Table Of Content

Accounting for Managers: Interpreting accounting information for decision-making Paul M. Collier AstonBusinessSchool,AstonUniversity Accounting for Managers Accounting for Managers: Interpreting accounting information for decision-making Paul M. Collier AstonBusinessSchool,AstonUniversity Copyright2003 JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester, WestSussexPO198SQ,England Telephone(+44)1243779777 Email(forordersandcustomerserviceenquiries):[email protected] VisitourHomePageonwww.wileyeurope.comorwww.wiley.com AllRightsReserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem ortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording, scanningorotherwise,exceptunderthetermsoftheCopyright,DesignsandPatentsAct1988 orunderthetermsofalicenceissuedbytheCopyrightLicensingAgencyLtd,90Tottenham CourtRoad,LondonW1T4LP,UK,withoutthepermissioninwritingofthePublisher. RequeststothePublishershouldbeaddressedtothePermissionsDepartment,JohnWiley& SonsLtd,TheAtrium,SouthernGate,Chichester,WestSussexPO198SQ,England,oremailed [email protected],orfaxedto(+44)1243770620. Thispublicationisdesignedtoprovideaccurateandauthoritativeinformationinregardtothe subjectmattercovered.ItissoldontheunderstandingthatthePublisherisnotengagedin renderingprofessionalservices.Ifprofessionaladviceorotherexpertassistanceisrequired,the servicesofacompetentprofessionalshouldbesought. OtherWileyEditorialOfﬁces JohnWiley&SonsInc.,111RiverStreet,Hoboken,NJ07030,USA Jossey-Bass,989MarketStreet,SanFrancisco,CA94103-1741,USA Wiley-VCHVerlagGmbH,Boschstr.12,D-69469Weinheim,Germany JohnWiley&SonsAustraliaLtd,33ParkRoad,Milton,Queensland4064,Australia JohnWiley&Sons(Asia)PteLtd,2ClementiLoop#02-01,JinXingDistripark,Singapore129809 JohnWiley&SonsCanadaLtd,22WorcesterRoad,Etobicoke,Ontario,CanadaM9W1L1 Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappears inprintmaynotbeavailableinelectronicbooks. LibraryofCongressCataloging-in-PublicationData Collier,PaulM. Accountingformanagers:interpretingaccountinginformationfordecision-making/Paul M.Collier. p.cm. Includesbibliographicalreferencesandindex. ISBN0-470-84502-3(pbk.:alk.paper) 1.Managerialaccounting.I.Title. HF5657.4.C6472003 658.15’11--dc21 2002193369 BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary ISBN0-470-84502-3 Typesetin10/12ptPalatinobyLaserwordsPrivateLimited,Chennai,India PrintedandboundinGreatBritainbyAntonyRoweLtd,Chippenham,Wiltshire Thisbookisprintedonacid-freepaperresponsiblymanufacturedfromsustainableforestry inwhichatleasttwotreesareplantedforeachoneusedforpaperproduction. For Loredana and Alexis Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii AbouttheAuthor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix PART I ContextofAccounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 IntroductiontoAccounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Accounting,accountabilityandtheaccount . . . . . . . . . . . . . . . . . . . . 3 Ashorthistoryofaccounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Theroleofmanagementaccounting. . . . . . . . . . . . . . . . . . . . . . . . . . 6 Recentdevelopmentsinmanagementaccounting . . . . . . . . . . . . . . . . 9 Acriticalperspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2 AccountinganditsRelationshiptoShareholderValueandBusiness Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Capitalandproductmarkets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Value-basedmanagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Accountingandstrategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Structureofbusinessorganizations . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Acriticalperspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23