NEW! McGraw-Hill’s Connect uses end-of-chapter material pulled directly from the textbook to create static and algorithmic questions that can be used for practice, homework, quizzes, and tests.

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

• Reordered variances in Chapters 8 and 9. Both chapters have been extensively rewritten to follow a more logical flow.
• Added coverage of Corporate Social Responsibility to Chapter 2 to introduce students to an important and relevant topic in today’s business world; moved the coverage of balanced scorecard to Chapter 10 where it more naturally belongs.
• Added International Financial Reporting Standards (IFRS) icons throughout the text to highlight topics that may be affected should the U.S. adopt IFRS in the future.

Specific changes were made in the following chapters:

• In Business boxes updated throughout.
• All end-of-chapter items tagged to Bloom’s Taxonomy categories as well as AACSB and AICPA standards.

Prologue

• 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 1

• 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 had existed between the coverage of the Schedule of Cost of Goods Manufactured in Chapter 1 and in Chapter 2.

Chapter 2

• Portions of the chapter have been rewritten to enhance clarity.

Chapter 4

• Preparing the Cost Reconciliation Report is now a Learning Objective.

Chapter 5

• All of the end-of-chapter materials for the Variable Costing appendix have been moved to the end of the appendix to make the appendix more self-contained.

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 just a special case of target profit analysis.
• Profit graphs are covered in addition to CVP graphs.

Chapter 8

• 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. This chapter contains some of the material that used to be in Chapter 9.

Chapter 9

• 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. This chapter contains material that used to be in Chapter 8.

Chapter 10

• The materials dealing with the Balanced Scorecard have been expanded and have been moved to this chapter, where they more naturally belong.
• The Segmented Income Statement is covered in much more depth.

Chapter 13

• Free cash flow has been added to the chapter.

Appendix

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