• Peter C. Brewer is joining Ray Garrison and Eric Noreen on this edition of Introduction to Managerial Accounting. Professor Brewer is an associate professor in the Department of Accountancy at Miami University, Oxford, Ohio and a leading thinker in undergraduate management accounting curriculum innovation.
• Info graphics: Each chapter contains an info graphic to help students visualize key accounting concepts, such as Activity-Based Costing Model, Sequential Processing Departments, and Continuous Process Manufacturing vs. Job-Order Manufacturing. These info graphics are pictorial representations of particular concepts in managerial accounting.
• Concept Checks have been added to allow students to test their comprehension of topics and concepts covered at various stages throughout each chapter. Concept Checks occur 1 to 3 times per chapter and each contain 1 or 2 questions that will help the student evaluate whether or not they have mastered an understanding of a particular concept.
• The Brewer/Garrison/Noreen text is now available with HomeWork Manager software. HomeWork Manager uses intelligent algorithms to generate an infinite number of problems based on problem structures existing in the text. This allows students to practice particular types of problems repeatedly until they master key concepts.

What’s New Chapter-by-Chapter

Prologue

• The TOC section has been completely rewritten.
• The role of the CFO is discussed in greater detail.
• Links between e-commerce and subsequent chapters are briefly laid out.
• Many new In Business focus boxes have been written.

Chapter 1

• The illustration of Inventory Flows in Exhibit 1-5 has been improved.
• The alternative approach to computation of cost of goods sold has been eliminated.
• New material dealing with ethical issues in the determination of product and period costs has been added.
• Many new In Business boxes have been written.

Chapter 2

• Better illustration of Job-order costing vs. Process costing
• Many new In Business boxes have been written.

Chapter 3

• Many new In Business boxes have been written.

Chapter 4

• Subtle changes have been made in the format of the production report to improve its readability.
• Rounding has been eliminated as an issue in all examples and end-of-chapter materials by ensuring that all computations carried out to the nearest whole cent yield exact answers.

Chapter 5

• Scattergraph plots now precede the high-low method.
• We now refer to the method for estimating fixed and variable costs based on the visual fit to the scattergraph plot as the “quick-and-dirty” method. The emphasis in the scattergraph section of the text is now on diagnosis of cost behavior patterns rather than as a way to estimate fixed and variable costs.
• The term “regression line” is now reserved for the line that is computed by least-squares regression.

Chapter 6

• The CVP graph is introduced before break-even analysis to provide a better intuitive basis for the analysis.
• A variety of new In Business boxes have been added.

Chapter 7

• The mechanics of how to construct the various schedules in the master budget are more thoroughly explained in the text.
• Many new In Business boxes have been created.

Chapter 8

• A new exhibit, Exhibit 8-1, provides an overview of the variance reporting process.
• Several new In Business focus boxes have been written.
• The variances, and their computations, are more fully explained.

Chapter 9

• Improved illustration of Static vs. Flexible Budgets
• New In Business boxes have been added.

Chapter 10

• New In Business boxes have been added.

Chapter 11

• A new, easy-to-understand example has been added illustrating the identification of relevant and irrelevant costs.
• Material dealing with the reconciliation of the total and differential approaches has been added.
• The section dealing with equipment replacement decisions has been eliminated. This subject is more appropriately covered in the capital budgeting chapter.
• Many new In Business boxes have been added to the chapter.

Chapter 12

• Many new In Business focus boxes have been added.
• The present value tables have been expanded to include all rates of return between 5% and 25%.

Chapter 13

• Many new Business Focus boxes have been added.

Chapter 14

• Many new Business Focus boxes have been added.