Weygandt, J: Weygandt's Managerial Accounting

3-14Preparing the Production Cost Report 3-15Costing Systems--Final Comments 3-15Appendix 3A: FIFO Method for Computing Equivalent Units 3-19Equivalent Units Under FIFO 3-19Comprehensive Example 3-20FIFO and Weighted-Average 3-254 Activity-Based Costing 4-1Wellness for Customers and the Company: Technogym SpA 4-1Traditional vs. Activity-Based Costing 4-3Traditional Costing Systems 4-3Illustration of a Traditional Costing System 4-3The Need for a New Approach 4-4Activity-Based Costing 4-4ABC and Manufacturers 4-7Identify and Classify Activities and Assign Overhead to Cost Pools (Step 1) 4-7Identify Cost Drivers (Step 2) 4-8Compute Activity-Based Overhead Rates (Step 3) 4-8Allocate Overhead Costs to Products (Step 4) 4-8Comparing Unit Costs 4-9ABC Benefits and Limitations 4-12The Advantage of Multiple Cost Pools 4-12The Advantage of Enhanced Cost Control 4-14The Advantage of Better Management Decisions 4-15Some Limitations and Knowing When to Use ABC 4-16ABC and Service Industries 4-17Traditional Costing Example 4-17Activity-Based Costing Example 4-18Appendix 4A: Just-in-Time Processing 4-21Objective of JIT Processing 4-22Elements of JIT Processing 4-22Benefits of JIT Processing 4-235 Cost-Volume-Profit 5-1Don't Worry--Just Get Big: Amazon.com 5-1Cost Behavior Analysis 5-2Variable Costs 5-3Fixed Costs 5-4Relevant Range 5-5Mixed Costs 5-5Mixed Costs Analysis 5-7High-Low Method 5-7Importance of Identifying Variable and Fixed Costs 5-9CVP Analysis 5-10Basic Components 5-10CVP Income Statement 5-11Break-Even Analysis 5-14Mathematical Equation 5-14Contribution Margin Technique 5-15Graphic Presentation 5-16Target Net Income and Margin of Safety 5-18Target Net Income 5-18Margin of Safety 5-196 Cost-Volume-Profit Analysis: Additional Issues 6-1The Secret to Supermarket Profitability: Aldi 6-1Basic CVP Concepts 6-2Basic Concepts 6-2Basic Computations 6-3CVP and Changes in the Business Environment 6-5Sales Mix and Break-Even Sales 6-7Break-Even Sales in Units 6-8Break-Even Sales for a Large Number of Products 6-9Sales Mix with Limited Resources 6-11Operating Leverage and Profitability 6-14Effect on Contribution Margin Ratio 6-15Effect on Break-Even Point 6-15Effect on Margin of Safety Ratio 6-15Operating Leverage 6-16Appendix 6A: Absorption Costing Versus Variable Costing 6-18Example Comparing Absorption Costing with Variable Costing 6-19Net Income Effects 6-21Decision-Making Concerns 6-24Potential Advantages of Variable Costing 6-267 Incremental Analysis 7-1The Internet of Clothing: Evrythng 7-1Decision-Making and Incremental Analysis 7-3Incremental Analysis Approach 7-3How Incremental Analysis Works 7-4Qualitative Factors 7-5Relationship of Incremental Analysis and Activity-Based Costing 7-5Types of Incremental Analysis 7-6Special Orders 7-6Make or Buy 7-8Opportunity Cost 7-9Sell or Process Further 7-10Single-Product Case 7-11Multiple-Product Case 7-11Repair, Retain, or Replace Equipment 7-14Eliminate Unprofitable Segment or Product 7-158 Pricing 8-1They've Got Your Size--and Color: Zappos.com 8-1Target Costing 8-2Target Costing 8-4Cost-Plus Pricing 8-5Calculating Cost-Plus Pricing 8-5Limitations of Cost-Plus Pricing 8-7Variable-Cost Pricing 8-8Time-and-Material Pricing 8-9Transfer Pricing 8-12Negotiated Transfer Prices 8-13Cost-Based Transfer Prices 8-15Market-Based Transfer Prices 8-17Effect of Outsourcing on Transfer Pricing 8-17Transfers Between Divisions in Different Countries 8-17Appendix 8A: Absorption-Cost and Variable-Cost Pricing 8-19Absorption-Cost Pricing 8-20Variable-Cost Pricing 8-21Appendix 8B: Transferring Goods Between Divisions inDifferent Countries 8-239 Budgetary Planning 9-1What's in Your Cupcake?: BabyCakes NYC 9-1Effective Budgeting and the Master Budget 9-2Budgeting and Accounting 9-3The Benefits of Budgeting 9-3Essentials of Effective Budgeting 9-3The Master Budget 9-6Sales, Production, and Direct Materials Budgets 9-7Sales Budget 9-7Production Budget 9-8Direct Materials Budget 9-9Direct Labor, Manufacturing Overhead, and S&AExpense Budgets 9-12Direct Labor Budget 9-12Manufacturing Overhead Budget 9-13Selling and Administrative Expense Budget 9-14Budgeted Income Statement 9-14Cash Budget and Budgeted Statement of Financial Position 9-16Cash Budget 9-16Budgeted Statement of Financial Position 9-19Budgeting in Non-Manufacturing Companies 9-21Merchandisers 9-21Service Companies 9-22Not-for-Profit Organizations 9-2310 Budgetary Control and Responsibility Accounting 10-1Strategies to Help You Relax: Viceroy Hotel Group 10-1Budgetary Control and Static Budget Reports 10-2Budgetary Control 10-2Static Budget Reports 10-3Flexible Budget Reports 10-6Why Flexible Budgets? 10-6Developing the Flexible Budget 10-8Flexible Budget--A Case Study 10-9Flexible Budget Reports 10-10Responsibility Accounting and Responsibility Centers 10-13Controllable versus Non-Controllable Revenues and Costs 10-14Principles of Performance Evaluation 10-15Responsibility Reporting System 10-16Types of Responsibility Centers 10-19Investment Centers and ROI 10-22Return on Investment (ROI) 10-22Responsibility Report 10-23Judgmental Factors in ROI 10-23Improving ROI 10-24Appendix 10A: ROI vs. Residual Income 10-28Residual Income Compared to ROI 10-29Residual Income Weakness 10-2911 Standard Costs and Balanced Scorecard 11-1A Balanced Approach: Anglo Pacific Group plc 11-1Standard Costs 11-2Distinguishing Between Standards and Budgets 11-3Setting Standard Costs 11-4Direct Materials Variances 11-7Analyzing and Reporting Variances 11-7Direct Materials Variances 11-9Direct Labor and Manufacturing Overhead Variances 11-11Direct Labor Variances 11-11Manufacturing Overhead Variances 11-14Variance Reports and Balanced Scorecards 11-16Reporting Variances 11-16Income Statement Presentation of Variances 11-16Balanced Scorecard 11-17Appendix 11A: Standard Cost Accounting System 11-21Journal Entries 11-22Ledger Accounts 11-23Appendix 11B: Overhead Controllable and Volume Variances 11-24Overhead Controllable Variance 11-24Overhead Volume Variance 11-2512 Planning for Capital Investments 12-1Floating Hotels: Holland America Line 12-2Capital Budgeting and Cash Payback 12-3Cash Flow Information 12-3Illustrative Data 12-4Cash Payback 12-5Net Present Value Method 12-6Equal Annual Cash Flows 12-7Unequal Annual Cash Flows 12-8Choosing a Discount Rate 12-9Simplifying Assumptions 12-10Comprehensive Example 12-10Capital Budgeting Challenges and Refinements 12-11Intangible Benefits 12-12Profitability Index for Mutually Exclusive Projects 12-13Risk Analysis 12-15Post-Audit of Investment Projects 12-15Internal Rate of Return 12-16Comparing Discounted Cash Flow Methods 12-18Annual Rate of Return 12-1913 Statement of Cash Flows 13-1What Should We Do with This Cash?: Keyence 13-1Statement of Cash Flows: Usefulness and Format 13-3Usefulness of the Statement of Cash Flows 13-3Classification of Cash Flows 13-3Significant Non-Cash Activities 13-5Format of the Statement of Cash Flows 13-5Preparing the Statement of Cash Flows-- Indirect Method 13-7Indirect and Direct Methods 13-8Indirect Method--Computer Services International 13-8Step 1: Operating Activities 13-9Summary of Conversion to Net Cash Provided by Operating Activities--Indirect Method 13-12Step 2: Investing and Financing Activities 13-13Step 3: Net Change in Cash 13-14Using Cash Flows to Evaluate a Company 13-17Free Cash Flow 13-17Appendix 13A: Statement of Cash Flows--Direct Method 13-20Step 1: Operating Activities 13-21Step 2: Investing and Financing Activities 13-25Step 3: Net Change in Cash 13-26Appendix 13B: Statement of Cash Flows-- T-Account Approach 13-2714 Financial Analysis: The Big Picture 14-1Making Money the Old-Fashioned Way: Li Ka-shing 14-1Basics of Financial Statement Analysis 14-2Need for Comparative Analysis 14-3Tools of Analysis 14-3Horizontal Analysis 14-3Vertical Analysis 14-6Ratio Analysis 14-9Liquidity Ratios 14-9Profitability Ratios 14-13Solvency Ratios 14-16Summary of Ratios 14-18Sustainable Income 14-20Discontinued Operations 14-21Changes in Accounting Principle 14-22Comprehensive Income 14-22Appendix A Time Value of Money A-1Interest and Future Values A-1Nature of Interest A-1Simple Interest A-2Compound Interest A-2Future Value of a Single Amount A-3Future Value of an Annuity A-5Present Value Concepts A-7Present Value Variables A-7Present Value of a Single Amount A-7Present Value of an Annuity A-9Time Periods and Discounting A-11Present Value of a Long-Term Note or Bond A-11Using Financial Calculators A-14Present Value of a Single Sum A-14Present Value of an Annuity A-15Useful Applications of the Financial Calculator A-16Company Index I-1Subject Index I-3