NEW FEATURES

New Co-Author David Platt, University of Texas at Austin

• New Intelligent Response Technology Connect Accounting's redesigned student interface for our end-of-chapter assessment content that:
  
  
• Improves answer acceptance to reduce student frustration with formatting issues (such as rounding);
  
  
• Provides a general journal application that looks and feels more like what you would find in a general ledger software package; and
  
  
• For select questions, provides an expanded table that guides students through the process of solving the problem.
  
  
• New Media-rich ebook allows students to highlight, take notes, and bookmark important spots in the text, making reviewing for quizzes and tests easier than ever.

New and Updated Focus Companies Chapter 9, which covers budgeting, features an all new focus company, Snowcap Music Festivals. This company produces and manages destination music event worldwide. Chapter 8, which covers absorption and variable costing, also has a new focus company, FitDat.com. This firm produces fitness monitors. Several other focus companies have been updated to make them more current and relevant than ever.

New Contrast Companies Several chapters include new contrast companies, which provide a balance in each chapter between different industries. Among the new contrast companies are Whole Foods Market (retail grocery chain), FesiChair.com (outdoor chair manufacturer), and Forrest Home National Bank (financial services).

Updated Pedagogy Many chapters include revisions of pedagogy, streamlined and condensed explanations, and the addition of more current examples and references from the popular business press. For example, in Chapter 9 we now first present the budget in a nonmanufacturing context for a simpler view of the overall flow of budget schedules. Then, using the chapter's contrast company, we turn to a manufacturing example with the added complexity of inventory costs and schedules.

Heavily Revised End-of-Chapter Assignment Material The end-of-chapter assignment material has been very heavily revised. Virtually all of the quantitative exercises, problems, and cases contain data different from that used in the ninth edition. In addition, the authors made an effort to update many of the products and services produced by the companies featured both in the text and in the assignment material.

Completely Revised Build a Spreadsheet This popular feature has been completely revised for the tenth edition. Several exercises and problems in each chapter include an optional requirement to build an Excel spreadsheet to solve the problem.

Increased Emphasis Service Industry Examples As the service industry occupies an ever-great role in the economy, even greater emphasis has been devoted to providing examples throughout the text on real-world service-industry firms using managerial accounting information.

New In Their Own Words Many of the quotations in this popular feature are new in this edition. These quotes from practicing managers and managerial accountants portray the important role managerial accounting plays in today's dynamic business environment.

Revised Examples Management Accounting Practice Many of these real-world examples have been revised and updated to make them more current, and several new examples have been added.

NEW! Chapter Updates:

• Chapter 1 This chapter now features Whole Foods Market as the contrast company. In addition, the focus company example, Walt Disney Company, has been substantially updated to reflect changes in the company structure and to include recognizable subsidiaries like ESPN. A new Management Accounting Practice (MAP) piece has been added, and the chapter has been streamlined to focus on how companies operate, leaving other topics to be more comprehensively developed later in the text.
  
  
• Chapter 2 Included in this chapter is a revised discussion of the use of cost information in the financial statements of Southwest Airlines, Walmart, and Caterpillar. Also revised is the discussion of the classification of manufacturing operations. A new MAP has been added.
  
  
• Chapter 3 New material is included on the use of technology in managerial accounting for manufacturing operations.
  
  
• Chapter 5 The material on just-in-time (JIT) production and inventory management has been moved to the Inventory Management appendix at the end of the book.
  
  
• Chapter 8 The focus company in this chapter is now FitDat.com, a manufacturer and internet seller of fitness tracking devices. In order to better balance chapter length and the organization of topics, two sections previously located in Chapter 12 have been moved to this chapter and expanded: Costs of Assuring Quality (formerly Total Quality Management) and Costs of Environmental Sustainability (formerly Environmental Cost Management). Based on reviewer input, the material on throughput costing was removed.
  
  
• Chapter 9 Completely revised for this edition, budgeting is now illustrated with a new focus company, Snowcap Music Festivals, which will resonate with students. The festival budget provides an opportunity to show the flow of a master budget without, initially, the added complexity of inventories. A new contrast company, FestiChair.com, is then introduced to show the incremental budget schedules required to address the manufacturing environment. A new MAP is also added. Chapter 9 also places chapters 9 through 11 in a broad Financial Planning and Analysis (FP&A) context.
  
  
• Chapter 10: In this chapter, we introduce several changes to help explain cost variances and their origins. These include assigning the term "Projected Material (Labor) Cost" to describe the projection of the actual quantity of material (labor) at its standard price (rate). New to this edition, we also introduce the usage-based direct-material price variance to allow for a complete decomposition of the difference between actual and allowed spending. (The purchased-quantity-based version is maintained for comparison). Finally, to shorten a long chapter, the sections on Operational Performance Measures and the Balanced Scorecard were moved to Chapter 12, where they fit comfortably with other performance measurement material.
  
  
• Chapter 11: The application of overhead is now discussed in terms of activity level, rather than the more restrictive process hours.
  
  
• Chapter 12: Sections covering operational performance measures and the balanced scorecard were moved here from Chapter 10. A new MAP was also inserted.
  
  
• Chapter 14: A new MAP has been added discussing the decision that some companies are now making to insource key business processes and return to onshoring of production operations.
  
  
• Chapter 15: The MAP on Internet pricing has been revised.
  
  
• Chapter 16: New MAPs have been added.
  
  
• Appendix III: This Inventory Management appendix now includes both the just-in-time (JIT) and traditional approaches to this important discussion of inventory management.