Introductory Essay 1. Two to three page five paragrap.docx

Introductory Essay
1. Two to three page five paragraph essay.
2. Typed, double spaced.
3. 12pt neutral font.
4. 1 inch margins.
5. Standard MLA format.
6. Include your personal introduction (your name) in your
narrative.
7. Illustrate your interests, ideas, experiences and impressions
of events or places.
The narrative approach offers writers a chance to think and
write about themselves. We all have
experiences or interests which are worthy of sharing with
readers. When you write a narrative essay,
you are telling a story. Narrative essays are told from a defined
point of view, the author's persona, so
there is feeling as well as specific and often sensory details
provided to get the reader involved in the

elements and sequence of the story. The verbs are vivid and
precise. The narrative introductory essay
makes a point of introducing you, your interests, plans, dreams
or goals. Make sure you support any
statements with an example or two to allow your audience to
connect with you.
It is usually filled with details that are carefully selected to
explain, support, or embellish the story. All
of the details relate to the main point the writer is attempting to
make. Illustrate your persona and
introduce who and what you are.
Approach the list below with the who, the what, the where
abouts, for sure the why, the how and when
questions. That is an effective way to outline your first
thoughts.
1. What activity has played or plays an important part in your
life?
2. What is your main personal goal?
3. What do you like very much? Your hobby?
4. What do you hate or dislike? Your aversions?
5. Do you have developed a very special skill?
6. What is your lifestyle?

7. Can you come up with a turning point or milestone in your
life?
8. What is your hobby or interest in your spare time?
9. What is a pet peeve or another very familiar topic you like to
talk about, to do or to discuss?
10. Where you are from? Do your roots reveal something about
yourself that is new for the
audience? That always works in a small nice text for
introducing your biggest personal features.
11. Is there an object or prop that means a lot to you?
12. What distinguishes you from other individuals in class?
Please be selective in what you share. We don’t need to know
every gorey detail or unhappy moment in
your life. Mention a bad experience if you need to but please
focus on the positive results of the event.
***This essay will provide the foundation for your introductory
speech
to be performed in our first class meeting***
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W. Caldwell, D.B.A., CMA

Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
Copyright © 2014 by The McGraw-Hill Companies, Inc. All
rights reserved.
Job-Order Costing
Chapter 4
Chapter 4: Job-Order Costing
Managers need to assign costs to products to facilitate external
financial reporting and internal decision making. This chapter
illustrates an absorption costing approach to calculating product
costs known as job-order costing.
4-*
Job-Order Costing: An Overview
Job-order costing systems are used when:Many different
products are produced each period.Products are manufactured to
order.The unique nature of each order requires tracing or
allocating costs to each job, and maintaining cost records for
each job.
Job-order costing systems are used when:
Many different products are produced each period.Products are
manufactured to order.The unique nature of each order requires
tracing or allocating costs to each job, and maintaining cost
records for each job.
4-*

Job-Order Costing: An Overview
Examples of companies that would use
job-order costing include:
1.Boeing (aircraft manufacturing)
2.Bechtel International (large scale construction)
3.Walt Disney Studios (movie production)
Companies that may benefit from using job order costing
systems include Boeing, Bechtel International, and Walt Disney
Studios.
Boeing is an aircraft manufacturer. Bechtel is perhaps the
largest international construction company. The company works
on huge projects that are unique to customer needs. Walt Disney
Studios produces movies and entertainment parks.
4-*
Job No. 1
Job No. 2
Job No. 3
Charge direct material and direct labor costs to each job as work
is performed.
Job-Order Costing – An Example
Direct Materials
Direct Labor
Types of manufacturing costs that are assigned to products
using a job-order costing system:
Direct costs
d directly to each job as the work is
performed.

performed.
4-*
Manufacturing Overhead, including indirect materials and
indirect labor, are allocated to all jobs rather than directly
traced to each job.
Job-Order Costing – An Example
Direct Materials
Direct Labor
Job No. 1
Job No. 2
Job No. 3
Manufacturing Overhead
Indirect manufacturing costs are referred to as manufacturing
overhead. Manufacturing overhead includes both indirect
materials and indirect labor. These costs are allocated to jobs
rather than directly traced to each job.
4-*
The Job Cost Sheet
PearCo Job Cost Sheet
Job Number A - 143
Date Initiated 3-4-11
Date Completed
Department B3
Units Completed
Item Wooden cargo crate
Direct Materials

Direct Labor
Req. No.
Amount
Ticket
Hours
Amount
Hours
Rate
Amount
Cost Summary
Units Shipped
Direct Materials
Date
Number
Balance
Direct Labor
Total Cost
Unit Product Cost

The job cost sheet is used by the accounting department to track
the direct and indirect costs associated with a given job. A job
number uniquely identifies each job. Direct material, direct
labor, and manufacturing overhead costs are accumulated for
each job. The job cost sheet is a subsidiary ledger to the Work
in Process account.
We will look at a job cost sheet used by a hypothetical company
called PearCo. The company has a job that calls for the
construction of wooden cargo crates. You can see the separate
sections for direct materials, direct labor, and manufacturing
overhead. In addition, we have a section to summarize total
costs of the job.
4-*
Measuring Direct Materials Cost
Will E. Delite
Once a sales order has been received and a production order
issued, the Production Department prepares a materials
requisition form to specify the type, quantity, and total cost of
materials (e.g., $116) to be drawn from the storeroom, and the
job number (e.g., A-143) to which the cost of the materials is to
be charged.

Here is the materials requisition form completed for job A -
143. The requisition is number X7 - 6890. The worker has
requested twelve 2 by 4s, 12 feet long, and twenty 1 by 6s, 12
feet long. The unit cost of the lumber is shown in the unit cost
column. The quantity requested is multiplied by the unit cost to
arrive at the total cost for materials. The person in charge of the
storeroom will issue the lumber once the materials requisition
form has been properly authorized.
For an existing product, the production department can refer to
a bill of materials to determine the type and quantity of each
item of materials needed to complete a unit of product.
4-*
Measuring Direct Materials Cost
The Accounting Department records the total direct material
cost (e.g., $116) on the appropriate job cost sheet. Notice, the
material requisition number (e.g., X7-6890) is included on the
job cost sheet to provide easy access to the source document.
))Sheet1PearCo Job Cost SheetJob Number A - 143Date
Initiated 3-4-11Date CompletedDepartment B3Units
CompletedItem Wooden cargo crateDirect MaterialsDirect
LaborManufacturing OverheadReq.
No.AmountTicketHoursAmountHoursRateAmountX7-6890$
116Cost SummaryUnits ShippedDirect Materials$
116DateNumberBalanceDirect LaborManufacturing
OverheadTotal CostUnit Product Cost
&A
Page &P
))Sheet2
&A

Page &P
))Sheet3
&A
Page &P
))Sheet4
&A
Page &P
))Sheet5
&A
Page &P
))Sheet6
&A
Page &P
))Sheet7
&A
Page &P
))Sheet8
&A
Page &P
))Sheet9
&A
Page &P
))Sheet10
&A
Page &P
))Sheet11
&A
Page &P
))Sheet12
&A
Page &P
))Sheet13
&A
Page &P
))Sheet14
&A

Page &P
))Sheet15
&A
Page &P
))Sheet16
&A
Page &P
4-*
Measuring Direct Labor Costs
Workers use time tickets to record the amount of time that they
spent on each job and the total cost assigned to each job.
Sheet1PearCo Employee Time TicketTime Ticket No.
36Date3-5-11EmployeeI. M.
SkilledStation42StartingEndingHoursHourlyTimeTimeComplete
dRateAmountJob No.080016008.00$ 11.00$ 88.00A-
143Totals8.00$ 11.00$ 88.00A-143SupervisorC. M.
Workman
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A

Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P

4-*
Job-Order Cost Accounting
The Accounting Department records the labor costs from each
time tickets (e.g. $88) on to the job cost sheet.
Sheet1PearCo Job Cost SheetJob Number A - 143Date
Initiated 3-4-11Date CompletedDepartment B3Units
CompletedItem Wooden cargo crateDirect MaterialsDirect
LaborManufacturing OverheadReq.
No.AmountTicketHoursAmountHoursRateAmountX7-6890$
116368$ 88Cost SummaryUnits ShippedDirect Materials$
116DateNumberBalanceDirect Labor$ 88Manufacturing
OverheadTotal CostUnit Product Cost
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P

Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
4-*
Learning Objective 4-1
Compute a predetermined overhead rate.
Learning objective 4-1 is to compute a predetermined overhead

rate.
4-*
Why Use an Allocation Base?
An allocation base, such as direct labor hours, direct labor
dollars, or machine hours, is used to assign manufacturing
overhead to products.
We use an allocation base because:It is impossible or difficult
to trace overhead costs to particular jobs.Manufacturing
overhead consists of many different items ranging from the
grease used in machines to the production manager’s
salary.Many types of manufacturing overhead costs are fixed
even though output fluctuates during the period.
An allocation base, such as direct labor hours, direct labor
dollars, or machine hours, is used to assign manufacturing
overhead to products. Allocation bases are used because:
It is impossible or difficult to trace these costs to particular jobs
(i.e., manufacturing overhead is an indirect cost).
Manufacturing overhead consists of many different items
ranging from the grease used in machines to the production
manager’s salary.
Many types of manufacturing overhead costs are fixed even
though output may fluctuate during the year.
4-*
The predetermined overhead rate (POHR) used to apply
overhead to jobs is determined before the period begins.
Manufacturing Overhead Application

The predetermined overhead rate is calculated by dividing the
estimated amount of manufacturing overhead for the coming
period by the estimated quantity of the allocation base for the
coming period. Ideally, the allocation base chosen should be the
cost driver of overhead cost.
4-*
Using a predetermined rate makes it
possible to estimate total job costs sooner.
Actual overhead for the period is not
known until the end of the period.
The Need for a POHR
Predetermined overhead rates that rely upon estimated data are
often used because: (1) actual overhead costs for the period are
not known until the end of the period, thus inhibiting the ability
to estimate job costs during the period; and (2) actual overhead
costs can fluctuate seasonally, thus misleading decision makers.
4-*
Computing Predetermined Overhead Rates
The predetermined overhead rate is computed before the period
begins using a four-step process.Estimate the total amount of
the allocation base (the denominator) that will be required for
next period’s estimated level of production. Estimate the total

fixed manufacturing overhead cost for the coming period and
the variable manufacturing overhead cost per unit of the
allocation base.The third step is to use a cost formula to
estimate the total manufacturing overhead cost for the coming
period. Compute the predetermined overhead rate.
The predetermined overhead rate is computed before the period
begins using a four-step process. Estimate the total amount of
the allocation base (the denominator) that will be required for
next period’s estimated level of production. Estimate the total
fixed manufacturing overhead cost for the coming period and
the variable manufacturing overhead cost per unit of the
allocation base.The third step is to use a cost formula to
estimate the total manufacturing overhead cost for the coming
period.
4.Compute the predetermined overhead rate.
Let’s look at a PearCo example.
4-*
End of Chapter 4
End of chapter 4.
*
PearCo Materials Requisition Form
Requisition No. X7 - 6890Date 3-4-11
Job No. A - 143
Department B3
DescriptionQuantityUnit CostTotal Cost
2 x 4, 12 feet123.00$ 36.00$
1 x 6, 12 feet204.00 80.00
116.00$

Authorized
Signature
Job Number A - 143Date Initiated 3-4-11
Date Completed
Department B3Units Completed
Direct MaterialsDirect LaborManufacturing Overhead
Req. No.AmountTicketHoursAmountHoursRateAmount
X7-6890116$
Cost SummaryUnits Shipped
Direct Materials116$ DateNumberBalance
Direct Labor
Total Cost
Unit Product Cost
PearCo Employee Time Ticket
Time Ticket No. 36 Date3-5-11
EmployeeI. M. Skilled Station42
StartingEndingHoursHourly
TimeTimeCompletedRateAmountJob No.
080016008.0011.00$ 88.00$ A-143
Totals8.0011.00$ 88.00$ A-143
Supervisor
C. M. Workman
Job Number A - 143Date Initiated 3-4-11
Date Completed
Department B3Units Completed
Direct MaterialsDirect LaborManufacturing Overhead
Req. No.AmountTicketHoursAmountHoursRateAmount
X7-6890116$ 36888$
Cost SummaryUnits Shipped
Direct Materials116$ DateNumberBalance
Direct Labor88$

Total Cost
Unit Product Cost
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W. Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
Copyright © 2014 by The McGraw-Hill Companies, Inc. All
rights reserved.
Cost-Volume-Profit Relationships
Chapter 3
Chapter 3: Cost-Volume-Profit Relationships
Cost-volume-profit (CVP) analysis helps managers understand
the interrelationships among cost, volume, and profit by
focusing their attention on the interactions among the prices of
products, volume of activity, per unit variable costs, total fixed
costs, and mix of products sold. It is a vital tool used in many
business decisions such as deciding what products to
manufacture or sell, what pricing policy to follow, what
marketing strategy to employ, and what type of productive
facilities to acquire.
3-*
Learning Objective 3-1
Explain how changes in activity affect contribution margin and
net operating income.

Learning objective 3-1 is to explain how changes in activity
affect contribution margin and net operating income.
3-*
Basics of Cost-Volume-Profit Analysis
Contribution Margin (CM) is the amount remaining from sales
revenue after variable expenses have been deducted.
The contribution income statement is helpful to managers in
judging the impact on profits of changes in selling price, cost,
or volume. The emphasis is on cost behavior.
or volume. For example, let's look at a hypothetical contribution
income statement for Racing Bicycle Company (RBC). Notice
the emphasis on cost behavior. Variable costs are separate from
fixed costs. The contribution margin is defined as the amount
remaining from sales revenue after variable expenses have been
deducted.
3-*
Basics of Cost-Volume-Profit Analysis
CM is used first to cover fixed expenses. Any remaining CM
contributes to net operating income.
Contribution margin is used first to cover fixed expenses. Any
remaining contribution margin contributes to net operating
income.

3-*
The Contribution Approach
Sales, variable expenses, and contribution margin can also be
expressed on a per unit basis. If Racing sells an additional
bicycle, $200 additional CM will be generated to cover fixed
expenses and profit.
expressed on a per unit basis. For each additional unit Racing
Bicycle Company sells, $200 more in contribution margin will
help to cover fixed expenses and provide a profit.
3-*
Each month, RBC must generate at least $80,000 in total
contribution margin to break-even (which is the level of sales at
which profit is zero).
Each month Racing Bicycle must generate at least $80,000 in
total contribution margin to break-even (which is the level of
sales at which profit is zero).
3-*
If RBC sells 400 units in a month, it will be operating at the
break-even point.

If RBC sells 400 units a month, it will be operating at the
break-even point. Total sales will be 400 units times $500 each
or $200,000, and total variable expenses will be 400 units times
$300 each for $120,000. Contribution margin is exactly equal to
total fixed expenses. Let’s see what happens if Racing sells one
more bike or a total of 401 bikes.
3-*
If RBC sells one more bike (401 bikes), net
operating income will increase by $200.
If RBC sells one more bike (401 bikes), net operating income
will increase by $200
3-*
We do not need to prepare an income statement to estimate
profits at a particular sales volume. Simply multiply the number
of units sold above break-even by the contribution margin per
unit.
If Racing sells 430 bikes, its net operating income will be
$6,000.
If we develop equations to calculate break-even and net income,
we will not have to prepare an income statement to determine
what net income will be at any level of sales. For example, we
know that if Racing Bicycle sells 430 units, net operating
income will be $6,000. The company will sell 30 units above
the break-even unit sales and the contribution margin is $200
per unit, or $6,000.

3-*
CVP Relationships in
Equation Form
The contribution format income statement can be expressed in
the following equation:
Profit = (Sales – Variable expenses) – Fixed expenses
CVP relationships in equation form (for those who prefer an
algebraic approach to solving problems in the chapter)
equation form as shown on this slide.
Variable expenses is $120,300, 401 units sold at $300 per unit.
With fixed expenses of $80,000, we can see that profit or net
operating income is equal to $200. Exactly the same answer we
got using the contribution income statement approach.
3-*
Equation Form
This equation can be used to show the profit RBC earns if it
sells 401. Notice, the answer of $200 mirrors our earlier
solution.
Profit = ($200,500 – Variable expenses) – Fixed
Profit = ($200,500 – $120,300) – Fixed expenses
Profit = ($200,500 – $120,300) – $80,000

$200 = ($200,500 – $120,300) – $80,000
We begin by calculating sales.
Sales are equal to $200,500, that is, 401 units sold at $500 per
unit.
Variable expenses are $120,300, 401 units sold at $300 per unit.
3-*
Equation Form
When a company has only one product we can further refine this
equation as shown on this slide.
Profit = (P × Q – V × Q) – Fixed expenses
3-*
Equation Form
This equation can also be used to show the $200 profit RBC
earns if it sells 401 bikes.

Profit = ($500 × 401 – $300 × 401) – $80,000
$200
This equation can also be used to compute RBC’s $200 profit if
it sells 401 bikes.
3-*
Equation Form
Unit CM = Selling price per unit – Variable expenses per unit
It is often useful to express the simple profit equation in terms
of the unit contribution margin (Unit CM) as follows:
Profit = (P – V) × Q – Fixed expenses
Profit = Unit CM × Q – Fixed expenses
Unit CM = P – V
The profit equation can also be expressed in terms unit
contribution margin as shown on this slide.
3-*
Equation Form
Profit = (P – V) × Q – Fixed expenses
Profit = Unit CM × Q – Fixed expenses
Profit = ($500 – $300) × 401 – $80,000
Profit = $200 × 401 – $80,000

Profit = $80,200 – $80,000
Profit = $200
it sells 401 bikes. .
3-*
End of Chapter 3
End of chapter 3.
*
Chapter 3: Cost-Volume-Profit Relationships
Cost-volume-profit (CVP) analysis helps managers understand
the interrelationships among cost, volume, and profit by
focusing their attention on the interactions among the prices of
products, volume of activity, per unit variable costs, total fixed
costs, and mix of products sold. It is a vital tool used in many
business decisions such as deciding what products to
manufacture or sell, what pricing policy to follow, what
marketing strategy to employ, and what type of productive
facilities to acquire.
Learning objective 3-1 is to explain how changes in activity
affect contribution margin and net operating income.
or volume. For example, let's look at a hypothetical contribution
income statement for Racing Bicycle Company (RBC). Notice
the emphasis on cost behavior. Variable costs are separate from
fixed costs. The contribution margin is defined as the amount
remaining from sales revenue after variable expenses have been
deducted.
Contribution margin is used first to cover fixed expenses. Any

remaining contribution margin contributes to net operating
income.
expressed on a per unit basis. For each additional unit Racing
Bicycle Company sells, $200 more in contribution margin will
help to cover fixed expenses and provide a profit.
Each month Racing Bicycle must generate at least $80,000 in
total contribution margin to break-even (which is the level of
sales at which profit is zero).
If RBC sells 400 units a month, it will be operating at the
break-even point. Total sales will be 400 units times $500 each
or $200,000, and total variable expenses will be 400 units times
$300 each for $120,000. Contribution margin is exactly equal to
total fixed expenses. Let’s see what happens if Racing sells one
more bike or a total of 401 bikes.
If RBC sells one more bike (401 bikes), net operating income
will increase by $200
If we develop equations to calculate break-even and net income,
we will not have to prepare an income statement to determine
what net income will be at any level of sales. For example, we
know that if Racing Bicycle sells 430 units, net operating
income will be $6,000. The company will sell 30 units above
the break-even unit sales and the contribution margin is $200
per unit, or $6,000.
CVP relationships in equation form (for those who prefer an
algebraic approach to solving problems in the chapter)
equation form as shown on this slide.
Variable expenses is $120,300, 401 units sold at $300 per unit.
We begin by calculating sales.

Sales are equal to $200,500, that is, 401 units sold at $500 per
unit.
Variable expenses are $120,300, 401 units sold at $300 per unit.
it sells 401 bikes.
The profit equation can also be expressed in terms unit
contribution margin as shown on this slide.
it sells 401 bikes. .
End of chapter 3.
*
Sales (500 bicycles)250,000$
Less: Variable expenses150,000
Contribution margin100,000
Less: Fixed expenses80,000
Net operating income20,000$
Racing Bicycle Company
Contribution Income Statement
For the Month of June
TotalPer Unit
Sales (500 bicycles)250,000$ 500$
Less: Variable expenses150,000 300
Contribution margin100,000 200$
Net operating income20,000$

TotalPer Unit
Sales (400 bicycles)200,000$ 500$
Net operating income-$
TotalPer Unit
Sales (401 bicycles)200,500$ 500$
Net operating income200$
Quantity sold (Q)
×Variable expenses per unit (V)
=Variable expenses (Q ×
V)
Quantity sold (Q)
×Selling price per unit (P)
=Sales (Q ×
P)
Rev.Confirming Pages
S e c o n d E d i t i o n
Eric W. Noreen, Ph.D., CMA

Professor Emeritus
University of Washington
Peter C. Brewer, Ph.D., CPA
Miami University —Oxford, Ohio
Ray H. Garrison, D.B.A., CPA
Professor Emeritus
Brigham Young University
managersMANAGERIAL ACCOUNTING for
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MANAGERIAL ACCOUNTING FOR MANAGERS
Published by McGraw-Hill/Irwin, a business unit of The
McGraw-Hill Companies, Inc.,
1221 Avenue of the Americas, New York, NY, 10020.
Copyright © 2011, 2008 by The McGraw-Hill
Companies, Inc. All rights reserved. No part of this publication
may be reproduced or
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Some ancillaries, including electronic and print components,
may not be available to
customers outside the United States.

This book is printed on acid-free paper.
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ISBN 978-0-07-352713-0
MHID 0-07-352713-0
Vice president and editor-in-chief: Brent Gordon
Editorial director: Stewart Mattson
Publisher: Tim Vertovec
Director of development: Ann Torbert
Development editor: Emily A. Hatteberg
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Marketing manager: Kathleen Klehr
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Library of Congress Cataloging-in-Publication Data
Noreen, Eric W.
Managerial accounting for managers / Eric W. Noreen, Peter
C. Brewer, Ray H. Garrison.—2nd ed.
p. cm.

Includes index.
ISBN-13: 978-0-07-352713-0 (alk. paper)
ISBN-10: 0-07-352713-0 (alk. paper)
1. Managerial accounting. I. Brewer, Peter C. II. Garrison, Ray
H. III. Title.
HF5657.4.N668 2011
658.15’11—dc22
2009037451
www.mhhe.com
Dedication
To our families and to our many
colleagues who use this book.
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www.mhhe.com
iii
About the
Authors
Eric W. Noreen has held appointments at
institutions in the United States, Europe, and Asia. He is
emeritus professor of accounting at the University of
Washington.
His BA degree is from the University of Washington and his
MBA and PhD degrees are from Stanford University. A
Certified

Management Accountant, he was awarded a Certificate of
Distinguished Performance by the Institute of Certified
Management Accountants.
Professor Noreen has served as associate editor of The
Accounting Review and the
Journal of Accounting and Economics. He has had numerous
articles published in
academic journals including: the Journal of Accounting
Research; the Accounting
Review; the Journal of Accounting and Economics; Accounting
Horizons; Accounting,
Organizations and Society; Contemporary Accounting Research;
the Journal of
Management Accounting Research; and the Review of
Accounting Studies.
Professor Noreen has won a number of awards from students for
his teaching.
Peter C. Brewer is a professor in the
Department of Accountancy at Miami University, Oxford, Ohio.
He holds a BS degree in accounting from Penn State University,
an MS degree in accounting from the University of Virginia,
and
a PhD from the University of Tennessee. He has published
more than 30 articles in a variety of journals including:
Management Accounting Research, the Journal of Information
Systems, Cost Management, Strategic Finance, the Journal of
Accountancy, Issues in Accounting Education, and the Journal
of Business Logistics.
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iv
About the Authors
Professor Brewer is a member of the editorial boards of Issues
in Accounting
Education and the Journal of Accounting Education. His article
“Putting Strategy
into the Balanced Scorecard” won the 2003 International
Federation of Accountants’
Articles of Merit competition and his articles “Using Six Sigma
to Improve the
Finance Function” and “Lean Accounting: What’s It All
About?” were awarded the
Institute of Management Accountants’ Lybrand Gold and Silver
Medals in 2005 and
2006. He has received Miami University’s Richard T. Farmer
School of Business
Teaching Excellence Award and has been recognized on two
occasions by the Miami
University Associated Student Government for “making a
remarkable commitment to
students and their educational development.” He is a leading
thinker in undergraduate
management accounting curriculum innovation and is a frequent
presenter at various
professional and academic conferences.
Prior to joining the faculty at Miami University, Professor
Brewer was employed as
an auditor for Touche Ross in the firm’s Philadelphia office. He
also worked as an
internal audit manager for the Board of Pensions of the

Presbyterian Church (U.S.A.).
He frequently collaborates with companies such as Harris
Corporation, Ghent
Manufacturing, Cintas, Ethicon Endo-Surgery, Schneider
Electric, Lenscrafters, and
Fidelity Investments in a consulting or case writing capacity.
Ray H. Garrison is emeritus professor of
accounting at Brigham Young University, Provo, Utah. He
received his BS and MS degrees from Brigham Young
University
and his DBA degree from Indiana University.
As a certified public accountant, Professor Garrison has been
involved in management consulting work with both national
and regional accounting firms. He has published articles in The
Accounting Review, Management Accounting, and other
professional journals. Innovation in the classroom has earned
Professor Garrison the Karl G. Maeser Distinguished Teaching
Award from Brigham
Young University.
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v
Focus on the
Future Manager
with Noreen/ Brewer/Garrison

In Managerial Accounting for Managers, the authors have
crafted a streamlined managerial accounting book that is perfect
for non-
accounting majors who intend to move into managerial
positions. Topics
such as process costing, the statement of cash flows, and
financial state-
ment analysis have been dropped to enable instructors to focus
their
attention on the bedrocks of managerial accounting—planning,
control, and decision making. Noreen/Brewer/Garrison focuses
on the
fundamentals, allowing students to develop the conceptual
framework
managers need to succeed.
In its second edition, Managerial Accounting for Managers
continues
to adhere to three core standards:
FOCUS. Noreen/Brewer/Garrison pinpoints the key managerial
concepts students will need in their future careers. With no
journal
entries or financial accounting topics to worry about, students
can focus
on the fundamental principles of managerial accounting.
RELEVANCE. With its insightful Business Focus features
to begin each chapter, current In Business examples throughout
the text,
and tried-and-true end-of-chapter material, a student will
always see the
real-world applicability of Noreen/Brewer/Garrison.
BALANCE. There is more than one type of business, and so

Noreen/Brewer/Garrison covers a variety of business models,
including
nonprofit, retail, service, wholesale, and manufacturing
organizations.
Service company examples are highlighted with icons in the
margins of
the text.
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vi
Noreen’s Powerful Pedagogy
Managerial Accounting for Managers is full of
pedagogy designed to make studying productive and hassle free.
Opening Vignette
Each chapter opens with a Business Focus
feature that provides a real-world example
for students, allowing them to see how
the chapter’s information and insights apply
to the world outside the classroom.
Learning Objectives alert students to
what they should expect as they progress
through the chapter.
“Many concepts in accounting are
rather abstract if not given some type
of context to understand them in. The
business focus features help to provide

this context and can lead to discussions
in class if the instructor wishes.”
—Jeffrey Wong, University of Nevada, Reno
B
U
S
IN
E
S
S
F
O
C
U
S
367367
Learning Objectives
After studying Chapter 10,
you should be able to:
LO1 Explain how direct materials
standards and direct labor
standards are set.
LO2 Compute the direct materials
price and quantity variances

and explain their significance.
LO3 Compute the direct labor rate
and efficiency variances and
explain their significance.
LO4 Compute the variable
manufacturing overhead rate
and efficiency variances.
LO5 Compute delivery cycle time,
throughput time, and
manufacturing cycle efficiency
(MCE).
LO6 (Appendix 10A) Compute and
interpret the fixed overhead
budget and volume variances.
Standard Costs and
Operating Performance
Measures
Managing Materials and Labor
Schneider Electric’s Oxford, Ohio,
plant manufactures busways that
transport electricity from its point
of entry into a building to remote
locations throughout the building.
The plant’s managers pay close
attention to direct material costs
because they are more than half
of the plant’s total manufacturing
costs. To help control scrap rates
for direct materials such as
copper, steel, and aluminum, the

accounting department prepares direct materials quantity
variances. These variances
compare the standard quantity of direct materials that should
have been used to make
a product (according to computations by the plant’s engineers)
to the amount of direct
materials that were actually used. Keeping a close eye on these
differences helps to
identify and deal with the causes of excessive scrap, such as an
inadequately trained
machine operator, poor quality raw material inputs, or a
malfunctioning machine.
Because direct labor is also a significant component of the
plant’s total manufac-
turing costs, the management team daily monitors the direct
labor efficiency variance.
This variance compares the standard amount of labor time
allowed to make a product
to the actual amount of labor time used. When idle workers
cause an unfavorable labor
efficiency variance, managers temporarily move workers from
departments with slack
to departments with a backlog of work to be done. ■
Source: Author’s conversation with Doug Taylor, plant
controller, Schneider Electric’s Oxford, Ohio, plant.
10
C h a p t e r
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vii
In Business Boxes
These helpful boxed features offer a glimpse
into how real companies use the managerial
accounting concepts discussed within the
chapter. Each chapter contains from three to
fourteen of these current examples.
Managerial Accounting in
Action Vignettes
These vignettes depict cross-functional
teams working together in real-life
settings, working with the products and
services that students recognize from
their own lives. Students are shown
step-by-step how accounting concepts
are implemented in organizations and
how these concepts are applied to solve
everyday business problems. First, “The
Issue” is introduced through a dialogue;
the student then walks through the
implementation process; finally, “The
Wrap-up” summarizes the big picture.
“I love these. Again, a connection to real
world that adds credence to the course.”
—Larry N. Bitner, Shippensburg University
“This element is exceptional. The situations truly

reflect real life issues business people would
face—not just “textbook” manufactured examples
that always have black/white answers.”
—Ann E. Selk, University of Wisconsin – Green Bay
IS THIS REALLY A JOB?
VBT Bicycling Vacations of Bristol, Vermont, offers deluxe
bicycling vacations in the United States,
Canada, Europe, and other locations throughout the world. For
example, the company offers a
10-day tour of the Puglia region of Italy—the “heel of the
boot.” The tour price includes international
airfare, 10 nights of lodging, most meals, use of a bicycle, and
ground transportation. Each tour is
led by at least two local tour leaders, one of whom rides with
the guests along the tour route. The
other tour leader drives a “sag wagon” that carries extra water,
snacks, and bicycle repair equip-
ment and is available to shuttle guests back to the hotel or up a
hill. The sag wagon also transports
guests’ luggage from one hotel to another.
Each specific tour can be considered a job. For example,
Giuliano Astore and Debora Trippetti,
two natives of Puglia, led a VBT tour with 17 guests over 10
days in late April. At the end of the tour,
Giuliano submitted a report, a sort of job cost sheet, to VBT
headquarters. This report detailed
the on the ground expenses incurred for this specific tour,
including fuel and operating costs for the
van, lodging costs for the guests, the costs of meals provided to
guests, the costs of snacks, the
cost of hiring additional ground transportation as needed, and
the wages of the tour leaders. In

addition to these costs, some costs are paid directly by VBT in
Vermont to vendors. The total cost
incurred for the tour is then compared to the total revenue
collected from guests to determine the
gross profit for the tour.
Sources: Giuliano Astore and Gregg Marston, President, VBT
Bicycling Vacations. For more information about
VBT, see www.vbt.com .
I N B U S I N E S S
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338 Chapter 9
Victoria: How is the budgeting going?
Rick: Pretty well. I didn’t have any trouble putting together the
budget for March. I also
prepared a report comparing the actual results for March to the
budget, but that report
isn’t giving me what I really want to know.
Victoria: Because your actual level of activity didn’t match
your budgeted activity?
Rick: Right. I know the level of activity shouldn’t affect my
fixed costs, but we had
more client-visits than I had expected and that had to affect my
other costs.
Victoria: So you want to know whether the higher actual costs
are justified by the
higher level of activity you actually had in March?
Rick: Precisely.

Victoria: If you leave your reports and data with me, I can work
on it later today, and by
tomorrow I’ll have a report to show you.
How a Flexible Budget Works
A flexible budget approach recognizes that a budget can be
adjusted to show what costs
should be for the actual level of activity. To illustrate how
flexible budgets work, Victoria
prepared the report in Exhibit 9–4 that shows what the revenues
and costs should have
been given the actual level of activity in March. Preparing the
report is straightforward.
The cost formula for each cost is used to estimate what the cost
should have been for
1,100 client- visits—the actual level of activity for March. For
example, using the cost
formula $1,500 � $0.10q, the cost of electricity in March
should have been $1,610
(� $1,500 � $0.10 � 1,100).
We can see from the flexible budget that the net operating
income in March should have
been $30,510, but recall from Exhibit 9–2 that the net operating
income was actually only
$21,230. The results are not as good as we thought. Why? We
will answer that question shortly.
To summarize to this point, Rick had budgeted for a profit of
$16,800. The actual
profit was quite a bit higher—$21,230. However, given the
amount of business the salon
had in March, the profit should have been even higher—
$30,510. What are the causes of
these discrepancies? Rick would certainly like to build on the

positive factors, while
working to reduce the negative factors. But what are they?
To answer Rick’s questions concerning the discrepancies
between budgeted and actual costs,
we will need to break down the variances shown in Exhibit 9–3
into two types of variances—
activity variances and revenue and spending variances. We do
that in the next two sections.
Flexible Budget Variances
MANAGERIAL
ACCOUNTING IN
ACTION
The Issue
Rick’s Hairstyling
Flexible Budget
For the Month Ended March 31
Actual client-visits (q) .................................................. 1,100
Revenue ($180.00q) ...................................................
$198,000
Expenses:
Wages and salaries ($65,000 � $37.00q) ............... 105,700
Hairstyling supplies ($1.50q) ................................... 1,650
Client gratuities ($4.10q) ......................................... 4,510
Electricity ($1,500 � $0.10q) .................................. 1,610
Rent ($28,500) ........................................................ 28,500
Liability insurance ($2,800) ...................................... 2,800
Employee health insurance ($21,300) ..................... 21,300
Miscellaneous ($1,200 � $0.20q) ........................... 1,420
Total expense ..............................................................

167,490
Net operating income .................................................. $
30,510
E X H I B I T 9 – 4
Flexible Budget Based on
Actual Activity
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viii
“This text is a clear, succinct
presentation of appropriate
managerial accounting topics for
an introductory course. The
management focus makes the
text more relevant to the
introductory accounting course
in which the majority of students
are non-accounting majors.”
—Darlene Coarts, University of
Northern Iowa

“This text is very thorough and has
lots of rich current examples and
applications. It has exceptional
supplements of all types. It is a
very user oriented book and
very appropriate for courses for
non-accounting majors as a
second accounting course.”
—Dana Carpenter, Madison Area
Technical College
“Clear, concise, covers the most
relevant topics for students in all
concentrations of business and a
great text for students that are
going into Cost Accounting.”
—Shirley Polejewski, University of
St. Thomas
“This is a very comprehensive
Managerial Accounting textbook
with an excellent use of
examples within the text.”
—Tammy Metzke, Milwaukee Area
Technical College-West Allis
Utilizing the Icons
To reflect our service-based economy,
the text is replete with examples from

service-based businesses. A helpful icon
distinguishes service-related examples in
the text.
Ethics assignments and examples serve
as a reminder that good conduct is vital
in business. Icons call out content that
relates to ethical behavior for students.
Media integrated icons throughout the
text link content back to chapter-specific
quizzes, audio lectures, and visual
presentations; all of which can be
downloaded to an MP3 player. This gives
students access to a portable, electronic
learning option to support their classroom
instruction.
The writing icon denotes problems that
require students to use critical thinking
as well as writing skills to explain their
decisions.
An Excel© icon alerts students that
spread sheet templates are available for
use with select problems and cases.
The IFRS icon highlights content that
may be affected by the impending change
to IFRS and possible convergence
between U.S. GAAP and IFRS.
IF
RS
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ix
End-of-Chapter Material
Building on Garrison/Noreen/Brewer’s reputation for
having the best end-of-chapter review and
discussion material of any text on the
market, Noreen’s problem and case material
continues to conform to AACSB, AICPA,
and Bloom’s Taxonomy Categories and
makes a great starting point for class
discussions and group projects.
“The end of the chapter problems...
are excellent and are varied enough
so that the student is not performing
the same problem over and over
again.”
—Peter Woodlock, Youngstown State
University
Author-Written Supplements
Unlike other managerial accounting texts, Noreen, Brewer, and
Garrison
write all of the text’s major supplements, ensuring a perfect fit
between
text and supplement. For more information on Managerial
Accounting
for Managers’s supplements package, see page xvi.

• Instructor’s Resource Guide
• Testbank
•
Solution
s Manual
• Workbook/Study Guide
w
w
w.m
hhe.com
/noreen2e
Multiple-choice questions are provided on the text website at
www.mhhe.com/noreen2e .
EXERCISE 4–1 Preparing a Contribution Format Income
Statement [ LO1 ]

Whirly Corporation’s most recent income statement is shown
below:
Total Per Unit
Sales (10,000 units) ........................... $350,000 $35.00
Variable expenses ............................. 200,000 20.00
Contribution margin ........................... 150,000 $15.00
Fixed expenses 135 000
Exercises
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The questions in this exercise are based on the Benetton
Group, a company headquartered in
Italy and known in the United States primarily for one of its
brands of fashion apparel—United
Colors of Benetton. To answer the questions, you will need to
download the Benetton Group’s
2004 Annual Report at www.benetton.com/investors . Once at
this website, click on the link
toward the top of the page called “Site Map” and then scroll
down to the heading called

“Financial Reports” and click on the year 2004. You do not
need to print this document to
answer the questions.
Required:
1. How do the formats of the income statements shown on
pages 33 and 50 of Benetton’s
annual report differ from one another (disregard everything
beneath the line titled “income
from operations”)? Which expenses shown on page 50 appear to
have been reclassified as
variable selling costs on page 33?
2. Why do you think cost of sales is included in the
computation of contribution margin on
page 33?
3. Perform two separate computations of Benetton’s break-
even point in euros. For the first
computation, use data from 2003. For the second computation,
use data from 2004. Why do
the numbers that you computed differ from one another?
RESEARCH AND APPLICATION 4-34 [ LO3 , LO4 , LO5 ,

LO6 , LO7 , LO8 , LO9 ]
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w
w.
m
hh
e.
co
PROBLEM 4–19 Basics of CVP Analysis [ LO1 , LO3 ,
LO4 , LO6 , LO8]
Feather Friends, Inc., distributes a high-quality wooden
birdhouse that sells for $20 per unit. Variable costs
are $8 per unit, and fixed costs total $180,000 per year.
Required:
Answer the following independent questions:
1. What is the product’s CM ratio?
2. Use the CM ratio to determine the break-even point in

sales dollars.
3. Due to an increase in demand, the company estimates that
sales will increase by $75,000 during the
next year. By how much should net operating income increase
(or net loss decrease) assuming that
fixed costs do not change?
4. Assume that the operating results for last year were:
Sales ..........................................................................
$400,000
Variable expenses .....................................................
160,000
Contribution margin ...................................................
240,000
Fixed expenses ..........................................................
180,000
Net operating income ................................................ $
60,000
Problems

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www.mhhe.com/noreen2e
www.benetton.com/investors
www.mhhe.co
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xi
New to the
Second Edition
Faculty feedback helps us continue to improve Managerial
Accounting for Managers. In response to reviewer

suggestions we have:
• Reordered variances in Chapters 9 and 10. Both chapters
have been extensively rewritten to follow a more logical flow.
• Added coverage of corporate social responsibility to Chapter
1 to introduce students to an important and relevant topic in
today’s
business world.
• Moved the coverage of balanced scorecard to Chapter 11
where it more naturally belongs.
• Added International Financial Reporting Standards (IFRS)
icons throughout the text to highlight topics that may be
affected should the
U.S. adopt IFRS in the future.
Specific changes were made in the following chapters:
• In Business boxes updated throughout.
• All end-of-chapter items tagged to Bloom’s Taxonomy
categories as well as AACSB and AICPA standards.

Chapter 1
• New material on corporate social responsibility has been
added.
• Materials dealing with the distinction between financial and
managerial accounting have been moved to Chapter 2.
Chapter 2
• The schedule of cost of goods manufactured has been
simplified by
eliminating the list of the elements of manufacturing overhead.
This
removes a discrepancy that had existed between the coverage of
the schedule of cost of goods manufactured in Chapter 2 and in
Chapter 3.
Chapter 4
• The basic equations used in target profit analysis and break-
even

analysis have been revised to be more intuitive.
• Break-even analysis has been moved to follow target profit
analysis
because break-even analysis is just a special caser of target
profit
analysis.
• Profit graphs are covered in addition to CVP graphs.
Chapter 5
• Portions of the chapter have been rewritten to enhance clarity.
• The appendix has been rewritten to highlight its assumptions.
Chapter 6
• The chapter has been extensively revised with the overall
objective
of making the material more user-friendly. Tables have been
simplified and computing cost of goods sold is streamlined.

Chapter 9
• This chapter has been completely rewritten to follow a logical
path
leading from budgeting to performance evaluation comparing
budgets to actual results and then on to standard cost analysis.
Flexible budgets are used to prepare performance reports with
activity variances and revenue and spending variances. This
chapter
contains some of the material that used to be in Chapter 11.
Chapter 10
• This chapter now covers all standard cost variances—
including
fixed manufacturing overhead variances in an appendix. The
material in this chapter has been extensively rewritten—
particularly
the materials dealing with manufacturing overhead.

Chapter 11
• The balanced scorecard has been moved to this chapter, where
it
more naturally belongs.
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xii
McGraw-Hill Connect TM Accounting
Less Managing. More Teaching. Greater Learning.
McGraw-Hill Connect Accounting is an online assignment and
assessment solution that connects students with
the tools and resources they’ll need to achieve success.
McGraw-Hill Connect Accounting helps prepare students for
their future by enabling faster learning, more

efficient studying, and higher retention of knowledge.
McGraw-Hill Connect Accounting features
Connect Accounting offers a number of powerful tools and
features to make managing assignments easier so
faculty can spend more time teaching. With Connect
Accounting, students can engage with their coursework
anytime and anywhere, making the learning process more
accessible and efficient. Connect Accounting offers you
the features described below.
Simple assignment management
With Connect Accounting, creating assignments is easier than
ever, so you can spend more time teaching and
less time managing. The assignment management function
enables you to:
• Create and deliver assignments easily with selectable end-of-
chapter questions and testbank items.
• Streamline lesson planning, student progress reporting, and
assignment grading to make classroom management
more efficient than ever.
• Go paperless with the eBook and online submission and

grading of student assignments.
Smart grading
When it comes to studying, time is precious. Connect
Accounting helps students learn more efficiently by providing
feedback and practice material when they need it, where they
need it. When it comes to teaching, your time also is
precious. The grading function enables you to:
• Have assignments scored automatically, giving students
immediate feedback on their work and side-by-side
comparisons with correct answers.
• Access and review each response; manually change grades or
leave comments for students to review.
• Reinforce classroom concepts with practice tests and instant
quizzes.
Instructor library
The Connect Accounting Instructor Library is your repository
for additional resources to improve student engage-
ment in and out of class. You can select and use any asset that
enhances your lecture. The Connect Accounting
Instructor Library includes:

Connect Your Students to
Learning and Success
accounting
• PowerPoints
• Transparency Masters
• Instructor’s Resource Guide
• Assignment Topic Grids
• Testbank Topic Grids
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xiii
Student Study Center
The Connect Accounting Student Study Center is the place for
students to access additional resources. The

Student Study Center:
• Offers students quick access to lectures, practice materials,
eBooks, and more.
• Provides instant practice material and study questions, easily
accessible on the go.
• Gives students access to the Personal Learning Plan described
below.
Personal Learning Plan
The Personal Learning Plan (PLP) connects each student to the
learning resources needed for success in the course.
For each chapter, students:
• Take a practice test to initiate the Personal Learning Plan.
• Immediately upon completing the practice test, see how their
performance compares to chapter learning
objectives.
• Receive a Personal Learning Plan that recommends specific
readings from the text, supplemental study mate-
rial, and practice work that will improve their understanding

and mastery of each learning objective.
Diagnostic and adaptive learning of concepts: LearnSmart
Students want to make the best use of their study time. The
LearnSmart adaptive self-study technology within
Connect Accounting provides students with a seamless
combination of practice, assessment, and remediation for
every concept in the textbook. LearnSmart’s intelligent software
adapts to every student response and automatically
delivers concepts that advance the student’s understanding
while reducing time devoted to the concepts already
mastered. The result for every student is the fastest path to
mastery of the chapter concepts. LearnSmart:
• Applies an intelligent concept engine to identify the
relationships between concepts and to serve new concepts
to each student only when he or she is ready.
• Adapts automatically to each student, so students spend less
time on the topics they understand and practice
more those they have yet to master.
• Provides continual reinforcement and remediation but gives
only as much guidance as students need.

• Integrates diagnostics as part of the learning experience.
• Enables you to assess which concepts students have efficiently
learned on their own, thus freeing class time
for more applications and discussion.
Student progress tracking
Connect Accounting keeps instructors informed about how each
student, section, and class is performing, allow-
ing for more productive use of lecture and office hours. The
progress-tracking function enables you to:
• View scored work immediately and track individual or group
performance with assignment and grade reports.
• Access an instant view of student or class performance
relative to learning objectives.
• Collect data and generate reports required by many
accreditation organizations, such as AACSB and AICPA.
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xiv
McGraw-Hill Connect™ Plus Accounting
McGraw-Hill reinvents the textbook learning experience for the
modern student with Connect Plus Accounting.
A seamless integration of an eBook and Connect Accounting,
Connect Plus Accounting provides all of the
Connect Accounting features plus the following:
• An integrated eBook, allowing for anytime, anywhere access
to the textbook.
• Dynamic links between the problems or questions you assign
to your students and the location in the eBook
where that problem or question is covered.
• A powerful search function to pinpoint and connect key
concepts in a snap.
In short, Connect Accounting offers you and your students
powerful tools and features that optimize your time

and energies, enabling you to focus on course content, teaching,
and student learning. Connect Accounting also
offers a wealth of content resources for both instructors and
students. This state-of-the-art, thoroughly tested sys-
tem supports you in preparing students for the world that
awaits.
For more information about Connect, go to
www.mcgrawhillconnect.com, or contact your local McGraw-
Hill
sales representative.
Tegrity Campus: Lectures 24/7
Tegrity Campus is a service that makes class time avail-
able 24/7 by automatically capturing every lecture in a
searchable format for students to review when they study
and complete assignments. With a simple one-click start-
and-stop process, you capture all computer screens and
corresponding audio. Students can replay any part of any
class with easy-to-use browser-based viewing on a PC or Mac.
Educators know that the more students can see, hear, and
experience class resources, the better they learn.
In fact, studies prove it. With Tegrity Campus, students quickly

recall key moments by using Tegrity Campus’s
unique search feature. This search helps students efficiently
find what they need, when they need it, across an
entire semester of class recordings. Help turn all your students’
study time into learning moments immediately
supported by your lecture.
To learn more about Tegrity watch a 2-minute Flash demo at
http://tegritycampus.mhhe.com.
iPod® Content
Harness the power of one of the most popular technology tools
today—the Apple® iPod®. Our innovative approach allows
students
to download audio and video presentations right into their iPod
and
take learning materials with them wherever they go.
Students can visit the Online Learning Center at
www.mhhe.com/noreen2e to download our iPod content. For
each chapter of the book they will be able to download narrated
lecture presentations, managerial accounting videos, and even
self-
quizzes designed for use on various versions of iPods. It makes
review and study time as easy as putting on earphones.

nor27130_fm_i-xxviii.indd xivnor27130_fm_i-xxviii.indd xiv
10/26/09 4:43:29 PM10/26/09 4:43:29 PM
www.mcgrawhillconnect.com
http://tegritycampus.mhhe.com
xv
Online Learning Center (OLC)
More and more students are studying online. That’s why we
offer an Online Learning Center (OLC) that follows
Managerial Accounting for Managers chapter by chapter. It
doesn’t require any building or maintenance on
your part. It’s ready to go the moment you and your students
type in the URL.
As your students study, they can refer to the OLC website for
such benefits as:

• Internet-based activities
• Self-grading quizzes
• Excel spreadsheets
• PowerPoint slides
• iPod® Content
A secured Instructor Resource Center stores your essential
course materials to save you prep time before class.
The Instructor’s Resource Guide,

Introductory Essay 1. Two to three page five paragrap.docx

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