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1 Introduction to Managerial Accounting |
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1 | (45) |
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What is Managerial Accounting? |
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2 | (4) |
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Managers' Three Primary Responsibilities |
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2 | (1) |
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A Road Map: How Managerial Accounting Fits In |
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3 | (1) |
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Differences Between Managerial Accounting and Financial Accounting |
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4 | (2) |
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What Role do Management Accountants Play? |
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6 | (11) |
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6 | (1) |
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The Changing Roles of Management Accountants |
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7 | (1) |
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The Skills Required of Management Accountants |
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8 | (1) |
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Professional Associations |
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9 | (1) |
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Average Salaries of Management Accountants |
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10 | (1) |
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11 | (1) |
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Examples of Ethical Dilemmas |
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12 | (5) |
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What Regulatory Issues Affect Management Accounting? |
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17 | (2) |
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Sarbanes-Oxley Act of 2002 |
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17 | (1) |
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International Financial Reporting Standards (IFRS) |
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18 | (1) |
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Extensible Business Reporting Language (XBRL) |
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18 | (1) |
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What Business Trends Affect Management Accounting? |
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19 | (27) |
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Sustainability, Social Responsibility, and the Triple Bottom Line |
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19 | (1) |
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20 | (1) |
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21 | (1) |
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21 | (1) |
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Advanced Information Systems |
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22 | (1) |
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23 | (1) |
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23 | (4) |
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27 | (19) |
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2 Building Blocks of Managerial Accounting |
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46 | (56) |
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What are the Most Common Business Sectors and Their Activities? |
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47 | (16) |
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Service, Merchandising, and Manufacturing Companies |
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47 | (2) |
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Which Business Activities Make up the Value Chain? |
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49 | (1) |
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Coordinating Activities Across the Value Chain |
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50 | (2) |
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How do Companies Define Cost? |
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52 | (1) |
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Cost Objects, Direct Costs, and Indirect Costs |
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52 | (2) |
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Costs for Internal Decision Making and External Reporting |
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54 | (2) |
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Merchandising Companies' Inventoriable Product Costs |
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56 | (1) |
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Manufacturing Companies' Inventoriable Product Costs |
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57 | (2) |
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Prime and Conversion Costs |
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59 | (1) |
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Additional Labor Compensation Costs |
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59 | (1) |
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Recap: Inventoriable Product Costs Versus Period Costs |
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60 | (3) |
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How are Inventoriable Product Costs and Period Costs Shown in the Financial Statements? |
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63 | (6) |
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63 | (1) |
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63 | (2) |
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65 | (3) |
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68 | (1) |
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Sustainability and Corporate Reporting |
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68 | (1) |
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What Other Cost Terms are Used by Managers? |
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69 | (33) |
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Controllable Versus Uncontrollable Costs |
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69 | (1) |
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Relevant and Irrelevant Costs |
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69 | (1) |
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70 | (1) |
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How Manufacturing Costs Behave |
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71 | (1) |
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Calculating Total and Average Costs |
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72 | (4) |
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76 | (26) |
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102 | (74) |
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What Methods are Used to Determine the Cost of Manufacturing a Product? |
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103 | (2) |
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103 | (1) |
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104 | (1) |
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How do Manufacturers Determine a Job's Cost? |
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105 | (14) |
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Overview: Flow of Inventory Through a Manufacturing System |
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105 | (1) |
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106 | (1) |
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107 | (1) |
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Using a Job Cost Record to Accumulate Job Costs |
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108 | (2) |
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Tracing Direct Materials Cost to a Job |
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110 | (2) |
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Tracing Direct Labor Cost to a Job |
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112 | (2) |
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Allocating Manufacturing Overhead to a Job |
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114 | (3) |
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Completing the Job Cost Record and Using it to Make Business Decisions |
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117 | (2) |
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How Can Job Costing Information be Enhanced for Decision Making? |
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119 | (6) |
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121 | (1) |
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Direct or Variable Costing |
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121 | (4) |
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How do Managers Deal with Underallocated or Overallocated Manufacturing Overhead? |
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125 | (2) |
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What Journal Entries are Needed in a Manufacturer's Job Costing System? |
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127 | (14) |
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141 | (1) |
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How do Service Firms Use Job Costing to Determine the Amount to Bill Clients? |
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141 | (35) |
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What Costs are Considered Direct Costs of Serving the Client? |
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141 | (1) |
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What Costs are Considered Indirect Costs of Serving the Client? |
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142 | (1) |
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Finding the Total Cost of the Job and Adding a Profit Markup |
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143 | (1) |
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Invoicing the Client Using a Professional Billing Rate |
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143 | (1) |
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What Journal Entries are Needed in a Service Firm's Job Costing System? |
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144 | (1) |
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145 | (31) |
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4 Activity-Based Costing, Lean Operations, and the Costs of Quality |
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176 | (71) |
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Why and How do Companies Refine Their Cost Allocation Systems? |
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177 | (15) |
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Simple Cost Allocation Systems Can Lead to Cost Distortion |
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177 | (1) |
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Review: Using a Plantwide Overhead Rate to Allocate Indirect Costs |
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178 | (2) |
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Using Departmental Overhead Rates to Allocate Indirect Costs |
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180 | (5) |
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Using Activity-Based Costing to Allocate Indirect Costs |
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185 | (7) |
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How do Managers Use the Refined Cost Information to Improve Operations? |
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192 | (8) |
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Activity-Based Management (ABM) |
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192 | (2) |
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Passing the Cost-Benefit Test |
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194 | (6) |
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200 | (7) |
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The Eight Wastes of Traditional Operations |
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200 | (2) |
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Characteristics of Lean Operations |
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202 | (5) |
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Lean Operations in Service and Merchandising Companies |
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207 | (1) |
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How do Managers Improve Quality? |
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207 | (40) |
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208 | (1) |
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209 | (1) |
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Using Costs of Quality Reports to Aid Decisions |
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210 | (5) |
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215 | (32) |
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247 | (62) |
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Process Costing: An Overview |
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248 | (4) |
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Two Basic Costing Systems: Job Costing and Process Costing |
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248 | (1) |
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How Does the Flow of Costs Differ Between Job and Process Costing? |
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249 | (3) |
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What are the Building Blocks of Process Costing? |
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252 | (2) |
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252 | (1) |
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252 | (1) |
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Inventory Flow Assumptions |
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253 | (1) |
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How Does Process Costing Work in the First Processing Department? |
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254 | (7) |
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Step 1 Summarize the Flow of Physical Units |
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256 | (1) |
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Step 2 Compute Output in Terms of Equivalent Units |
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256 | (2) |
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Step 3 Summarize Total Costs to Account For |
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258 | (1) |
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Step 4 Compute the Cost per Equivalent Unit |
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258 | (1) |
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Step 5 Assign Total Costs to Units Completed and to Units in Ending Work in Process Inventory |
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259 | (1) |
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259 | (2) |
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What Journal Entries are Needed in a Process Costing System? |
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261 | (6) |
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How Does Process Costing Work in a Second or Later Processing Department? |
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267 | (42) |
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Process Costing in SeaView's Insertion Department |
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267 | (2) |
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Steps 1 and 2 Summarize the Flow of Physical Units and Compute Output in Terms of Equivalent Units |
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269 | (1) |
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Steps 3 and 4 Summarize Total Costs to Account for and Compute the Cost per Equivalent Unit |
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270 | (1) |
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Step 5 Assign Total Costs to Units Completed and to Units in Ending Work in Process Inventory |
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271 | (1) |
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Unit Costs and Gross Profit |
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271 | (1) |
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272 | (1) |
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Journal Entries in a Second Processing Department |
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273 | (7) |
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280 | (29) |
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309 | (73) |
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Cost Behavior: How do Changes in Volume Affect Costs? |
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310 | (14) |
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310 | (3) |
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313 | (3) |
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316 | (2) |
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318 | (1) |
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319 | (5) |
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How do Managers Determine Cost Behavior? |
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324 | (9) |
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324 | (1) |
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324 | (2) |
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326 | (2) |
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328 | (4) |
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332 | (1) |
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What are the Roles of Variable Costing and the Contribution Margin Income Statement? |
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333 | (49) |
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Comparing Absorption Costing and Variable Costing |
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333 | (2) |
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The Contribution Margin Income Statement |
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335 | (3) |
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Comparing Operating Income: Variable Versus Absorption Costing |
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338 | (2) |
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Reconciling Operating Income Between the Two Costing Systems |
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340 | (7) |
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347 | (35) |
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7 Cost-Volume-Profit Analysis |
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382 | (61) |
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How Does Cost-Volume-Profit Analysis Help Managers? |
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383 | (4) |
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Data and Assumptions Required for CVP Analysis |
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383 | (1) |
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The Unit Contribution Margin |
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384 | (1) |
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The Contribution Margin Ratio |
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385 | (2) |
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How do Managers Find the Breakeven Point? |
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387 | (4) |
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The Income Statement Approach |
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388 | (1) |
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The Shortcut Approach Using the Unit Contribution Margin |
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389 | (1) |
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The Shortcut Approach Using the Contribution Margin Ratio |
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390 | (1) |
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How do Managers Find the Volume Needed to Earn a Target Profit? |
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391 | (7) |
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How Much Must we Sell to Earn a Target Profit? |
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391 | (2) |
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Graphing CVP Relationships |
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393 | (5) |
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How do Managers Use CVP to Plan for Changing Business Conditions? |
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398 | (9) |
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398 | (1) |
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399 | (1) |
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Changing More Than One Factor |
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400 | (1) |
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401 | (2) |
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Changing the Mix of Products Offered for Sale |
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403 | (4) |
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What are Some Common Indicators of Risk? |
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407 | (36) |
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407 | (1) |
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408 | (3) |
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Choosing a Cost Structure |
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411 | (6) |
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417 | (26) |
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9 Relevant Costs for Short-Term Decisions |
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443 | (59) |
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How do Managers Make Decisions? |
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444 | (4) |
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444 | (1) |
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Relevant Nonfinancial Information |
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445 | (1) |
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Keys to Making Short-Term Special Decisions |
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446 | (2) |
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How do Managers Make Special Order and Regular Pricing Decisions? |
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448 | (12) |
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448 | (4) |
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Regular Pricing Decisions |
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452 | (8) |
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How do Managers Make Other Special Business Decisions? |
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460 | (42) |
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Decisions to Discontinue Products, Departments, or Stores |
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460 | (4) |
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Product Mix Decisions when Resources are Constrained |
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464 | (2) |
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Outsourcing Decisions (Make or Buy) |
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466 | (4) |
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Decisions to Sell As Is or Process Further |
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470 | (6) |
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476 | (26) |
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502 | (70) |
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How and Why do Managers Use Budgets? |
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503 | (4) |
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503 | (1) |
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How are Budgets Developed? |
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503 | (2) |
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What are the Benefits of Budgeting? |
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505 | (1) |
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What is the Master Budget? |
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506 | (1) |
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How are the Operating Budgets Prepared? |
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507 | (12) |
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507 | (1) |
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508 | (2) |
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510 | (1) |
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511 | (1) |
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Manufacturing Overhead Budget |
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512 | (1) |
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Operating Expenses Budget |
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513 | (1) |
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Budgeted Income Statement |
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514 | (5) |
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How are the Financial Budgets Prepared? |
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519 | (8) |
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Capital Expenditures Budget |
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519 | (1) |
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519 | (1) |
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520 | (2) |
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522 | (1) |
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523 | (2) |
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Sensitivity Analysis and Flexible Budgeting |
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525 | (2) |
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How do the Budgets for Service and Merchandising Companies Differ? |
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527 | (45) |
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527 | (1) |
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527 | (2) |
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Impact of Credit and Debit Card Sales on Budgeting |
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529 | (5) |
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534 | (38) |
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10 Performance Evaluation |
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572 | (70) |
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How Does Decentralization Affect Performance Evaluation? |
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573 | (1) |
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Advantages and Disadvantages of Decentralization |
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573 | (1) |
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Performance Evaluation Systems |
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574 | (1) |
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What is Responsibility Accounting? |
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574 | (12) |
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Types of Responsibility Centers |
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575 | (2) |
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Responsibility Center Performance Reports |
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577 | (2) |
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Evaluation of Investment Centers |
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579 | (7) |
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What is Transfer Pricing? |
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586 | (7) |
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Strategies and Mechanisms for Determining a Transfer Price |
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587 | (6) |
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How do Managers Use Flexible Budgets to Evaluate Performance? |
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593 | (5) |
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Creating a Flexible Budget Performance Report |
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594 | (2) |
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Underlying Causes of the Variances |
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596 | (2) |
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How do Companies Incorporate Nonfinancial Performance Measurement? |
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598 | (44) |
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598 | (9) |
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607 | (35) |
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11 Standard Costs and Variances |
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642 | (56) |
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643 | (4) |
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643 | (1) |
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Information Used to Develop and Update Standards |
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644 | (1) |
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644 | (3) |
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How do Managers Use Standard Costs to Compute DM and DL Variances? |
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647 | (13) |
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Using Standard Costs to Develop the Flexible Budget |
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647 | (1) |
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Direct Materials Variances |
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647 | (6) |
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653 | (2) |
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Summary of Direct Materials and Direct Labor Variances |
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655 | (1) |
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Advantages and Disadvantages of Using Standard Costs and Variances |
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655 | (5) |
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How do Managers Use Standard Costs to Compute MOH Variances? |
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660 | (38) |
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Variable Manufacturing Overhead Variances |
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660 | (2) |
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Fixed Manufacturing Overhead Variances |
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662 | (2) |
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664 | (4) |
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668 | (1) |
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668 | (3) |
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Standard Costing Income Statement |
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671 | (1) |
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672 | (26) |
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12 Capital Investment Decisions and the Time Value of Money |
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698 | (67) |
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What is Capital Budgeting? |
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699 | (3) |
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Four Popular Methods of Capital Budgeting Analysis |
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699 | (1) |
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700 | (1) |
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Capital Budgeting Process |
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700 | (2) |
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How do Managers Calculate the Payback Period and Accounting Rate of Return? |
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702 | (9) |
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702 | (3) |
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Accounting Rate of Return (ARR) |
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705 | (6) |
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How do Managers Compute the Time Value of Money? |
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711 | (7) |
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Factors Affecting the Time Value of Money |
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711 | (1) |
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Future Values and Present Values: Points Along the Time Continuum |
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712 | (1) |
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Future Value and Present Value Factors |
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713 | (1) |
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Calculating Future Values of Single Sums and Annuities Using FV Factors |
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714 | (1) |
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Calculating Present Values of Single Sums and Annuities Using PV Factors |
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715 | (3) |
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How do Managers Calculate the Net Present Value and Internal Rate of Return? |
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718 | (9) |
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719 | (5) |
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Internal Rate of Return (IRR) |
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724 | (3) |
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How do the Capital Budgeting Methods Compare? |
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727 | (4) |
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731 | (1) |
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Present Value Tables and Future Value Tables |
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731 | (4) |
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Table A Present Value of $1 |
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731 | (1) |
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Table B Present Value of Annuity of $1 |
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732 | (1) |
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Table C Future Value of $1 |
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733 | (1) |
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Table D Future Value of Annuity of $1 |
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734 | (1) |
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735 | (1) |
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Solutions to Chapter Examples Using Microsoft Excel |
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735 | (4) |
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739 | (1) |
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Using a TI-83, TI-83 Plus, TI-84, or TI-84 Plus Calculator to Perform Time Value of Money Calculations |
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739 | (26) |
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745 | (20) |
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13 Statement of Cash Flows |
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765 | (58) |
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What is the Statement of Cash Flows? |
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766 | (8) |
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Three Types of Activities That Generate and Use Cash |
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767 | (2) |
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Two Methods of Presenting Operating Activities |
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769 | (5) |
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How is the Statement of Cash Flows Prepared Using the Indirect Method? |
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774 | (11) |
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Information Needed to Prepare the Statement of Cash Flows |
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774 | (1) |
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Preparing the Cash Flows from Operating Activities |
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774 | (6) |
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Preparing the Cash Flows from Investing Activities |
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780 | (2) |
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Preparing the Cash Flows from Financing Activities |
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782 | (2) |
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Interpreting the Statement of Cash Flows |
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784 | (1) |
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Recap: Steps to Preparing the Statement of Cash Flows Using the Indirect Method |
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784 | (1) |
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How is the Statement of Cash Flows Prepared Using the Direct Method? |
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785 | (38) |
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785 | (1) |
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Determining Cash Payments and Receipts |
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786 | (8) |
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794 | (29) |
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14 Financial Statement Analysis |
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823 | (53) |
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What are the Most Common Methods of Analysis? |
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824 | (1) |
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824 | (4) |
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Horizontal Analysis of the Income Statement |
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826 | (1) |
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Horizontal Analysis of the Balance Sheet |
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826 | (1) |
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826 | (2) |
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828 | (7) |
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How do we Compare One Company with Another? |
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830 | (5) |
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What are Some of the Most Common Financial Ratios? |
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835 | (8) |
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Measuring Ability to Pay Current Liabilities |
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835 | (1) |
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Measuring Ability to Sell Inventory and Collect Receivables |
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836 | (2) |
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Measuring Ability to Pay Long-Term Debt |
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838 | (1) |
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839 | (2) |
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Analyzing Stock Investments |
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841 | (2) |
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Red Flags in Financial Statement Analysis |
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843 | (33) |
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850 | (26) |
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876 | |
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What is Sustainability and How Does it Create Business Value? |
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877 | (6) |
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878 | (1) |
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The Business Case for Sustainability |
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879 | (4) |
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What is Sustainability Reporting? |
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883 | (5) |
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Current State of Sustainability Reporting |
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883 | (1) |
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Reasons for Sustainability Reporting |
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884 | (1) |
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Framework for Sustainability Reporting |
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884 | (4) |
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What is Environmental Management Accounting (EMA)? |
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888 | |
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888 | (2) |
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Uses of Environmental Management Accounting Information |
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890 | (1) |
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Challenges to Implementing EMA Systems |
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891 | (2) |
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Future of Environmental Management Accounting |
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893 | (2) |
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895 | |
Company Names Index |
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1 | (4) |
Glossary/Index |
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5 | |