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Like many other disciplines, cost accounting has in recent years been influenced by significant advances made in the development of quantitative management techniques and decision models. Topics retained — modernized where appropriate techniques as economic buying quantity, the method of least squares for regression analysis, differential cost analysis, the discounted cash flow method, as well as the application of the modern techniques of PERT/Cost, probability analysis, risk and sensitivity analysis, statistical correlation analysis, and the simplex method for profit maximization and cost minimization.
This has expanded and modernized nearly every aspect with its presentation and discussion of such new methods and techniques as the journal voucher control system for electronic data processing, computerized materials and payroll procedures, human resource accounting, learning curve theory, the Pension Reform Act of 1974, productivity and performance standards, zero-base budgeting, probabilistic budgets, modern marketing concepts and terminology, new transfer pricing theory, and shadow prices.
These mathematical and decision-making models together with a computerized information system combined with fundamental theoretical and practical aspects of cost accounting and provide wide flexibility for anywhere usage. In addition to its applicability to the traditional two-semester or three-quarter course, the textbook may be used in a one-semester cost or managerial accounting course or in a cost course with emphasis on profit planning and cost analysis.
We will discuss problems and cases from the Uniform CPA Examinations of the American Institute of Certified Public Accountants (designated AICPA adapted), from the examinations for the Certificate In Management Accounting given by the Institute of Management Accounting of the National Association of Accountants (designated NAA adapted), and from the Uniform Final Examinations of the Canadian Institute of Chartered Accountants (designated CICA adapted). In addition to a significant number of new end-of-chapter materials, other situations have been updated to reflect Increasing materials and labor costs and to Incorporate metric measurements. Exercises and problems included for each topic afford coverage of relevant concepts and techniques at progressive levels in the learning hierarchy, thereby providing a significant student-learning benefit.
