Managerial accounting braun pdf 5th edition free download

Since no causal relationship exists, allocating indirect costs is based on convenience or some assumed linkage. A product is tangible in that you can see, feel, and take it with you.

Examples of products include a tube of toothpaste, a car, or an orange. A service is a task or an activity performed for a customer. For example, the dental hygienist who cleans your teeth provides a service. Manufacturing overhead includes all product costs other than direct materials and direct labor. Direct materials purchases are first entered into the materials inventory. They may or may not be used during the month. Prime cost is the sum of direct materials and direct labor.

Conversion cost is the sum of direct labor and overhead. Total product cost consists of direct materials, direct labor, and overhead. This is not equal to the sum of prime cost and conversion cost because then direct labor would be double counted. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

A period cost is one that is expensed immediately, rather than being inventoried like a product cost Selling cost is the cost of selling and delivering products and services. Examples include free samples, advertising, sponsorship of sporting events, commissions on sales, and the depreciation on delivery trucks such as Coca-Cola or Pepsi trucks.

The cost of goods manufactured is the sum of direct materials, direct labor, and overhead used in producing the units completed during the current period and transferred to finished goods inventory. The cost of goods manufactured is the cost of direct materials, direct labor, and overhead for the units produced completed during a time period. The cost of goods sold is the cost of direct materials, direct labor, and overhead for the units sold during a time period.

The number of units produced is not necessarily equal to the number of units sold during a period. For example, a company may produce 1, pairs of jeans in a month but sell only pairs. The income statement for a manufacturing firm includes the cost of goods sold, which is the sum of direct materials, direct labor, and manufacturing overhead.

The income statement for a service firm contains no cost of goods sold because there is no product to purchase or to manufacture and, thus, there is no inventory account to expense as cost of goods sold. In addition, because there is no cost of goods sold on the income statement of a service firm, there is no gross margin, unlike a manufacturing firm.

The percentage column on the income statement gives some insight into the relative spending on the various expense categories. CE 1. Number of units sold: Finished goods inventory, June 1……………………………………. Allstar has no Cost of Goods Sold line item because the company is a service provider, rather than a manufacturer.

Therefore, as a service provider, Allstar has no inventory costs raw materials, work in process, or finished goods to flow through to Cost of Goods Sold when it recognizes its sales revenue. Instead, all of the costs it incurs in providing advertising services appear as Operating Expenses on the income statement.

The remainder is administrative cost. All commissions are selling costs. The two products that Holmes sells are playhouses and the installation of playhouses. The playhouse itself is a product, and the installation is a service. Holmes could assign the costs to production and to installation, but if the installation is a minor part of its business, it probably does not go to the trouble.

The opportunity cost of the installation process is the loss of the playhouses that could have been built by the two workers who were pulled off the production line. Salary of cell supervisor—Direct b. Power to heat and cool the plant in which the cell is located—Indirect c. Materials used to produce the motors—Direct d. Labor used to produce motors—Direct f. Depreciation on the plant—Indirect h.

Depreciation on equipment used to produce the motors—Direct i. Ordering costs for materials used in production—Indirect j. Engineering support—Indirect k. Cost of maintaining the plant and grounds—Indirect l. Property tax on the plant and land—Indirect E 1. Hannah might have elected to let its ending materials inventory drop in order to save cash for purchases other than buying materials inventory.

Also, it might have elected to do so to reduce its materials inventory holding costs e. Furthermore, Hannah might have reduced its ending materials inventory because it foresaw that demand in July would be lower than in June and did not want to be left holding additional inventory at the end of July.

Alternately, Hannah might have experienced stronger than expected sales in June and used more direct materials in production than it had anticipated when purchasing materials.

Regardless of the reason, it is helpful for students to understand the relationship between the cost of materials purchased versus the cost of materials used in production in a given period. Finished goods inventory, January 1…………………………………… 6, Units completed during the year………………………………………… 94, Finished goods inventory, December 31……………………………… 7, Units sold………………………………………………………………… 93, 2.

The income statement showing each account as a percentage of sales helps focus managerial attention on those expenses that are relatively high. For Jasper, it appears as though administrative expense is twice as large as selling expense.

Perhaps management could explain ways to reduce certain administrative expenses, such as research and development or fees incurred for general counsel e. Direct Direct Manufact. They are direct materials but could also be classified as overhead because of cost and convenience.

Direct labor consists of the part-time employees who cook food and fill orders. Manufacturing overhead consists of all indirect costs associated with the production process. These are the utilities, rent for the building, depreciation on the equipment and register, and cost of janitorial fees and supplies. The result is that she does not have to perform studies of the time spent by each employee on producing versus selling burger bags.

In addition, it is likely that John Peterson pitches in to help fry burgers or assemble burger bags when things get hectic. Of course, during those times, he is engaged in production—not selling or administration.

Remember, accountants charge by the number of hours spent—the more time Elena spends separating costs into categories, the higher her fees. Outside use of the statements is confined to government taxing authorities and a bank if a loan or line of credit is necessary. Laworld Inc. As a result, total manufacturing cost is equal to the cost of goods manufactured. The FIFO assumption says that beginning inventory is sold before current year production. Therefore, the cost of goods sold will be lower than it would be if there were no beginning inventory.

This can be seen in the following statement of cost of goods sold. These costs include direct materials, direct labor, and manufacturing overhead. The total of these three types of costs equals product cost. If Linda returns to school, she will need to quit her job. The lost salary is the opportunity cost of returning to school. If Randy were engaged in manufacturing a product, his salary would be a product cost.

Instead, the product has been manufactured. It is in the finished goods warehouse waiting to be sold. Personalized learning in MyLab Accounting gives you the flexibility to incorporate the approach that best suits of your course and your students. The Study Plan acts as a tutor, providing personalized recommendations for each of your students based on his or her ability to master the learning objectives in your course.

This allows students to focus their study time by pinpointing the precise areas they need to review, and allowing them to use customized practice and learning aids--such as videos, eText, tutorials, and more--to get them back on track. Using the report available in the Gradebook, you can then tailor course lectures to prioritize the content where students need the most support--offering you better insight into classroom and individual performance.

Dynamic Study Modules help students study effectively on their own by continuously assessing their activity and performance in real time. Here's how it works: students complete a set of questions with a unique answer format that also asks them to indicate their confidence level. Questions repeat until the student can answer them all correctly and confidently.

Once completed, Dynamic Study Modules explain the concept using materials from the text. These are available as graded assignments prior to class, and accessible on smartphones, tablets, and computers.

Instructors can now remove questions from Dynamic Study Modules to better fit their course. Concept Videos for Students. Short videos focusing on key concepts are available in MyLab Accounting to further emphasize major concepts. These videos can be assigned in homework or used as part of a flipped classroom strategy. Directed Reading Guides, which have been prepared by the authors, help students take thorough notes while reading the text and glean the most important information from each chapter.

The Real-World Accounting Video Series features real, emerging companies that demonstrate financial and managerial accounting concepts.

Students can see how course topics are applied in recent start-ups or companies that began small and are now a household name. These engaging videos help students further understand the course material and also demonstrate how accounting will apply to their future careers.

HTML5 Player. Students can also continue to upload images such as phone-photos of handwritten work. Printing enhancements include: a more pen-and-paper-friendly layout of exercises the ability for instructors to choose whether to print the header; to include an honor statement; and to print with answers in line, after each question, or on a separate sheet Learning Management System LMS Integration.

Access assignments, rosters, and resources, and synchronize grades with your LMS Gradebook. For students, single sign-on provides access to all the personalized learning resources that make studying more efficient and effective.

Reporting Dashboard. View, analyze, and report learning outcomes clearly and easily, and get the information you need to keep your students on track throughout the course, with the new Reporting Dashboard. Available via the MyLab Accounting Gradebook and fully mobile-ready, the Reporting Dashboard presents student performance data at the class, section, and program levels in an accessible, visual manner. Team names are no longer case sensitive.

Help your students develop critical thinking skills. Monitor responses to find out where your students are struggling. Rely on real-time data to adjust your teaching strategy. Automatically group students for discussion, teamwork, and peer-to-peer learning. About the book Students see the connections between accounting concepts and the businesses they interact with every day.

Interactive Questions. Found throughout the chapter, Try It! Linking in the eText allows students to practice in MyLab Accounting without interrupting their interaction with the eText.

Video Solutions. Excel Exhibits. To give students a glimpse into the real-world presentation of managerial accounting topics, all financial statements and schedules are presented in Excel. In the eText, a video link on selected exhibits teaches students how to create the same schedule using Excel.

End-of-Chapter Problems allow students to progress from simple problems to more rigorous challenges as they move from item to item.

New short exercises based on real-world situations have been added to every chapter to help students make the connection between the real world and the concepts being studied. Critical Thinking End-of-Chapter Problems. Additional problems were developed to provide students with the opportunity for applied critical thinking. These problems include ethical topics, mini cases, and decision-making cases in real companies. Quick Checks in each chapter are conceptual in nature and give students the opportunity to check their understanding.

Short Exercises on a real-world situation are included in every chapter. Real Life Mini Cases focusing on a real company and the decisions presented in business are also highlighted with an icon. A Serial Case , consisting of several smaller cases--one per chapter, focuses on the same real-world company. This continuing case is meant to inspire critical thinking and to connect the content with real life by following one company through all of the chapters in managerial accounting.

Focus on Excel. Chapter exhibits are illustrated as Excel spreadsheets to get students used to working with Microsoft Excel Technology Makes it Simple features have been expanded to include several new topics, giving students step-by-step directions on how to use Microsoft Excel to perform the accounting task with more efficiency. Examples include scatterplots, regression analysis, capital budgeting, CVP graphs, budgeting, and sensitivity analysis.

Hallmark features emphasize key concepts and issues in managerial accounting A Why is this important? A Decision Guidelines feature , found at the midpoint and end of each chapter, uses a business decision context to summarize key terms, concepts, and formulas from the chapter in question and answer format.

Select modifications and enhancements were made to the chapters to make them easier for students to grasp difficult concepts, including: UPDATED! Refreshed chapter opening stories attract student attention and lay the groundwork for the chapter using recognizable, real-world companies.

A section in each chapter shows how sustainability relates to the chapter content. Also included is a quick reference on which end-of-chapter problems correspond to this concept. The chapter also includes a section on why management accounting is important to students majoring in other fields of study. Chapter 2 has simplified language used for product costs rather than inventoriable product costs used throughout the book; revised discussion of direct and indirect costs. Chapter 10 has been revised to provide continuity between budgeting and performance evaluation.

The flexible budgeting example now includes the entire income statement using the company featured in chapter 9, plus PepsiCo data has been updated to illustrate responsibility accounting.

The company example in Chapter 11 is now tied to Chapters 9 and 10 to provide continuity between chapter topics, and variance exhibits are more specifically labeled to better serve as references for students.

It also features a revised description of horizontal and vertical analysis, and two additional profitability ratios. A dedicated Sustainability Chapter Chapter 15 provides a deeper dive into how sustainability can generate business value.

It also includes sections on sustainability reporting, the Sustainability Accounting Standards Board, and environmental management accounting systems. New company examples and data on sustainability including the landmark Paris Agreement have been added. New to This Edition. Select modifications and enhancements were made to the chapters to make them easier for students to grasp difficult concepts, including: Refreshed chapter opening stories attract student attention and lay the groundwork for the chapter using recognizable, real-world companies.

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