Gain an understanding of the principles behind cost accounting and its importance in organizational decision making and business today with the unique, reader-friendly approach in Hansen/Mowen/Heitger’s COST MANAGEMENT, 5E. This edition addresses functional-based cost and control and, then, activity-based cost systems – giving you the skills to navigate any cost management system. Updates address emerging developments, including the role of data analytics in cost management today. An entire new chapter also examines global issues, such as virtual currency and blockchain. This edition's approach is tailored to the way you learn. Structured examples from familiar companies emphasize the real-world applications and relevance of what you are learning. Clear explanations review the concepts behind each equation or topic, detailing the "hows," "whys" and "what-ifs." Integrated CNOWv2 resources provide additional computerized exercises and problems for practice and review.
1. Introduction to Cost Management.
2. Basic Cost Management Concepts.
3. Cost Behavior.
4. Activity-Based Costing.
5. Product and Service Costing: Job-Order System.
6. Process Costing.
7. Allocating Costs of Support Departments and Joint Products.
8. Budgeting for Planning and Control.
9. Standard Costing: A Functional-Based Control Approach.
10. Decentralization: Responsibility Accounting, Performance.
Evaluation, and Transfer Pricing.
11. Strategic Cost Management.
12. Activity-Based Management.
13. The Balanced Scorecard: Strategic-Based Control.
14. Quality and Environmental Cost Management.
15. Lean Accounting and Productivity Measurement.
16. Cost-Volume-Profit Analysis.
17. Activity Resource Usage Model and Tactical Decision Making.
18. Pricing and Profitability Analysis.
19. Capital Investment.
20. Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints.
21. Global Issues in Cost Management
Don R. Hansen
Dr. Don R. Hansen is professor emeritus at Oklahoma State University. He has an undergraduate degree in mathematics from Brigham Young University. He received his Ph.D. from the University of Arizona. Dr. Hansen has published articles in both accounting and engineering journals, including The Accounting Review, The Journal of Management Accounting Research, Accounting Organizations and Society, Accounting Horizons and IIE Transactions. He has also served on the editorial board of The Accounting Review. His outside interests include family, church activities, reading, movies and watching sports.
Maryanne M. Mowen
Dr. Maryanne M. Mowen is associate professor of accounting emerita at Oklahoma State University. She received her Ph.D. from Arizona State University. With degrees in economics and history, she brings a unique interdisciplinary perspective to teaching and writing in both cost accounting and management accounting. Her research interests include management accounting, behavioral decision theory and Sarbanes-Oxley compliance. She also teaches an ethics course about the impact of Sarbanes-Oxley on the accounting profession. Dr. Mowen has published articles in journals such as Decision Science, Journal of Economic Psychology and Journal of Management Accounting Research. She has also served as a consultant to mid-sized and Fortune 100 companies and works with corporate controllers on management accounting issues. She advises entrepreneurs and nonprofit organizations. Outside the classroom, she enjoys hiking, travelling, reading mysteries and solving crossword puzzles.
Dan L Heitger
Dr. Dan L. Heitger is the Deloitte Professor of Accounting and co-director of the William Isaac & Michael Oxley Center for Business Leadership at Miami University. He received his Ph.D. from Michigan State University and his undergraduate degree in accounting from Indiana University. He actively works with executives and students to innovate, develop and teach courses in management accounting, cost management, business sustainability, risk management, stakeholder engagement, performance measurement, incentive systems and corporate governance. He co-founded an organization that provides executive education for large international organizations. His interactions with business professionals, through executive education and the center, allow him to bring a current and real-world perspective to his writing. His research has appeared in Harvard Business Review, Behavioral Research in Accounting, Accounting Horizons, Issues in Accounting Education, Journal of Accountancy, Journal of Accounting and Public Policy and Management Accounting Quarterly. His outside interests include hiking with his family in the National Park System.
NEW COVERAGE CLARIFIES THE INCREASING ROLE OF DATA ANALYTICS IN COST MANAGEMENT TODAY. While the use of data analytics is growing in business and cost management, introducing data analytics within specific cost management topics can be daunting and time-consuming. This edition now offers a comprehensive yet practical framework for addressing data analytics in cost management (Ch 2). This coverage matches types of data analytics to particular cost management analyses. Students even practice this with specialized exercises, clearly identified by icons, at the end of every chapter.
NEW CHAPTER-OPENING FEATURES HIGHLIGHT HOW REAL COMPANIES APPLY THE CHAPTER'S TOPICS FOR SUCCESS. To emphasize the relevance and importance of what students are learning, every chapter now opens with a detailed discussion of how real companies actually apply the concepts discussed in the chapter. Students clearly see how cost management improves decision making and furthers business success.
EXPANDED DISCUSSION DEFINES AND DIFFERENTIATES TWO DATA ANALYTIC MODELS IN ACTIVITY-BASED COSTING. New content introduces two data analytic models: Time-Drive Activity-Based Costing (TDABC) and Duration-Based Costing (DBC). This expanded information, within the chapter on activity-based costing (Ch. 4), discusses the relationship of TDABC and DBC. Additional end-of-chapter exercises and problems provide hands-on practice in working with these models.
A NEW, FULL CHAPTER (CH. 21) ADDRESSES GLOBAL ISSUES IN COST MANAGEMENT TODAY. The latest coverage examines developments reshaping the current global financial environment, such as virtual currency and blockchain. Students examine the impact of digital global currency and the record-keeping technology behind Bitcoin specifically as it affects cost management accountants.
ONGOING FOCUS CLEARLY EXPLAINS HOW DATA ANALYTICS ARE USED IN TODAY'S COST MANAGEMENT. Chapters 1 and 2 introduce data analytics with insights into how the data analytic framework applies to each chapter's topics. Designated exercises and problems at the end of each chapter help students gain an understanding of how to apply the data analytic framework to chapter topics.
RELEVANT CONTENT HIGHLIGHTS EMERGING TRENDS AND DEVELOPMENTS AFFECTING COST MANAGEMENT. Students examine topics, such as enterprise risk management, corporate governance, forensic accounting, TDABC and DBC. In addition, this edition features numerous companies that are familiar and popular with readers as each chapter highlights the importance of cost management in strong decision making.
REAL-WORLD FOCUS EMPHASIZES THE RELEVANCE OF CONTENT TO READERS. All chapters include numerous references to real service and manufacturing companies, such as the Walt Disney Company, McDonald's, Intel, Amazon, Lands' End and Uber. These examples clearly illustrate cost management concepts in action and ensure students understand the value of the concepts they are learning. Every chapter opens with a description of how real companies use the cost management models in the chapter, which further reinforces the importance of each chapter's content.
CAREFULLY STRUCTURED EXAMPLES PROVIDE STEP-BY-STEP COVERAGE OF THE REASONING BEHIND PRINCIPLES. Unique examples in each chapter help students solve and master basic cost management concepts. The authors use a proven model to help readers grasp calculations and more easily complete homework, while also emphasizing why students are completing the calculation. The "What If" feature challenges students to think past the numbers and understand the actual concepts behind the equations.
BRIEF EXERCISES CORRESPOND WITH SPECIFIC EXAMPLES AND CONCEPTS. Based on extensive research into student learning behavior, the authors have also created specific Brief Exercises. These exercises at the end of each chapter correspond with specific structured examples in the text and are clearly labeled for quick reference. Carefully structured questions in the Brief Exercises provide precise guidance and detailed practice before students advance to more complex questions at the end of the chapter.
STUDENT-FRIENDLY ORGANIZATION OF MATERIAL REINFORCES UNDERSTANDING. This edition includes a list of important equations discussed in each chapter and a quick reference guide for locating in-text structured examples. In addition, end-of-chapter exercises and problems correspond with specific learning objectives, which assist you in making assignments and guide students in knowing what skills they are practicing. Exercises and problems related to data analytics are indicated with icons and include references back to earlier presentations on data analytics for refreshers.
A FOCUS ON THE SERVICE SECTOR EMPHASIZES THE IMPORTANCE OF SERVICE BUSINESSES IN COST MANAGEMENT TODAY. The authors highlight the significance of the service sector with extensive applications of cost management principles to services. The book explains how service businesses are not simply less complicated manufacturing settings but, instead, have their own unique characteristics and cost management challenges.
COST MANAGEMENT INFORMATION SYSTEMS APPROACH OFFERS EXTENSIVE FLEXIBILITY. By focusing on ABC and unit-based systems and the implications of implementing those systems separately, the book’s discussion of these specific approaches stands alone. This edition's approach gives you the flexibility to modify coverage to best meet the needs of your specific course.
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