Cost Accounting; Foundations and Evolutions (8th Edition).pdf

Michael R. Kinney, Texas A&M University

Cecily A. Raiborn, Texas State University—San Marcos

Cost AccountingFoundations and Evolutions

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Cost Accounting: Foundations and Evolutions, Eighth EditionMichael R. Kinney, Cecily A. Raiborn

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Brief Contents

iii

Contents iv

Preface xi

Acknowledgments xvii

Chapter 1 Introduction to Cost Accounting 1

Chapter 2 Cost Terminology and Cost Behaviors 24

Chapter 3 Predetermined Overhead Rates, Flexible Budgets, and Absorption/Variable Costing 66

Chapter 4 Activity-Based Management and Activity-Based Costing 113

Chapter 5 Job Order Costing 162

Chapter 6 Process Costing 210

Chapter 7 Standard Costing and Variance Analysis 263

Chapter 8 The Master Budget 323

Chapter 9 Break-Even Point and Cost-Volume-Profi t Analysis 381

Chapter 10 Relevant Information for Decision Making 424

Chapter 11 Allocation of Joint Costs and Accounting for By-Product/Scrap 475

Chapter 12 Introduction to Cost Management Systems 516

Chapter 13 Responsibility Accounting, Support Department Cost Allocations, and Transfer Pricing 548

Chapter 14 Performance Measurement, Balanced Scorecards, and Performance Rewards 598

Chapter 15 Capital Budgeting 650

Chapter 16 Managing Costs and Uncertainty 695

Chapter 17 Implementing Quality Concepts 740

Chapter 18 Inventory and Production Management 785

Chapter 19 Emerging Management Practices 835

Appendix Present Value Tables 866

Glossary 871

Name Index 882

Subject Index 884

Contents

Preface xiAcknowledgments xvii

Chapter 1Introduction to Cost Accounting 1

Introduction 2

Comparison of Financial, Management, and Cost Accounting 2

Financial Accounting 2Management Accounting 3Cost Accounting 4Cost Accounting Standards 5Professional Ethics 5

Competing in a Global Environment 7Organizational Strategy 8Organizational Structure 10Value Chain 11Balanced Scorecard 12Ethics in Multinational Corporations 14

Comprehensive Review Module 16Potential Ethical Issues 18Questions 18Exercises 19

Chapter 2Cost Terminology and Cost Behaviors 24

Introduction 25

Cost Terminology 25Association with Cost Object 26

Reaction to Changes in Activity 26Classifi cation on the Financial Statements 30

The Conversion Process 31Retailers versus Manufacturers/Service Companies 32Manufacturers versus Service Companies 34

Components of Product Cost 36Direct Material 36Direct Labor 36Overhead 37

Accumulation and Allocation of Overhead 38Cost of Goods Manufactured and Sold 41

Comprehensive Review Module 43Potential Ethical Issues 47Questions 48Exercises 48Problems 57

Chapter 3Predetermined Overhead Rates, Flexible Budgets, and Absorption/Variable Costing 66

Introduction 67

Normal Costing and Predetermined Overhead 67

Formula for Predetermined Overhead Rate 68Applying Overhead to Production 69Disposition of Underapplied and Overapplied

Overhead 71Alternative Capacity Measures 73

Separating Mixed Costs 73High–Low Method 74Least Squares Regression Analysis 75Flexible Budgets 78Plantwide versus Departmental Overhead

Rates 79

Overview of Absorption and Variable Costing 81

Absorption and Variable Costing Illustrations 84Comparison of the Two Approaches 86


Chapter 4Activity-Based Management and Activity-Based Costing 113

Introduction 114

Activity-Based Management 114Value-Added versus Non-Value-Added Activities 114Manufacturing Cycle Effi ciency 118

iv

Cost Driver Analysis 119Levels at Which Costs Are Incurred 120Cost Level Allocations Illustrated 122

Activity-Based Costing 124Two-Step Allocation 125Activity-Based Costing Illustrated 127

Determining Whether ABC Is Useful 128Large Product Variety 129High Product/Process Complexity 129Lack of Commonality in Overhead Costs 130Irrationality of Current Cost Allocations 130Changes in Business Environment 130

Criticisms of Activity-Based Costing 131


Chapter 5Job Order Costing 162

Introduction 163

Methods of Product Costing 163Cost Accumulation Systems 163Valuation Methods 164

Job Order Costing System 165

Job Order Costing: Details and Documents 167Job Order Cost Sheet 167Material Requisitions 169Employee Time Sheets 170Overhead 171Completion of Production 171

Job Order Costing Illustration 172

Job Order Costing Using Standard Costs 176

Job Order Costing to Assist Managers 177Concrete Café 178Paul’s Pirogues 178

Product and Material Losses in Job Order Costing 179

Generally Anticipated on All Jobs 180Specifi cally Identifi ed with a Particular Job 180Abnormal Spoilage 181


Chapter 6Process Costing 210

Introduction 211

Introduction to Process Costing 211Production Costs: The Numerator 211Production Quantity: The Denominator 213Equivalent Units of Production 213

Weighted Average and First-In, First-Out Process Costing Methods 216

Weighted Average Method 219FIFO Method 223

Process Costing in a Multidepartment Setting 226

Process Costing with Standard Costs 228

Hybrid Costing Systems 231

Appendix 1 231Alternative Calculations of Weighted Average and FIFO Methods 231

Appendix 2 233Spoilage 233


Chapter 7Standard Costing and Variance Analysis 263

Introduction 264

Development of a Standard Cost System 264Material Standards 265Labor Standards 266Overhead Standards 267

General Variance Analysis Model 269

Material and Labor Variance Computations 270Material Variances 270Point-of-Purchase Material Variance Model 272Labor Variances 273

Overhead Variances 273Variable Overhead 274Fixed Overhead 275Alternative Overhead Variance Approaches 277

Standard Cost System Journal Entries 279

Why Standard Cost Systems Are Used 282Motivating 282Planning 282Controlling 283

Contents v

Decision Making 284Performance Evaluation 284

Considerations in Establishing Standards 284Appropriateness 284Attainability 285

Changes in Standards Usage 285Use of Ideal Standards and Theoretical Capacity 285Adjusting Standards 286Material Price Variance Based on Usage Rather

Than on Purchases 288Decline in Direct Labor 288

Conversion Cost as an Element in Standard Costing 288

Appendix 290Mix and Yield Variances 290

Material Price, Mix, and Yield Variances 291Labor Rate, Mix, and Yield Variances 293


Chapter 8The Master Budget 323

Introduction 324

The Budgeting Process 324Strategic Planning 324Tactical Planning 325

The Master Budget 328

The Master Budget Illustrated 330Production Budget 331Purchases Budget 332Personnel Budget 332Direct Labor Budget 333Overhead Budget 334Selling and Administrative Budget 334Capital Budget 334Cash Budget 335Budgeted Financial Statements 341

Using Budgets for Management Control 347

Appendix 349Budget Manual 349


Chapter 9Break-Even Point and Cost-Volume-Profi t Analysis 381

Introduction 382

Break-Even Point 382

Identifying the Break-Even Point 384Formula Approach to Breakeven 384Graphing Approach to Breakeven 385Profi t-Volume Graph 387Income Statement Approach 388

CVP Analysis 388Fixed Amount of Profi t 389Specifi c Amount of Profi t per Unit 391Incremental Analysis for Short-Run Changes 393

CVP Analysis in a Multiproduct Environment 396

Managing Risk of CVP Relationships 399Margin of Safety 399Operating Leverage 399

Underlying Assumptions of CVP Analysis 401


Chapter 10Relevant Information for Decision Making 424

Introduction 425

The Concept of Relevance 425Association with Decision 425Importance to Decision Maker 426Bearing on the Future 426

Sunk Costs 426

Relevant Costs for Specifi c Decisions 428Outsourcing Decisions 428Scarce Resource Decisions 433Sales Mix Decisions 435Special Order Decisions 440Product Line and Segment Decisions 442

Appendix 444Linear Programming 444

Basics of Linear Programming 445Formulating an LP Problem 445Solving an LP Problem 448

Comprehensive Review Module 449Potential Ethical Issues 453

vi Contents

Questions 453Exercises 453Problems 461

Chapter 11Allocation of Joint Costs and Accounting for By-Product/Scrap 475

Introduction 476

Outputs of a Joint Process 476

The Joint Process 478

The Joint Process Decision 479

Allocation of Joint Cost 482Physical Measure Allocation 482Monetary Measure Allocation 484

Accounting for By-Product and Scrap 488Net Realizable Value Approach 489Realized Value Approach 490

By-Product and Scrap in Job Order Costing 492

Joint Costs in Service Businesses and Not-for-Profi t Organizations 493


Chapter 12Introduction to Cost Management Systems 516

Introduction 517

Introduction to Management Information and Control Systems 517

Defi ning a Cost Management System 519

The Roles of a Cost Management System 521

Designing a Cost Management System 523Organizational Form, Structure, and Culture 523Organizational Mission and Core Competencies 526Operations and Competitive Environment and Strategies 526

Determine Desired Components of CMS 530Motivational Elements 530Informational Elements 532Reporting Elements 534

Perform Gap Analysis and Assess Improvements 535

Appendix 536Cost Management System Conceptual Design Principles 536


Chapter 13Responsibility Accounting, Support Department Cost Allocations, and Transfer Pricing 548

Introduction 549

Decentralization 549

Responsibility Accounting Systems 551

Types of Responsibility Centers 554Cost Center 554Revenue Center 555Profi t Center 555Investment Center 556

Support Department Cost Allocation 556Allocation Bases 556Methods of Allocating Support Department Costs 558

Service Department Cost Allocation Illustration 559Direct Method Allocation 560Step Method Allocation 561Algebraic Method Allocation 562Determining Overhead Application Rates 565

Transfer Pricing 565Types of Transfer Prices 567Selecting a Transfer Pricing System 569

Transfer Prices in Multinational Settings 570


Chapter 14Performance Measurement, Balanced Scorecards, and Performance Rewards 598

Introduction 599

Organization Mission Statements 599

Organizational Roles of Performance Measures 600Internal Performance Measures 600External Performance Measures 601

Designing a Performance Measurement System 602General Criteria 602Assess Progress toward Mission 603

Contents vii

Awareness of and Participation in Performance Measures 603Appropriate Tools for Performance 603Need for Feedback 604

Short-Term Financial Performance Measures for Management 604

Divisional Profi ts 604Cash Flow 605Return on Investment 605Residual Income 609Economic Value Added 609Limitations of Return on Investment, Residual Income,

and Economic Value Added 610

Diff erences in Perspectives 611

Nonfi nancial Performance Measures 612Selection of Nonfi nancial Measures 612Establishment of Comparison Bases 616

Use of Multiple Measures 616

Using a Balanced Scorecard for Measuring Performance 617

Performance Evaluation in Multinational Settings 619

Compensation Strategy 620

Pay-for-Performance Plans 620

Links between Performance Measures and Rewards 622Degree of Control over Performance Output 623Incentives Relative to Organizational Level 623Performance Plans and Feedback 623Worker Pay and Performance Links 623Promoting Overall Success 624Nonfi nancial Incentives 624

Tax Implications of Compensation Elements 624

Global Compensation 625

Ethical Considerations of Compensation 625


Chapter 15Capital Budgeting 650

Introduction 651

Capital Asset Acquisition 651

Use of Cash Flows in Capital Budgeting 652

Cash Flows Illustrated 653Time Lines 653

Payback Period 654

Discounting Future Cash Flows 655Net Present Value Method 656Profi tability Index 657

Internal Rate of Return 658

Eff ect of Depreciation on After-Tax Cash Flows 660

Assumptions and Limitations of Methods 662

Investment Decision 665Is the Activity Worthy of an Investment? 665Which Assets Can Be Used for the Activity? 665Of the Available Assets for Each Activity, Which Is the Best

Investment? 666Of the “Best Investments” for All Worthwhile Activities,

in Which Ones Should the Company Invest? 666

Ranking Multiple Capital Projects 668

Compensating for Risk in Capital Project Evaluation 668Judgmental Method 669Risk-Adjusted Discount Rate Method 669Sensitivity Analysis 670

Postinvestment Audit 672

Appendix 1 673Time Value of Money 673Present Value of a Single Cash Flow 673Present Value of an Annuity 674

Appendix 2 674Accounting Rate of Return 674


Chapter 16Managing Costs and Uncertainty 695

Introduction 696

Cost Control Systems 696

Understanding Cost Changes 698Cost Changes Because of Volume Changes 698Cost Changes Because of Infl ation/Defl ation 698Cost Changes Because of Supply/Supplier Cost Adjustments 699Cost Changes Because of Quantity Purchased 700

Cost Containment 700

Cost Avoidance and Cost Reduction 701

Committed Fixed Costs 702

Discretionary Costs 703Controlling Discretionary Costs 704

viii Contents

Cash Management 710What Variables Infl uence the Optimal

Level of Cash? 711What Are the Sources of Cash? 711What Variables Infl uence the Cost of

Carrying Cash? 713Banking Relationships 713

Supply-Chain Management 714Information Technology and Purchasing 714Advances in Authorizing and Empowering

Purchases 714

Coping with Uncertainty 715The Nature and Causes of Uncertainty 715Four Strategies for Dealing with Uncertainty 716


Chapter 17Implementing Quality Concepts 740

Introduction 741

What Is Quality? 741Production View of Quality 741Consumer View of Quality 743

Benchmarking 745

Total Quality Management 749Quality System 749Employee Involvement 749Product/Service Improvement 750Long-Term Supplier Relationships 751

The Baldrige Award 751

Types of Quality Costs 754

Measuring the Cost of Quality 757

Obtaining Information about Quality from the BSC and CMS 761

Quality as an Organizational Culture 763

Appendix 765Assessing Quality Internationally 765ISO 765EFQM 766


Chapter 18Inventory and Production Management 785

Introduction 786

Important Relationships in the Value Chain 786

Buying or Producing and Carrying Inventory 787

Inventory and Production Management Philosophies 787

Understanding and Managing Production Activities and Costs 789

Product Life Cycles 789Life Cycle and Target Costing 790

Just-in-Time Systems 793

Changes Needed to Implement JIT Manufacturing 795Supplier Relationships and Distribution 795Product Design 797Product Processing 798Plant Layout 799

Logistics of the JIT Environment 801Accounting Implications of JIT 802Flexible Manufacturing Systems and Computer-Integrated

Manufacturing 807Lean Enterprises 808

Theory of Constraints 809

Appendix 811Economic Order Quantity and Related Issues 811

Economic Order Quantity 811Economic Production Run 811

Order Point and Safety Stock 812

Pareto Inventory Analysis 813


Chapter 19Emerging Management Practices 835

Introduction 836

The Changing Workplace 836

Business Process Reengineering 837

Downsizing, Layoff s, and Restructuring 839

Workforce Diversity 840

Enterprise Resource Planning Systems 842

Strategic Alliances 846

Contents ix

Open-Book Management 847Using Games to Teach Open-Book Management 849Motivating Employees 850Implementation Challenges 851

Environmental Management Systems 852

Comprehensive Review Module 855Potential Ethical Issues 856Questions 856

Exercises 857Problems 860

Appendix: Present Value Tables 866

Glossary 871

Name Index 882

Subject Index 884

x Contents

Preface

xi

Cost accounting is a dynamic discipline constantly responding to the needs of managers in a highly competitive and global business world. Managers need cost accounting infor-mation to develop, implement, and evaluate strategy. Managers also need cost accounting measurements to determine product costs for internal management and external fi nancial reporting. Th e eighth edition of Cost Accounting: Foundations and Evolutions provides in-depth coverage of cost management concepts and procedures in a logically sequenced and student-friendly framework. Th is text encourages students to go beyond the num-bers and think critically about business decisions.

A text is valuable only when students fi nd the subject matter applicable to their business or personal lives. Th rough the use of a straightforward, readable approach, Cost Accounting:

Foundations and Evolutions displays the real-world relevance of this topic to its readers.

Hallmark FeaturesTh is edition provides in-depth, current coverage of cost management concepts and proce-dures, while integrating relevant, real-world business examples and ethical considerations, in a straightforward and student-friendly framework. Th e unique hallmark features of this text that have been retained include the following.

Streamlined, Student-Friendly Approach

Recognized for its unmatched readability, the book’s thought-provoking writing keeps con-cepts intriguing and easy to comprehend. Th is edition’s solid blend of concepts and prac-tices will help students clearly understand how to solve actual business problems.

Th e text is well written, and students like it.

Gary L. Bridges, University of Texas at San Antonio

Relevancy in Today’s Business World

Real-world examples that appeal to today’s students and clearly exemplify the chapter’s concepts are integrated throughout the main body of the text to immediately connect today’s business world with the classroom experience.

Th e Kinney/Raiborn book does a great job on more modern topics

such as ABC, TQM, and JIT.

Alan D. Campbell, Troy University

Developing Ethical Business Leaders

Th e need for students to analyze business situations and make informed, ethical decisions is essential in today’s world. Cost Accounting: Foundations and Evolutions weaves ethical considerations throughout each chapter so that students learn to consistently think of the ethical implications of their actions. Potential Ethical Issues at the end of each chapter

Ethics

xii Preface

emphasize dilemmas students may encounter in business. Exercises and problems involving ethical considerations are marked with an ethics icon.

Comprehensive Review Modules

A Comprehensive Review Module for each chapter ensures your students’ mastery of concepts an overview of key terms, through an overview of key terms, succinct chapter summaries, solu-tion strategies highlighting key equations and concepts, and demonstration problems that stu-dents can use as a framework for solving similar examples in homework assignments or exams. Th ese modules reinforce the critical concepts from the chapters and show how to apply them.

High-Quality End-of-Chapter Assignments

Students practice accounting skills with a wide array of assignment types, including Excel Template activities, ethical problems, writing assignments, Internet research exercises, and group activities. Questions test basic chapter comprehension, Exercises off er quick concept checks, and Problems delve deeper into the concepts, testing students’ retention of critical topics and procedures.

A strength of the textbook is the quality of the exercises and problems at the end of

each chapter. Th ese items . . . do a good job of reinforcing important concepts in the chapter.

Furthermore, most chapters have one or two broad-scope problems that integrate many of the con-

cepts presented in that chapter and, in some cases, also integrate concepts from preceding chapters.

Nace Magner, Western Kentucky University

Improvements in the Eighth EditionWe’ve tailored this edition of Cost Accounting: Foundations and Evolutions to meet the specifi c needs of this course, taking the insights and suggestions of many cost accounting professors across the country into consideration. Th e following improvements have been made.

Clarity for Complex Topics

Building on its proven strengths of eff ortlessly teaching fundamental cost accounting con-cepts with precision, extra care has been taken to clarify the topics that your students strug-gle with most—such as equivalent units for process costing, cost allocation under ABC, and overhead variances—to make these topics easy to comprehend. New exhibits have been added throughout to help students make visual connections with the concepts.

Superior Readability

Always praised for its engaging, student-friendly writing style, the authors have further enhanced the text’s unmatched readability by breaking lists and equations out of text nar-rative for a clean presentation that’s easy to read.

Complete Student Learning System

In addition to the chapter opening learning objectives (which are indicated within the chapter to guide students through the material), new learning objective links have been added to the chapter summary to help students close the loop and easily identify areas that require additional attention or practice. Page references have also been added to the

Preface xiii

Solution Strategies at the end of the chapter, so students can quickly reference the text for additional explanations when necessary.

New End-of-Chapter Assignments

Numerous new problems have been added and nearly 90 percent of the end-of-chapter assignments in this edition have been updated or modifi ed to provide professors who prefer to assign new questions each term with more choice and fl exibility. Writing labels have been added to better identify which assignments build written communication and research skills.

Advanced Technology Solutions

New for this edition, a full CengageNOW for Cost Accounting: Foundations and Evolutions provides ultimate fl exibility and ease of use with the results you want NOW that ensure that your students are mastering the procedural and decision-making skills needed for future success. Th is integrated, online course management system allows you to save time as you effi ciently plan your course; teach and reinforce content with an integrated eBook, interactive learning tools, and personalized study plans automatically developed for each student; and test with automatic grade results.

Signifi cant RevisionsSome signifi cant changes to the eighth edition (in addition to the substantial end-of-chap-ter changes, updated references, etc.) include the following:

Chapter 3

Quantitative material organized into tabular format for easier reference and • comprehension

Some content reorganized for better fl ow•

Chapter 4

Revision of discussion on the causes of NVA activities into tabular format for ease in • understandability

Reordering of chapter discussion for better fl ow•

Chapter 8

New exhibit on variables aff ecting strategic plan•

Consolidation of two “redundant” exhibits (Ex. 8–4 and 8–5)•

New “block-formatted” discussion of personnel budget considerations•

Chapter 9

Reorganized and reformatted for better fl ow and streamlined presentation•

Chapter 10

New exhibit on outsourcing benefi ts•

Updated references and examples in outsourcing discussion•

xiv Preface

Chapter 17

New Exhibit (17–1) on how and why to eliminate NVA activities•

New “block-formatted” discussion of how a quality system reorients thinking•

New Exhibit (17-9) on TQM’s cycle of benefi ts•

New “block-formatted” discussion of how the BSC can be used to provide information • on quality and help frame management decision processes

Instructor Support MaterialsA comprehensive instructor support package is provided for this text, including the following.

Text Companion Web site

www.cengage.com/accounting/kinney

Th is robust companion Web site provides immediate access to a rich array of teaching and interactive learning resources—including chapter-by-chapter online tutorial quizzes, a fi nal exam, online learning games, fl ashcards, and more! Easily download the instructor resources you need from the password-protected, instructor-only section of the site.

Instructor’s Resource CD

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Place the key teaching and preparation resources you need at your fi ngertips with the Instructor’s Resource CD, which contains the Solutions Manual, Instructor’s Manual, Test Bank in Word format, and ExamView® Testing Software as well as PowerPoint® Presentation slides and Excel® Spreadsheet Templates with Solutions.

Solutions Manual

Available online, on the Instructor’s Resource CD, or as a print product (by request)

Find full solutions for all end-of-chapter assignment items, including questions, exercises, and problems. Complete computations allow you to demonstrate clearly how to reach the correct answers.

Instructor’s Manual

Available online and on the Instructor’s Resource CD

Access the tools you need in the Instructor’s Manual, which provides the resources to streamline and maximize the eff ectiveness of your course preparation. Th e Instructor’s Manual presents an overview of the learning objectives, a chapter-by-chapter glossary of terminology, and a detailed lecture outline.

Test Bank


Effi ciently assess your students’ understanding as this edition’s Test Bank off ers an extensive selection of questions for quizzes, tests, and exams. New AICPA and AACSB tags have been added to help you quickly identify problems that have been used on professional


Preface xv

accounting exams. Th e Test Bank is also available in ExamView® for customized electronic testing.

ExamView Pro® Testing Software

Available on the Instructor’s Resource CD

Th is edition’s electronic Test Bank off ers a variety of class-tested multiple-choice problems, short problems, and essay problems. Designed to make exam preparation as convenient as possible, each Test Bank chapter contains enough questions and problems to prepare several exams without repeating material. Instantly customize tests with this easy-to-use software.

PowerPoint Slides


Make your lectures come to life and clarify diffi cult concepts with slides designed to com-plement your lecture and focus student attention. A free concise, student version is also available online.

Excel Spreadsheet Solutions


Th ese templates provide the solutions for the problems and exercises that have Excel Spreadsheet Templates. Th rough these fi les, instructors can see the solutions in the same format as the students. All problems with accompanying templates are marked in the book with an icon.

CengageNOW

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Ensure that your students have the understanding of accounting procedures and concepts they need to know with CengageNOW. Th is integrated, online course management and learning system combines the best of current technology to save time in planning and managing your course and assignments. You can reinforce comprehension with customized student learning paths and effi ciently test and automatically grade assignments. Access is available through a printed access card or electronic access code that can be bundled with this edition. See your sales representative for details.

Experience Accounting Video Series

www.cengage.com/accounting/eav

Provide students with an inside look into the unique decision making of top companies—including BP, Hard Rock Café, Coldstone Creamery, Boyne Resorts, and more—to better illustrate how accounting information is used. Visit the Web site to access these videos or see a demo.

WebTutor for BlackBoardTM and WebTutor for WebCTTM

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xvi Preface

Student Support Materials

Text Companion Web site

Master the procedures and concepts of accounting and earn the grade you want in your accounting course with the rich array of learning resources at the Cost Accounting: Foundations

and Evolutions, 8e interactive companion Web site. Designed specifi cally for your success, this Web site features chapter-by-chapter online tutorials, quizzes and solutions, learning games, fl ash cards, and more. Visit www.cengage.com/accounting/kinney today!

PowerPoint slides

Easily take notes, and study or review diffi cult concepts, with the student version of this edition’s PowerPoint slides, available online at www.cengage.com/accounting/kinney.

Excel Spreadsheet Templates

Save time and ensure accuracy with online Excel® templates on the text’s companion Web site that help you solve selected end-of-chapter exercises and problems, while gaining valuable experience with the popular Excel® software. Download these templates at www.cengage.com/accounting/kinney.

CengageNOW

CengageNOW is an easy-to-use online resource that helps you study more eff ectively in less time so that you can get the high grade you want. Th is integrated system helps you effi ciently manage and complete your homework assignments from the text. Take pretests to determine the areas in which you require more practice and direct you to review tutori-als, demonstration exercises, videos, eBook content, and accounting games to help learn the material, and get feedback on posttests that check your comprehension afterward. Th is printed access card allows access to CengageNOW. Access is available through a printed access card or electronic access code that can be bundled with this edition.

WebTutor for BlackBoard and WebTutor for WebCT

WebTutor off ers a full array of online study tools, compatible with the WebCT platform, including learning objectives, glossary fl ash cards, and practice quizzes to help you succeed in class and on exams. Access is available through a printed access card or electronic access code that can be bundled with this edition.





Gary L. BridgesUniversity of Texas at San Antonio

Alan D. CampbellTroy University

Charles R. ChambersUniversity of Toledo

Beatrix DeMottPark University

Rita L. DufourNortheast Wisconsin Technical College

Richard D. EnglishAugustana College

Dennis J. GeorgeUniversity of Dubuque

Elsayed KandielState University of New York,

Plattsburgh

Howard LawrenceUniversity of Mississippi

Nace MagnerWestern Kentucky University

David J. MedvedTh omas Edison State College

Philip W. MorrisSam Houston State University

Letitia Meier PleisMetropolitan State College of Denver

William R. RhodesUniversity of Mississippi

Larry L. SimpsonDavenport University

Jan SmolarskiUniversity of Texas Pan American

Ron StundaBirmingham-Southern College

Timothy J. SwensonSullivan University

Ara G. VolkanFlorida Gulf Coast University

Th eodore N. WoodGordon College

Wallace R. WoodUniversity of Cincinnati

Acknowledgments

xvii

We would like to thank all the people who have helped us during the revision of this text. Th e constructive comments and suggestions made by the following reviewers were instru-mental in developing, rewriting, reorganizing, and improving the quality, readability, accu-racy, and student orientation of Cost Accounting: Foundations and Evolutions.

xviii Acknowledgments

We are grateful for the materials from the Institute of Management Accountants, American Institute of CPAs, and various periodical publishers that have contributed sig-nifi cantly to making this text a truly useful learning tool for the students. Th e authors wish to thank all the people at South-Western, a part of Cengage Learning (especially Krista Kellman, Developmental Editor; Holly Henjum, Senior Content Project Manager; and Matt Filimonov, Acquisitions Editor), who have helped us on this project. Special thanks go to Valarmathy Munuswamy, at Integra Software Services, for her time and eff ort on this edition.

We would also like to thank our supplement preparers for providing high-quality con-tent and verifi ers for ensuring the accuracy of this text and supplements:

Supplement Preparers:

Test Bank:Edward R. WalkerUniversity of Central Oklahoma

Instructor’s Manual:J. Lowell MooneyGeorgia Southern University

PowerPoint Slides:Herb MartinHope College

CengageNOW Content:Michelle A. McFeatersGrove City College

Excel Templates and Online Quiz Questions:Barbara J. MullerArizona State University

Additional Exercises and Problems:Kathleen SevignyBridgewater State College

Verifi ers:

James M. EmigVillanova University

Alice B. SineathForsyth Technical

Community College

Beth Woods

In closing, Cecily Raiborn would like to acknowledge Emmett and Miriam McCoy for the ethical behavior they have consistently demonstrated in business and for their personal philanthropic endeavors. Th e world would be a better place with more individuals like them.

Mike Kinney & Cecily Raiborn

Cost Accounting; Foundations and Evolutions (8th Edition).pdf

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