Introduction to Management Accounting: A User Perspective

This introduction to management accounting and its significant role in making sound business decisions teaches readers how to be wise users, not necessarily preparers of accounting information—a strong user-based approach that is endorsed and supported by the AECC. The authors present accounting information in a broader business context-emphasizing what accounting information is, why it is important, and how it is used to make economic decisions. Specific chapter topics cover classifying costs, determining costs of products, cost behavior, business decisions using cost behavior, making decisions using relevant information, the capital budget: evaluating capital expenditures, the operating budget, standard costing, and evaluating performance. For individuals with a future in management accounting.

Mike Werner and Kumen Jones have crafted an exciting text designed to meet the needs of those faculty and students who are eager to embrace a user perspective in first-year accounting.

Introduction to Management Accounting: A User Perspective, Second Edition, maintains the authors' well-received user approach and places a strong emphasis on decision making. Other unique features include:

• NEW—Separate Chapter on Cost Allocation and ABC (Chapter 4).
• User-Driven Approach to Cost Behavior (Chapters 5 and 6). NEW—Section on using Microsoft Excel for charting and analyzing mixed costs (Chapter 5).
• NEW—Section in the capital budgeting chapter (Chapter 8) on using financial calculators for future value and present value calculations.
• Distinctive Presentation of the Operating Budget (Chapter 9). Part I describes the importance and uses of the operating budget and compares/contrasts various approaches to preparation. Part II shows step-by-step preparation of the budgets that comprise the operating budget and details the use of the operating budget in the overall management process.
• Unique Chapter on Evaluating Performance (Chapter 11) discusses evaluation methods; centralized and decentralized management styles; business segments; return on investment and residual income; the balanced scorecard and nonfinancial measures, such as quality, customer satisfaction, employee morale, employee safety, efficiency, and just-in-time philosophy.