Custom ACCT 375 Cost Accounting (Hope College)

by Kinney

ISBN: 0000000000 | Copyright 2023

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Cost Accounting, 10e (pg. 1.1-1)
Chapter 1 Introduction to Cost Accounting (pg. 1.1-1)
Introduction (pg. 1.1-2)
Comparison of Financial, Management, and Cost Accounting (pg. 1.1-2)
Financial Accounting (pg. 1.1-2)
Management Accounting (pg. 1.1-3)
Cost Accounting (pg. 1.1-4)
Review 1-1 Financial and Cost Accounting (pg. 1.1-5)
Organizational Strategy (pg. 1.1-6)
Organizational Structure Supporting Strategy (pg. 1.1-7)
Organizational Constraints (pg. 1.1-8)
Review 1-2 Identification of Organizational Strategy (pg. 1.1-8)
Value Chain (pg. 1.1-9)
Review 1-3 Value Chain Activities (pg. 1.1-10)
Balanced Scorecard (pg. 1.1-10)
Review 1-4 Balanced Scorecard (pg. 1.1-13)
Professional Ethics (pg. 1.1-13)
Ethics in Multinational Corporations (pg. 1.1-15)
Review 1-5 IMA’s Statements of Ethical Professional Practice (pg. 1.1-16)
Comprehensive Chapter Review (pg. 1.1-17)
Key Terms (pg. 1.1-17)
Chapter Summary (pg. 1.1-17)
Potential Ethical Issues (pg. 1.1-18)
Questions (pg. 1.1-19)
Exercises (pg. 1.1-19)
Review Solutions (pg. 1.1-23)
Review 1-1 (pg. 1.1-23)
Review 1-2 (pg. 1.1-23)
Review 1-3 (pg. 1.1-23)
Review 1-4 (pg. 1.1-23)
Review 1-5 (pg. 1.1-23)
Chapter 2 Cost Terminology and Cost Behaviors (pg. 1.2-1)
Introduction (pg. 1.2-2)
Cost Terminology (pg. 1.2-2)
Association with Cost Object (pg. 1.2-2)
Review 2-1 Association with Cost Object (pg. 1.2-3)
Reaction to Changes in Activity (pg. 1.2-3)
Review 2-2 Analysis of Cost Behavior (pg. 1.2-7)
Classification on the Financial Statements (pg. 1.2-7)
Review 2-3 Financial Statement Classification of Costs (pg. 1.2-8)
The Conversion Process (pg. 1.2-8)
Retailers versus Manufacturers/Service Companies (pg. 1.2-9)
Manufacturers versus Service Companies (pg. 1.2-12)
Review 2-4 Degree of Conversion (pg. 1.2-12)
Components of Product Cost (pg. 1.2-12)
Direct Material (pg. 1.2-12)
Direct Labor (pg. 1.2-13)
Overhead (pg. 1.2-13)
Review 2-5 Classifying Product Costs (pg. 1.2-14)
Product Cost Flow in a Cost System (pg. 1.2-15)
Review 2-6 Determining Product Costs and Recording Cost Flow (pg. 1.2-18)
Cost of Goods Manufactured and Sold (pg. 1.2-18)
Review 2-7 Determining Product Costs, Including Amounts Allocated for Overhead (pg. 1.2-20)
Comprehensive Review Module (pg. 1.2-20)
Key Terms (pg. 1.2-20)
Chapter Summary (pg. 1.2-20)
Solution Strategies (pg. 1.2-22)
Demonstration Problem (pg. 1.2-22)
Potential Ethical Issues (pg. 1.2-25)
Questions (pg. 1.2-25)
Exercises (pg. 1.2-25)
Problems (pg. 1.2-32)
Review Solutions (pg. 1.2-39)
Review 2-1 (pg. 1.2-39)
Review 2-2 (pg. 1.2-39)
Review 2-3 (pg. 1.2-39)
Review 2-4 (pg. 1.2-40)
Review 2-5 (pg. 1.2-40)
Review 2-6 (pg. 1.2-40)
Review 2-7 (pg. 1.2-41)
Chapter 3 Predetermined Overhead Rates, Flexible Budgets, and Absorption/Variable Costing (pg. 1.3-1)
Introduction (pg. 1.3-2)
Normal Costing and Predetermined Overhead (pg. 1.3-2)
Formula for Predetermined Overhead Rate (pg. 1.3-3)
Applying Overhead to Productio (pg. 1.3-4)
Review 3-1 Plantwide vs. Departmental OH Rates (pg. 1.3-6)
Causes of Underapplied or Overapplied Overhead (pg. 1.3-6)
Disposition of Underapplied and Overapplied Overhead (pg. 1.3-6)
Review 3-2 Underapplied or Overapplied Overhead (pg. 1.3-8)
Alternative Capacity Measures (pg. 1.3-8)
Review 3-3 Predetermined OH Rates; Capacity Measures (pg. 1.3-9)
Separating Mixed Costs (pg. 1.3-10)
High-Low Method (pg. 1.3-10)
Review 3-4 High-low Method (pg. 1.3-12)
Flexible Budgets (pg. 1.3-12)
Plantwide versus Departmental Overhead Rates (pg. 1.3-13)
Review 3-5 Flexible Budget (pg. 1.3-14)
Overview of Absorption and Variable Costing (pg. 1.3-15)
Absorption and Variable Costing Illustrations (pg. 1.3-17)
Review 3-6 Production Cost; Absorption vs. Variable Costing (pg. 1.3-20)
Comparison of the Two Approaches (pg. 1.3-20)
Review 3-7 Net Income; Absorption vs. Variable Costing (pg. 1.3-21)
Appendix 3: Least Squares Regression Analysis (pg. 1.3-21)
Review 3-8 Least Squares Regression (pg. 1.3-23)
Comprehensive Chapter Review (pg. 1.3-24)
Key Terms (pg. 1.3-24)
Chapter Summary (pg. 1.3-24)
Solution Strategies (pg. 1.3-25)
Demonstration Problem (pg. 1.3-27)
Potential Ethical Issues (pg. 1.3-28)
Questions (pg. 1.3-28)
Exercises (pg. 1.3-29)
Problems (pg. 1.3-36)
Review Solutions (pg. 1.3-45)
Review 3-1 (pg. 1.3-45)
Review 3-2 (pg. 1.3-45)
Review 3-3 (pg. 1.3-45)
Review 3-4 (pg. 1.3-45)
Review 3-5 (pg. 1.3-45)
Review 3-6 (pg. 1.3-46)
Review 3-7 (pg. 1.3-46)
Review 3-8 (pg. 1.3-46)
Chapter 4 Activity-Based Management and Activity-Based Costing (pg. 1.4-1)
Introduction (pg. 1.4-2)
Activity-Based Management (pg. 1.4-2)
Value-Added versus Non-Value-Added Activities (pg. 1.4-2)
Review 4-1 Activity Analysis (pg. 1.4-5)
Manufacturing Cycle Efficiency (pg. 1.4-5)
Review 4-2 Manufacturing Cycle Efficiency (pg. 1.4-6)
Cost Driver Analysis (pg. 1.4-7)
Levels at Which Costs Are Incurred (pg. 1.4-8)
Cost-Level Allocations Illustrated (pg. 1.4-11)
Review 4-3 Cost Drivers (pg. 1.4-12)
Activity-Based Costing (pg. 1.4-12)
Two-Step Allocation (pg. 1.4-12)
Activity-Based Costing Illustrated (pg. 1.4-14)
Review 4-4 OH Allocation Using Cost Drivers (pg. 1.4-16)
Determining Whether ABC is Useful (pg. 1.4-17)
Large Product or Service Variety (pg. 1.4-17)
High Product/Process Complexity (pg. 1.4-18)
Lack of Commonality in Overhead Costs (pg. 1.4-18)
Irrationality of Current Cost Allocations (pg. 1.4-18)
Changes in Business Environment (pg. 1.4-19)
Criticisms of Activity-Based Costing (pg. 1.4-19)
Review 4-5 ABC; Product Profitability (pg. 1.4-20)
Comprehensive Chapter Review (pg. 1.4-21)
Key Terms (pg. 1.4-21)
Chapter Summary (pg. 1.4-21)
Solution Strategies (pg. 1.4-23)
Demonstration Problem (pg. 1.4-23)
Potential Ethical Issues (pg. 1.4-24)
Questions (pg. 1.4-25)
Exercises (pg. 1.4-25)
Problems (pg. 1.4-33)
Review Solutions (pg. 1.4-47)
Review 4-1 (pg. 1.4-47)
Review 4-2 (pg. 1.4-47)
Review 4-3 (pg. 1.4-47)
Review 4-4 (pg. 1.4-47)
Review 4-5 (pg. 1.4-48)
Chapter 5 Job Order Costing (pg. 1.5-1)
Introduction (pg. 1.5-2)
Methods of Product Costing (pg. 1.5-2)
Cost Accumulation Systems (pg. 1.5-3)
Valuation Methods (pg. 1.5-3)
Review 5-1 Costing System Choice (pg. 1.5-4)
Job Order Costing System (pg. 1.5-4)
Job Order Costing: Details and Documents (pg. 1.5-6)
Job Order Cost Sheet (pg. 1.5-6)
Material Requisitions (pg. 1.5-6)
Employee Time Sheets (pg. 1.5-8)
Overhead (pg. 1.5-9)
Completion of Production (pg. 1.5-9)
Review 5-2 Job Order Costing Terms (pg. 1.5-10)
Job Order Costing Illustration (pg. 1.5-10)
Review 5-3 Journal Entries; Cost Accumulation (pg. 1.5-13)
Job Order Costing to Assist Managers (pg. 1.5-14)
Concrete Café (pg. 1.5-14)
Paul’s Pirogues (pg. 1.5-15)
Review 5-4 Management Decision-Making (pg. 1.5-16)
Product and Material Losses in Job Order Costing (pg. 1.5-16)
Generally Anticipated on All Jobs (pg. 1.5-16)
Specifically Identified with a Particular Job (pg. 1.5-17)
Identified as Abnormal (pg. 1.5-17)
Review 5-5 Job Order Costing; Rework (pg. 1.5-18)
Appendix 5: Job Order Costing Using Standard Costs (pg. 1.5-18)
Review 5-6 Standard Costing (pg. 1.5-20)
Comprehensive Chapter Review (pg. 1.5-21)
Key Terms (pg. 1.5-21)
Chapter Summary (pg. 1.5-21)
Solution Strategies (pg. 1.5-22)
Demonstration Problem (pg. 1.5-23)
Potential Ethical Issues (pg. 1.5-25)
Questions (pg. 1.5-25)
Exercises (pg. 1.5-26)
Problems (pg. 1.5-34)
Review Solutions (pg. 1.5-45)
Review 5-1 (pg. 1.5-45)
Review 5-2 (pg. 1.5-45)
Review 5-3 (pg. 1.5-45)
Review 5-4 (pg. 1.5-45)
Review 5-5 (pg. 1.5-46)
Review 5-6 (pg. 1.5-46)
Chapter 6 Process Costing (pg. 1.6-1)
Introduction (pg. 1.6-2)
Introduction to Process Costing (pg. 1.6-2)
Production Costs: The Numerator (pg. 1.6-2)
Production Quantity: The Denominator (pg. 1.6-4)
Equivalent Units of Production (pg. 1.6-4)
Review 6-1 Computing Equivalent Units (pg. 1.6-6)
Weighted Average and First-In, First-Out Process Costing Methods (pg. 1.6-6)
Weighted Average Method (pg. 1.6-10)
Review 6-2 Weighted Average Method of Process Costing (pg. 1.6-13)
FIFO Method (pg. 1.6-14)
Review 6-3 FIFO Method of Process Costing (pg. 1.6-17)
Process Costing in a Multidepartment Setting (pg. 1.6-17)
Review 6-4 Accounting for Second Department (pg. 1.6-19)
Hybrid Costing Systems (pg. 1.6-19)
Review 6-5 Hybrid Costing (pg. 1.6-20)
Appendix 6-1: Alternative Calculations of Weighted Average and FIFO Methods (pg. 1.6-20)
Review 6-6 Alternative EUP Calculation Methods (pg. 1.6-21)
Appendix 6-2: Process Costing With Standard Costs (pg. 1.6-22)
Review 6-7 Standard Process Costing (pg. 1.6-24)
Appendix 6-3: Spoilage (pg. 1.6-25)
Review 6-8 FIFO; Normal and Abnormal Loss (pg. 1.6-27)
Comprehensive Chapter Review (pg. 1.6-28)
Key Terms (pg. 1.6-28)
Chapter Summary (pg. 1.6-28)
Solution Strategies (pg. 1.6-29)
Demonstration Problem (pg. 1.6-30)
Potential Ethical Issues (pg. 1.6-33)
Questions (pg. 1.6-33)
Exercises (pg. 1.6-34)
Problems (pg. 1.6-43)
Review Solutions (pg. 1.6-53)
Review 6-1 (pg. 1.6-53)
Review 6-2 (pg. 1.6-53)
Review 6-3 (pg. 1.6-53)
Review 6-4 (pg. 1.6-54)
Review 6-5 (pg. 1.6-54)
Review 6-6 (pg. 1.6-54)
Review 6-7 (pg. 1.6-55)
Review 6-8 (pg. 1.6-55)
Chapter 7 Standard Costing and Variance Analysis (pg. 1.7-1)
Introduction (pg. 1.7-2)
Use of Standard Cost Systems (pg. 1.7-2)
Motivating (pg. 1.7-3)
Planning (pg. 1.7-3)
Controlling (pg. 1.7-3)
Decision Making (pg. 1.7-4)
Performance Evaluation (pg. 1.7-4)
Considerations in Establishing Standards (pg. 1.7-4)
Appropriateness (pg. 1.7-5)
Attainability (pg. 1.7-5)
Review 7-1 Terminology for a Standard Cost System (pg. 1.7-5)
Development of a Standard Cost System (pg. 1.7-6)
Material Standards (pg. 1.7-6)
Labor Standards (pg. 1.7-8)
Overhead Standards (pg. 1.7-9)
Review 7-2 Setting Standard Costs (pg. 1.7-10)
General Variance Analysis Model (pg. 1.7-10)
Material and Labor Variance Computations (pg. 1.7-11)
Material Variances (pg. 1.7-11)
Point-of-Purchase Material Variance Model (pg. 1.7-13)
Labor Variances (pg. 1.7-14)
Overhead Variance Calculations (pg. 1.7-15)
Variable Overhead (pg. 1.7-15)
Fixed Overhead (pg. 1.7-16)
Alternative Overhead Variance Approaches (pg. 1.7-18)
Standard Cost System Journal Entries (pg. 1.7-20)
Disposition of Standard Cost Variances (pg. 1.7-22)
Changes in Standards Usage (pg. 1.7-23)
Use of Ideal Standards and Theoretical Capacity (pg. 1.7-23)
Adjusting Standards (pg. 1.7-25)
Material Price Variance Based on Usage Rather Than on Purchases (pg. 1.7-26)
Decline in Direct Labor (pg. 1.7-26)
Review 7-3 Comprehensive Variance Analysis (pg. 1.7-26)
Conversion Cost as an Element in Standard Costing (pg. 1.7-27)
Review 7-4 Variances and Conversion Cost Category (pg. 1.7-29)
Appendix 7: Mix and Yield Variances (pg. 1.7-29)
Material Price, Mix, and Yield Variances (pg. 1.7-30)
Labor Rate, Mix, and Yield Variances (pg. 1.7-32)
Review 7-5 Mix and Yield Variances (pg. 1.7-33)
Comprehensive Chapter Review (pg. 1.7-33)
Key Terms (pg. 1.7-33)
Chapter Summary (pg. 1.7-34)
Solution Strategies (pg. 1.7-35)
Demonstration Problem (pg. 1.7-37)
Potential Ethical Issues (pg. 1.7-39)
Questions (pg. 1.7-40)
Exercises (pg. 1.7-40)
Problems (pg. 1.7-48)
Review Solutions (pg. 1.7-58)
Review 7-1 (pg. 1.7-58)
Review 7-2 (pg. 1.7-58)
Review 7-3 (pg. 1.7-58)
Review 7-4 (pg. 1.7-59)
Review 7-5 (pg. 1.7-59)
Chapter 8 The Master Budget (pg. 1.8-1)
Introduction (pg. 1.8-2)
The Budgeting Process (pg. 1.8-2)
Strategic Planning (pg. 1.8-2)
Tactical Planning (pg. 1.8-3)
Review 8-1 Planning and Budgeting (pg. 1.8-5)
The Master Budget (pg. 1.8-6)
Review 8-2 Sales Budget (pg. 1.8-8)
The Master Budget Illustrated (pg. 1.8-8)
Production Budget (pg. 1.8-9)
Purchases Budget (pg. 1.8-10)
Personnel Budget (pg. 1.8-11)
Direct Labor Budget (pg. 1.8-11)
Overhead Budget (pg. 1.8-12)
Selling and Administrative Budget (pg. 1.8-12)
Capital Budget (pg. 1.8-12)
Review 8-3 Master Budget (pg. 1.8-13)
Cash Budget (pg. 1.8-14)
Review 8-4 Cash Budget (pg. 1.8-19)
Budgeted Financial Statements (pg. 1.8-19)
Review 8-5 Operating Income Budget (pg. 1.8-22)
Using Budgets for Management Control (pg. 1.8-23)
Review 8-6 Using Budgets for Management Control (pg. 1.8-26)
Comprehensive Chapter Review (pg. 1.8-27)
Key Terms (pg. 1.8-27)
Chapter Summary (pg. 1.8-27)
Solution Strategies (pg. 1.8-28)
Demonstration Problem (pg. 1.8-29)
Potential Ethical Issues (pg. 1.8-31)
Questions (pg. 1.8-32)
Exercises (pg. 1.8-32)
Problems (pg. 1.8-40)
Review Solutions (pg. 1.8-53)
Review 8-1 (pg. 1.8-53)
Review 8-2 (pg. 1.8-53)
Review 8-3 (pg. 1.8-53)
Review 8-4 (pg. 1.8-54)
Review 8-5 (pg. 1.8-54)
Review 8-6 (pg. 1.8-55)
Chapter 9 Break-Even Point and Cost-Volume-Profit Analysis (pg. 1.9-1)
Introduction (pg. 1.9-2)
Break-Even Point (pg. 1.9-2)
Review 9-1 Variable Costing Income Statement (pg. 1.9-4)
Identifying the Break-Even Point (pg. 1.9-4)
Formula Approach to Breakeven (pg. 1.9-4)
Graphing Approach to Breakeven (pg. 1.9-5)
Income Statement Approach (pg. 1.9-7)
Review 9-2 Break-Even Point (pg. 1.9-8)
CVP Analysis (pg. 1.9-8)
Fixed Amount of Profit (pg. 1.9-9)
Specific Amount of Profit per Unit (pg. 1.9-10)
Incremental Analysis for Short-Run Changes (pg. 1.9-12)
Review 9-3 Cost Volume Profit Analysis (pg. 1.9-15)
CVP Analysis in a Multiproduct Environment (pg. 1.9-15)
Review 9-4 Cost Volume Profit Analysis-Multiproduct (pg. 1.9-17)
Managing Risks of CVP Relationships (pg. 1.9-17)
Margin of Safety (pg. 1.9-17)
Operating Leverage (pg. 1.9-18)
Review 9-5 Operating Leverage and Margin of Safety (pg. 1.9-19)
Underlying Assumptions of CVP Analysis (pg. 1.9-20)
Review 9-6 Assumptions of CVP Analysis (pg. 1.9-21)
Comprehensive Chapter Review (pg. 1.9-21)
Key Terms (pg. 1.9-21)
Chapter Summary (pg. 1.9-21)
Solution Strategies (pg. 1.9-23)
Demonstration Problem (pg. 1.9-23)
Potential Ethical Issues (pg. 1.9-25)
Questions (pg. 1.9-25)
Exercises (pg. 1.9-25)
Problems (pg. 1.9-31)
Review Solutions (pg. 1.9-39)
Review 9-1 (pg. 1.9-39)
Review 9-2 (pg. 1.9-39)
Review 9-3 (pg. 1.9-39)
Review 9-4 (pg. 1.9-39)
Review 9-5 (pg. 1.9-40)
Review 9-6 (pg. 1.9-40)
Chapter 10 Relevant Information for Decision Making (pg. 1.10-1)
Introduction (pg. 1.10-2)
The Concept of Relevance (pg. 1.10-2)
Association with Decision (pg. 1.10-2)
Importance to Decision Maker (pg. 1.10-3)
Bearing on the Future (pg. 1.10-3)
Sunk Costs (pg. 1.10-3)
Relevant Costs for Specific Decisions (pg. 1.10-5)
Review 10-1 Determination of Relevant Costs (pg. 1.10-5)
Outsourcing Decisions (pg. 1.10-6)
Review 10-2 Outsourcing Decisions (pg. 1.10-10)
Scarce Resource Decisions (pg. 1.10-11)
Review 10-3 Scarce Resource Decision (pg. 1.10-12)
Sales Mix Decisions (pg. 1.10-13)
Review 10-4 Sales Mix (pg. 1.10-17)
Special Order Decisions (pg. 1.10-17)
Review 10-5 Special Order (pg. 1.10-19)
Product Line and Segment Decisions (pg. 1.10-20)
Review 10-6 Product Line (pg. 1.10-22)
Comprehensive Chapter Review (pg. 1.10-23)
Key Terms (pg. 1.10-23)
Chapter Summary (pg. 1.10-23)
Solution Strategies (pg. 1.10-24)
Demonstration Problem (pg. 1.10-25)
Potential Ethical Issues (pg. 1.10-26)
Questions (pg. 1.10-26)
Exercises (pg. 1.10-26)
Problems (pg. 1.10-32)
Review Solutions (pg. 1.10-43)
Review 10-1 (pg. 1.10-43)
Review 10-2 (pg. 1.10-43)
Review 10-3 (pg. 1.10-44)
Review 10-4 (pg. 1.10-44)
Review 10-5 (pg. 1.10-44)
Review 10-6 (pg. 1.10-45)
Chapter 11 Allocation of Joint Costs and Accounting for By-Product/Scrap (pg. 1.11-1)
Introduction (pg. 1.11-2)
Outputs of a Joint Process (pg. 1.11-2)
The Joint Process (pg. 1.11-3)
The Joint Process Decision (pg. 1.11-6)
Question #1: Will revenue from selling the joint output exceed costs? (pg. 1.11-6)
Question #2: Is the joint process the best use of facilities? (pg. 1.11-6)
Question #3: How are joint process outputs classified? (pg. 1.11-6)
Question #4: Should joint output be sold or processed further? (pg. 1.11-6)
Review 11-1 Classification of Output from a Joint Process (pg. 1.11-8)
Allocation of Joint Cost (pg. 1.11-8)
Physical Measure Allocation (pg. 1.11-9)
Monetary Measure Allocation (pg. 1.11-10)
Review 11-2 Allocation of Joint Costs and Decision on Processing Further (pg. 1.11-14)
Accounting for ByProduct and Scrap (pg. 1.11-15)
Net Realizable Value Approach (pg. 1.11-15)
Realized Value Approach (pg. 1.11-17)
ByProduct and Scrap in Job Order Costing (pg. 1.11-18)
Review 11-3 Accounting for ByProducts (pg. 1.11-19)
Joint Costs in NonManufacturing Businesses and NotforProfit Organizations (pg. 1.11-19)
Review 11-4 Retail Organization Joint Cost (pg. 1.11-21)
Comprehensive Chapter Review (pg. 1.11-21)
Key Terms (pg. 1.11-21)
Chapter Summary (pg. 1.11-21)
Solution Strategies (pg. 1.11-22)
Demonstration Problem (pg. 1.11-23)
Potential Ethical Issues (pg. 1.11-25)
Questions (pg. 1.11-26)
Exercises (pg. 1.11-26)
Problems (pg. 1.11-34)
Review Solutions (pg. 1.11-41)
Review 11-1 (pg. 1.11-41)
Review 11-2 (pg. 1.11-42)
Review 11-3 (pg. 1.11-43)
Review 11-4 (pg. 1.11-43)
Chapter 13 Responsibility Accounting, Support Department Cost Allocations, and Transfer Pricing (pg. 1.13-1)
Introduction (pg. 1.13-2)
Decentralization (pg. 1.13-2)
Review 13-1 Centralization vs. Decentralization (pg. 1.13-4)
Responsibility Accounting Systems (pg. 1.13-5)
Review 13-2 Responsibility Report (pg. 1.13-7)
Types of Responsibility Centers (pg. 1.13-7)
Cost Center (pg. 1.13-8)
Revenue Center (pg. 1.13-8)
Profit Center (pg. 1.13-9)
Investment Center (pg. 1.13-9)
Review 13-3 Responsibility Centers (pg. 1.13-10)
Revenue Variances (pg. 1.13-10)
Review 13-4 Revenue Variances (pg. 1.13-10)
Support Department Cost Allocation (pg. 1.13-11)
Allocation Bases (pg. 1.13-12)
Methods of Allocating Support Department Costs (pg. 1.13-12)
Service Department Cost Allocation Illustration (pg. 1.13-13)
Direct Method Allocation (pg. 1.13-14)
Step Method Allocation (pg. 1.13-15)
Algebraic Method Allocation (pg. 1.13-16)
Determining Overhead Application Rates (pg. 1.13-19)
Review 13-5 Comprehensive Support Department Allocations (pg. 1.13-19)
Transfer Pricing (pg. 1.13-20)
Types of Transfer Prices (pg. 1.13-21)
Selecting a Transfer Pricing System (pg. 1.13-24)
Transfer Prices in Multinational Settings (pg. 1.13-24)
Review 13-6 Transfer Pricing (pg. 1.13-27)
Comprehensive Chapter Review (pg. 1.13-27)
Key Terms (pg. 1.13-27)
Chapter Summary (pg. 1.13-28)
Solution Strategies (pg. 1.13-29)
Demonstration Problem (pg. 1.13-30)
Potential Ethical Issues (pg. 1.13-32)
Questions (pg. 1.13-32)
Exercises (pg. 1.13-33)
Problems (pg. 1.13-38)
Review Solutions (pg. 1.13-51)
Review 13-1 (pg. 1.13-51)
Review 13-2 (pg. 1.13-51)
Review 13-3 (pg. 1.13-51)
Review 13-4 (pg. 1.13-51)
Review 13-6 (pg. 1.13-53)
Chapter 16 Managing Costs and Uncertainty (pg. 1.16-1)
Introduction (pg. 1.16-2)
Cost Control Systems (pg. 1.16-2)
Review 16-1 Cost Control System (pg. 1.16-3)
Understanding Cost Changes (pg. 1.16-3)
Cost Changes Because of Volume Changes (pg. 1.16-4)
Cost Changes Because of Inflation/Deflation (pg. 1.16-4)
Cost Changes Because of Supply/Supplier Cost Adjustments (pg. 1.16-4)
Cost Changes Because of Quantity Purchased (pg. 1.16-5)
Review 16-2 Factors Causing Cost Changes (pg. 1.16-5)
Cost Containment (pg. 1.16-6)
Cost Avoidance and Cost Reduction (pg. 1.16-6)
Review 16-3 Approaches to Cost Control (pg. 1.16-8)
Committed Fixed Costs (pg. 1.16-8)
Discretionary Costs (pg. 1.16-9)
Review 16-4 Identifying Committed and Discretionary Fixed Costs (pg. 1.16-9)
Controlling Discretionary Costs (pg. 1.16-10)
Review 16-5 Controlling Discretionary Costs (pg. 1.16-16)
Cash Management (pg. 1.16-17)
What Variables Influence the Optimal Level of Cash? (pg. 1.16-17)
What Are the Sources of Cash? (pg. 1.16-17)
What Variables Influence the Cost of Carrying Cash? (pg. 1.16-19)
Banking Relationships (pg. 1.16-19)
Review 16-6 Cash Management (pg. 1.16-20)
Coping with Uncertainty (pg. 1.16-20)
The Nature and Causes of Uncertainty (pg. 1.16-21)
Four Strategies for Dealing with Uncertainty (pg. 1.16-22)
Review 16-7 Uncertainty in Estimating Costs (pg. 1.16-25)
Comprehensive Chapter Review (pg. 1.16-26)
Key Terms (pg. 1.16-26)
Chapter Summary (pg. 1.16-26)
Solution Strategies (pg. 1.16-27)
Demonstration Problem (pg. 1.16-28)
Potential Ethical Issues (pg. 1.16-28)
Questions (pg. 1.16-29)
Exercises (pg. 1.16-29)
Problems (pg. 1.16-33)
Review Solutions (pg. 1.16-42)
Review 16-1 (pg. 1.16-42)
Review 16-2 (pg. 1.16-42)
Review 16-3 (pg. 1.16-42)
Review 16-4 (pg. 1.16-42)
Review 16-5 (pg. 1.16-42)
Review 16-6 (pg. 1.16-42)
Review 16-7 (pg. 1.16-42)

Michael R. Kinney

Texas A&M University

Dr. Kinney began his career at Texas A&M University in 1989 after completing the Ph.D. program at the University of Arizona.  In the 31 years following, Dr. Kinney has been involved in teaching courses at all program levels including undergraduate, masters and Ph.D.  In these programs Dr. Kinney has taught courses that span the content areas of management accounting, cost accounting, management control systems, management consulting, corporate taxation, partnership taxation, tax policy, and corporate tax strategies.  In the past twelve years, Dr. Kinney has been teaching exclusively in the Mays (Texas A&M business school) MBA programs in College Station and Houston.   In addition to teaching management accounting in these programs, Dr. Kinney has a substantial role as subject matter expert in the required capstone projects undertaken by all MBA students in their final year of the program.  Also, from 2007 through 2016, Dr. Kinney was Coordinator of the Ph.D. Program in Accounting.  Dr. Kinney retired as a full-time member of the Texas A&M faculty in August of 2018.  He continues to teach management accounting courses in the MBA programs at Texas A&M.

Professor Kinney has been the recipient of several college and departmental teaching awards, an international research award, and a research award from the Academy of Marketing Studies.  He has co-authored numerous academic articles and textbooks in managerial and cost accounting.  In 2015 Dr. Kinney received the Texas A&M Association of Former Students Distinguished Service Award for mentoring graduate students.  In 2018 Dr. Kinney was chosen as the Outstanding Faculty member by the Texas A&M EMBA program.

On a personal note, Dr. Kinney owns and manages a beef cattle operation in Texas with his wife and family.


Cost Accounting, 10e - Foundations & Evolutions (Kinney, Raiborn, Dragoo)
Errata
Last Updated: Oct 19 2022

Corrections to identified errors in the first printing of the text.

Appendix A - PDF
Last Updated: Oct 6 2021

Present Value Tables

Appendix B - PDF
Last Updated: Oct 6 2021

Data Analytics

Data Analytics Files
Last Updated: Oct 6 2021

Data Analytics files for students.

Includes:

  • Data sets to accompany Appendix B: Data Analytics.
  • Errata -- Corrections to identified errors in Appendix B: Data Analytics
Excel Templates - Students
Last Updated: Nov 22 2022

Excel templates for students to go along with identified end-of-chapter assignments.