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Managerial Accounting: Tools for Business Decision-Making, 4th Canadian Edition


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Managerial Accounting: Tools for Business Decision-Making, 4th Canadian Edition

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Weygandt’s  Managerial Accounting 4th Canadian Edition is written by a highly trusted and respected author team - Weygandt, Kieso, Kimmel and Aly. Hundreds of thousands of students have been successful using books written by these authors.  Again, these authors bring you a one semester, undergraduate text that presents the fundamental concepts of managerial accounting in a concise and easy-to-read fashion.

This edition retains the same features that made it popular in the previous editions: it gives students all the necessary techniques and concepts of managerial accounting in a focused, concise framework with an excellent pedagogy that's been praised by instructors. It does this by focusing on the tools students need to succeed. Because not all students taking this course may be accounting majors, the authors have focused more on building decision making skills; on how to use accounting information to make quality business decision; and on the tools needed by future managers. 

Pair this book with our new Managerial Accounting Cases by Carty and Wick for a complete solution for your Managerial Accounting needs.


Related Resources

Chapter 1 Managerial Accounting 2

Accounting Keeps Businesses Afloat 3

Managerial Accounting Basics 4

Comparing Managerial and Financial Accounting 4

Management Functions and Organizational Structures 6

Organizational Structures 7

Business Ethics 8

Creating Proper Incentives 9

Code of Ethical Standards 10

Corporate Social Responsibility 11

Managerial Accounting Today 12

Service Industry Trends 13

Managerial Accounting Practices 14

Accounting Organizations and Professional Accounting Careers in Canada 17

Chapter 2 Managerial Cost Concepts and Cost Behaviour Analysis 26

Mining Cost-Cutting Potential 27

Managerial Cost Concepts 28

Manufacturing Costs 28

Prime Costs and Conversion Costs 29

Product versus Period Costs 29

Cost Concepts—A Review 30

Cost Behaviour Analysis 32

Variable Costs 33

Fixed Costs 33

Relevant Range 34

Mixed Costs 36

Classifying Costs 37

Manufacturing Costs in Financial Statements 40

Income Statement 40

Balance Sheet 42

Chapter 3 Job-Order Cost Accounting 70

A Pressing Need to Calculate Costs 71

Cost Accounting Systems 72

Job-Order Cost Systems 72

Process Cost Systems 72

Job-Order Cost Flow 74

Accumulating Manufacturing Costs 75

Assigning Manufacturing Costs to Work in Process 77

Raw Materials Costs 78

Factory Labour Costs 79

Manufacturing Overhead Costs 81

Predetermined Overhead Rate 81

Accounting for Jobs Completed and Sold 85

Assigning Costs to Finished Goods 85

Assigning Costs to Cost of Goods Sold 86

Job-Order Costing for Service Companies 86

Summary of Job-Order Cost Flows 88

Advantages and Disadvantages of Job-Order Costing 89

Reporting Job Cost Data 90

Under-Applied or Over-Applied Manufacturing Overhead 90

Chapter 4 Process Cost Accounting 116

Business in a Bottle 117

The Nature of Process Cost Systems 118

Process Costing for Service Companies 119

Similarities and Differences Between Job-Order Cost and Process Cost Systems 119

Operations Costing 120

The Flow and Assignment of Manufacturing Costs 122

Assignment of Manufacturing Costs—Journal Entries 122

Equivalent Units 125

Weighted-Average Method 125

Refinements on the Weighted-Average Method 126

The Production Cost Report 128

Calculate the Physical Unit Flow (Step 1) 128

Calculate the Equivalent Units of Production (Step 2) 129

Calculate the Unit Production Costs (Step 3) 129

Prepare a Cost Reconciliation Schedule (Step 4) 130

Preparing the Production Cost Report 131

Calculate Equivalent Units and Create a Production Cost Report for a Sequential Process Setting 132

Equivalent Units Under FIFO 135

Illustration 135

Comprehensive Example 136

FIFO and Weighted Average 140

Chapter 5 Activity-Based Costing 168

The “ABCs” of Tracking Costs 169

Traditional Costing and Activity-Based Costing 170

The Need for a New Approach 170

Activity-Based Costing 170

Applying an Activity-Based Costing System 173

Identify and Classify Activities and Allocate Overhead to Cost Pools (Step 1) 173

Identify Cost Drivers (Step 2) 173

Calculate Overhead Rates (Step 3) 174

Assign Overhead Costs to Products (Step 4) 174

Unit Cost Comparison 175

Benefits and Limitations of Activity-Based Costing 177

Benefits of ABC 177

Limitations of ABC 182

Activity-Based Costing in Service Industries 183

Traditional Costing Example 183

Activity-Based Costing Example 184

Chapter 6 Decision-Making: Cost–Volume–Profit 216

Not Much Room to Move on Price 217

Cost–Volume–Profit Analysis, Income Statement, and the Contribution Margin 218

Basic Components 218

Cost–Volume–Profit Income Statement 218

Contribution Margin per Unit 220

Contribution Margin Ratio 220

Break-Even Analysis 222

Mathematical Equation 223

Contribution Margin Technique 223

Graphic Presentation 224

Target Operating Income and the Margin of Safety 226

Target Operating Income Before Tax 226

Target Operating Income After Tax 227

Margin of Safety 228

CVP and Changes in the Business Environment 230

Sales Mix 232

Break-Even Sales in Units 233

Break-Even Sales in Dollars 234

Effect on Contribution Margin Ratio 239

Effect on Break-Even Point 239

Effect on Margin of Safety Ratio 239

Operating Leverage 239

Chapter 7 Incremental Analysis 266

Outsourcing Can Be Outstanding 267

Decision-Making and the Incremental Analysis Approach 268

Incremental Analysis Approach 269

Types of Incremental Analysis 270

Accept an Order at a Special Price 271

Make or Buy 272

Sell or Process Further 275

Retain or Replace Equipment 278

Eliminate an Unprofitable Segment 279

Allocate Limited Resources 281

Chapter 8 Alternative Inventory Costing Methods: A Decision-Making Perspective 310

No Fishy Business in Tracking Costs 311

Inventory Costing Methods 312

Illustration Comparing Absorption Costing and Variable Costing 312

Net Income Effects 314

Decision-Making Concerns 318

Performance Evaluation 318

Potential Advantages of Variable Costing 320

Normal Costing 322

Throughput Costing 325

Chapter 9 Pricing 352

A Clear Pricing Strategy 353

Pricing Goods for External Sales 354

Target Costing 354

Total Cost-Plus Pricing 356

Absorption Cost-Plus Pricing 359

Variable Cost-Plus Pricing 360

Pricing Services 363

Transfer Pricing for Internal Sales 366

Transfer Pricing—An Explanation 366

Transfer Pricing Approaches 368

Transfers Between Divisions in Different Countries 372

Chapter 10 Budgetary Planning 400

Budgeting for Smooth Skies 401

Budgeting Basics and the Master Budget 402

Budgets and Accounting 402

The Benefits of Budgeting 402

Essentials of Effective Budgeting 402

Length of the Budget Period 402

The Budgeting Process 403

Budgeting and Human Behaviour 403

Budgeting and Long-Range Planning 405

The Master Budget 405

Preparing the Sales, Production, and Direct Materials Budgets 406

Sales Budget 407

Production Budget 407

Direct Materials Budget 408

Preparing the Direct Labour, Manufacturing Overhead, and S&A Expense Budgets 410

Manufacturing Overhead Budget 411

Selling and Administrative Expenses Budget 411

Budgeted Income Statement 412

Preparing the Financial Budgets 414

Cash Budget 414

Budgeted Balance Sheet 416

Budgeting in Non-Manufacturing Companies 418

Merchandisers 418

Service Enterprises 419

Not-for-Profit Organizations 420

Chapter 11 Budgetary Control and Responsibility Accounting 448

Keeping the Budget on Track 449

The Concept of Budgetary Control and Static Budget Reports 450

Budgetary Control 450

Static Budget Reports 451

Flexible Budgets 453

Why Flexible Budgets? 453

Developing the Flexible Budget 455

Flexible Budget—A Case Study 456

Flexible Budget Reports 458

Responsibility Accounting for Cost and Profit Centres 459

The Responsibility Accounting Concept 459

Controllable versus Noncontrollable Revenues and Costs 460

Responsibility Reporting System 460

Principles of Performance Evaluation 463

Accounting for Various Responsibility Centres 464

Evaluating Performance in Investment Centres 467

Return on Investment (ROI) 467

Responsibility Report 468

Judgemental Factors in ROI 468

Improving ROI 469

Residual Income Compared with ROI 473

Residual Income Weakness 474

Chapter 12 Standard Costs and Balanced Scorecard 504

An Academic Scorecard 505

Standards—Needs and Costs 506

Distinguishing Between Standards and Budgets 507

Setting Standard Costs 507

Analyzing and Reporting Variances from Standards 509

Direct Materials Variances 511

Causes of Materials Variances 513

Direct Labour and Manufacturing Overhead Variances 514

Direct Labour Variances 514

Manufacturing Overhead Variances 516

Variance Reports and the Balanced Scorecard 522

Reporting Variances 522

Statement Presentation of Variances 523

Balanced Scorecard 523

Journal Entries 527

Ledger Accounts 529

Chapter 13 Planning for Capital Investments 556

Planning Big Projects Takes Energy 557

The Capital Budgeting Evaluation Process and the Cash Payback Technique 558

Cash Flow Information 558

Illustrative Data 559

Cash Payback Technique 560

Net Present Value Method 561

Equal Annual Cash Flows 562

Unequal Annual Cash Flows 562

Choosing a Discount Rate 563

Simplifying Assumptions 564

Comprehensive Example 564

Capital Budgeting Challenges 566

Intangible Benefits 566

Profitability Index for Mutually Exclusive Projects 568

Risk Analysis 569

Post-Audit of Investment Projects 569

Internal Rate of Return Method 570

Determining the Internal Rate of Return 571

Internal Rate of Return vs. Net Present Value 572

Annual Rate of Return Method 573

Annual Rate of Return Method: Pros and Cons 574


Company Index I-1

Subject Index I-3

  • Eight new feature stories and several new business insight boxes help to ground discussions in the real world.
  • Integrated company coverage using a real-company example further emphasizes the real-world focus of the text. Current Designs, a kayak-making company with Canadian origins, is introduced in Chapter 1. We then follow up with a decision-making problem in every chapter based on this real-world company.
  • The Decision Toolkit System allows students to focus on key decision-making concepts and is integrated throughout the text.
  • The All About You feature links a specific chapter topic to the students’ personal lives by presenting the topic, offering some facts about it, posing a situation for students to think about, and offering alternative answers as a starting place for further discussion.
  • End-of-chapter assignment material is adapted from the CMA and CGA's professional examinations.
  • Weygandt’s Managerial Accounting Video series showcase real companies such as Starbucks, Jones Soda, and Zappos in 5-6 minute segments.
  • Active Learning is encouraged using several unique pedagogical tools integrated throughout the text such as the Navigator, Do it!, Action Plan and Before You Go On.
  • Service Industry coverage is emphasized in this text to reflect the Canadian economy, as it is increasingly comprised of service companies.
  • WileyPLUSnow features ORION, our adaptive learning tool.

WileyPLUS is a research-based online environment for effective teaching and learning. WileyPLUS is packed with interactive study tools and resources–including the complete online textbook–to give your students more value for their money. With WileyPLUS, Weygandt students will get accounting by doing accounting.

WileyPLUS is now equipped with an adaptive learning module called ORION. Based on cognitive science, WileyPLUS with ORION, provides students with a personal, adaptive learning experience so they can build their proficiency on topics and use their study time most effectively. WileyPLUS with ORION helps accounting students learn by learning about them.