Management Accounting Accounting for Non Specialists is aimed at non-specialist students of accounting and finance on a first course in the subject. It gives a lively and wide-ranging survey of the basic principles of finance and management accounting. The unique approach taken in the first Section of the book is to look at small to medium sized business organisations and their role in the economy how they are set up, factors in their success and failure and how they source funds for expansion. This leads to discussion of the role of financial markets and their need for financial information. Section 2 then gives an account of management accounting principles. The text is clearly written and technical jargon is minimal - any technical terms are clearly explained and a glossary of terms is provided. Illustrative case studies and reference to real-life business examples are used to bring the technical information to life. Management Accounting for Non Specialists includes a large number of worked examples, to give students valuable practice in using their new skills. Other pedagogic elements include aims and learning outcomes, summaries, Case Studies with questions and solutions, individual learning activities, self-test questions with answers provided in the book, and exercises - the answers to which are divided between the book and the Lecturer's Guide/Website.

Table of Contents

SECTION 1 ? Introduction and background to commercial business organisations CHAPTER 1 Introduction to business organisations and finance Forms of business organisation. Sole traders, limited companies and partnerships contrasted. Finance for business. Fundamentals of taxation. CHAPTER 2 Starting a business Financing the small business. The business plan. Why do businesses fail (and why do some of them succeed)? CHAPTER 3 The growing business Stages in business growth and expansion. Making money. Risk. CHAPTER 4 Large businesses Sources of finance for companies. The UK Stock Market. Organisation and operation of the London Stock Exchange. Flotation and other share issues. To list or not to list? The role of information in stock markets. CHAPTER 5 The role of accounting in business The need for accounting information. Users of accounting information. Characteristics of useful financial information. Financial accounting and management accounting. The role of the accountant in business organisations. Why do business managers have to understand accounting reports? SECTION 2 ? Management accounting CHAPTER 14 Management and cost accounting information Contrasting financial accounting and cost and management accounting. Some features of cost and management accounting. Cost accounting and management accounting. The purpose and uses of management accounting. Determining business objectives. Strategic decisions. The management accounting process. CHAPTER 15 Costing Costing in business. Cost classification: direct and indirect costs. Cost classification: product and period costs. Costing of products and services. Materials costs. Labour costs. Production overheads. Activity based costing. CHAPTER 16 Budgeting What is a budget? The budget process. Benefits of effective budgeting. Some problems with budgeting. Preparing the budget: principal types of budget. Setting the budget ? a practical example. Monitoring outcomes. CHAPTER 17 Standard costing, flexible budgeting and variance analysis Identifying and attributing variances. Standard costing. Establishing standard costs. Standard costing and variance analysis ? a demonstration. Overhead variances. Overhead variance analysis ? a demonstration. Investigating the reasons for variances. CHAPTER 18 Marginal costing for decision making Cost classification: variable, fixed and semi-variable costs. Costing for decision making. Marginal costing. Cost-volume-profit analysis. Further applications of break-even analysis. Special decisions: accepting contracts. Special decisions: major increases in activity levels. Special decisions: limiting factors. Limitations of analysis based on marginal costing. CHAPTER 19 Pricing The importance of pricing. The relationship between price and quantity. Competition in the market. How do producers decide on prices? Special cases (tendering, highly restricted supply of unique products, target pricing, discounting, auction). CHAPTER 20 Capital investment decisions What is capital investment? Capital budgeting. Capital investment appraisal in practice. Accounting rate of return. Payback. Net present value. Internal rate of return. Choosing between projects. Strengths and weaknesses of the common investment appraisal techniques. CHAPTER 21 Divisional Performance Measurement Profit and investment centres. Return on investment. Economic value added. Index Answers to Self-test Questions Answers to Exercises