Faculty feedback helps us continue to improve Managerial Accounting. In response to reviewer suggestions we have:

Other major changes include:

Chapter 1

• In Business boxes have been updated throughout
• Materials dealing with the distinction between financial and managerial accounting have been moved to Chapter 2
• The section on Technology in Business has been eliminated.
• New material on Corporate Social Responsibility has been added.

Chapter 2

• The Schedule of Cost of Goods Manufactured has been simplified by eliminating the list of the elements of Manufacturing Overhead. This removes a discrepancy that existed between the coverage of the Schedule of Cost of Goods Manufactured in Chapters 2 and 3.
• The exercises and problems for the appendices have been moved so that they follow those appendices.

Chapter 3

• Portions of the chapter have been rewritten to enhance clarity.
• Materials dealing with the distinction between financial and managerial accounting have been moved to Chapter 2
• The appendix has been rewritten to highlight its assumptions.
• The exercises and problems for the appendix have been moved so that they follow the appendix.

Chapter 4

• Preparing the Cost Reconciliation Report is now a Learning Objective.
• The exercises and problems for the appendices have been moved so that they follow those appendices.

Chapter 6

• The basic equations used in target profit analysis and break-even analysis have been revised to be more intuitive.
• Break-even analysis has been moved to follow target profit analysis because break-even analysis is a special case of target profit analysis.
• Profit graphs are covered in addition to CVP graphs.

Chapter 7

• The chapter has been extensively revised to make the material more user-friendly. Tables have been simplified and computing cost of goods sold has been stream-lined.

Chapter 8

• The exercises and problems for the appendices have been moved so that they follow those appendices.

Chapter 10

• This chapter has been completely rewritten to follow a logical path leading from budgeting to performance evaluation, comparing budgets to actual results and then on to standard cost analysis. Flexible budgets are used to prepare performance reports with activity variances and revenue and spending variances.

Chapter 11

• This chapter now covers all standard cost variances—including fixed manufacturing overhead variances in an appendix. The material in this chapter has been extensively rewritten, particularly the materials dealing with manufacturing overhead.

Chapter 12

• The Balanced Scorecard has been moved to this chapter, where it more naturally belongs.

Chapter 15

• The definition of free cash flow has been added to the chapter.
• The Balanced Scorecard has been moved to this chapter, where it more naturally belongs.
• The exercises and problems for the appendix have been moved so that they follow the appendix.