, 8e
Cost Accounting
Foundations and Evolutions
Michael R. Kinney, Texas A&M University
Cecily A. Raiborn, Texas State University—San Marcos
Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
, Cost Accounting: Foundations and Evolutions, © 2011, 2009 South-Western, Cengage Learning
Eighth Edition
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon
Michael R. Kinney, Cecily A. Raiborn may be reproduced or used in any form or by any means—graphic, electronic,
Vice President of Editorial, Business: or mechanical, including photocopying, recording, taping, Web distribution,
Jack W. Calhoun information storage and retrieval systems, or in any other manner—except as
may be permitted by the license terms herein.
Editor-in-Chief: Rob Dewey
Senior Acquisitions Editor: Matt Filimonov
For product information and technology assistance, contact us at
Developmental Editor: Krista Kellman Cengage Learning Customer & Sales Support, 1-800-354-9706.
Editorial Assistant: Lauren Athmer For permission to use material from this text or product,
Marketing Manager: Natalie Livingston submit all requests online at www.cengage.com/permissions.
Marketing Coordinator: Heather Mooney Further permissions questions can be emailed to
Content Project Manager: Holly Henjum
Senior Media Editor: Scott Fidler
ExamView® is a registered trademark of eInstruction Corp. Windows is a
Frontlist Buyer, Manufacturing: Doug Wilke
registered trademark of the Microsoft Corporation used herein under license.
Permission Account Manager, Image: Deanna Macintosh and Power Macintosh are registered trademarks of Apple
Ettinger Computer, Inc., used herein under license.
Permission Account Manager, Text: Mardell
Glinksi Schultz
© 2011 Cengage Learning. All Rights Reserved.
Production Service/Compositor: Integra Software
Services
Library of Congress Control Number: 2009942310
Senior Art Director: Stacy Jenkins Shirley
Internal Designer: Mike Stratton
ISBN-13: 978-1-4390-4461-2
Cover Designer: Mike Stratton
ISBN-10: 1-4390-4461-9
Cover Image: iStock Photo
Loose leaf Edition:
ISBN-13: 978-0-538-79828-0
ISBN-10: 0-538-79828-9
South-Western Cengage Learning
5191 Natorp Boulevard
Mason, OH 45040
USA
Cengage Learning products are represented in Canada by
Nelson Education, Ltd.
For your course and learning solutions, visit www.cengage.com.
Purchase any of our products at your local college store or at our preferred
online store www.CengageBrain.com.
Printed in the United States of America
1 2 3 4 5 6 7 13 12 11 10 09
, Brief Content
Contents iv
Preface xi
Acknowledgments xvii
Chapter 1 Introduction to Cost Accounting 1
Chapter 2 Cost Terminology and Cost Behaviors 24
Chapter 3 Predetermined Overhead Rates, Flexible Budgets,
and Absorption/Variable Costing 66
Chapter 4 Activity-Based Management and Activity-Based Costing 113
Chapter 5 Job Order Costing 162
Chapter 6 Process Costing 210
Chapter 7 Standard Costing and Variance Analysis 263
Chapter 8 The Master Budget 323
Chapter 9 Break-Even Point and Cost-Volume-Profit Analysis 381
Chapter 10 Relevant Information for Decision Making 424
Chapter 11 Allocation of Joint Costs and Accounting for By-Product/Scrap 475
Chapter 12 Introduction to Cost Management Systems 516
Chapter 13 Responsibility Accounting, Support Department
Cost Allocations, and Transfer Pricing 548
Chapter 14 Performance Measurement, Balanced Scorecards,
and Performance Rewards 598
Chapter 15 Capital Budgeting 650
Chapter 16 Managing Costs and Uncertainty 695
Chapter 17 Implementing Quality Concepts 740
Chapter 18 Inventory and Production Management 785
Chapter 19 Emerging Management Practices 835
Appendix Present Value Tables 866
Glossary 871
Name Index 882
Subject Index 884
Cost Accounting
Foundations and Evolutions
Michael R. Kinney, Texas A&M University
Cecily A. Raiborn, Texas State University—San Marcos
Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
, Cost Accounting: Foundations and Evolutions, © 2011, 2009 South-Western, Cengage Learning
Eighth Edition
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon
Michael R. Kinney, Cecily A. Raiborn may be reproduced or used in any form or by any means—graphic, electronic,
Vice President of Editorial, Business: or mechanical, including photocopying, recording, taping, Web distribution,
Jack W. Calhoun information storage and retrieval systems, or in any other manner—except as
may be permitted by the license terms herein.
Editor-in-Chief: Rob Dewey
Senior Acquisitions Editor: Matt Filimonov
For product information and technology assistance, contact us at
Developmental Editor: Krista Kellman Cengage Learning Customer & Sales Support, 1-800-354-9706.
Editorial Assistant: Lauren Athmer For permission to use material from this text or product,
Marketing Manager: Natalie Livingston submit all requests online at www.cengage.com/permissions.
Marketing Coordinator: Heather Mooney Further permissions questions can be emailed to
Content Project Manager: Holly Henjum
Senior Media Editor: Scott Fidler
ExamView® is a registered trademark of eInstruction Corp. Windows is a
Frontlist Buyer, Manufacturing: Doug Wilke
registered trademark of the Microsoft Corporation used herein under license.
Permission Account Manager, Image: Deanna Macintosh and Power Macintosh are registered trademarks of Apple
Ettinger Computer, Inc., used herein under license.
Permission Account Manager, Text: Mardell
Glinksi Schultz
© 2011 Cengage Learning. All Rights Reserved.
Production Service/Compositor: Integra Software
Services
Library of Congress Control Number: 2009942310
Senior Art Director: Stacy Jenkins Shirley
Internal Designer: Mike Stratton
ISBN-13: 978-1-4390-4461-2
Cover Designer: Mike Stratton
ISBN-10: 1-4390-4461-9
Cover Image: iStock Photo
Loose leaf Edition:
ISBN-13: 978-0-538-79828-0
ISBN-10: 0-538-79828-9
South-Western Cengage Learning
5191 Natorp Boulevard
Mason, OH 45040
USA
Cengage Learning products are represented in Canada by
Nelson Education, Ltd.
For your course and learning solutions, visit www.cengage.com.
Purchase any of our products at your local college store or at our preferred
online store www.CengageBrain.com.
Printed in the United States of America
1 2 3 4 5 6 7 13 12 11 10 09
, Brief Content
Contents iv
Preface xi
Acknowledgments xvii
Chapter 1 Introduction to Cost Accounting 1
Chapter 2 Cost Terminology and Cost Behaviors 24
Chapter 3 Predetermined Overhead Rates, Flexible Budgets,
and Absorption/Variable Costing 66
Chapter 4 Activity-Based Management and Activity-Based Costing 113
Chapter 5 Job Order Costing 162
Chapter 6 Process Costing 210
Chapter 7 Standard Costing and Variance Analysis 263
Chapter 8 The Master Budget 323
Chapter 9 Break-Even Point and Cost-Volume-Profit Analysis 381
Chapter 10 Relevant Information for Decision Making 424
Chapter 11 Allocation of Joint Costs and Accounting for By-Product/Scrap 475
Chapter 12 Introduction to Cost Management Systems 516
Chapter 13 Responsibility Accounting, Support Department
Cost Allocations, and Transfer Pricing 548
Chapter 14 Performance Measurement, Balanced Scorecards,
and Performance Rewards 598
Chapter 15 Capital Budgeting 650
Chapter 16 Managing Costs and Uncertainty 695
Chapter 17 Implementing Quality Concepts 740
Chapter 18 Inventory and Production Management 785
Chapter 19 Emerging Management Practices 835
Appendix Present Value Tables 866
Glossary 871
Name Index 882
Subject Index 884
