Accounting for Managers
John Wiley & Sons Inc (Verlag)
978-1-119-00294-9 (ISBN)
Emphasizing the interpretation as opposed to the construction of accounting information, Accounting for Managers encourages a critical rather than unthinking acceptance of accounting techniques. Whilst accounting information is immensely valuable for planning, decision making and control, users need to recognize the assumptions behind, and the limitations of, particular accounting techniques.
As in the previous editions, Accounting for Managers combines theory with practical examples and contemporary case studies drawn from real business situations across a wide range of manufacturing, retail and service industries.
Accounting for Managers is an ideal companion for postgraduate and undergraduate students, as well as non-financial managers in executive education courses seeking a better understanding of the role played by accounting and how it affects their organization and business unit.
Dr Paul M. Collier was Professor of Accounting at Monash University in Melbourne, Australia. He was previously at Aston Business School in Birmingham, UK. Paul is currently a consultant and investor in a hospitality business but retains an ongoing association in various academic projects with Monash University. Before becoming an academic, Paul was chief financial officer of a listed company and has worked in senior financial and general management positions in the UK and Australia. He has also conducted numerous executive education courses. Paul has been a board member of a large UK Housing Association and an Australian health service. This book is a result of his practical experience as a producer and user of accounting information as well as his teaching and training experience in the UK and Australia. A comprehensive package of supplementary material is available on the book companion website at www.wileyeurope.com/college/collier, including PowerPoint slides, multiple choice questions for each chapter, and additional questions and solutions.
Preface to the Fifth Edition xiii
About the Author xvii
Acknowledgements xix
Part I Context of Accounting 1
1 Introduction to Accounting 3
Accounting, accountability, and the account 3
A short history of accounting 5
Introducing the functions of accounting 7
The role of financial accounting 7
The role of management accounting 8
Recent developments in accounting 10
The relationship between financial accounting and management accounting 12
A critical perspective 14
Conclusion 16
References 16
Questions 17
2 Accounting and its Relationship to Shareholder Value and Corporate Governance 19
Capital and product markets 19
Shareholder value‐based management 21
Shareholder value, strategy, and accounting 23
Company regulation and corporate governance 25
Risk management, internal control, and accounting 28
A critical perspective 29
Conclusion 30
References 30
Questions 31
3 Recording Financial Transactions and the Principles of Accounting 33
Business events, transactions, and the accounting system 33
The double entry: recording transactions 35
Extracting financial information from the accounting system 38
Basic principles of accounting 42
Cost terms and concepts: the limitations of financial accounting 45
Conclusion 47
References 47
Questions 47
4 Management Control, Accounting, and its Rational‐Economic Assumptions 51
Management control systems 51
Planning and control in organizations 54
Non‐financial performance measurement 58
A theoretical framework for accounting 64
Conclusion 65
References 65
Websites 67
Questions 67
5 Interpretive and Critical Perspectives on Accounting and Decision Making 69
Research and theory in management control and accounting 70
Alternative paradigms 73
The interpretive paradigm and the social construction perspective 75
Culture, control, and accounting 77
The radical paradigm and critical accounting 78
Power and accounting 80
Creative accounting, ethics, and accounting 84
Conclusion 90
References 91
Questions 93
Part II The Use of Financial Statements for Decision Making 95
6 Constructing Financial Statements: IFRS and the Framework of Accounting 97
International Financial Reporting Standards (IFRS) 98
Framework for the Preparation and Presentation of Financial Statements 100
True and fair view 103
Reporting profitability: the Income Statement and Statement of Comprehensive Income 104
Reporting financial position: the Balance Sheet or Statement of Financial Position 107
The matching principle and accruals accounting 109
Depreciation 111
Specific IFRS accounting treatments 112
Reporting cash flow: the Statement of Cash Flows 116
Differences between the financial statements 118
A theoretical perspective on financial statements 120
A critical perspective on financial statements and accounting standards 121
Conclusion 122
Reference 122
Websites 122
Appendix to Chapter 6: List of IFRS and FRS 123
Questions 125
7 Interpreting Financial Statements 129
Annual Reports 129
The context of financial statements 131
Ratio analysis 132
Profitability 133
Liquidity 135
Gearing 135
Activity/efficiency 136
Working capital 137
Managing receivables 138
Managing inventory 138
Managing payables 139
Managing working capital 139
Shareholder return 140
The relationship between financial ratios 141
Interpreting financial statements using ratios 143
Using the Statement of Cash Flows 145
Limitations of ratio analysis 152
A wider view on corporate reporting 156
Intellectual capital 157
Institutional theory 158
Corporate social and environmental responsibility 158
Applying different perspectives to financial statements 161
Conclusion 162
References 163
Questions 163
8 Accounting for Inventory 171
Introduction to inventory 171
Methods of costing inventory in manufacturing 175
Management accounting statements 180
Conclusion 181
Questions 182
Part III Using Accounting Information for Decision Making, Planning, and Control 185
9 Accounting and Information Systems 187
Introduction to accounting and information systems 187
Methods of data collection 188
Big data 190
Types of information system 190
Business processes 192
Information systems design and controls 194
Conclusion 196
References 196
Questions 196
10 Marketing Decisions 197
Marketing strategy 197
Cost behaviour 199
Cost–volume–profit analysis 201
Alternative approaches to pricing 208
Segmental profitability 212
Customer profitability analysis 216
Conclusion 219
References 219
Questions 220
11 Operating Decisions 223
The operations function 223
Managing operations – manufacturing 225
Managing operations – services 227
Accounting for the cost of spare capacity 228
Capacity utilization and product mix 229
Theory of Constraints 231
Operating decisions: relevant costs 232
Supply chain management, total cost of ownership, and supplier cost analysis 237
The cost of quality 239
Environmental cost management 241
Conclusion 246
References 247
Questions 247
12 Human Resource Decisions 251
Human resources and accounting 251
The cost of labour 252
Relevant cost of labour 255
Conclusion 261
References 262
Questions 262
13 Overhead Allocation Decisions 267
Cost classification 267
The overhead allocation problem 271
Shifts in management accounting thinking 272
Alternative methods of overhead allocation 273
Differences between absorption and activity‐based costing 282
Contingency theory 285
International comparisons 286
Behavioural implications of management accounting 287
Conclusion 290
References 291
Questions 292
14 Strategic Investment Decisions 297
Strategy 297
Capital expenditure evaluation 298
Accounting rate of return 301
Payback 304
Discounted cash flow 304
Comparison of techniques 307
Conclusion 311
References 311
Appendix to Chapter 14: Present value factors 311
Questions 313
15 Performance Evaluation of Business Units 317
Structure of business organizations 317
The decentralized organization and divisional performance measurement 320
Controllability 323
Comparison of methods 326
Transfer pricing 327
Transaction cost economics 329
Conclusion: a critical perspective 330
References 331
Questions 332
16 Budgeting 335
What is budgeting? 335
The budgeting process 336
The profit budget 339
Cash forecasting 345
A behavioural perspective on budgeting 349
A critical perspective: beyond budgeting? 350
Conclusion 354
References 354
Questions 354
17 Budgetary Control 359
What is budgetary control? 359
Variance analysis 361
Flexible budgets and sales variances 362
Flexible budgets and cost variances 363
Interpreting variances 365
Criticism of variance analysis 366
Applying different perspectives to management accounting 368
Conclusion 368
References 369
Questions 369
18 Strategic Management Accounting 371
Trends in management accounting 371
Strategic management accounting 372
Accounting techniques to support strategic management accounting 374
Lean production, lean accounting, and backflush costing 381
Conclusion 384
References 384
Further reading 385
Questions 386
Part IV Supporting Information 387
Readings 389
Reading 1 Cooper and Kaplan (1988). How cost accounting distorts product costs 390
Reading 2 Dent (1991). Accounting and organizational cultures: a field study of the emergence of a new organizational reality 403
Glossary of Accounting Terms 435
Solutions to Questions 449
Index 509
| Erscheint lt. Verlag | 28.5.2015 |
|---|---|
| Verlagsort | New York |
| Sprache | englisch |
| Maße | 188 x 234 mm |
| Gewicht | 1089 g |
| Themenwelt | Wirtschaft ► Betriebswirtschaft / Management ► Rechnungswesen / Bilanzen |
| Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management | |
| ISBN-10 | 1-119-00294-X / 111900294X |
| ISBN-13 | 978-1-119-00294-9 / 9781119002949 |
| Zustand | Neuware |
| Haben Sie eine Frage zum Produkt? |
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