Management Accounting, 7e

Information for Decision Making

by Atkinson, Kaplan, Matsumura, Young

ISBN: 978-1-61853-351-7 | Copyright 2020

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Welcome to the Seventh Edition of Management Accounting


Target Audience

We wrote this book to prepare business students at both the graduate and undergraduate level for successful careers as managers in private sector companies, nonprofit and governmental organizations. Successful managers have the ability to make decisions that are aligned with strategic goals, deliver continuous improvement of critical processes, and motivate and align employees with organizational objectives. This book emphasizes the use of measurement and management systems for sustainable value creation.

 

Overview of the Book

The seventh edition of Management Accounting, Information for Decision Making is the only textbook that treats management accounting with a coherent structure and a unified approach, rather than a series of disconnected chapters. This edition delivers an integrated flow of content that tracks the four foundational perspectives in the balanced scorecard (BSC), described by Strategic Finance as one of the major innovations in management accounting in the past 100 years.

  • After an introductory chapter, the book addresses the BSC’s financial perspective, in Chapters 2–4, with an expanded and updated treatment of traditional costing material.
  • Chapter 5 extends traditional costing with the modern time-driven activity-based costing (TDABC) approach for measuring product costs and profitability, with implications for decisions about pricing, product mix, and process efficiencies. The chapter includes a new section on applying TDABC to health care and a new case based on this content.
  • Chapter 6 follows with a chapter, unique to this textbook, on customer costing, customer profitability, and customer performance measurement. This chapter provides the measurement foundations for the BSC’s customer perspective.
  • The next two chapters provide in-depth treatment of the concepts and measurements for BSC’s process perspective. Chapter 7 covers process costing and improvement. Chapter 8 introduces life-cycle, environmental, and innovation costing,
  • Employee motivation in Chapter 9 provides the content for the BSC’s learning and growth perspective.
  • Finally, Chapter 10, contains in-depth coverage of the BSC and strategy maps, bringing the content of all the previous chapters together. It demonstrates how to create and align the metrics in all four BSC perspectives to a company’s strategy, enabling the BSC to be used to describe, communicate, and implement an organization’s strategy.
  • The book concludes with Chapter 11 on using budgets for planning and coordination, and Chapter 12 on financial control over responsibility centers.

Decision Making Orientation

The author team consists of top scholars who have served as advisers to small, medium-sized, and large enterprises in the private, nonprofit, and public sectors. They present a conceptually sound and practically relevant perspective on the role of management accounting information in informing important decisions made by business managers, aligning employees and organizational units with strategic objectives, driving continuous process improvements, and influencing the design of products and services. The seventh edition provides problems and cases drawn from the authors’ practical experience, including cases from the Institute of Management Accountants (IMA) and one from Harvard Business School that engage students in strategic and organizational analyses. This action orientation makes the text an excellent fit for management accounting courses taught from a managerial perspective. Although this text is primarily intended for business and accounting students, it will also be useful to practicing managers who would benefit from understanding how to mobilize management accounting to drive value in their organizations.

Chapter Opening Scenarios

Each chapter opens with a Business Scenario that provides students with an opportunity to apply the chapter concepts to a realistic business situation. These scenarios engage students in real analysis and interpretation across a variety of industries.



Each chapter then closes with an Epilogue to the Business Scenario which includes an in-depth analysis of the company introduced at the beginning of the chapter and applies the relevant concepts discussed throughout the chapter.


In Practice Boxes

These boxed inserts help students bridge the gap between the classroom and what students might encounter in the real world. In Practice illustrations present situations a manager might encounter and present choices they face in making decisions.





  • Chapters 2–4 include an expanded and updated treatment of traditional costing material.
  • Chapter 5 includes a new section on applying TDABC to health care and a new case based
  • on this content.
  • Chapter 11 includes a new expanded discussion on budgeting and variance analysis.
  • Updated financial data and assignments throughout the text.

  • Test Bank—over 1,200 test questions.
  • Solutions Manual—solutions for every question, exercise, problem, and HBS case study.
  • PowerPoint slides—presentations for every chapter.
  • Website—All instructor materials are accessible via the book’s Website (password protected) along with other useful links and information.

Example of the Road Map & video features available for each chapter.

Click on a Chapter 5 eLecture to preview the related video.

Road Map
LO Learning Objective | Topics Page eLecture Assignments
LO5-1

Understand how volume-based cost systems distort product costs.

116

1, 2, 3, 14, 15, 21, 29, 30, 31, 32, 33, 34, 37

LO5-2

Describe why companies producing a more varied and complex mix of products have higher cost then companies producing only a narrow range of products.

118

1, 2, 3, 4, 14, 34, 38

LO5-3

Design an activity based costing (ABC) system that directly traces resource costs to products.

119

5, 6, 15, 16, 17, 18, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31, 32, 33, 35, 37, 38, 39

LO5-4

Use the information from an ABC system to improve operations and make better decisions about products.

124

7, 14, 21, 25, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39

LO5-5

Understand the importance of measuring the practical capabity of resources and the cost of unused capacity.

125

8, 9, 18, 19, 22, 23, 24, 25, 26, 27, 28, 38, 39

LO5-6

Appreciate the role for ABC systems for service companies, such as financial and health-care organizations.

131

10, 11, 20, 27, 28, 30, 36, 38, 39

LO5-7

Discuss the barriers for implementing ABC systems and how these might be overcome.

135

12, 37

Expand/Collapse All
About the Authors (pg. iii)
Preface (pg. v)
Brief Table of Contents (pg. x)
Contents (pg. xi)
Chapter 1 How Management Accounting Information Supports Decision Making (pg. 1)
What Is Management Accounting? (pg. 3)
Management Accounting and Financial Accounting (pg. 3)
A Brief History of Management Accounting (pg. 3)
The Balanced Scorecard: Management Accounting’s Solution for Measuring Intangible Assets (pg. 5)
Behavioral Implications of Management Accounting Information (pg. 6)
Book Structure (pg. 6)
Summary (pg. 7)
Key Terms (pg. 7)
Assignment Materials (pg. 7)
Questions (pg. 7)
Exercises (pg. 7)
Problems (pg. 8)
Cases (pg. 8)
Chapter 2 Using Costs in Decision Making (pg. 10)
How Management Accounting Supports Internal Decision Making (pg. 11)
Pricing (pg. 11)
Product Planning (pg. 11)
Budgeting (pg. 11)
Performance Evaluation (pg. 11)
Contracting (pg. 11)
Important Cost Terms (pg. 11)
Cost Objects, Direct Costs, and Indirect Costs (pg. 12)
Variable Costs (pg. 12)
Cost Drivers and Cost Driver Rates (pg. 13)
Fixed Costs (pg. 13)
Mixed Cost (pg. 15)
Labor Costs: Variable or Fixed? (pg. 15)
Total Cost (pg. 15)
Cost Behavior Estimation (pg. 15)
High-Low Method to Estimate Cost Behavior (pg. 16)
Visual Inspection Method to Estimate Cost Behavior (pg. 16)
Statistical Approach Method to Estimate Cost Behavior (pg. 17)
Cost-Volume-Profit Analysis (pg. 17)
Developing and Using the CVP Equation (pg. 18)
Introducing Uncertainty into Cost Volume Profit Analysis (pg. 19)
Taxes and CVP Analysis (pg. 20)
Financial Modeling and What-If Analysis (pg. 21)
The Multi Product Firm (pg. 21)
Epilogue to Kitchen Magic (pg. 22)
Summary (pg. 24)
Key Terms (pg. 24)
Assignment Materials (pg. 24)
Questions (pg. 24)
Exercises (pg. 24)
Chapter 3 Decision Making and Management Accounting Information (pg. 38)
Cost Definitions Important in Decision Making (pg. 39)
Manufacturing Costs (pg. 39)
Incremental Costs (pg. 39)
Sunk Costs (pg. 39)
Relevant Cost (pg. 40)
Avoidable Cost (pg. 40)
Opportunity Cost (pg. 41)
Relevant Cost Analysis in Decision Making (pg. 43)
Make or Buy-the Outsourcing Decision (pg. 43)
The Decision to Drop a Product or Division (pg. 46)
Costing Special Orders (pg. 48)
Costing Special Orders and Opportunity Cost Considerations (pg. 48)
Relevant Cost and Short-Term Product Mix Decisions (pg. 49)
Epilogue to Iris Company (pg. 50)
Key Terms (pg. 51)
Assignment Materials (pg. 51)
Questions (pg. 51)
Exercises (pg. 52)
Problems (pg. 63)
Cases (pg. 70)
Chapter 4 Accumulating and Assigning Costs to Products (pg. 76)
Cost Management Systems (pg. 77)
Cost Flows in Organizations (pg. 77)
Manufacturing Organizations (pg. 77)
Retail Organizations (pg. 77)
Service Organizations (pg. 78)
Going Forward (pg. 79)
Handling Indirect Costs in a Manufacturing Environment (pg. 79)
Single Indirect Cost Pools (pg. 80)
Multiple Indirect Cost Pools (pg. 81)
Cost Pool Homogeneity (pg. 83)
Cambridge Chemicals (pg. 83)
Raul Company (pg. 84)
Overhead Allocation: Further Issues (pg. 85)
Using Planned Capacity Cost (pg. 85)
Reconciling Actual and Applied Capacity Costs (pg. 85)
Cost Driver Level (pg. 86)
Job Order Costing Systems (pg. 88)
Job Order Costing (pg. 88)
Process Costing Systems (pg. 88)
The National Mint (pg. 89)
Selkirk Manufacturing-the Container Division (pg. 89)
Epilogue to Lin’s Custom Framing (pg. 95)
Summary (pg. 96)
Appendix 4-1 (pg. 96)
Allocating Service Department Costs (pg. 96)
Key Terms (pg. 100)
Assignment Materials (pg. 100)
Questions (pg. 100)
Exercises (pg. 100)
Problems (pg. 106)
Cases (pg. 111)
Chapter 5 Activity-Based Costing Systems (pg. 114)
Traditional Manufacturing Costing Systems (pg. 116)
Limitations of Madison’s Existing Standard Cost System (pg. 118)
Activity-Based Costing (pg. 119)
Calculating Resource Capacity Cost Rates (pg. 120)
Calculating Resource Time Usage per Product (pg. 121)
Calculating Product Cost and Profitability (pg. 122)
Possible Actions as a Result of the More Accurate Costing (pg. 124)
Measuring the Cost of Unused Resource Capacity (pg. 125)
Fixed Costs and Variable Costs in Activity-Based Cost Systems (pg. 126)
Using ABC for Budgeting and Resource Capacity Planning (pg. 127)
Updating the ABC Model (pg. 130)
Service Companies (pg. 131)
Capacity Cost Rate (pg. 132)
Time Equation for the Consumption of Broker’s Capacity (pg. 132)
Implementation Issue (pg. 135)
Lack of Clear Business Purpose (pg. 135)
Lack of Senior Management Commitment (pg. 136)
Delegating the Project to Consultants (pg. 136)
Poor ABC Model Design (pg. 136)
Individual and Organizational Resistance to Change (pg. 137)
People Feel Threatened (pg. 137)
Epilogue to Madison Dairy (pg. 137)
Summary (pg. 138)
Appendix 5-1 (pg. 138)
Historical Origins of ABC (pg. 138)
Key Terms (pg. 141)
Assignment Materials (pg. 141)
Questions (pg. 141)
Exercises (pg. 141)
Problems (pg. 144)
Cases (pg. 152)
Chapter 6 Measuring and Managing Customer Relationships (pg. 161)
Measuring Customer Profitability: Extending the Madison Dairy Case (pg. 162)
Reporting and Displaying Customer Profitability (pg. 163)
Customer Costs in Service Companies (pg. 166)
Increasing Customer Profitability (pg. 166)
Process Improvements (pg. 167)
Activity-Based Pricing (pg. 167)
Managing Relationships (pg. 167)
The Pricing Waterfall (pg. 168)
Salesperson Incentives (pg. 172)
Life-Cycle Profitability (pg. 172)
Measuring Customer Performance with Nonfinancial Metrics (pg. 174)
Customer Satisfaction (pg. 174)
Customer Loyalty (pg. 175)
The Net Promoter Score (pg. 177)
Epilogue to Madison Dairy (pg. 178)
Summary (pg. 178)
Key Terms (pg. 179)
Assignment Materials (pg. 179)
Questions (pg. 179)
Exercises (pg. 179)
Problems (pg. 184)
Case (pg. 186)
Chapter 7 Measuring and Managing Process Performance (pg. 187)
Process Perspective and Management Accounting Information (pg. 189)
The Plan-Do-Check-Act (PDCA) Cycle (pg. 189)
Facility Layout Systems (pg. 191)
Process Layouts (pg. 192)
Product Layouts (pg. 192)
Group Technology (pg. 194)
Inventory Costs and Processing Time (pg. 194)
Inventory and Processing Time (pg. 194)
Inventory-Related Costs (pg. 195)
Costs and Benefits of Changing to a New Layout: An Example Using Group Technology (pg. 195)
Summary of Costs and Benefits (pg. 200)
Cost of Nonconformance and Quality Issues (pg. 200)
Quality Standards (pg. 201)
Costs of Quality Control (pg. 202)
Just-in-Time Manufacturing (pg. 203)
Implications of JIT Manufacturing (pg. 203)
JIT Manufacturing and Management Accounting (pg. 204)
Kaizen Costing (pg. 204)
Comparing Traditional Cost Reduction to Kaizen Costing (pg. 205)
Concerns about Kaizen Costing (pg. 206)
Benchmarking (pg. 206)
Stage 1: Internal Study and Preliminary Competitive Analyses (pg. 207)
Stage 2: Developing Long-Term Commitment to the Benchmarking Project and Coalescing the Benchmarking (pg. 207)
Stage 3: Identifying Benchmarking Partners (pg. 208)
Stage 4: Information-Gathering and Sharing Methods (pg. 208)
Stage 5: Taking Action to Meet or Exceed the Benchmark (pg. 210)
Epilogue to Blast from the Past Robot Company (pg. 211)
Production Flows (pg. 211)
Effects on Work-in-Process Inventory (pg. 212)
Effect on Production Costs (pg. 212)
Cost of Rework (pg. 213)
Cost of Carrying Work-in-Process Inventory (pg. 214)
Benefits from Increased Sales (pg. 214)
Summary of Costs and Benefits (pg. 215)
Summary (pg. 215)
Key Terms (pg. 215)
Assignment Materials (pg. 216)
Questions (pg. 216)
Exercises (pg. 217)
Problems (pg. 217)
Cases (pg. 221)
Chapter 8 Measuring and Managing Innovation and Life-Cycle Costs (pg. 230)
Managing Products over Their Life Cycle (pg. 231)
Research, Development, and Engineering Stage (pg. 232)
Manufacturing Stage (pg. 232)
Postsale Service and Disposal Stage (pg. 233)
Target Costing (pg. 233)
Concerns about Target Costing (pg. 236)
Breakeven Time: A Comprehensive Metric for New Product Development (pg. 237)
Measuring Innovation (pg. 240)
Environmental Costing (pg. 241)
Measuring and Controlling Environmental Costs (pg. 241)
Summary (pg. 244)
Key Terms (pg. 244)
Assignment Materials (pg. 244)
Questions (pg. 244)
Exercises (pg. 245)
Problems (pg. 246)
Cases (pg. 248)
Chapter 9 Behavioral and Organizational Issues in Management Accounting and Control Systems (pg. 253)
What Are Management Accounting and Control Systems? (pg. 254)
The Meaning of “Control” (pg. 254)
Characteristics of a Well-Designed MACS (pg. 255)
Technical Considerations (pg. 255)
Behavioral Considerations (pg. 255)
The Human Resource Management Model of Motivation (pg. 256)
The Organization’s Ethical Code of Conduct and MACS Design (pg. 256)
Avoiding Ethical Dilemmas (pg. 257)
Dealing with Ethical Conflicts (pg. 257)
The Elements of an Effective Ethical Control System (pg. 260)
Steps in Making an Ethical Decision (pg. 260)
Motivation and Congruence (pg. 261)
Task and Results Control Methods (pg. 261)
Using a Mix of Performance Measures: A Balanced Scorecard Approach (pg. 263)
The Need for Multiple Measures of Performance: Non-Goal-Congruent Behavior (pg. 263)
Dysfunctional Behavior (pg. 264)
Using the Balanced Scorecard to Align Employees to Corporate Goals and Business Unit Objectives (pg. 264)
Change Management (pg. 265)
Empowering Employees to Be Involved in MACS Design (pg. 265)
Participation in Decision Making (pg. 265)
Education to Understand Information (pg. 266)
Behavioral Aspects of MACS Design: An Example from Budgeting (pg. 266)
Designing the Budget Process (pg. 267)
Influencing the Budget Process (pg. 268)
Developing Appropriate Incentive Systems to Reward Performance (pg. 269)
Choosing between Intrinsic and Extrinsic Rewards (pg. 270)
Extrinsic Rewards Based on Performance (pg. 270)
Effective Performance Measurement and Reward Systems (pg. 271)
Conditions Favoring Incentive Compensation (pg. 272)
Incentive Compensation and Employee Responsibility (pg. 272)
Rewarding Outcomes (pg. 273)
Managing Incentive Compensation Plans (pg. 273)
Types of Incentive Compensation Plans (pg. 274)
Epilogue to Advanced Cellular International and Chapter Summary (pg. 278)
Key Terms (pg. 279)
Assignment Materials (pg. 280)
Questions (pg. 280)
Exercises (pg. 281)
Problems (pg. 282)
Cases (pg. 287)
Chapter 10 The Balanced Scorecard and Strategy Map (pg. 297)
The Balanced Scorecard (pg. 300)
Strategy (pg. 303)
Balanced Scorecard Objectives, Measures, and Targets (pg. 303)
Creating a Strategy Map (pg. 304)
Financial Perspective (pg. 305)
Customer Perspective (pg. 306)
Process Perspective (pg. 309)
Learning and Growth Perspective (pg. 310)
Organization Culture and Alignment (pg. 312)
Strategy Map and Balanced Scorecard at Pioneer Petroleum (pg. 312)
Financial Perspective (pg. 313)
Customer Perspective (pg. 313)
Process Perspective (pg. 315)
Learning and Growth Perspective (pg. 316)
Applying the Balanced Scorecard to Nonprofit and Government Organizations (pg. 317)
Barriers to Effective Use of the Balanced Scorecard (pg. 320)
Epilogue to Pioneer Petroleum (pg. 322)
Summary (pg. 322)
Key Terms (pg. 323)
Assignment Materials (pg. 323)
Questions (pg. 323)
Exercises (pg. 324)
Problems (pg. 325)
Cases (pg. 326)
Chapter 11 Using Budgets for Planning and Coordination (pg. 329)
Determining the Levels of Capacity-Related and Flexible Resources (pg. 330)
The Budgeting Process (pg. 331)
The Role of Budgets and Budgeting (pg. 331)
The Elements of Budgeting (pg. 333)
Behavioral Considerations in Budgeting (pg. 333)
Budget Components (pg. 333)
Operating Budgets (pg. 334)
Financial Budgets (pg. 335)
The Budgeting Process Illustrated (pg. 335)
Oxford Tole Art, Buoy Division (pg. 335)
Sales Plan (pg. 336)
The Production Plan (pg. 337)
Developing the Spending Plans (pg. 338)
Choosing the Capacity Levels (pg. 339)
Handling Infeasible Production Plans (pg. 341)
Interpreting the Production Plan (pg. 341)
The Financial Plans (pg. 342)
Understanding the Cash Flow Statement (pg. 342)
Using the Financial Plans (pg. 345)
Using the Projected Results (pg. 346)
What-If Analysis (pg. 346)
Evaluating Decision-Making Alternatives (pg. 347)
Sensitivity Analysis (pg. 347)
Comparing Actual and Planned Results (pg. 348)
Variance Analysis (pg. 348)
Basic Variance Analysis (pg. 349)
Horton Company (pg. 349)
First-Level Variances (pg. 351)
Decomposing the Variances (pg. 353)
Planning and Flexible Budget Variances (pg. 353)
Quantity and Price Variances for Material and Labor (pg. 353)
Sales Variances (pg. 357)
The Role of Budgeting in Service and Not-for-Profit Organizations (pg. 362)
Periodic and Continuous Budgeting (pg. 362)
Controlling the Discretionary Expenditures (pg. 363)
Incremental Budgeting (pg. 363)
Zero-Based Budgeting (pg. 363)
Project Funding (pg. 364)
Managing the Budgeting Process (pg. 364)
Criticisms of the Traditional Budgeting Model and the Beyond Budgeting Approach (pg. 364)
Southwest Regional Health Center-Epilogue (pg. 365)
Summary (pg. 366)
Key Terms (pg. 367)
Assignment Materials (pg. 367)
Questions (pg. 367)
Exercises (pg. 368)
Problems (pg. 370)
Cases (pg. 382)
Chapter 12 Financial Control (pg. 388)
The Environment of Financial Control (pg. 389)
Financial Control (pg. 389)
The Motivation for Decentralization (pg. 389)
Responsibility Centers and Evaluating Unit Performance (pg. 391)
Coordinating Responsibility Centers (pg. 392)
Responsibility Centers and Financial Control (pg. 393)
Responsibility Center Types (pg. 394)
Evaluating Responsibility Centers (pg. 396)
Transfer Pricing (pg. 402)
Approaches to Transfer Pricing (pg. 402)
Transfer Prices Based on Equity Considerations (pg. 405)
Assigning and Valuing Assets in Investment Centers (pg. 406)
The Efficiency and Productivity Elements of Return on Investment (pg. 406)
Assessing Productivity Using Financial Control (pg. 408)
Questioning the Return on Investment Approach (pg. 408)
Using Residual Income (pg. 409)
The Efficacy of Financial Control (pg. 411)
Epilogue to Adrian’s Home Services (pg. 412)
Summary (pg. 414)
Key Terms (pg. 414)
Assignment Materials (pg. 414)
Questions (pg. 414)
Exercises (pg. 415)
Problems (pg. 418)
Cases (pg. 422)
Index (pg. I-1)
Anthony A. Atkinson

Anthony A. Atkinson

Anthony Atkinson holds a professional teaching position in Wilfrid Laurier University’s Lazaridis School of Business & Economics.

Anthony Atkinson holds a professional teaching position in Wilfrid Laurier University’s Lazaridis School of Business & Economics. Tony earned a bachelor of commerce and M.B.A. degrees from Queen’s University in Kingston, Ontario, and M.Sc. and Ph.D. degrees in industrial administration from Carnegie-Mellon University in Pittsburgh. Atkinson is a fellow (FCPA) of the Chartered Professional Accountants of Ontario (CPA Ontario) and has written or coauthored three texts, five monographs on management accounting practice, a volume of management accounting standards for CMA Ontario (now CPA Ontario), and more than 35 articles on performance measurement and costing. In 1989, the Canadian Academic Accounting Association awarded Atkinson the Haim Falk Prize for Distinguished Contribution to Accounting Thought. He has served on the editorial boards of two professional and five academic journals and is a past editor of the Journal of Management Accounting Research. Atkinson also served as a member of the Canadian government’s Cost Standards Advisory Committee, for which he developed the costing principles it now requires of government contractors.



Robert S. Kaplan

Robert S. Kaplan

Robert S. Kaplan is Senior Fellow and Marvin Bower Professor of Leadership Development Emeritus at the Harvard Business School, where he has taught for 35 years.

Robert S. Kaplan is Senior Fellow and Marvin Bower Professor of Leadership Development Emeritus at the Harvard Business School, where he has taught for 35 years. Previously, he served on the faculty and as Dean of the Tepper Business School at Carnegie-Mellon University. Kaplan received a B.S. and M.S. in electrical engineering from M.I.T., a Ph.D. in operations research from Cornell University, and several honorary doctorates from international universities.

Kaplan is co-creator of both activity-based costing and the balanced scorecard (BSC). He currently works on the Harvard Business School Value Based Health Care initiative, introducing time-driven activity-based costing (TDABC) and value-based bundled payments to health care. He is also applying his BSC strategy execution framework to help corporations develop profit-making strategies that mitigate societal problems of environmental degradation, poverty, and inequality.

Kaplan has done extensive writing, teaching, and consulting on linking cost and performance management systems to strategy implementation. His 14 authored or co-authored books have won numerous prizes and been translated into 28 languages. He has published nearly 200 papers including 27 in Harvard Business Review. Kaplan was inducted into the Accounting Hall of Fame in 2006 and received the Lifetime Contribution Award from the Management Accounting Section of the American Accounting Association in January 2006. In 2008, his co-authored book, Relevance Lost: The Rise and Fall of Management Accounting, received the AAA Seminal Contribution to Accounting Literature Award. His articles and books have also been recognized with several Wildman Medal and AAA Notable Contributions to Accounting Literature Awards. 


Ella Mae Matsumura

Ella Mae Matsumura

Ella Mae Matsumura is the Robert and Monica Beyer Professor of Accounting and also Senior Associate Dean of Academic Programs at the Wisconsin School of Business, University of Wisconsin-Madison.

Ella Mae Matsumura is the Robert and Monica Beyer Professor of Accounting and also Senior Associate Dean of Academic Programs at the Wisconsin School of Business, University of Wisconsin-Madison. She serves on the Executive Committee of the university’s Center for Quick Response Manufacturing (which analyzes manufacturing and nonmanufacturing organizational processes) in the College of Engineering. She received an A.B. in mathematics from the University of California, Berkeley, and M.Sc. and Ph.D. degrees from the University of British Columbia. Matsumura has won two teaching excellence awards at the University of Wisconsin-Madison and was elected as a lifetime fellow of the university’s
Teaching Academy, formed to promote effective teaching.

Professor Matsumura was a co-winner of the 2010 Notable Contributions to Management Accounting Literature Award (with Jae Yong Shin) and the 2019 Best Journal of Management Accounting Research Paper Award (with Jason Schloetzer). She has served in numerous leadership positions in the American Accounting Association (AAA), including secretary–treasurer and president of the AAA’s Management Accounting Section. She was coeditor of Accounting Horizons and has chaired and served on numerous AAA committees. She currently serves on the editorial boards of several accounting journals. Her past and current research articles focus on decision making, performance evaluation, compensation, supply chain relationships, sustainability, and creativity. She coauthored a monograph on customer profitability analysis in credit unions.


S. Mark Young

S. Mark Young

S. Mark Young holds the George Bozanic and Holman G. Hurt Chair in Sports and Entertainment Business at the University of Southern California. Dr. Young is also a Professor of Accounting in the Leventhal School of Accounting and holds joint appointments as Professor of Management and Organization in the Marshall School of Business, and Professor of Communication and Journalism in the Annenberg School of Communication.

S. Mark Young holds the George Bozanic and Holman G. Hurt Chair in Sports and Entertainment Business at the University of Southern California. Dr. Young is also a Professor of Accounting in the Leventhal School of Accounting and holds joint appointments as Professor of Management and Organization in the Marshall School of Business, and Professor of Communication and Journalism in the Annenberg School of Communication. He was also a Special Term Professor at Peking University. Professor Young received an A.B. from Oberlin College (Economics), an M. Acc. from the Ohio State University, and a Ph.D. (Accounting) from the University of Pittsburgh.

Young has won the Notable Contribution to the Management Accounting Literature Award three times (with F. Selto, S. Anderson and F. Du and G. Tang) and the Notable Contribution to the Accounting Literature Award (with S. Anderson). In addition he has won several teaching awards at the undergraduate and graduate levels and has consulted with numerous companies. He has been interviewed in the media most notably by the BBC’s Newsday, The View, The Howard Stern Show, ABC News, The Economist, Financial Times, the New York Times, The Guardian and National Public Radio.

Professor Young has also written two other books on popular culture including The Mirror Effect: How Celebrity Narcissism is Seducing America (with D. Pinsky), which was a New York Times Best Seller and Trojan Tennis—A History of the Storied Men’s Tennis Team at the University of Southern California.


Errata
Last Updated: Jul 17 2023

Corrections to identified errors in the printed text.

Chapter 7 - TDABC: Solving the Health Care Cost Crisis
Last Updated: Apr 14 2020

Click on the blue links below to access the files:

Chapter 7 - TDABC: Harvard Business Review interview with Robert Kaplan and Michael Porter. Solving the Health Care Cost Crisis. 

Chapter 7 - TDABC: Author Robert Kaplan discusses the health care cost crisis. Working to Solve Health Care Cost Crisis.  

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