Cost Management: A Strategic Emphasis, by Blocher/Chen/Lin was the first cost accounting text to offer strategic management topics in conjunction with traditional cost accounting material. The text was written to help students understand more about management and the role of cost management in helping a firm or organization to succeed. This text aims to teach you about management, and how cost management is used by managers to make better decisions and improve their companies. In teaching these key management skills, this text takes on a strategic focus. It uncovers issues such as, How does a firm compete? What type of cost management information is needed by managers that are working to make the firm a success? We want students to know why, when, and how this information is used to make effective decisions that lead the firm to success. New to This Edition New real world stories in each chapter to reflect business and management practices and concerns in recent years. For example, there is a summary of new concepts of strategy in Chapter 2, an update on current practices and issues about executive stock options in Chapter 20; customer profitability analysis is covered in Chapter 17; the concept of intangible assets is covered in Chapter 19; and, the development of the Euro is covered in Chapter 2. Extensive integration of spreadsheet-based solution methods in the text and problem material, for example: o Use of Excel Solver to solve linear programming problems (Chapter 10) and reciprocal cost allocation problems (Chapter 14) o Use of Excel regression to solve linear regression problems o Use of spreadsheets to perform sensitivity analysis in cost-volume-profit analysis o Use of spreadsheets to prepare process cost reports o Actual Excel screens are used to illustrate the use of the methods to make it easier to replicate the examples and problems, following the illustrated Excel commands Significant increase in the number of end of chapter problems, including especially adapted CMA exam problems. An update on the emerging concepts of strategy and their relevance for cost management (chapter 2). Significant increase in the number of theory of constraints examples and problems, including a new appendix covering advanced topics (chapter 5). More comprehensive development of the role of the balanced scorecard in management performance evaluation (chapter 18). Significant increase in the number of examples and problems in service industries, particularly in hospital cost management. Activity-based costing is integrated through the text by using examples and problem material in chapters 8, 9, 10 and 17. Regression analysis is used as an analytical tool not only in analyzing cost behavior (Chapter 7) but also in sensitivity analysis (Chapter 8), management control (Chapter 18), and executive compensation (Chapter 20). Clarification of the relationships between strategic positioning, the value chain and the balanced scorecard (Chapter 2). An appendix on spoilage, rework and scrap and expanded coverage of operations costing has been added to Chapter 12. Expanded coverage of spoilage in process costing, Chapter 13. Added discussion with illustrations on cost reconciliations in Chapter 13. New coverage of customer profitability analysis in Chapter 17 and Chapter 4. Features Cost Management versus Cost Accounting Emphasis ?????????????????? The trend in the market is away from the pure cost accounting approach to a cost management emphasis. The text is written on the premise that cost information is critical for effective management. The Strategic Emphasis ?????????????????? The text provides a strategic management approach in conjunction with traditional cost accounting material. The text was written to help students understand more about management and the role of cost management in helping a firm or organization to succeed. Strategic Cost Management Framework ?????????????????? The text is organized by management function to emphasize the strategic role of cost management information in each of the management functions. Integration of Strategy ?????????????????? Each chapter explains how one or more cost management methods contribute to the success of the firm. Management??????????????????s competitive strategies are presented early (Chapter 2) , and the theme is carried throughout. Case Emphasis ?????????????????? The authors have gathered and used many cases and readings, and developed new approaches for using cases in the cost management course (the authors present these cases and methods at a CPE session entitled ????????????????Teaching Strategic Cost Management??????????????? at the AAA annual meeting each year). These cases and readings are collected in a supplemental book, Cases and Readings in Strategic Cost Management. These cases give instructors an opportunity to explore strategic issues in practical situations. They also provide excellent material to integrate the more contemporary ways of teaching accounting: group work, written exercises, and presentations. End-of-Chapter Material ?????????????????? Categories of end-of-chapter material include questions, exercises, problems, and brief cases (longer cases are included in the casebook). Each chapter includes problems that ask students to use methods of strategic cost management to analyze specific fact situations; many times these situations also involve strategic competitive issues, ethical issues, international issues, service firms, or an opportunity to use the power of spreadsheets. Table of Contents Part I. Introduction to Cost Management Ch. 1 Cost Management: An Overview Ch. 2 Strategic Analysis and Strategic Cost Management Ch. 3 Basic Cost Concepts Part II. Contemporary Cost Management Ch. 4 Activity-Based Costing and Management Ch. 5 Target Costing, Theory of Constraints, and Life Cycle Costing Ch. 6 Total Quality Management Part III. Management Planning and Decision Making Ch. 7 Cost Estimation Ch. 8 Cost-Volume-Profit Analysis Ch. 9 Strategy and the Master Budget Ch. 10 Decision Making with Relevant Costs & Strategic Analysis Ch. 11 Capital Budgeting Part IV. Cost Management Systems Ch. 12 Job Costing Ch. 13 Process Costing Ch. 14 Cost Allocation: Service Departments and Joint Product Costs Part V. Operational Control Ch. 15 The Flexible Budget and Standard Costing: Direct Materials and Direct Labor Ch. 16 Standard Costing: Factory Overhead Ch. 17 Managing Marketing Effectiveness, Productivity, and Customer Profitability Part VI. Management Control Ch. 18 Management Control and Strategic Performance Measurement Ch. 19 Strategic Investment Units and Transfer Pricing Ch. 20 Management Compensation and Business Valuation