Data Analytics & Excel Skill Development for Career Readiness

The basics of accounting haven’t changed much in hundreds of years, but businesses have experienced significant change in the past decade due to the increased use of new technologies ranging from data analytics and Blockchain to machine learning and artificial intelligence. Technology is rapidly altering how accounting is performed and what can be done with the data once they are collected. In response to the changing demands of the business world, the AACSB has incorporated data analytics requirements within its educational framework. More recently, the AICPA and NASBA have underscored the importance of data analytics by making it a significant element in the CPA Evolution Model Curriculum. The consensus suggests that today’s business students need an understanding and working knowledge of data analytics and data visualization to compete for the best jobs. In addition, employers expect prospective employees to be proficient with Excel.

In recognition of the increasing importance of data analytics and the need for Excel proficiency, the Tenth Edition includes several new features to enhance students' career readiness.

• In many chapters, we use data visualizations to depict financial information. It is important for students to become comfortable interpreting visual depictions of data.
  
  
  
• Each Chapter includes assignments that require students to use Excel and Tableau to hone data analysis and data visualization skills.
  
  
  
  
• Appendix B, at the end of the book, provides an overview of data analytics, data visualization, and best practices for the effective display of data.
  
  
• MBC now contains a series of short videos that demonstrate the basic functions of Excel. These videos can be accessed within MBC as part of your MBC course. In addition, a number of the data analytic problems are accompanied by videos, demonstrating how to complete the assignment or a similar assignment.

Welcome to Managerial Accounting, 10e!

Welcome to the Tenth Edition of Managerial Accounting with Data Analytics. Our book presents managerial accounting in the context of a big-picture, decision-oriented, business setting. It integrates traditional coverage with contemporary topics and does so with an eye toward the general business student because a book is not useful if it is not read. An overriding aim of our book is to engage students to read further and understand the materials presented.

Much has changed in recent years, including the way education is delivered to and consumed by students. Online learning has become mainstream, and today’s students expect extensive digital resources that facilitate learning. Similarly, instructors’ needs have changed. Faculty are being asked to deliver courses online, which requires extensive digital content creation.

In the tenth edition, we embrace the power of technology in the learning process. This product is not so much a textbook as it is an integrated learning system. Although the print textbook can be used on its own, we created extensive digital resources that integrate with and complement the print book. The emphasis in our approach is to provide students with a review problem for each deliberately selected, key learning objective. In this way, students see the application of concepts through a step-by-step illustration and then have the opportunity to immediately practice similar assignments electronically in myBusinessCourse (MBC), our online homework platform. In addition, MBC contains many instructional videos that were created by the authors. The combination of textbook, videos, and online practice comprises an active learning system that recognizes and embraces how today’s students prefer to learn and provides students with the tools to master managerial accounting.

Audience and Approach

Our book is written for all students—not just accounting students. We place managerial accounting in a broad business context, relating it to other business areas. Like the trunk of a tree, our book serves as a strong base for students’ future knowledge growth and as a means of unifying the branches of business management.

Managerial accounting focuses on using financial and nonfinancial information by managers and associates of a firm to make strategic, organizational, and operational decisions. Our book provides a framework for identifying and analyzing decision alternatives and for evaluating success or failure in accomplishing such organizational goals. Although accountants are important in the managerial accounting process, managerial accounting is more about managerial tools than processes. In our era of global competition, continuous  improvement,  process  reengineering, and employee empowerment, the tools of managerial accounting are used by decision makers at all levels, rather than just by “managers."

We emphasize the use of managerial accounting information for decision-making within the context of organizational strategy. The organization and content of our book reflect our belief that students who understand the big picture are better learners, are better decision-makers, and are better able to apply what they learn.

Innovative Pedagogy

Managerial Accounting includes several special features specifically designed to engage students and help them succeed in this course.

Road Maps

Each chapter opens with a grid that identifies each learning objective for the chapter, the related pages, eLecture and Guided Example videos, and end-of-chapter assignments. This allows students and faculty to quickly grasp the chapter contents and to efficiently navigate to the desired topic.

Critical Thinking and Decision-Making

Students appreciate and become more engaged when they can see the real-world relevance of what they are learning in the classroom. We have included a generous number of critical thinking and decision-making questions throughout each chapter. We feel that it is important for students to realize that there is not always one single correct answer for managerial type questions. The following is a representative example:   

ESG Considerations

Demand continues to grow for the consideration of ESG impacts on a company’s operations. Look for the ESG icon throughout the text where we link the chapter’s topic to ESG considerations. ESG items are linked in a variety of ways including the integration into text discussion and as the subject of critical thinking questions and assignments.

Learning Objective Reviews

Accounting can be challenging—especially for students lacking business experience or previous exposure to business courses. To reinforce concepts presented in each chapter and to ensure student comprehension, we include a Review problem at the conclusion of each learning objective. Answers to the Review problems are included at the end of the chapter. Each Review has a corresponding Guided Example video, available to students in myBusinessCourse (MBC), our online learning and homework system. In addition, each Review is assignable in MBC.

Ethics

Managerial ethics receives extensive coverage in this edition. For example, ethics is introduced in the context of the role of management accountants in Chapter 1 in Assignments asking questions that require ethical problem solving are included at the end of each chapter, marked with an ethics icon in the margin.

CMA Examination Questions

The Certified Management Accountant (CMA^®) is a professional certification administered by the Institute of Management Accountants (IMA^®). The purpose of the CMA certificate is to prepare accountants to be strategic thinkers and to analyze data in order to make better business decisions. We include past CMA questions at the end of each chapter. These questions will help students experience how concepts are applied in realistic business situations and give them an advantage if they choose to pursue a career in management accounting and become a CMA. CMA questions are identified by a CMA icon in the margin.

Excellent Assignments

Excellent assignment material is a must-have component of any successful textbook (and class). We went to great lengths to create the best assignments possible. We tried to include assignments that reflect our belief that students should be trained in analyzing accounting information to make business decisions, as opposed to working on mechanical computations. Assignments encourage students to analyze accounting information, interpret it, and apply the knowledge gained to a business decision. There are five categories of assignments: Questions, Mini Exercises, Exercises, Problems, and Cases and Projects. The following is a representative example:

Changes in the 10th Edition

In general, we made significant improvements to the flow of each chapter and enhanced topical coverage.

General Changes

• Expanded the coverage, resources, and assignments related to data analytics and Excel skill development in an effort to enhance career readiness.
• Emphasized critical thinking required in managerial decision-making through new questions inserted within, and directly related to, the chapter content. The authors emphasized questions where there is more than one viable answer to a problem, signaling that there are often no single, correct answers.
• Highlighted ESG implications of each chapter's topics in a variety of ways including new text discussions, critical thinking questions, and end-of-chapter assignments—all marked with an ESG icon.
• Made any necessary adjustments to learning objectives to ensure each learning objective represents a standalone learning unit.
• Streamlined, revamped, and rearranged chapter content to improve the chapter flow.
• Revised, enhanced, and added new chapter exhibits and graphics.
• Updated chapters with new relevant examples.
• Added many new end-of-chapter assignments (over 80 new assignments in total).
• Added new assignments to ensure adequate coverage per learning objective.
• Expanded ethics-related assignments and identified all ethical questions with a unique icon. 
• Added CMA-adapted questions, all identified with a unique icon.
• Added new Excel data analysis assignments in each chapter and directly linked Tableau assignments from Appendix B.
• Referenced a new set of assignments that require students to analyze existing data visualizations.
• Selected a focus company for each chapter. We referenced the focus company for the vast majority of examples within a chapter for a more consistent presentation. In a similar way, we utilized a competitor to the focal company throughout many of the chapter reviews.
• Gleim CMA Review Questions:  Cambridge Business Publishers has partnered with Gleim to provide students with CMA prep materials within MBC that will give them a competitive advantage as they transition from the accounting classroom to taking the CMA Exam.

Chapter-Specific Changes

Chapter One

1. Moved the value chain discussion from Chapter 8 to Chapter 1 to provide better context for later chapters.
2. Added discussion on the CGMA (Chartered Global Management Accountant).
3. Enhanced the discussion in the ethics section to include the IMA standards of ethical conduct and steps to establish an ethical culture.
4. Expanded the initial discussion of ESG implications on managerial accounting topics.

Chapter Two

1. Supplemented the least-squares regression discussion with Excel spreadsheets and expanded Review 2-3 to include related problems.
2. Added new ESG content on responses to environmental issues and the impact on costs.

Chapter Three

1. Shifted focus from the functional statement to the contribution margin statement.
2. Moved income tax implications to the chapter appendix.
3. Added new ESG content in chapter discussion and critical thinking question.

Chapter Four

1. Added new ESG content related to suppliers and added DA4-3 on Scope 3 emissions.
2. Enhanced discussion on discontinuing a segment.

Chapter Five

1. Significantly revamped, reorganized, and streamlined topics and exhibits to improve presentation for students.
2. Moved t-account presentation to the margins allowing faculty to choose between schedule and t-account presentations. Offered assignments with alternative approaches.

Chapter Six

1. Significantly revamped, reorganized, and streamlined topics and exhibits to improve presentation for students.
2. Added discussion on time-driven activity-based costing.
3. Moved appendix on activity-based cost drivers from Chapter 3 to Appendix 6A.

Chapter Seven

1. Added a new section to differentiate between financial statement reporting needs and managerial decision needs.
2. Added a new learning objective on the cost of excess capacity.
3. Showed computations for the various ratios.
4. Added the CGMA Framework to LO7-4.
5. Added new backflush example to LO7-3.

Chapter Eight

1. Added new ESG content to chapter discussion.

Chapter Nine

1. Replaced minimum approach with zero-based budgeting.
2. Deleted open-book management discussion.
3. Differentiated operating budgets from financial budgets.
4. Added background information on budget committees.

Chapter Ten

1. Used the same company and related data for all of the reviews in this chapter for consistency.
2. Added a critical thinking question referencing a sustainability report.

Chapter Eleven

1. Added a new section on cost of quality.
2. Updated dashboard example.
3. Added the ESG considerations on a balanced scorecard.

Chapter Twelve

1. Moved the tax section to the Appendix.
2. Moved models that do not consider the time value of money ahead of the models that do consider the time value of money.
3. Dropped the calculation for the cost of capital.
4. Added new ESG discussion within the chapter’s content.

Appendix A

1. Added numerical examples for vertical and horizontal analysis.
2. Dropped the average interest rate metric.

Supplemental Materials

Our book is part of a comprehensive and carefully prepared teaching package that includes various forms of assistance to both instructors and students.

For Instructors

myBusinessCourse: A web-based learning and assessment program intended to complement your textbook and classroom instruction. This easy-to-use course management system grades homework automatically and provides students with additional help when you are not available. In addition, detailed diagnostic tools assess class and individual performance. myBusinessCourse is ideal for online courses or traditional face-to-face courses for which you want to offer students more resources to succeed. Assignments with the MBC Homework icon in the margin are available in myBusinessCourse. eLecture videos are available for the chapter Learning Objectives, and the Guided Examples for the in-chapter Reviews are available for you to assign to students.

Solutions Manual: Prepared by the authors; contains detailed solutions to all assignments. 

PowerPoint: Prepared by the authors; instructional PowerPoint slides for each chapter enhance the classroom presentation of book materials.

Test Bank: Prepared by the authors; a collection of multiple-choice questions, exercises, and problems designed to save time in preparing and grading periodic and final exams.