WHAT'S NEW IN THE SEVENTH EDITION?

• Contrast Companies: New to the seventh edition is a contrast company in each chapter. As in previous editions, each chapter is built around a realistic Focus Company in which the chapter's key points are illustrated. In this edition, however, a Contrast Company is also introduced, which in most cases will feature an industry different from that of the focus company. This new feature allows even greater emphasis on service-industry firms and other non-manufacturing environments. The focus companies and contrast companies are listed in the front endpapers. Greater Emphasis on the Service Industry. In addition to introducing the contrast companies described above, a greater effort has been made to point out the relevance of managerial accounting concepts and tools in service-industry settings. Many examples are given throughout the text of real-world service-industry firms using managerial accounting information.
• The Sarbanes-Oxley Act: Three sections of Sarbanes-Oxley (SOX) are germane to management accounting, because they address aspects of internal controls over financial reporting. Section 101 establishes the Public Company Accounting Oversight Board (PCAOB), which has established requirements for assessing internal controls. The sections that have caused the most significant challenges for companies, and hence created the most controversy, are sections 302 and 404. The implications of these three SOX sections are covered in the 7th Edition.
• Streamlining: To streamline this edition, Chapters 5 and 6 have been heavily revised and reorganized. Significant changes to both the content and pedagogy in these chapters, which cover activity-based costing and activity-based management, make these challenging topics more accessible to students.
• Updated Topic Tackler: This popular tutorial offers a virtual helping hand in understanding the most challenging topics in the managerial accounting course. Through a step-by-step sequence of video clips, PowerPoint slides, interactive practice exercises, and self-tests, Topic Tackler offers help on two key topics for each chapter. These topics are indicated by a logo in the text. New in this edition are audio-narrated electronic slides.
• Focus on Ethics: Several of the Focus on Ethics pieces have been revised to make this feature even more useful as a vehicle for exploring ethical issues in the classroom. The Focus on Ethics piece in Chapter 1 has been revised to reflect the new Statement of Ethical Professional Practice adopted by the Institute of Management Accountants in 2005. The Focus on Ethics piece in Chapter 5 addresses difficult ethical issues that can arise in the aftermath of an ABC project. The Chapter 6 ethics piece addresses the use of customer profitability analysis as the basis for providing differential treatment for different classes of customers.
• End-of-Chapter Material: The end-of-chapter material has once again been very heavily revised. Several new problems have been added, and virtually all of the exercises, problems, and cases contain data different from that in the sixth edition.
• Build a Spreadsheet: This new feature adds a spreadsheet requirement to several exercises and problems in each chapter. Students are asked to build an Excel spreadsheet that will solve the exercise and then manipulate the solution by changing some of the key data in the exercise.
• Significant Content Changes:
  • Chapter 1: Coverage of IMA's new Statement of Ethical Professional Practice. New coverage of the balanced scorecard using United Parcel Service as an illustration. Expanded coverage of the value chain. Introduction of Contrast Company: The Gap, an apparel retailer. (In contrast to the Focus Company: The Walt Disney Company, an entertainment services company.)
  • Chapter 2: Introduction of Contrast Company: Midas, an automotive service company. (In contrast to the Focus Company: Comet Computer Company, a manufacturer.)
  • Chapter 3: Introduction of Contrast Company: Midtown Advertising Agency, an advertising services company. (In contrast to the Focus Company: Adirondack Outfitters, a manufacturer of canoes and small boats.)
  • Chapter 5: Heavy revision and reorganization of material covering activity-based costing. Brand new pedagogy, making this challenging topic more accessible to students. New Focus Company: Patio Grill Company, a manufacturer of gas barbeque grills. Introduction of Contrast Company: Delaware Medical Center, a health care provider.
  • Chapter 6: Reorganization and revision of activity-based management coverage. New Focus Company: Patio Grill Company, a manufacturer. Introduction of Contrast Company: Federal Express, a worldwide express delivery service.
  • Chapter 7: Introduction of Contrast Company: Cosmos Communications Technology, a manufacturer of communications satellites. (In contrast to the Focus Company: Tasty Donuts, a restaurant chain.)
  • Chapter 8: Introduction of Contrast Company: Accu- Time, a manufacturer of digital clocks. (In contrast to the Focus Company: Seattle Contemporary Theater, a nonprofit theater organization.)
  • Chapter 9: Movement of the chapter's appendix covering inventory management to a stand-alone appendix at the end of the textbook. Introduction of Contrast Company: Philadelphia Fitness Cooperative, a fitness club. (In contrast to the Focus Company: CozyCamp.com, a manufacturer of camping equipment, with online sales)
  • Chapter 10: Revision and expansion of coverage of the balanced scorecard. Introduction of Contrast Company: Forest Home National Bank, a financial services company. (In contrast to the Focus Company: DCDesserts.com, a producer of fresh fancy desserts with emphasis on e-commerce.)
  • Chapter 11: Introduction of Contrast Company: Upstate Auto Rentals, a car-rental service company. (In contrast to the Focus Company: DCDesserts.com, a producer of fresh fancy desserts with emphasis on e-commerce.)
  • Chapter 12: Introduction of Contrast Company: Handico, a manufacturer of cordless phones. (In contrast to the Focus Company: Aloha Hotels and Resorts, a hotel and resort chain.
  • Chapter 13: Introduction of Contrast Company: Suncoast's Food Processing Division, which operates bakeries and dairy and meat processing plants for the grocery retailer. (In contrast to the Focus Company: Suncoast Food Centers, a grocery retailer.)
  • Chapter 14: Introduction of Contrast Company: International Chocolate Company, a chocolate producer. (In contrast to the Focus Company: Worldwide Airways, an airline.)
  • Chapter 15: Introduction of Contrast Company: Marine Services, a marina service and construction company. (In contrast to the Focus Company: Sydney Sailing Supplies, a sailboat manufacturer.)
  • Chapter 16: Introduction of Contrast Company: High Country Department Stores, a retailer. (In contrast to the Focus Organization: City of Mountainview, a city government.)
  • Chapter 18: Introduction of Contrast Company: International Chocolate Company, a chocolate producer. (In contrast to the Focus Company: Riverside Clinic, a health care provider.)