INSEAD Library

Includes bibliographical references and index

Digitized

Managerial uses of Managerial uses of accounting accounting information information Contents Chapter 1: Introduction h u n t i n g Resources; Modes of Study; Ingredients for an Interesting Stew; Overview; Summary; Bibliographic Notes Chapter 2: Classical Foundations Perfect Markets and Present Value; Output and Input Choices by the Firm; Revenue and Cost Framing; Cost Function Terminology; Short-Run Versus Long-Run Cost; Imperfect Output Market; The Multiproduct Firm; The Multiproduct Cost Function; A Two Period Interpretation; Summary; Bibliographic Notes; Problems and Exercises Chapter 3: Financial Reporting Influences Overview of Accrual Reporting; Revenue Recognition; Matching lkpenses to the Recognized Revenue; Inventory Accounting; Summary; Bibliographic Notes, Problems and Exercises 33 Chapter 4: Economic Behavior Under Uncertainty Economic Rationality; Expected Utility, Information; Consistent Behavior in a Strategic Setting, Summaty, Bibliographic Notes; Problems and Exercises Chapter 5: Product Costing Example; The Accountant's Product Costing Art, Short-Run Versus Long Run-Cost; Summary; Bibliographic Notes; Problems and Exercises Chapter 6: Product Costing: Heterogeneous Products More Terminology; Product Cost Construction with Actual Overhead Totals; Record Keeping Mechanics; Normal Versus Actual Costing; Variable Versus Full Product Cost; A Concluding Observation; Summary, Bibliographic Notes; Problems and Exercises ' Chapter 7: Standard Product Costs Mechanics of Standard Costing; A Numerical Illustration; Cost Flow Mechanics; An Algebraic Illustration; Sources of Standards; Responsibility Accounting; Summary; Appendix: Nonlinear Budgets; Bibliographic Notes, Problems and Exercises. viii Chapter 8: Joint Costs and Cost Allocation Economic Joint Costs; Accounting Joint Costs; Cost Allocation; Additional Illustrations; Cost Allocation Criteria; Summary, Appendix: Simultaneous Allocations; BibliographicNotes; Problems and Exercises contents 169 Chapter 9: Alternative Costing Environments Costing Environments; Joint Products; Costing Techniques for Accounting Joint Producoi, Record Keeping Details; Other Methods; By-products; A Caution for the Zealous Consumer; Process Costing; Activity Costing in Complex Production Environments; Summary; Bibliographic Notes; Problems and Exercises Chapter 10: Library Integrity: Internal Control Basic Ingredients, Interpretations; Library Content; Summary; Bibliographic Notes; Problem and Exercises Chapter 11: Framing Decisions Examples of Consistent Framing; A Well-Defined Choice Pmblem; Irrelevance of lnaeasing Transformations; Local ,%archers are Possible; Component Searches are Possible; Consistent Framing; Summary; Bibliographic Notes, Problems and Exercises Chapter 12: Applications of the Framing Principles LLA Based Applications of Consistent Framing, Decision Costing Taminology;Framing Consistencies; Summary; Bibliographic Notes; Pmblem and Exercises Chapter 13: Extraction from the Accounting Library Classical Estimation of Linear Models; Omitted Variables; Dependent Variables Drawn from the Accounting Library; Summary; Bibliographic Notes; Problems and Exercises Chapter 14: Large Versus Small Decisions: Short-Run Preliminaries; Make or Buy; Product Evaluation; Customer Evaluation; Work Force Scheduling Uncertainty, Summary, Bibliographic Notes; Pmblems and Exercises 341 Chapter 15: Large Versus Small Decisions: Long-Run D h u n t i n g Fundamentals; Additional Techniques; Cash Flow Estimation; Rendering in the h u n t i n g Library; Summary; Bibliographic Notes; Problems and Exercises Chapter 16: Competitive Response Market Based Approaches; Auction Mceh, Bibliographic Notes; Problems and Exercises Haggling; Summary; contents ir 431 Chapter 17: Library Procedures for Performance Evaluation Overview of Decomposition; Cost Performance Variances; Summary; Appendix: Variations on the Decomposition Theme; Bibliographic Notes; Problems and Exercises Chapter 18: Managerial Performance Evaluation A Streamlined Production Setting, Resolution with a Perfed Labor Market; Resolution in the Face of Market Frictions; The Bad News, The Firm's Choice; Pay-for-Performance When Performance Evaluation Information Is Available; Summary; Bibliographic Notes; Problems and Exercises Chapter 19: Evaluation Based on Controllable Performance Performance Evaluation Vignettes; Back to the Managerial Input Model; Interpretation of Performance Evaluation Vignettes; Management by Exception; Summary; Appendix: Solving for an Optimal Incentive Function; Bibliographic Notes; Problems and Exercises Chapter 20: Responsibility Accounting A Classic Cost Center. Interdepartmental Cost Allocation; Cost, Revenue, Profit, and Investment Centers, Nonfinancial Information; The Hierarchical Structure of Responsibility Accounting; Summary; Bibliographic Notes; Problems and Exercises Chapter 21: Communication and Budget Participation What Did You Say It Would Cost?; Self-Reporting Incentives in the Managerial Input Model; Variations on a Theme; Summary; Bibliographic Notes, Problems and Exercises Chapter 22: Coordination Master Budgets; Intramanager Coordination; Short-Run Versus Long-Run Incentives; Coordinated Sabotage; Summary; Bibliographic Notes; Problems and Exercises Chapter 23: Interdivision Coordination Regulating Trade Between Divisions; The Classical Approach; Regulating Interdivision Trade in the Face of Control Frictions, Variations on a Theme; Loose Ends; Summary; Bibliographic Notes; Problems and Exercises Chapter 24: A Dynamic Perspective Decision and Performance Control; Governance in the Dynamic Environment; Accounting Governance; Make or Buy; The Well-Prepared, Responsible Manager; Summary; Bibliographic Notes; Problems and Exercises contents References Author Index Subject Index