Page 6 - Accounting Principles (A Business Perspective)

Cost behavior patterns.................................................................................................................................832
Methods for analyzing costs.........................................................................................................................835
Cost-volume-profit (CVP) analysis...............................................................................................................837
Finding the break-even point.......................................................................................................................838
Cost-volume-profit analysis illustrated........................................................................................................841
Assumptions made in cost-volume-profit analysis.....................................................................................843
Using computer spreadsheets for CVP analysis..........................................................................................844
Effect of automation on cost-volume-profit analysis..................................................................................845
22. Short-term decision making: Differential analysis..........................................................859
Contribution margin income statements.....................................................................................................859
Differential analysis......................................................................................................................................861
Applications of differential analysis.............................................................................................................863
Applying differential analysis to quality......................................................................................................867
23. Budgeting for planning and control..................................................................................881
The budget—For planning and control........................................................................................................882
The master budget illustrated......................................................................................................................887
Budgeting in merchandising companies......................................................................................................899
Budgeting in service companies..................................................................................................................900
Additional concepts related to budgeting....................................................................................................900
24. Control through standard costs.........................................................................................916
Uses of standard costs...................................................................................................................................916
Advantages and disadvantages of using standard costs..............................................................................918
Computing variances....................................................................................................................................920
Goods completed and sold...........................................................................................................................930
Investigating variances from standard........................................................................................................930
Disposing of variances from standard..........................................................................................................931
Nonfinancial performance measures...........................................................................................................932
Activity-based costing, standards, and variances........................................................................................933
25. Responsibility accounting: Segmental analysis................................................................945
Responsibility accounting............................................................................................................................945
Responsibility reports...................................................................................................................................947
Responsibility centers..................................................................................................................................949
Transfer prices.............................................................................................................................................. 952
Use of segmental analysis.............................................................................................................................952
Concepts used in segmental analysis...........................................................................................................953
Investment center analysis...........................................................................................................................956
Economic value added and residual income...............................................................................................960
Segmental reporting in external financial statements.................................................................................961
26. Capital budgeting:Long-range planning...........................................................................978
Capital budgeting defined............................................................................................................................978
Profitability index.........................................................................................................................................987
Investments in working capital....................................................................................................................990
The postaudit................................................................................................................................................ 991
Investing in high technology projects..........................................................................................................992
Capital budgeting in not-for-profit organizations.......................................................................................992
Epilogue........................................................................................................................................................ 992

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