Accounting is the provision of financial information to managers or owners, as well as to external users, so that they can make business decisions. It measures, monitors and controls business activities. Management Accounting provides a very accessible and easy-to-follow introduction to accounting. It introduces students to accounting and provides them with a clear understanding of the theory and practice of management accounting. The text blends theory and practice by stressing the underlying concepts and context of accounting.* Text thoroughly updated to include examples that comply with the new format adopted by International Accounting Standards for listed companies.*'Real Life Nuggets' and other material from the business press will be revised and updated.* A large number of end of chapter questions of escalating difficulty, together with the accompanying answers, enables the reader to develop their understanding of the key concepts discussed in the text.
Michael Jones is Professor of Financial Reporting and Director of the Financial Reporting and Business Communication Unit at Cardiff Business School. He is also author of 'Accounting' 2nd edition and 'Financial Accounting' both published by John Wiley and Sons Ltd.
About the Author. About the Book. Second Edition. Acknowledgements. Dedication. 1 Introduction to Accounting. Introduction. Nature of Accounting. Importance of Accounting. Financial Accounting and Management Accounting. Users of Accounts. Accounting Context. Types of Accountancy. Types of Accountant. Limitations of Accounting. Conclusion. Discussion Questions. Management Accounting. 2 Introduction to Management Accounting. Introduction. Context. Relationship with Financial Accounting. Overview. Cost Minimisation and Revenue Maximisation. Use of Computers. Conclusion. Selected Reading. Discussion Questions. 3 Costing. Introduction. Importance of Cost Accounting. Types of Cost. Traditional Costing. Activity-Based Costing. Costing for Stock Valuation. Different Costing Methods for Different Industries. Target Costing. Cost-Cutting. Conclusion. Discussion Questions. Numerical Questions. 4 Planning, Control and Performance: Budgeting. Introduction. Management Accounting Control Systems. Nature of Budgeting. Cash Budget. Other Budgets. Manufacturing Budgets. Comprehensive Budgeting Example. Behavioural Aspects of Budgeting. Responsibility Accounting. Conclusion. Discussion Questions. Numerical Questions. 5 Planning, Control and Performance: Standard Costing. Introduction. Nature of Standard Costing. Standard Cost Variances. Interpretation of Variances. Conclusion. Discussion Questions. Numerical Questions. 6 Short-Term Decision Making. Introduction. Decision Making. Contribution Analysis. Decisions, Decisions. Throughput Accounting. Break-Even Analysis. Contribution Graph. Conclusion. Discussion Questions. Numerical Questions. 7 Strategic Management Accounting. Introduction. Nature of Strategic Management Accounting. Assessment of Current Position of the Business. Appraisal of Current Position of the Business. Strategic Choice of Future Direction. Conclusion. Selected Reading. Discussion Questions. Numerical Questions. 8 Long-Term Decision Making: Capital Investment Appraisal. Introduction. Nature of Capital Investment. Capital Investment Appraisal Techniques. Other Factors. Conclusion. Discussion Questions. Numerical Questions. Appendix 21.1 Present Value of GBP1 at Compound Interest Rate (1 + r). 9 The Management of Working Capital and Sources of Finance. Introduction. Nature of Sources of Finance. Short-Term Financing. Long-Term Financing. Cost of Capital. Conclusion. Discussion Questions. Numerical Questions. Further Reading. Glossary of Key Accounting Terms. Appendix: Answers. Index.