is used to help companies determine more accurate product costs and to develop better performance measures to achieve manufacturing excellence. Professor Albright lives with his wife, Debby, and their two children, Michael and Jenny. He enjoys scuba diving, underwater photography, and sailing.
Bruce A. Baldwin
Bruce A. Baldwin is Professor of Accounting in the School of Management at Arizona State University West. He has held previous faculty appointments at Arizona State University Main, Portland State University, and Linfield College (Oregon). In addition, he has held visiting appointments at the University of Texas-Austin and the University of Alabama. His primary teaching interests involve financial accounting and reporting issues in courses at both the undergraduate and graduate levels. He is known as a challenging and effective teacher and has won several teaching awards. Professor Baldwin is well-known for his interest in accounting education issues and has special expertise in testing and measurement. He has served as a consultant to a number of national testing organizations and chaired two AICPA task forces that developed employee assessment materials. Currently he is a member of the Certification Advisory Committee of the Arizona State Board of Accountancy. Dr. Baldwin's research articles on accounting policy standards and accounting education have appeared frequently in journals such as the Accounting Review, Journal of Accounting Education, Advances in Accounting, and Issues in Accounting Education. He has served as the associate editor of both the Journal of Accounting Education and of Accounting Education: An International Journal. Professor Baldwin is married and has two children and four grandchildren. He and his wife Connie live busy and sometimes hectic lives in Phoenix, Arizona. At every possible opportunity they escape to the serenity of the beach at Puerto Penasco, Mexico.
John Hill
John W. Hill is Associate Dean, Research and Operations and Professor of Accounting at the Kelley School of Business, Indiana University. He teaches courses in financial analysis, firm valuation, strategic cost management, and mergers and acquisitions and has served on several editorial boards. He is the recipient of sixteen teaching and research awards including the President¿s Award for Distinguished Teaching at Indiana University, the Deloitte & Touche/American Accounting Association Wildman Medal, the Silver and Bronze Lybrand Medals, and three Certificates of Merit from the Institute of Management Accountants. Professor Hill is a member of the Georgia Bar Association and holds a Ph.D. from the University of Iowa. Prior to becoming an academic, he was the chief financial and administrative officer of a bank. Professor Hill has conducted executive education for firms such as Baxter Healthcare, Graco, and John Deere and is engaged in various international executive education and consutling programs. He has has consulted with the Hungarian Telecommunications company, Matav, and taught at the Borsa Italiano (Italian Stock Exchange), the Catholic University of Milan (Italy), University of Lubjyana (Solvenia), and the Ryazan State Pedagogical University (Russia). He is currently beginning a three-year teaching/consulting engagement involving Vietnamese banks. Professor Hill is married and has three grown children. The Hills alternate living between Bloomington, Indiana, a log cabin in the hills of Brown County, Indiana, and Perdido Key, Florida. Professor Hill is a retired Major General, U.S. Marine Corps Reserve, and formerly Vice Commander, Marine Forces Atlantic, Europe, and South
About the Author
Robert W. Ingram
Robert W. Ingram is the Ross-Culverhouse Chair in the Culverhouse School of Accountancy at the University of Alabama. He teaches courses in financial accounting and has been actively involved in course curriculum development. He has served as Director of Education for the American Accounting Association, as a member of the Accounting Education Change Commission, and as editor of Issues in Accounting Education, a journal dedicated to accounting education research. Professor Ingram is a Certified Public Accountant and holds a Ph.D. from Texas Tech University. Prior to joining the faculty at the University of Alabama, he held positions at the University of South Carolina and the University of Iowa, and a visiting appointment at the University of Chicago. His research, which examines financial reporting and accounting education, has been published widely in accounting and business journals. He is the recipient of the National Alumni Association Outstanding Commitment to Teaching Award and the Burlington Northern Foundation Faculty Achievement in Research Award at the University of Alabama. He has also received the Notable Contribution to Literature Award of the Government and Nonprofit Section of the American Accounting Association and the Award for Excellence and Professional Contributions of the Alabama Association for Higher Education in Business. Professor Ingram is married and has two children. He and his family enjoy sports, travel, reading, music, and art. They live contentedly in Tuscaloosa, Alabama.
Thomas L. Albright
Thomas L. Albright is the J. Reese Phifer Faculty Fellow in the Culverhouse School of Accountancy at the University of Alabama. He teaches courses at the undergraduate and graduate level in financial and managerial accounting. Professor Albright has received the Professor of the Year award on seven occasions in relation to his work with the MBA and Executive MBA students. Professor Albright is a Certified Public Accountant (California) and holds a Ph.D. from the University of Tennessee. He has received the Certificate of Merit from the Institute of Management Accountants for his work in the area of quality costs. Dr. Albright is actively involved with manufacturing companies in both the United States and Mexico. His work is used to help companies determine more accurate product costs and to develop better performance measures to achieve manufacturing excellence. Professor Albright lives with his wife, Debby, and their two children, Michael and Jenny. He enjoys scuba diving, underwater photography, and sailing.
Bruce A. Baldwin
Bruce A. Baldwin is Professor of Accounting in the School of Management at Arizona State University West. He has held previous faculty appointments at Arizona State University Main, Portland State University, and Linfield College (Oregon). In addition, he has held visiting appointments at the University of Texas-Austin and the University of Alabama. His primary teaching interests involve financial accounting and reporting issues in courses at both the undergraduate and graduate levels. He is known as a challenging and effective teacher and has won several teaching awards. Professor Baldwin is well-known for his interest in accounting education issues and has special expertise in testing and measurement. He has served as a consultant to a number of national testing organizations and chaired two AICPA task forces that developed employee assessment materials. Currently he is a member of the Certification Advisory Committee of the Arizona State Board of Accountancy. Dr. Baldwin's research articles on accounting policy standards and accounting education have appeared frequently in journals such as the Accounting Review, Journal of Accounting Education, Advances in Accounting, and Issues in Accounting Education. He has served as the associate editor of both the Journal of Accounting Education and of Accounting Education: An International Journal. Professor Baldwin is married and has two children and four grandchildren. He and his wife Connie live busy and sometimes hectic lives in Phoenix, Arizona. At every possible opportunity they escape to the serenity of the beach at Puerto Penasco, Mexico.
John Hill
John W. Hill is Associate Dean, Research and Operations and Professor of Accounting at the Kelley School of Business, Indiana University. He teaches courses in financial analysis, firm valuation, strategic cost management, and mergers and acquisitions and has served on several editorial boards. He is the recipient of sixteen teaching and research awards including the President¿s Award for Distinguished Teaching at Indiana University, the Deloitte & Touche/American Accounting Association Wildman Medal, the Silver and Bronze Lybrand Medals, and three Certificates of Merit from the Institute of Management Accountants. Professor Hill is a member of the Georgia Bar Association and holds a Ph.D. from the University of Iowa. Prior to becoming an academic, he was the chief financial and administrative officer of a bank. Professor Hill has conducted executive education for firms such as Baxter Healthcare, Graco, and John Deere and is engaged in various international executive education and consutling programs. He has has consulted with the Hungarian Telecommunications company, Matav, and taught at the Borsa Italiano (Italian Stock Exchange), the Catholic University of Milan (Italy), University of Lubjyana (Solvenia), and the Ryazan State Pedagogical University (Russia). He is currently beginning a three-year teaching/consulting engagement involving Vietnamese banks. Professor Hill is married and has three grown children. The Hills alternate living between Bloomington, Indiana, a log cabin in the hills of Brown County, Indiana, and Perdido Key, Florida. Professor Hill is a retired Major General, U.S. Marine Corps Reserve, and formerly Vice Commander, Marine Forces Atlantic, Europe, and South