New to the Second Edition

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

• Reordered variances in Chapters 9 and 10. Both chapters have been extensively rewritten to follow a more logical flow.
• Added coverage of corporate social responsibility to Chapter 1 to introduce students to an important and relevant topic in today's business world.
• Moved the coverage of balanced scorecard to Chapter 11 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.

Chapter 1

• New material on corporate social responsibility has been added.
• Materials dealing with the distinction between financial and managerial accounting have been moved to Chapter 2.

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 had existed between the coverage of the schedule of cost of goods manufactured in Chapter 2 and in Chapter 3.

Chapter 4

• 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 caser of target profit analysis.
• Profit graphs are covered in addition to CVP graphs.

Chapter 5

• Portions of the chapter have been rewritten to enhance clarity.
• The appendix has been rewritten to highlight its assumptions.

Chapter 6

• The chapter has been extensively revised with the overall objective of making the material more user-friendly. Tables have been simplified and computing cost of goods sold is streamlined.

Chapter 9

• 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 11.

Chapter 10

• 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 11

• The balanced scorecard has been moved to this chapter, where it more naturally belongs.