This textbook is an adaptation of Garrison, Noreen, and Brewer's 13th edition of Managerial Accounting. The flow of the contents of this book differs slightly from the 13th edition:

• Variable costing (Chapter 5), absorption costing (Appendices 5A to 5C), and cost allocation (Chapter 6) are discussed before activity-based costing (Chapter 7) to help students gain an early understanding of cost allocation problems.
• The two main systems for assigning costs to products, job-order costing (Chapter 8) and process costing (Chapter 9), are examined after the discussion on activity-based costing (Chapter 7) and not before, as in the 13th edition.
• Chapters discussing financial statement analysis and the cash flow statement are excluded from this edition.

In addition to introducing new "in business" and "business focus" features that are mainly Asia focused in all chapters, we have suggested new techniques and framework-based methods to help students better understand and handle difficult topics such as the multiproduct break-even calculation in Chapter 4, process costing calculation with and without losses (Chapter 9), variance analysis (Chapter 12), and deprival value (Chapter 14). Most of the new techniques introduced are included in supplementary notes or appendices so that adopters who are less inclined to introduce the new techniques can continue to use the methods that they are familiar with.

For instructors who are keen to adopt the new techniques and framework-based methods, they can find new PowerPoint support in the updated instructor’s resources.

For each chapter, new problems (with suggested answers) at different challenging levels are provided and available in softcopy format for instructors adopting the textbook to set exercises, tests, or examinations. These questions in general are more relevant to the Asia–Pacific environment.

What we have done:
Chapter 1 – Managerial Accounting and the Business Environment
• Added statistics and cases to demonstrate the rising economic trend in the Asia–Pacific region.
• Extended the discussion on corporate social responsibility and sustainability reporting practices, including Global Reporting Initiative.

Chapter 2 – Management Accounting and Cost Concepts
• Used Esprit as an example to lead the flow of the content.
• Added more explanation about the relationship between the cost of goods manufactured and cost of goods sold to make it easier for the layman to understand.

Chapter 3 – Cost Behavior: Analysis and Use
• Highlighted the importance of understanding cost behavior and examined the risks associated with supply chain management techniques such as outsourcing and offshoring which effectively involve converting fixed costs into variable costs.

Chapter 4 – Cost-Volume-Profit Relationships
• Explained the relevance and usefulness of calculating break-even dollars of day-to-day business operations.
• Highlighted the importance of knowing the break-even percentage (of sales) and its relationship to margin of safety.
• Proved there is some relationship between margin of safety percentage and degree of operating leverage and showed how to calculate the multiproduct break-even point both in sales dollars and units using a method based on the break-even percentage as well as the method based on the weighted-average (sales unit ratio) on unit contribution.

Chapter 5 – Variable Costing: A Tool for Management
• Moved the discussion of predetermined overhead from the job-order costing's chapter to the absorption costing appendix in this chapter to highlight that predetermined overhead is a generalized method which is more popularly associated with absorption costing and similar allocation techniques.
• Highlighted through existing examples the two different methods of overapplied/underapplied adjustments and their implications on profits.
• Provided more explanation and examples on how the absorption costing system can be used to create additional profit without increasing sales.

Chapter 6 – Cost Allocations
• Introduced the four common cost allocations methods, cause-and-effect, benefit received, ability to bear, and fairness/equity in this chapter to highlight intracompany and intercompany cost allocation methods.
• Discussed the dual rate cost allocation method, giving a comprehensive view of cost allocation techniques.
• Covered transfer pricing and cost allocation within a group of companies

Chapter 7 – Activity-Based Costing: A Tool to Aid Decision Making
• Added a telecom call center example, an operation that is easily understood by students, to help provide an overview of the differences between the traditional method and ABC method of customer profitability analysis.
• Highlighted the use of a tabulated format for ABC calculation to encourage students to follow a systematic approach in addressing the topic.
• Extended the discussion on activity-based management.

Chapter 8 – Systems Design: Job-Order Costing
• Added a short appendix (Appendix 8A) to provide an overview of the integration of activity-based costing and job-order costing.

Chapter 9 – Systems Design: Process Costing
• Used a lifestyle example, cooking instant noodle, to elaborate the concept of different percentage of material added and the completion rate on conversion.
• Introduced a systematic, color-coded tabulated table format to guide students in solving easy to complicated process costing exercises.
• Presented a line-by-line comparison on and highlighted the differences between the weighted average and the FIFO valuation methods.
• Added process costing with losses and scrap value in Appendix 9B.
• Added a short appendix (Appendix 9C) to provide an overview of the integration of ABC and process costing.

Chapter 10 – Profit Planning
• Extended the explanation on budget lapsing, bottom-up and top-down budgeting approaches, and incremental versus zero-based budgets.
• Provided an additional budgeting example on a hypothetical company in the service industry to stimulate students’ interest in the topic.

Chapter 11 - Flexible Budgets and Performance Analysis
• Emphasized that flexible budget and variance analysis are generic approaches used by many organizations despite of the costing systems being employed by these organizations (i.e., not just for standard costing).

Chapter 12 - Standard Costs and Operating Performance Measures
• Added an easy-to-use technique for calculating variance in the Supplementary notes:
     ○ Transposed variance calculations from the column format to the row format, and highlight the use of tabulated table format to get a better layout for explaining and better understanding of variances.
     ○ Introduced a systematic format, which helps students solve and modify variance calculations for real-life problems.
     ○ Introduced and explained more complicated variances (e.g., exchange rate variance, product mix variance, and idle time variance).

Chapter 13- Segment Reporting, Decentralization, and the Balanced Scorecard
• Highlighted the need to address critical success factors and to provide lag and lead measures in a balanced scorecard.
• Introduced a simple matrix to help identify effective KPIs.
• Added a practical balanced scorecard example.

Chapter 14 - Relevant Costs for Decision Making
• Introduced the Value to Business (Owners), also known as Deprival Value model, to help assess the true value of assets in decision making processes.
• Refined the write-up on The Total and Differential approach.

Chapter 15 - Capital Budgeting Decisions
• Introduced the spreadsheet approach in the examples of the chapter.
• Refined the write-up on The Total-Cost Approach and The Incremental-Cost Approach.