Management and Cost Accounting (7th Edition)


Download Management and Cost Accounting (7th Edition) written by Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan in PDF format. This book is under the category Accounting and bearing the isbn/isbn13 number 1292232668;1292232676; 1292232684/9781292232669/ 9781292232676/ 9781292232683. You may reffer the table below for additional details of the book.


This bestseller ebook offers clear; simple to understand; and complete coverage of management and cost accounting for professionals and students. Packed with examples; illustrations; and real-life applications; Management and Cost Accounting; 7th Edition; (PDF) brings together concepts; techniques; and practices in a highly readable way.

Keeping its global focus; the text includes a plethora of case studies featuring companies from around the world; and includes latest coverage of AI and robotics and other technology that influences management accounting. Applications are explained using examples from real corporations; plus the text includes professional accountancy examination questions to help you practice. This ebook will help you learn about the aspects of management accounting that are vital in your study and your future performance in the workplace.

Main Features

  • Harvard Business School and other cutting edge case studies that show how management accounting is applied in enterprises across locations and situations.
  • Comprehensive and up-to-date coverage of digital technologies; including robotics; artificial intelligence; 3-D printing; the Internet of Things; and Big Data analytics.
  • A plethora of resources including professional accountancy practice exercises and end-of-chapter questions offering opportunities to learn and develop exam alertness.
  • A variety of new Concepts in Action boxes and the latest Surveys of Corporate Practices illustrating how accounting techniques are deployed by managers in the business world.
  • Revised and expanded sections on strategic management accounting; the balanced scorecard; governance and sustainability; quality costing; as well as aspects of internet entrepreneurship.

P.S. Contact us if you want Management and Cost Accounting 7e TestBank or other instructor resources.

NOTE: The product only includes the ebook; Management and Cost Accounting; 7th Edition in PDF. No access codes are included.

Additional information


Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan


Pearson; 7th edition




904 pages




1292232668;1292232676; 1292232684


9781292232669/ 9781292232676/ 9781292232683

Table of contents

Table of contents :
Front Cover
Half Title Page
Title Page
Copyright Page
Brief Contents
Guide to the case studies
Authors’ acknowledgements
Publisher’s acknowledgements
PART I Management and cost accounting fundamentals
CHAPTER 1 The manager and management accounting
Management accounting, financial accounting and cost accounting
Accounting systems and management controls
Costs, benefits and context
Value creation
Digitalisation: management accounting’s most important challenge
Concepts in action: How the Internet of Things, artificial intelligence and big data make the unknown visible at Rolls-Royce
Appendix: Professional ethics
Key terms
References and further reading
Assessment material
CHAPTER 2 An introduction to cost terms and purposes
Costs in general
Direct costs and indirect costs
Cost drivers and cost management
Cost behaviour patterns: variable costs and fixed costs
Total costs and unit costs
Concepts in action: Reducing fixed costs and managing profit growth at Porsche
Financial statements, business sectors and the recognition of costs
The many meanings of product costs
Classification of costs
Key terms
Assessment material
CHAPTER 3 Job costing
The building block concept of costing systems
Job-costing and process-costing systems
Job costing in service organisations using actual costing
Normal costing
Job costing in manufacturing
An illustration of a job-costing system in manufacturing
Budgeted indirect costs and end-of-period adjustments
Key terms
Assessment material
CHAPTER 4 Process costing
Illustrating process costing
Case 1: Process costing with no opening or closing work-in-progress stock
Case 2: Process costing with no opening but a closing work-in-progress stock
Case 3: Process costing with both some opening and some closing work-in-progress stock
Weighted-average method
First-in, first-out method
Comparison of weighted-average and FIFO methods
Concepts in action: ExxonMobil and accounting differences in the oil patch
Standard-costing method of process costing
Transferred-in costs in process costing
Concepts in action: Hybrid costing for customised products at Levi Strauss
Hybrid-costing systems
Concepts in action: Hybrid costing for Under Armour 3D-printed shoes
Appendix: Operation costing
Key terms
Assessment material
CHAPTER 5 Cost allocation
Purposes of cost allocation
Cost allocation and costing systems
Indirect-cost pools and cost allocation
Allocating costs from one department to another
Allocating costs of support departments
Support department cost-allocation methods
Allocating common costs
Cost-allocation bases and cost hierarchies
Is the product-costing system broken?
Key terms
References and further reading
Assessment material
CHAPTER 6 Cost allocation: joint-cost situations
Meaning of joint products and by-products terms
Why allocate joint costs?
Approaches to allocating joint costs
Concepts in action: Chicken processing: costing on the disassembly line
No allocation of joint costs
Irrelevance of joint costs for decision making
Accounting for by-products
Key terms
References and further reading
Assessment material
CHAPTER 7 Income effects of alternative stock-costing methods
PART A: Stock-costing methods
Variable costing and absorption costing
Comparison of variable costing and absorption costing
Performance measures and absorption costing
Concepts in action: Can ESPN avoid the cord-cutting ‘death spiral’?
PART B: Denominator-level concepts and absorption costing
Alternative denominator-level concepts
Effect on financial statements
Appendix: Breakeven points in variable and absorption costing
Key terms
Assessment material
PART I Case study problems
101 The European Savings Bank
102 The ethical dilemma at Northlake
103 Electronic Boards plc
PART II Accounting information for decision making
CHAPTER 8 Cost–volume–profit analysis
Revenue drivers and cost drivers
CVP assumptions
The breakeven point
The PV graph
Impact of income taxes
Sensitivity analysis and uncertainty
Concepts in action: Cost–volume–profit analysis makes Subway’s $5 foot-long sandwiches a success: but innovation challenges loom
Cost planning and CVP
Effects of revenue mix on profit
Not-for-profit organisations and CVP
Contribution margin and gross margin
Appendix: Decision models and uncertainty
Key terms
Reference and further reading
Assessment material
CHAPTER 9 Determining how costs behave
General issues in estimating cost functions
The cause-and-effect criterion in choosing cost drivers
Cost estimation approaches
Steps in estimating a cost function
Evaluating and choosing cost drivers
Cost drivers and activity-based costing
Concepts in action: Activity-based costing and cost estimation
Big data, machine learning and cost analysis
Non-linearity and cost functions
Learning curves and non-linear cost functions
Appendix: Regression analysis
Key terms
References and further reading
Assessment material
CHAPTER 10 Relevant information for decision making
Information and the decision process
The concept of relevance
An illustration of relevance: choosing output levels
Outsourcing and make-or-buy decisions
Concepts in action: Costs, outsourcing and politics
Opportunity costs, outsourcing and capacity constraints
Concepts in action: Outsourcing versus automation at Nike
Product-mix decisions under capacity constraints
Concepts in action: Slashing cost at LEGO
Customer profitability and relevant costs
Irrelevance of past costs and equipment-replacement decisions
Appendix: Linear programming
Key terms
References and further reading
Assessment material
CHAPTER 11 Activity-based costing
Undercosting and overcosting
Costing system at Plastim Limited
Refining a costing system
Activity-based costing systems
Implementing activity-based costing
Comparing alternative costing systems
Concepts in action: Mayo Clinic uses time-driven activity-based costing to reduce costs and improve care
From activity-based costing to activity-based management
ABC and department-costing systems
Implementing ABC systems
Concepts in action: Do banks provide ‘free’ services?
ABC and the organisational context
Key terms
References and further reading
Assessment material
CHAPTER 12 Pricing, target costing and customer profitability analysis
Major influences on pricing
Costing and pricing for the short run
Costing and pricing for the long run
Concepts in action: Pricing and digitalisation at H&M
Target costing for target pricing
Achieving the target cost per unit for Provalue
Cost-plus pricing
Concepts in action: Target pricing for the Indian car market
Life-cycle product budgeting and costing
Customer profitability analysis
Customer revenues
Customer costs
Customer profitability profiles
Concepts in action: Amazon Prime and customer profitability
Key terms
References and further reading
Assessment material
CHAPTER 13 Capital investment decisions
Stages of capital budgeting
Concepts in action: Capital budgeting for sustainability at Johnson & Johnson
Discounted cash flow methods
Sensitivity analysis
Relevant cash flows in discounted cash flow analysis
Payback method
Accounting rate of return method
Managing the project
Income tax factors
Capital budgeting and inflation
Key terms
References and further reading
Assessment material
PART II Case study problems
201 Permaclean Products plc
202 The Good Night Motel
PART III Planning and budgetary control systems
CHAPTER 14 Motivation, budgets and responsibility accounting
Major features of budgets
Roles of budgets
Types of budget
Computer-based financial planning models
Concepts in action: 24-hour fitness and internet-based budgeting
Kaizen budgeting
Activity-based budgeting
Budgeting and responsibility accounting
Responsibility and controllability
Appendix: The cash budget
Key terms
References and further reading
Assessment material
CHAPTER 15 Flexible budgets, variances and management control: I
Static budgets and flexible budgets
Static-budget variances
Steps in developing a flexible budget
Flexible-budget variances and sales-volume variances
Price variances and efficiency variances for inputs
Impact of stocks
Concepts in action: Starbucks maintains a focus on direct-cost variances
Management uses of variances
Concepts in action: Chipotle’s required focus on material cost variances
Flexible budgeting and activity-based costing
An illustration of journal entries using standard costs
Benchmarking and variance analysis
Key terms
References and further reading
Assessment material
CHAPTER 16 Flexible budgets, variances and management control: II
Planning of variable- and fixed-overhead costs
Developing budgeted variable-overhead rates
Variable-overhead cost variances
Developing budgeted fixed-overhead rates
Fixed-overhead cost variances
Production-volume variance
Integrated analysis of overhead cost variances
Different purposes of manufacturing overhead cost analysis
Journal entries for overhead costs and variances
Concepts in action: Variance analysis and standard costing: helping Sandoz manage overhead costs
Engineered, discretionary and infrastructure costs
Financial and non-financial performance measures
Actual, normal and standard costing
Activity-based costing and variance analysis
Key terms
Reference and further reading
Assessment material
CHAPTER 17 Measuring yield, mix and quantity effects
Input variances
Direct materials yield and mix variances
Direct manufacturing labour yield and mix variances
Revenue and sales variances
Variance analysis for multiple products
Key terms
Assessment material
PART III Case study problems
301 Zeros plc
302 Instrumental Ltd
PART IV Management control systems and performance issues
CHAPTER 18 Control systems and transfer pricing
Management control systems
Evaluating management control systems
Organisational structure and decentralisation
Choices about responsibility centres
Transfer pricing
An illustration of transfer pricing
Market-based transfer prices
Cost-based transfer prices
Negotiated transfer prices
A general guideline for transfer-pricing situations
Transfer pricing and tax considerations
Concepts in action: EU accuses Starbucks and the Netherlands of unfair tax deal
Key terms
References and further reading
Assessment material
CHAPTER 19 Control systems and performance measurement
Financial and non-financial performance measures
Designing an accounting-based performance measure
Different performance measures
Concepts in action: CEO compensation at Lloyds: ‘kick in the teeth’ or well-deserved?
Alternative definitions of investment
Alternative performance measures
Choosing targeted levels of performance and timing of feedback
Distinction between managers and organisational units
Concepts in action: Performance measurement at Unilever
Performance measures at the individual activity level
Environmental and ethical responsibilities
Strategy and levers of control
Key terms
References and further reading
Assessment material
PART IV Case study problems
401 BBR plc
PART V Strategy, quality, time and emerging issues
CHAPTER 20 Strategy, the balanced scorecard and quality
Strategy and strategic management accounting
Concepts in action: Strategic renewal at Puma
The balanced scorecard
Quality improvement and reengineering at Chipset
The four perspectives of the balanced scorecard
Aligning the balanced scorecard to strategy
Features of a good balanced scorecard
Evaluating the success of a strategy
Concepts in action: The growth versus profitability choice at Facebook
Costs of quality under the balanced scorecard
The internal-business-process perspective: analysing quality problems
The learning-and-growth perspective: quality improvements
Concepts in action: Does Mercedes really stand for quality? What about Toyota?
Key terms
References and further reading
Assessment material
CHAPTER 21 Accounting, time and efficiency
Just-in-time systems
Major features of JIT production systems
Concepts in action: Just-in-time live-concert recordings
Enterprise resource planning (ERP) systems
Concepts in action: How big data and machine learning helps with stock management
Backflush costing
Managing goods for sale in retail organisations
Challenges in estimating stock-related costs and their effects
Just-in-time purchasing
Stock costs and their management in manufacturing organisations
Theory of constraints
Concepts in action: Netflix works to overcome internet bottlenecks
Balanced scorecards and time-based measures
Key terms
References and further reading
Assessment material
CHAPTER 22 Emerging issues: digital technologies, governance and sustainability
Digital transformation is unstoppable
Digital technologies and accounting
The digitally advanced enterprise control loop
Enterprise governance
Environmental management accounting
Management accounting changes highlight managerial context
Concepts in action: Stonyfield Farm: a culture of sustainable farming
Key terms
References and further reading
Assessment material
PART V Case study problems
501 High-Tech Limited
502 Tanner Pharmaceuticals and the price of a new drug
503 Osram
Appendix A: Solutions to selected exercises
Appendix B: Notes on compound interest and interest tables
Names index
Subject index

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