Accounting for Managers: Interpreting Accounting Information for Decision Making, 4th Edition

Accounting for Managers: Interpreting Accounting Information for Decision Making, 4th Edition

Released March 2012
Publisher(s): Wiley
ISBN: 9781119979678

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Book description

Updated and revised, the new fourth edition of Accounting for Managers builds on the international success of the previous editions in explaining how accounting is used by non-financial managers.

Emphasizing the interpretation rather than the construction of accounting information, Accounting for Managers encourages a critical, rather than an unthinking acceptance of accounting techniques. Whilst immensely valuable for planning, decision-making and control, users of accounting information need to recognize the assumptions behind, and the limitations of particular accounting techniques. As in the previous editions, Accounting for Managers links theory with practical examples and case studies drawn from real business situations across a wide range of manufacturing, retail and service industries.

Table of contents

  1. Cover
  2. Contents
  3. Title
  4. Copyright
  5. Dedication
  6. Preface to the Fourth Edition
  7. About the Author
  8. Acknowledgements
  9. Part I: Context of Accounting
    1. Chapter 1: Introduction to Accounting
      1. Accounting, accountability and the account
      2. Introducing the functions of accounting
      3. A short history of accounting
      4. The role of financial accounting
      5. The role of management accounting
      6. Recent developments in accounting
      7. The relationship between financial accounting and management accounting
      8. A critical perspective
      9. Conclusion
      10. References
      11. Questions
    2. Chapter 2: Accounting and its Relationship to Shareholder Value and Corporate Governance
      1. Capital and product markets
      2. Shareholder value-based management
      3. Shareholder value, strategy and accounting
      4. Company regulation and corporate governance
      5. Risk management, internal control and accounting
      6. A critical perspective
      7. Conclusion
      8. References
      9. Websites
      10. Questions
    3. Chapter 3: Recording Financial Transactions and the Principles of Accounting
      1. Business events, transactions and the accounting system
      2. The double entry: recording transactions
      3. Extracting financial information from the accounting system
      4. Basic principles of accounting
      5. Cost terms and concepts: the limitations of financial accounting
      6. Conclusion
      7. References
      8. Questions
    4. Chapter 4: Management Control, Accounting and its Rational-Economic Assumptions
      1. Management control systems
      2. Planning and control in organizations
      3. Non-financial performance measurement
      4. A theoretical framework for accounting
      5. Conclusion
      6. References
      7. Websites
    5. Chapter 5: Interpretive and Critical Perspectives on Accounting and Decision Making
      1. Research and theory in management control and accounting
      2. Alternative paradigms
      3. The interpretive paradigm and the social construction perspective
      4. Culture, control and accounting
      5. The radical paradigm and critical accounting
      6. Power and accounting
      7. Ethics and accounting
      8. Conclusion
      9. References
  10. Part II: The Use of Financial Statements for Decision Making
    1. Chapter 6: Constructing Financial Statements: IFRS and the Framework of Accounting
      1. International Financial Reporting Standards (IFRS)
      2. Framework for the Preparation and Presentation of Financial Statements
      3. True and fair view
      4. Reporting profitability: the Statement of Comprehensive Income
      5. Reporting financial position: the Statement of Financial Position
      6. Accruals accounting
      7. Depreciation
      8. Specific IFRS accounting treatments
      9. Reporting cash flow: the Statement of Cash Flows
      10. Differences between the financial statements
      11. A theoretical perspective on financial statements
      12. A critical perspective on financial statements and accounting standards
      13. Conclusion
      14. Reference
      15. Websites
      16. Appendix: IFRS as at 1 January 2011
      17. Questions
    2. Chapter 7: Interpreting Financial Statements
      1. Annual Reports
      2. The context of financial statements
      3. Ratio analysis
      4. Profitability
      5. Liquidity
      6. Gearing
      7. Activity/efficiency
      8. Working capital
      9. Managing receivables
      10. Managing inventory
      11. Managing payables
      12. Managing working capital
      13. Shareholder return
      14. The relationship between financial ratios
      15. Interpreting financial statements using ratios
      16. Using the Statement of Cash Flows
      17. Limitations of ratio analysis
      18. Alternative theoretical perspectives on financial statements
      19. Intellectual capital
      20. Institutional theory
      21. Corporate social responsibility
      22. Sustainability and the ‘triple bottom line’
      23. Applying different perspectives to financial statements
      24. Conclusion
      25. References
      26. Website
      27. Questions
    3. Chapter 8: Accounting for Inventory
      1. Introduction to inventory
      2. Methods of costing inventory in manufacturing
      3. Management accounting statements
      4. Conclusion
      5. Questions
  11. Part III: Using Accounting Information for Decision Making, Planning and Control
    1. Chapter 9: Accounting and Information Systems
      1. Introduction to accounting and information systems
      2. Methods of data collection
      3. Types of information system
      4. Business processes
      5. Internal controls for information systems
      6. Developing information systems
      7. Conclusion
      8. References
    2. Chapter 10: Marketing Decisions
      1. Marketing strategy
      2. Cost behaviour
      3. Cost–volume–profit analysis
      4. Alternative approaches to pricing
      5. Segmental profitability
      6. Customer profitability analysis
      7. Conclusion
      8. References
      9. Questions
    3. Chapter 11: Operating Decisions
      1. The operations function
      2. Managing operations – manufacturing
      3. Managing operations – services
      4. Accounting for the cost of spare capacity
      5. Capacity utilization and product mix
      6. Theory of Constraints
      7. Operating decisions: relevant costs
      8. Total quality management and the cost of quality
      9. Environmental cost management
      10. Conclusion
      11. References
      12. Questions
    4. Chapter 12: Human Resource Decisions
      1. Human resources and accounting
      2. The cost of labour
      3. Relevant cost of labour
      4. Conclusion
      5. References
      6. Questions
    5. Chapter 13: Overhead Allocation Decisions
      1. Cost classification
      2. The overhead allocation problem
      3. Shifts in management accounting thinking
      4. Alternative methods of overhead allocation
      5. Activity-based costing
      6. Differences between absorption and activity-based costing
      7. Contingency theory
      8. International comparisons
      9. Behavioural implications of management accounting
      10. Conclusion
      11. References
      12. Questions
    6. Chapter 14: Strategic Investment Decisions
      1. Strategy
      2. Capital expenditure evaluation
      3. Accounting rate of return
      4. Payback
      5. Discounted cash flow
      6. Comparison of techniques
      7. Conclusion
      8. References
      9. Appendix: Present value factors
      10. Questions
    7. Chapter 15: Performance Evaluation of Business Units
      1. Structure of business organizations
      2. The decentralized organization and divisional performance measurement
      3. Controllability
      4. Transfer pricing
      5. Transaction cost economics
      6. Conclusion: a critical perspective
      7. References
      8. Questions
    8. Chapter 16: Budgeting
      1. What is budgeting?
      2. The budgeting process
      3. The profit budget
      4. Cash forecasting
      5. A behavioural perspective on budgeting
      6. A critical perspective: beyond budgeting?
      7. Conclusion
      8. References
      9. Questions
    9. Chapter 17: Budgetary Control
      1. What is budgetary control?
      2. Flexible budgeting
      3. Variance analysis
      4. Reconciling the variances
      5. Criticism of variance analysis
      6. Cost control
      7. Applying different perspectives to management accounting
      8. Conclusion
      9. References
      10. Questions
    10. Chapter 18: Strategic Management Accounting
      1. Strategic management accounting
      2. Accounting techniques to support strategic management accounting
      3. Backflush costing
      4. Lean production and lean accounting
      5. Conclusion
      6. References
      7. Further reading
  12. Part IV: Supporting Information
    1. Introduction to the Readings
      1. Reading A
      2. How Cost Accounting Distorts Product Costs
      3. Reading B
      4. Research in Management Control: An Overview of its Development
      5. Reading C
      6. Managerial Accounting Research: The Contributions of Organizational and Sociological Theories
      7. Reading D
      8. Accounting and Organizational Cultures: A Field Study of the Emergence of a New Organizational Reality
  13. Glossary of Accounting Terms
  14. Solutions to Questions
  15. Index

Product information

  • Title: Accounting for Managers: Interpreting Accounting Information for Decision Making, 4th Edition
  • Author(s):
  • Release date: March 2012
  • Publisher(s): Wiley
  • ISBN: 9781119979678