Managerial Orientation
The overall theme of the text is to introduce concepts in the context of decision making. In the first chapter, for example, we describe how product costing affects financing availability, management motivation, and income tax considerations. In Chapter 2, we illustrate how a fixed cost structure provides a competitive operating advantage to show the effect of cost behavior on operating leverage. In Chapter 8, we focus on interpreting variances as well as computing them. The practical usefulness of management accounting information is continually reinforced.

Isolating Concepts
How do you promote student understanding of concepts? We believe new concepts should be isolated and introduced individually in decision-making contexts. For example, we do not include a chapter covering cost terminology (usually Chapter 2 in traditional approaches). We believe introducing a plethora of detached cost terms in a single chapter is ineffective. Students have no conceptual framework for the new vocabulary.

Interrelationships between Concepts
Although introducing concepts in isolation enhances student comprehension of them, students must ultimately understand how business concepts interrelate. The text is designed to build knowledge progressively, leading students to integrate the concepts they have learned independently. For example, see how the concept of relevance is compared on page 138 of Chapter 4 to the concept of cost behavior (which is explained in Chapter 2) and how the definitions of direct costs are contrasted on page 186 of Chapter 5 with the earlier introduced concepts of cost behavior and cost relevance. Also, chapters 1 through 12 include a comprehensive problem designed to integrate concepts across chapters. The problem builds in each successive with the same company experiencing new conditions that require the application of across chapter concepts.

Context-Sensitive Nature of Terminology
Students can be further confused when they discover the exact same cost can be classified as fixed, variable, direct, indirect, relevant, or not relevant. For example, the cost of a store manager's salary is fixed regardless of the number of customers that shop in the store. The cost of store manager salaries, however, is variable relative to the number of stores a company operates. The salary costs are directly traceable to particular stores but not to particular sales made in a store. The salary cost is relevant when deciding whether to eliminate a given store but not relevant to deciding whether to eliminate a department within a store. Students must learn to identify the circumstances that determine the classification of costs. The chapter material, exercises, and problems in this text are designed to encourage students to analyze the decision-making context rather than to memorize definitions. Exercise 2–1A in Chapter 2 illustrates how the text teaches students to interpret different decision-making environments.

Information Overload
The table of contents reflects our efforts to address the information overload problem. We believe existing managerial textbooks include significantly more material than can be digested by the typical managerial accounting student. In contrast with traditional texts that normally have between 18 and 20 chapters, we have limited this text to 14 chapters.

Excel Spreadsheets
Spreadsheet applications are essential to contemporary accounting practice. Students must recognize the power of spreadsheet software and know how accounting data are presented in spreadsheets. We discuss Microsoft Excel spreadsheet applications where appropriate throughout the text. In most instances, the text illustrates actual spreadsheets. End-of-chapter materials include problems students can complete using spreadsheet software

The Curious Accountant
Each chapter opens with a short vignette that sets the stage and helps pique student interest. These vignettes pose a question about a real-world accounting issue related to the topic of the chapter. The answer to the question appears in a separate sidebar a few pages further into the chapter.

Focus on International Issues
These boxed inserts expose students to international issues in accounting.

Check Yourself
These short question/answer features occur at the end of each main topic and ask students to stop and think about the material just covered. The answer follows to provide immediate feedback before students go on to a new topic.

Reality Bytes
Real-world applications related to specific chapter topics are introduced through Reality Bytes . Reality Bytes may offer survey results, graphics, quotations from business leaders, and other supplemental topics that enhance opportunities for students to connect the text material to actual accounting practice.

Topic Tackler Plus
A logo indicates a topic explained on the Topic Tackler Plus DVD. The DVD includes two hard-to-learn topics for each chapter explained with video, PowerPoint, practice quizzes, self tests, and a demonstration, self-study problem walkthrough.

A Look Back/A Look Forward
Students need a roadmap to make sense of where the chapter topics fit into the “whole” picture. A Look Back reviews the chapter material and a Look Forward introduces students to what is to come.