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978-1337119207 Chapter 15 Part 1
305 chapter 15(1) Introduction to Managerial Accounting ______________________________________________ OPENING COMMENTS Chapter 15(1) introduces students to managerial accounting and the manufacturing process. Students will learn how managerial accounting is used in the management decision process. They will also be exposed to […]
978-1337119207 Chapter 15 Part 2
Chapter 15 (1) Introduction to Managerial Accounting 314 OBJECTIVE 4 Describe and illustrate financial statements for a manufacturing business, including the balance sheet, statement of cost of goods manufactured and income statement. SYNOPSIS The income statement and balance sheet of […]
978-1337119207 Chapter 16 Part 1
323 chapter 16(2) Job Order Costing ______________________________________________ OPENING COMMENTS Chapter 16(2) introduces students to managerial job order cost systems. Students will be exposed to the terminology used to describe costs related to manufacturing. The first of two basic manufacturing accounting […]
978-1337119207 Chapter 16 Part 2
Chapter 16(2) Job Order Costing 330 Point out that, unlike the situation in the banquet example, overhead costs usually are not divided evenly over the number of units produced. Assume that a television manufacturer spent $500,000 on overhead costs to […]
978-1337119207 Chapter 17 Part 1
337 chapter 17(3) Process Cost Systems ______________________________________________ OPENING COMMENTS Chapter 17(3) completes the coverage of manufacturing accounting by introducing process costing. The text demonstrates process costing under the FIFO method. The average cost method is presented in the chapter’s appendix. […]
978-1337119207 Chapter 17 Part 2
Chapter 17(3) Process Cost Systems 346 © 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Process—Packaging is credited. After the product is sold, […]
978-1337119207 Chapter 18 Part 1
461 chapter 18(4) Activity-Based Costing ______________________________________________ OPENING COMMENTS Chapter 18(4) deals with the distortion that can occur in product costing if overhead is not applied properly. It presents three methods for allocating overhead: (1) a single plantwide factory overhead rate, […]
978-1337119207 Chapter 18 Part 2
Chapter 18(4) Activity-Based Costing 468 2. When identifying the activities needed to manufacture their product, many companies find inefficiencies that they didn’t know existed. These inefficiencies can be eliminated, reducing the product’s cost. 3. ABC gained popularity because many manufacturing […]
978-1337119207 Chapter 19 Part 1
355 chapter 19(5) Cost-Volume-Profit Analysis ______________________________________________ OPENING COMMENTS In Chapter 19(5), students learn how to conduct cost-volume-profit analysis. In preparation for this activity, the chapter discusses variable, fixed, and mixed costs. Cost-volume-profit analysis is conducted using both a formula-based mathematical […]
978-1337119207 Chapter 19 Part 2
Chapter 19(5) Cost-Volume-Profit Analysis 363 . . . or (solving for X) Sales Price (X) – Variable Cost (X) = Fixed Costs + Income from Operations X (Sales Price – Variable Cost) = Fixed Costs + Income from Operations X […]
978-1337119207 Chapter 20 Part 1
371 chapter 20(6) Variable Costing for Management Analysis ______________________________________________ OPENING COMMENTS Frequently, managers complain that accounting systems designed to collect data needed for financial reporting do not provide the best data for management decision making. If used properly, variable costing […]
978-1337119207 Chapter 20 Part 2
Chapter 20(6) Variable Costing for Management Analysis 379 WRITING EXERCISE—Pricing Products and Production Planning After completing the group activity above, ask your students to write a memo to management explaining why Webster Manufacturing should accept the special order, even though […]
978-1337119207 Chapter 21 Part 1
385 chapter 21(7) Budgeting ______________________________________________ OPENING COMMENTS Chapter 21(7) emphasizes accounting activities that help managers plan, direct, and control the operations of a business. Budgeting is used to establish business goals in the planning function. Budgets help guide managers’ operational […]
978-1337119207 Chapter 21 Part 2
Chapter 21(7) Budgeting 394 © 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GROUP LEARNING ACTIVITY—Direct Materials Purchases Budget The direct materials purchases […]
978-1337119207 Chapter 22 Part 1
chapter 22(8) Evaluating Variances from Standard Costs ______________________________________________ OPENING COMMENTS Standard cost systems set budgets for the materials, labor, and factory overhead used by a manufacturer to produce its product. Deviations from these standards are reported as variances. After studying […]
978-1337119207 Chapter 22 Part 2
Chapter 22(8) Evaluating Variances from Standard Costs 409 SUGGESTED APPROACH—Nonmanufacturing Businesses Standards can be applied to nonmanufacturing businesses, provided that they use repetitive activities to produce a common product or service. For example, businesses that specialize in fast, no-appointment- needed […]
978-1337119207 Chapter 23 Part 1
417 chapter 23(9) Evaluating Decentralized Operations ______________________________________________ OPENING COMMENTS Chapter 23(9) applies responsibility accounting to cost, profit, and investment centers. The chapter demonstrates the responsibility accounting reports that are used to evaluate department or division performance. This provides an excellent […]
978-1337119207 Chapter 23 Part 2
Chapter 23(9) Evaluating Decentralized Operations 426 INTERNET ACTIVITY—Balanced Scorecard The balanced scorecard emphasizes that financial and nonfinancial measures are both important in measuring the performance of an organization. In fact, the nonfinancial measures frequently focus management on items leading to […]
978-1337119207 Chapter 24 Part 1
433 chapter 24(10) Differential Analysis and Product Pricing ______________________________________________ OPENING COMMENTS This chapter covers (1) differential analysis, (2) methods of determining the selling price of a product using a cost-plus markup approach, and (3) the effects of production bottlenecks. Learning […]
978-1337119207 Chapter 24 Part 2
Chapter 24(10) Differential Analysis and Product Pricing 441 DEMONSTRATION PROBLEM—Simulating Production Constraints Have five students line up in a row. Provide each student with two dice, except for the student in the third position, who gets one die. Place four […]
978-1337119207 Chapter 25 Part 1
chapter 25(11) Capital Investment Analysis ______________________________________________ OPENING COMMENTS Capital investment analysis is a topic that usually receives detailed coverage in introductory finance courses and/or intermediate accounting. The purpose of this chapter is to give students a brief introduction to the […]
978-1337119207 Chapter 25 Part 2
Chapter 25(11) Capital Investment Analysis 454 Under Case II, each project requires a different initial investment. Therefore, a present value index is helpful in choosing the most attractive investment from this group. Ask your students to calculate the present value […]
978-1337119207 Chapter 26 Part 1
chapter 26(12) Lean Manufacturing and Activity Analysis ______________________________________________ OPENING COMMENTS Lean manufacturing was introduced briefly in Chapter 17(3). This chapter provides an opportunity to expand on that topic by applying the concepts of Lean manufacturing to lead time, plant layout, […]
978-1337119207 Chapter 26 Part 2
Chapter 26(12) Lean Manufacturing and Activity Analysis 482 © 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Nonfinancial Measure—A performance measure that […]