Michael R. Kinney, Texas A&M University
Cecily A. Raiborn, Texas State University—San Marcos
Cost AccountingFoundations and Evolutions
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Cost Accounting: Foundations and Evolutions, Eighth EditionMichael R. Kinney, Cecily A. Raiborn
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1 2 3 4 5 6 7 13 12 11 10 09
Brief Contents
iii
Contents iv
Preface xi
Acknowledgments xvii
Chapter 1 Introduction to Cost Accounting 1
Chapter 2 Cost Terminology and Cost Behaviors 24
Chapter 3 Predetermined Overhead Rates, Flexible Budgets, and Absorption/Variable Costing 66
Chapter 4 Activity-Based Management and Activity-Based Costing 113
Chapter 5 Job Order Costing 162
Chapter 6 Process Costing 210
Chapter 7 Standard Costing and Variance Analysis 263
Chapter 8 The Master Budget 323
Chapter 9 Break-Even Point and Cost-Volume-Profi t Analysis 381
Chapter 10 Relevant Information for Decision Making 424
Chapter 11 Allocation of Joint Costs and Accounting for By-Product/Scrap 475
Chapter 12 Introduction to Cost Management Systems 516
Chapter 13 Responsibility Accounting, Support Department Cost Allocations, and Transfer Pricing 548
Chapter 14 Performance Measurement, Balanced Scorecards, and Performance Rewards 598
Chapter 15 Capital Budgeting 650
Chapter 16 Managing Costs and Uncertainty 695
Chapter 17 Implementing Quality Concepts 740
Chapter 18 Inventory and Production Management 785
Chapter 19 Emerging Management Practices 835
Appendix Present Value Tables 866
Glossary 871
Name Index 882
Subject Index 884
Contents
Preface xiAcknowledgments xvii
Chapter 1Introduction to Cost Accounting 1
Introduction 2
Comparison of Financial, Management, and Cost Accounting 2
Financial Accounting 2Management Accounting 3Cost Accounting 4Cost Accounting Standards 5Professional Ethics 5
Competing in a Global Environment 7Organizational Strategy 8Organizational Structure 10Value Chain 11Balanced Scorecard 12Ethics in Multinational Corporations 14
Comprehensive Review Module 16Potential Ethical Issues 18Questions 18Exercises 19
Chapter 2Cost Terminology and Cost Behaviors 24
Introduction 25
Cost Terminology 25Association with Cost Object 26
Reaction to Changes in Activity 26Classifi cation on the Financial Statements 30
The Conversion Process 31Retailers versus Manufacturers/Service Companies 32Manufacturers versus Service Companies 34
Components of Product Cost 36Direct Material 36Direct Labor 36Overhead 37
Accumulation and Allocation of Overhead 38Cost of Goods Manufactured and Sold 41
Comprehensive Review Module 43Potential Ethical Issues 47Questions 48Exercises 48Problems 57
Chapter 3Predetermined Overhead Rates, Flexible Budgets, and Absorption/Variable Costing 66
Introduction 67
Normal Costing and Predetermined Overhead 67
Formula for Predetermined Overhead Rate 68Applying Overhead to Production 69Disposition of Underapplied and Overapplied
Overhead 71Alternative Capacity Measures 73
Separating Mixed Costs 73High–Low Method 74Least Squares Regression Analysis 75Flexible Budgets 78Plantwide versus Departmental Overhead
Rates 79
Overview of Absorption and Variable Costing 81
Absorption and Variable Costing Illustrations 84Comparison of the Two Approaches 86
Comprehensive Review Module 88Potential Ethical Issues 93Questions 93Exercises 94Problems 102
Chapter 4Activity-Based Management and Activity-Based Costing 113
Introduction 114
Activity-Based Management 114Value-Added versus Non-Value-Added Activities 114Manufacturing Cycle Effi ciency 118
iv
Cost Driver Analysis 119Levels at Which Costs Are Incurred 120Cost Level Allocations Illustrated 122
Activity-Based Costing 124Two-Step Allocation 125Activity-Based Costing Illustrated 127
Determining Whether ABC Is Useful 128Large Product Variety 129High Product/Process Complexity 129Lack of Commonality in Overhead Costs 130Irrationality of Current Cost Allocations 130Changes in Business Environment 130
Criticisms of Activity-Based Costing 131
Comprehensive Review Module 133Potential Ethical Issues 137Questions 137Exercises 137Problems 146
Chapter 5Job Order Costing 162
Introduction 163
Methods of Product Costing 163Cost Accumulation Systems 163Valuation Methods 164
Job Order Costing System 165
Job Order Costing: Details and Documents 167Job Order Cost Sheet 167Material Requisitions 169Employee Time Sheets 170Overhead 171Completion of Production 171
Job Order Costing Illustration 172
Job Order Costing Using Standard Costs 176
Job Order Costing to Assist Managers 177Concrete Café 178Paul’s Pirogues 178
Product and Material Losses in Job Order Costing 179
Generally Anticipated on All Jobs 180Specifi cally Identifi ed with a Particular Job 180Abnormal Spoilage 181
Comprehensive Review Module 181Potential Ethical Issues 186Questions 186Exercises 187Problems 196
Chapter 6Process Costing 210
Introduction 211
Introduction to Process Costing 211Production Costs: The Numerator 211Production Quantity: The Denominator 213Equivalent Units of Production 213
Weighted Average and First-In, First-Out Process Costing Methods 216
Weighted Average Method 219FIFO Method 223
Process Costing in a Multidepartment Setting 226
Process Costing with Standard Costs 228
Hybrid Costing Systems 231
Appendix 1 231Alternative Calculations of Weighted Average and FIFO Methods 231
Appendix 2 233Spoilage 233
Comprehensive Review Module 236Potential Ethical Issues 241Questions 241Exercises 242Problems 252
Chapter 7Standard Costing and Variance Analysis 263
Introduction 264
Development of a Standard Cost System 264Material Standards 265Labor Standards 266Overhead Standards 267
General Variance Analysis Model 269
Material and Labor Variance Computations 270Material Variances 270Point-of-Purchase Material Variance Model 272Labor Variances 273
Overhead Variances 273Variable Overhead 274Fixed Overhead 275Alternative Overhead Variance Approaches 277
Standard Cost System Journal Entries 279
Why Standard Cost Systems Are Used 282Motivating 282Planning 282Controlling 283
Contents v
Decision Making 284Performance Evaluation 284
Considerations in Establishing Standards 284Appropriateness 284Attainability 285
Changes in Standards Usage 285Use of Ideal Standards and Theoretical Capacity 285Adjusting Standards 286Material Price Variance Based on Usage Rather
Than on Purchases 288Decline in Direct Labor 288
Conversion Cost as an Element in Standard Costing 288
Appendix 290Mix and Yield Variances 290
Material Price, Mix, and Yield Variances 291Labor Rate, Mix, and Yield Variances 293
Comprehensive Review Module 294Potential Ethical Issues 301Questions 302Exercises 302Problems 312
Chapter 8The Master Budget 323
Introduction 324
The Budgeting Process 324Strategic Planning 324Tactical Planning 325
The Master Budget 328
The Master Budget Illustrated 330Production Budget 331Purchases Budget 332Personnel Budget 332Direct Labor Budget 333Overhead Budget 334Selling and Administrative Budget 334Capital Budget 334Cash Budget 335Budgeted Financial Statements 341
Using Budgets for Management Control 347
Appendix 349Budget Manual 349
Comprehensive Review Module 351Potential Ethical Issues 355Questions 356Exercises 356Problems 365
Chapter 9Break-Even Point and Cost-Volume-Profi t Analysis 381
Introduction 382
Break-Even Point 382
Identifying the Break-Even Point 384Formula Approach to Breakeven 384Graphing Approach to Breakeven 385Profi t-Volume Graph 387Income Statement Approach 388
CVP Analysis 388Fixed Amount of Profi t 389Specifi c Amount of Profi t per Unit 391Incremental Analysis for Short-Run Changes 393
CVP Analysis in a Multiproduct Environment 396
Managing Risk of CVP Relationships 399Margin of Safety 399Operating Leverage 399
Underlying Assumptions of CVP Analysis 401
Comprehensive Review Module 402Potential Ethical Issues 406Questions 407Exercises 407Problems 414
Chapter 10Relevant Information for Decision Making 424
Introduction 425
The Concept of Relevance 425Association with Decision 425Importance to Decision Maker 426Bearing on the Future 426
Sunk Costs 426
Relevant Costs for Specifi c Decisions 428Outsourcing Decisions 428Scarce Resource Decisions 433Sales Mix Decisions 435Special Order Decisions 440Product Line and Segment Decisions 442
Appendix 444Linear Programming 444
Basics of Linear Programming 445Formulating an LP Problem 445Solving an LP Problem 448
Comprehensive Review Module 449Potential Ethical Issues 453
vi Contents
Questions 453Exercises 453Problems 461
Chapter 11Allocation of Joint Costs and Accounting for By-Product/Scrap 475
Introduction 476
Outputs of a Joint Process 476
The Joint Process 478
The Joint Process Decision 479
Allocation of Joint Cost 482Physical Measure Allocation 482Monetary Measure Allocation 484
Accounting for By-Product and Scrap 488Net Realizable Value Approach 489Realized Value Approach 490
By-Product and Scrap in Job Order Costing 492
Joint Costs in Service Businesses and Not-for-Profi t Organizations 493
Comprehensive Review Module 494Potential Ethical Issues 498Questions 499Exercises 499Problems 507
Chapter 12Introduction to Cost Management Systems 516
Introduction 517
Introduction to Management Information and Control Systems 517
Defi ning a Cost Management System 519
The Roles of a Cost Management System 521
Designing a Cost Management System 523Organizational Form, Structure, and Culture 523Organizational Mission and Core Competencies 526Operations and Competitive Environment and Strategies 526
Determine Desired Components of CMS 530Motivational Elements 530Informational Elements 532Reporting Elements 534
Perform Gap Analysis and Assess Improvements 535
Appendix 536Cost Management System Conceptual Design Principles 536
Comprehensive Review Module 538Potential Ethical Issues 539Questions 539Exercises 539Problems 542
Chapter 13Responsibility Accounting, Support Department Cost Allocations, and Transfer Pricing 548
Introduction 549
Decentralization 549
Responsibility Accounting Systems 551
Types of Responsibility Centers 554Cost Center 554Revenue Center 555Profi t Center 555Investment Center 556
Support Department Cost Allocation 556Allocation Bases 556Methods of Allocating Support Department Costs 558
Service Department Cost Allocation Illustration 559Direct Method Allocation 560Step Method Allocation 561Algebraic Method Allocation 562Determining Overhead Application Rates 565
Transfer Pricing 565Types of Transfer Prices 567Selecting a Transfer Pricing System 569
Transfer Prices in Multinational Settings 570
Comprehensive Review Module 573Potential Ethical Issues 577Questions 578Exercises 579Problems 584
Chapter 14Performance Measurement, Balanced Scorecards, and Performance Rewards 598
Introduction 599
Organization Mission Statements 599
Organizational Roles of Performance Measures 600Internal Performance Measures 600External Performance Measures 601
Designing a Performance Measurement System 602General Criteria 602Assess Progress toward Mission 603
Contents vii
Awareness of and Participation in Performance Measures 603Appropriate Tools for Performance 603Need for Feedback 604
Short-Term Financial Performance Measures for Management 604
Divisional Profi ts 604Cash Flow 605Return on Investment 605Residual Income 609Economic Value Added 609Limitations of Return on Investment, Residual Income,
and Economic Value Added 610
Diff erences in Perspectives 611
Nonfi nancial Performance Measures 612Selection of Nonfi nancial Measures 612Establishment of Comparison Bases 616
Use of Multiple Measures 616
Using a Balanced Scorecard for Measuring Performance 617
Performance Evaluation in Multinational Settings 619
Compensation Strategy 620
Pay-for-Performance Plans 620
Links between Performance Measures and Rewards 622Degree of Control over Performance Output 623Incentives Relative to Organizational Level 623Performance Plans and Feedback 623Worker Pay and Performance Links 623Promoting Overall Success 624Nonfi nancial Incentives 624
Tax Implications of Compensation Elements 624
Global Compensation 625
Ethical Considerations of Compensation 625
Comprehensive Review Module 626Potential Ethical Issues 631Questions 632Exercises 633Problems 637
Chapter 15Capital Budgeting 650
Introduction 651
Capital Asset Acquisition 651
Use of Cash Flows in Capital Budgeting 652
Cash Flows Illustrated 653Time Lines 653
Payback Period 654
Discounting Future Cash Flows 655Net Present Value Method 656Profi tability Index 657
Internal Rate of Return 658
Eff ect of Depreciation on After-Tax Cash Flows 660
Assumptions and Limitations of Methods 662
Investment Decision 665Is the Activity Worthy of an Investment? 665Which Assets Can Be Used for the Activity? 665Of the Available Assets for Each Activity, Which Is the Best
Investment? 666Of the “Best Investments” for All Worthwhile Activities,
in Which Ones Should the Company Invest? 666
Ranking Multiple Capital Projects 668
Compensating for Risk in Capital Project Evaluation 668Judgmental Method 669Risk-Adjusted Discount Rate Method 669Sensitivity Analysis 670
Postinvestment Audit 672
Appendix 1 673Time Value of Money 673Present Value of a Single Cash Flow 673Present Value of an Annuity 674
Appendix 2 674Accounting Rate of Return 674
Comprehensive Review Module 675Potential Ethical Issues 680Questions 681Exercises 681Problems 687
Chapter 16Managing Costs and Uncertainty 695
Introduction 696
Cost Control Systems 696
Understanding Cost Changes 698Cost Changes Because of Volume Changes 698Cost Changes Because of Infl ation/Defl ation 698Cost Changes Because of Supply/Supplier Cost Adjustments 699Cost Changes Because of Quantity Purchased 700
Cost Containment 700
Cost Avoidance and Cost Reduction 701
Committed Fixed Costs 702
Discretionary Costs 703Controlling Discretionary Costs 704
viii Contents
Cash Management 710What Variables Infl uence the Optimal
Level of Cash? 711What Are the Sources of Cash? 711What Variables Infl uence the Cost of
Carrying Cash? 713Banking Relationships 713
Supply-Chain Management 714Information Technology and Purchasing 714Advances in Authorizing and Empowering
Purchases 714
Coping with Uncertainty 715The Nature and Causes of Uncertainty 715Four Strategies for Dealing with Uncertainty 716
Comprehensive Review Module 721Potential Ethical Issues 724Questions 724Exercises 725Problems 729
Chapter 17Implementing Quality Concepts 740
Introduction 741
What Is Quality? 741Production View of Quality 741Consumer View of Quality 743
Benchmarking 745
Total Quality Management 749Quality System 749Employee Involvement 749Product/Service Improvement 750Long-Term Supplier Relationships 751
The Baldrige Award 751
Types of Quality Costs 754
Measuring the Cost of Quality 757
Obtaining Information about Quality from the BSC and CMS 761
Quality as an Organizational Culture 763
Appendix 765Assessing Quality Internationally 765ISO 765EFQM 766
Comprehensive Review Module 768Potential Ethical Issues 771Questions 772Exercises 773Problems 778
Chapter 18Inventory and Production Management 785
Introduction 786
Important Relationships in the Value Chain 786
Buying or Producing and Carrying Inventory 787
Inventory and Production Management Philosophies 787
Understanding and Managing Production Activities and Costs 789
Product Life Cycles 789Life Cycle and Target Costing 790
Just-in-Time Systems 793
Changes Needed to Implement JIT Manufacturing 795Supplier Relationships and Distribution 795Product Design 797Product Processing 798Plant Layout 799
Logistics of the JIT Environment 801Accounting Implications of JIT 802Flexible Manufacturing Systems and Computer-Integrated
Manufacturing 807Lean Enterprises 808
Theory of Constraints 809
Appendix 811Economic Order Quantity and Related Issues 811
Economic Order Quantity 811Economic Production Run 811
Order Point and Safety Stock 812
Pareto Inventory Analysis 813
Comprehensive Review Module 814Potential Ethical Issues 820Questions 820Exercises 821Problems 827
Chapter 19Emerging Management Practices 835
Introduction 836
The Changing Workplace 836
Business Process Reengineering 837
Downsizing, Layoff s, and Restructuring 839
Workforce Diversity 840
Enterprise Resource Planning Systems 842
Strategic Alliances 846
Contents ix
Open-Book Management 847Using Games to Teach Open-Book Management 849Motivating Employees 850Implementation Challenges 851
Environmental Management Systems 852
Comprehensive Review Module 855Potential Ethical Issues 856Questions 856
Exercises 857Problems 860
Appendix: Present Value Tables 866
Glossary 871
Name Index 882
Subject Index 884
x Contents
Preface
xi
Cost accounting is a dynamic discipline constantly responding to the needs of managers in a highly competitive and global business world. Managers need cost accounting infor-mation to develop, implement, and evaluate strategy. Managers also need cost accounting measurements to determine product costs for internal management and external fi nancial reporting. Th e eighth edition of Cost Accounting: Foundations and Evolutions provides in-depth coverage of cost management concepts and procedures in a logically sequenced and student-friendly framework. Th is text encourages students to go beyond the num-bers and think critically about business decisions.
A text is valuable only when students fi nd the subject matter applicable to their business or personal lives. Th rough the use of a straightforward, readable approach, Cost Accounting:
Foundations and Evolutions displays the real-world relevance of this topic to its readers.
Hallmark FeaturesTh is edition provides in-depth, current coverage of cost management concepts and proce-dures, while integrating relevant, real-world business examples and ethical considerations, in a straightforward and student-friendly framework. Th e unique hallmark features of this text that have been retained include the following.
Streamlined, Student-Friendly Approach
Recognized for its unmatched readability, the book’s thought-provoking writing keeps con-cepts intriguing and easy to comprehend. Th is edition’s solid blend of concepts and prac-tices will help students clearly understand how to solve actual business problems.
Th e text is well written, and students like it.
Gary L. Bridges, University of Texas at San Antonio
Relevancy in Today’s Business World
Real-world examples that appeal to today’s students and clearly exemplify the chapter’s concepts are integrated throughout the main body of the text to immediately connect today’s business world with the classroom experience.
Th e Kinney/Raiborn book does a great job on more modern topics
such as ABC, TQM, and JIT.
Alan D. Campbell, Troy University
Developing Ethical Business Leaders
Th e need for students to analyze business situations and make informed, ethical decisions is essential in today’s world. Cost Accounting: Foundations and Evolutions weaves ethical considerations throughout each chapter so that students learn to consistently think of the ethical implications of their actions. Potential Ethical Issues at the end of each chapter
Ethics
xii Preface
emphasize dilemmas students may encounter in business. Exercises and problems involving ethical considerations are marked with an ethics icon.
Comprehensive Review Modules
A Comprehensive Review Module for each chapter ensures your students’ mastery of concepts an overview of key terms, through an overview of key terms, succinct chapter summaries, solu-tion strategies highlighting key equations and concepts, and demonstration problems that stu-dents can use as a framework for solving similar examples in homework assignments or exams. Th ese modules reinforce the critical concepts from the chapters and show how to apply them.
High-Quality End-of-Chapter Assignments
Students practice accounting skills with a wide array of assignment types, including Excel Template activities, ethical problems, writing assignments, Internet research exercises, and group activities. Questions test basic chapter comprehension, Exercises off er quick concept checks, and Problems delve deeper into the concepts, testing students’ retention of critical topics and procedures.
A strength of the textbook is the quality of the exercises and problems at the end of
each chapter. Th ese items . . . do a good job of reinforcing important concepts in the chapter.
Furthermore, most chapters have one or two broad-scope problems that integrate many of the con-
cepts presented in that chapter and, in some cases, also integrate concepts from preceding chapters.
Nace Magner, Western Kentucky University
Improvements in the Eighth EditionWe’ve tailored this edition of Cost Accounting: Foundations and Evolutions to meet the specifi c needs of this course, taking the insights and suggestions of many cost accounting professors across the country into consideration. Th e following improvements have been made.
Clarity for Complex Topics
Building on its proven strengths of eff ortlessly teaching fundamental cost accounting con-cepts with precision, extra care has been taken to clarify the topics that your students strug-gle with most—such as equivalent units for process costing, cost allocation under ABC, and overhead variances—to make these topics easy to comprehend. New exhibits have been added throughout to help students make visual connections with the concepts.
Superior Readability
Always praised for its engaging, student-friendly writing style, the authors have further enhanced the text’s unmatched readability by breaking lists and equations out of text nar-rative for a clean presentation that’s easy to read.
Complete Student Learning System
In addition to the chapter opening learning objectives (which are indicated within the chapter to guide students through the material), new learning objective links have been added to the chapter summary to help students close the loop and easily identify areas that require additional attention or practice. Page references have also been added to the
Preface xiii
Solution Strategies at the end of the chapter, so students can quickly reference the text for additional explanations when necessary.
New End-of-Chapter Assignments
Numerous new problems have been added and nearly 90 percent of the end-of-chapter assignments in this edition have been updated or modifi ed to provide professors who prefer to assign new questions each term with more choice and fl exibility. Writing labels have been added to better identify which assignments build written communication and research skills.
Advanced Technology Solutions
New for this edition, a full CengageNOW for Cost Accounting: Foundations and Evolutions provides ultimate fl exibility and ease of use with the results you want NOW that ensure that your students are mastering the procedural and decision-making skills needed for future success. Th is integrated, online course management system allows you to save time as you effi ciently plan your course; teach and reinforce content with an integrated eBook, interactive learning tools, and personalized study plans automatically developed for each student; and test with automatic grade results.
Signifi cant RevisionsSome signifi cant changes to the eighth edition (in addition to the substantial end-of-chap-ter changes, updated references, etc.) include the following:
Chapter 3
Quantitative material organized into tabular format for easier reference and • comprehension
Some content reorganized for better fl ow•
Chapter 4
Revision of discussion on the causes of NVA activities into tabular format for ease in • understandability
Reordering of chapter discussion for better fl ow•
Chapter 8
New exhibit on variables aff ecting strategic plan•
Consolidation of two “redundant” exhibits (Ex. 8–4 and 8–5)•
New “block-formatted” discussion of personnel budget considerations•
Chapter 9
Reorganized and reformatted for better fl ow and streamlined presentation•
Chapter 10
New exhibit on outsourcing benefi ts•
Updated references and examples in outsourcing discussion•
xiv Preface
Chapter 17
New Exhibit (17–1) on how and why to eliminate NVA activities•
New “block-formatted” discussion of how a quality system reorients thinking•
New Exhibit (17-9) on TQM’s cycle of benefi ts•
New “block-formatted” discussion of how the BSC can be used to provide information • on quality and help frame management decision processes
Instructor Support MaterialsA comprehensive instructor support package is provided for this text, including the following.
Text Companion Web site
www.cengage.com/accounting/kinney
Th is robust companion Web site provides immediate access to a rich array of teaching and interactive learning resources—including chapter-by-chapter online tutorial quizzes, a fi nal exam, online learning games, fl ashcards, and more! Easily download the instructor resources you need from the password-protected, instructor-only section of the site.
Instructor’s Resource CD
1439044872
Place the key teaching and preparation resources you need at your fi ngertips with the Instructor’s Resource CD, which contains the Solutions Manual, Instructor’s Manual, Test Bank in Word format, and ExamView® Testing Software as well as PowerPoint® Presentation slides and Excel® Spreadsheet Templates with Solutions.
Solutions Manual
Available online, on the Instructor’s Resource CD, or as a print product (by request)
Find full solutions for all end-of-chapter assignment items, including questions, exercises, and problems. Complete computations allow you to demonstrate clearly how to reach the correct answers.
Instructor’s Manual
Available online and on the Instructor’s Resource CD
Access the tools you need in the Instructor’s Manual, which provides the resources to streamline and maximize the eff ectiveness of your course preparation. Th e Instructor’s Manual presents an overview of the learning objectives, a chapter-by-chapter glossary of terminology, and a detailed lecture outline.
Test Bank
Available online and on the Instructor’s Resource CD
Effi ciently assess your students’ understanding as this edition’s Test Bank off ers an extensive selection of questions for quizzes, tests, and exams. New AICPA and AACSB tags have been added to help you quickly identify problems that have been used on professional
Preface xv
accounting exams. Th e Test Bank is also available in ExamView® for customized electronic testing.
ExamView Pro® Testing Software
Available on the Instructor’s Resource CD
Th is edition’s electronic Test Bank off ers a variety of class-tested multiple-choice problems, short problems, and essay problems. Designed to make exam preparation as convenient as possible, each Test Bank chapter contains enough questions and problems to prepare several exams without repeating material. Instantly customize tests with this easy-to-use software.
PowerPoint Slides
Available online and on the Instructor’s Resource CD
Make your lectures come to life and clarify diffi cult concepts with slides designed to com-plement your lecture and focus student attention. A free concise, student version is also available online.
Excel Spreadsheet Solutions
Available online and on the Instructor’s Resource CD
Th ese templates provide the solutions for the problems and exercises that have Excel Spreadsheet Templates. Th rough these fi les, instructors can see the solutions in the same format as the students. All problems with accompanying templates are marked in the book with an icon.
CengageNOW
www.cengage.com/tlc
Ensure that your students have the understanding of accounting procedures and concepts they need to know with CengageNOW. Th is integrated, online course management and learning system combines the best of current technology to save time in planning and managing your course and assignments. You can reinforce comprehension with customized student learning paths and effi ciently test and automatically grade assignments. Access is available through a printed access card or electronic access code that can be bundled with this edition. See your sales representative for details.
Experience Accounting Video Series
www.cengage.com/accounting/eav
Provide students with an inside look into the unique decision making of top companies—including BP, Hard Rock Café, Coldstone Creamery, Boyne Resorts, and more—to better illustrate how accounting information is used. Visit the Web site to access these videos or see a demo.
WebTutor for BlackBoardTM and WebTutor for WebCTTM
www.cengage.com/webtutor
WebTutor ensures that your students have the tools and tutorials they need to succeed in class. Th is product off ers a full array of online study tools that are text specifi c, includ-ing learning objectives, glossary fl ash cards, and practice quizzes, compatible with the BlackBoard™ and WebCT™ platforms.
xvi Preface
Student Support Materials
Text Companion Web site
Master the procedures and concepts of accounting and earn the grade you want in your accounting course with the rich array of learning resources at the Cost Accounting: Foundations
and Evolutions, 8e interactive companion Web site. Designed specifi cally for your success, this Web site features chapter-by-chapter online tutorials, quizzes and solutions, learning games, fl ash cards, and more. Visit www.cengage.com/accounting/kinney today!
PowerPoint slides
Easily take notes, and study or review diffi cult concepts, with the student version of this edition’s PowerPoint slides, available online at www.cengage.com/accounting/kinney.
Excel Spreadsheet Templates
Save time and ensure accuracy with online Excel® templates on the text’s companion Web site that help you solve selected end-of-chapter exercises and problems, while gaining valuable experience with the popular Excel® software. Download these templates at www.cengage.com/accounting/kinney.
CengageNOW
CengageNOW is an easy-to-use online resource that helps you study more eff ectively in less time so that you can get the high grade you want. Th is integrated system helps you effi ciently manage and complete your homework assignments from the text. Take pretests to determine the areas in which you require more practice and direct you to review tutori-als, demonstration exercises, videos, eBook content, and accounting games to help learn the material, and get feedback on posttests that check your comprehension afterward. Th is printed access card allows access to CengageNOW. Access is available through a printed access card or electronic access code that can be bundled with this edition.
WebTutor for BlackBoard and WebTutor for WebCT
WebTutor off ers a full array of online study tools, compatible with the WebCT platform, including learning objectives, glossary fl ash cards, and practice quizzes to help you succeed in class and on exams. Access is available through a printed access card or electronic access code that can be bundled with this edition.
Gary L. BridgesUniversity of Texas at San Antonio
Alan D. CampbellTroy University
Charles R. ChambersUniversity of Toledo
Beatrix DeMottPark University
Rita L. DufourNortheast Wisconsin Technical College
Richard D. EnglishAugustana College
Dennis J. GeorgeUniversity of Dubuque
Elsayed KandielState University of New York,
Plattsburgh
Howard LawrenceUniversity of Mississippi
Nace MagnerWestern Kentucky University
David J. MedvedTh omas Edison State College
Philip W. MorrisSam Houston State University
Letitia Meier PleisMetropolitan State College of Denver
William R. RhodesUniversity of Mississippi
Larry L. SimpsonDavenport University
Jan SmolarskiUniversity of Texas Pan American
Ron StundaBirmingham-Southern College
Timothy J. SwensonSullivan University
Ara G. VolkanFlorida Gulf Coast University
Th eodore N. WoodGordon College
Wallace R. WoodUniversity of Cincinnati
Acknowledgments
xvii
We would like to thank all the people who have helped us during the revision of this text. Th e constructive comments and suggestions made by the following reviewers were instru-mental in developing, rewriting, reorganizing, and improving the quality, readability, accu-racy, and student orientation of Cost Accounting: Foundations and Evolutions.
xviii Acknowledgments
We are grateful for the materials from the Institute of Management Accountants, American Institute of CPAs, and various periodical publishers that have contributed sig-nifi cantly to making this text a truly useful learning tool for the students. Th e authors wish to thank all the people at South-Western, a part of Cengage Learning (especially Krista Kellman, Developmental Editor; Holly Henjum, Senior Content Project Manager; and Matt Filimonov, Acquisitions Editor), who have helped us on this project. Special thanks go to Valarmathy Munuswamy, at Integra Software Services, for her time and eff ort on this edition.
We would also like to thank our supplement preparers for providing high-quality con-tent and verifi ers for ensuring the accuracy of this text and supplements:
Supplement Preparers:
Test Bank:Edward R. WalkerUniversity of Central Oklahoma
Instructor’s Manual:J. Lowell MooneyGeorgia Southern University
PowerPoint Slides:Herb MartinHope College
CengageNOW Content:Michelle A. McFeatersGrove City College
Excel Templates and Online Quiz Questions:Barbara J. MullerArizona State University
Additional Exercises and Problems:Kathleen SevignyBridgewater State College
Verifi ers:
James M. EmigVillanova University
Alice B. SineathForsyth Technical
Community College
Beth Woods
In closing, Cecily Raiborn would like to acknowledge Emmett and Miriam McCoy for the ethical behavior they have consistently demonstrated in business and for their personal philanthropic endeavors. Th e world would be a better place with more individuals like them.
Mike Kinney & Cecily Raiborn