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Cost Accounting
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Cost Accounting

11th Edition


January 2025 | 1 040 pages | Cambridge Business Publishers
Formerly published by Cambridge Business Publishers, now published by Sage

Cost Accounting with Data Analytics, Eleventh Edition
reflects the evolving role of cost accounting in modern organizations by fully integrating data analytics and data visualization throughout the text. This edition responds to rapid technological advances in both academic and business environments, providing students with a more meaningful and effective learning platform while better preparing them for careers in business. Recognizing that today’s students learn best by doing rather than by reading dense text, this edition emphasizes focused chapter demonstrations that pose specific questions and walk students step-by-step through solutions aligned to each learning objective. While the pedagogy has evolved, the text retains its unmatched, straightforward, and highly readable approach.

Cost accounting remains a dynamic discipline, and this edition reflects that reality through reorganized content, expanded topic coverage, and the addition of two new chapters—Chapter 3 on cost behavior and estimation and Chapter 14 on pricing, sales variances, and customer profitability—designed to better meet the needs of today’s managers and students.


A Complete Teaching and Learning Package

For additional information or to request a personalized tour of the following tools and resources, please contact your sales representative:

Learning Platform: This text is available with myBusinessCourse™, an easy-to-use online platform that helps students learn accounting. It includes auto-graded homework, integrated Excel® assignments, and engaging, author-created videos that reinforce key concepts. Designed to complement classroom instruction, it offers interactive tools that build understanding, improve retention, and boost student readiness for the CPA Exam and their entry into the professional world. And it works — 95.5% of students said it helped them learn accounting. myBusinessCourse™ is available with LTI integration for Blackboard, Canvas, Brightspace (D2L), and Moodle.

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Preface
 
Brief Contents
 
Contents
 
Chapter 1: Introduction to Cost Accounting
Introduction

 
Financial, Management, and Cost Accounting

 
Organizational Strategy

 
Value Chain

 
Professional Ethics

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 2: Cost Terminology and Classification
Introduction

 
Associating Costs with a Cost Object

 
Costs Reacting to Changes in Activity

 
Classifying Costs for Different Purposes

 
Components of Product Cost

 
The Conversion Process

 
Product Cost Flow in a Cost System

 
Comprehensive Review Module

 
Review Solutions

 
Data Visualization Solution

 
 
Chapter 3: Cost Behavior and Estimation
Introduction

 
Cost Behavior Analysis

 
Cost Estimation

 
Using Learning Curves to Estimate Costs

 
Additional Issues in Cost Estimation

 
Alternative Cost Driver Classifications

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 4: Cost-Volume-Profit Analysis
Introduction

 
Contribution Margin

 
Break-Even Point

 
Sales at a Fixed Level of Profit

 
Incremental Analysis for Short-Run Changes

 
CVP Analysis in a Multiproduct Environment

 
Managing Risks of CVP Relationships

 
Underlying Assumptions of CVP Analysis

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 5: Relevant Information for Decision Making
Introduction

 
The Concept of Relevance

 
Relevant Costs for Specific Decisions

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 6: Job Order Costing
Introduction

 
Systems and Methods of Product Costing

 
Applying Overhead in a Normal Costing System

 
Underapplied or Overapplied Overhead

 
Job Order Costing System

 
Job Costing in Service Organizations

 
Job Order Costing to Assist Managers

 
Product and Material Losses in Job Order Costing

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 7: Process Costing
Introduction

 
Unit Cost Calculation in Process Costing

 
Weighted Average Costing Method

 
FIFO Method

 
Process Costing in a Multidepartment Setting

 
Hybrid Costing Systems

 
Spoilage

 
Appendix 7-1: Alternative Calculations of Weighted Average and FIFO Methods

 
Appendix 7-2: Process Costing With Standard Costs

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 8: Activity-Based Management and Activity-Based Costing
Introduction

 
Activity Analysis

 
Cost Driver Analysis

 
Activity-Based Costing

 
Determining Whether ABC is Useful

 
Criticisms of Activity-Based Costing

 
Time-Driven Activity-Based Costing

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 9: The Master Budget
Introduction

 
The Budgeting Process

 
The Master Budget

 
Impact of Environmental Considerations on the Budgeting Process

 
Master Budget for a Service Provider

 
Quality of the Master Budget

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 10: Flexible Budget, Standard Costing, and Variance Analysis
Introduction

 
Flexible Budgets

 
Developing a Standard Cost System

 
Material and Labor Variances

 
Overhead Variances

 
Disposition of Standard Cost Variances

 
Adjusting Standards

 
Mix and Yield Variances

 
Appendix 10A: Job Order Costing Using Standard Costs

 
Appendix 10B: Conversion Cost as an Element in Standard Costing

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 11: Absorption/Variable Costing and Capacity Analysis
Introduction

 
Overview of Absorption and Variable Costing

 
Income Under Absorption and Variable Costing

 
Income Statement Impact of a Volume Variance

 
Reconciliation of Variable and Absorption Costing Before-Tax Profit

 
Implications of Capacity Measurements

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 12: Allocation of Joint Costs and Accounting for ByProduct/Scrap
Introduction

 
The Joint Process

 
Outputs of a Joint Process

 
Allocation of Joint Cost

 
Accounting for ByProduct and Scrap

 
ByProduct and Scrap in Job Order Costing

 
Joint Costs in NonManufacturing Businesses and NotforProfit Organizations

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 13: Responsibility Accounting, Support Department Cost Allocations, and Transfer Pricing
Introduction

 
Management Information and Control Systems

 
Decentralization

 
Responsibility Accounting Systems

 
Types of Responsibility Centers

 
Support Department Cost Allocation

 
Transfer Pricing

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
Chapter 14: Pricing, Sales Variances, and Customer Profitability

 
Introduction

 
Cost-Based Approaches to Pricing

 
Life Cycle and Target Costing

 
Continuous Improvement Costing

 
Revenue Variance

 
Customer Profitability Analysis

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 15: Performance Measurement, Balanced Scorecards, and Performance Rewards
Introduction

 
Designing Performance Measurement Systems

 
Financial Performance Measures

 
Limitations of Return on Investment, Residual Income, and Economic Value Added

 
Nonfinancial, Quantitative Performance Measures

 
Using a Balanced Scorecard for Measuring Performance

 
Compensation Strategy

 
Links Between Performance Measures and Rewards

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 16: Approaches to Cost Control and Managing Uncertainty
Introduction

 
Functions of a Cost Control System

 
DEMO

 
Cost Control Implications in the Planning Phase

 
Cost Consciousness Attitude

 
Classifying Fixed Costs

 
Planning and Controlling Discretionary Fixed Costs

 
Cash Management

 
Coping with Uncertainty

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 17: Implementing Quality Concepts
Introduction

 
What is Quality?

 
Benchmarking

 
Total Quality Management

 
Types of Quality Costs

 
Measuring the Cost of Quality

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 18: Inventory and Production Management
Introduction

 
Buying/Producing and Carrying Inventory

 
Economic Order Quantity in a Push System

 
Just-In-Time in a PULL SYSTEM

 
Theory of Constraints

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Chapter 19: Capital Budgeting
Introduction

 
Payback Period

 
Discounted Cash Flow Methods

 
Relevant After-Tax Cash Flows

 
Evaluating and Ranking Projects Using Different Methods

 
Compensating for Risk in Capital Project Evaluation

 
Appendix 19-1: Time Value of Money

 
Appendix 19-2: Accounting Rate of Return

 
Comprehensive Chapter Review

 
Review Solutions

 
Data Visualization Solutions

 
 
Appendix A Compound Interest Tables
Key features

NEW TO THIS EDITION:

  • Expanded and fully integrated coverage of Data Analytics and Data Visualization throughout the text to enhance conceptual understanding and critical thinking.
  • Two new chapters: Chapter 3 on cost behavior and estimation and Chapter 14 on pricing, sales variances, and customer profitability.Reorganized content to provide a more logical progression of topics and clearer grouping of related material.
  • Over 400 new or updated end-of-chapter problems, including new multiple-choice questions, CMA questions from Gleim, and
  • Data Analytics and Data Visualization exercises—many auto-gradable in myBusinessCourse™.

KEY FEATURES:

  • Real Examples and Ethical Considerations: Real-world examples and ethical coverage are woven throughout the text, helping students see the relevance of cost accounting in managerial decision-making and encouraging them to think beyond the numbers.
  • High-Quality End-of-Chapter Assignments: A wide variety of questions, exercises, and problems—including Excel® activities, Internet research, group work, writing assignments, and ethical problems—support practice and application.
  • Streamlined, Student-Friendly Approach: Clear, concise writing and clean presentation make complex topics easier to understand and apply to real business problems.
  • Developing Ethical Business Leaders: Ethical considerations are integrated throughout each chapter, with end-of-chapter ethical dilemmas and clearly marked ethics-focused assignments.
  • Comprehensive Chapter Reviews: Each chapter concludes with key terms, summaries, solution strategies, ethical issues, and demonstration problems to reinforce mastery and application.
  • Solution Strategies: Dedicated sections outline key formulas, schedules, and step-by-step approaches for complex learning objectives.