Managerial Accounting PDF
Preview Managerial Accounting
Final PDF to printer Fourth Edition Managerial ACCOUNTING STACEY WHITECOTTON Arizona State University ROBERT LIBBY Cornell University FRED PHILLIPS University of Saskatchewan whi64957_fm_i-1 i 10/24/18 06:18 PM Final PDF to printer MANAGERIAL ACCOUNTING, FOURTH EDITION Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2020 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2017, 2013, and 2011. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. 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. 1 2 3 4 5 6 7 8 9 LWI 21 20 19 ISBN 978-1-259-96495-4 (bound edition) MHID 1-259-96495-7 (bound edition) ISBN 978-1-260-41398-4 (loose-leaf edition) MHID 1-260-41398-5 (loose-leaf edition) Portfolio Manager: Tim Vertovec Product Developers: Michele Janicek/Kristina Dehlin Marketing Manager: Katherine Wheeler Content Project Managers: Pat Frederickson/Brian Nacik Buyer: Sandy Ludovissy Design: Matt Diamond Content Licensing Specialist: Beth Cray Cover Images: (Frappuccino) ©M. Unal Ozmen/Shutterstock, (Watch) ©blackzheep/Shutterstock, (Meeting Room) ©ImageFlow/Shutterstock, (Living Room) ©AlexRoz/Shutterstock, (Car) ©Caracarafoto/Shutterstock Compositor: SPi Global All credits appearing on page or at the end of the book are considered to be an extension of the copyright page. Library of Congress Cataloging-in-Publication Data Names: Whitecotton, Stacey, author. | Libby, Robert, author. | Phillips, Fred, author. Title: Managerial accounting / Stacey Whitecotton, Arizona State University, Robert Libby, Cornell University, Fred Phillips, University of Saskatchewan. Description: Fourth Edition. | Dubuque : McGraw-Hill Education, [2019] | Revised edition of the authors’ Managerial accounting, [2017] Identifiers: LCCN 2018047557 | ISBN 9781259964954 (alk. paper) Subjects: LCSH: Managerial accounting. Classification: LCC HF5657.4 .W495 2019 | DDC 658.15/11—dc23 LC record available at https://lccn.loc.gov/2018047557 The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites. mheducation.com/highered whi64957_fm_i-1 ii 10/24/18 06:18 PM Final PDF to printer Dedication To Mark, Riley, and Carley! Thanks for your love, patience, and inspiration. STACEY WHITECOTTON Laura Libby and Brian Plummer, Oscar and Selma Libby. ROBERT LIBBY I dedicate this book to the best teachers I’ve ever had: my Mom and Dad, Barb, Harrison, and Daniel. FRED PHILLIPS iii whi64957_fm_i-1 iii 10/24/18 06:18 PM Final PDF to printer Meet the Authors Stacey Whitecotton Stacey Whitecotton is an associate professor of accounting in the W. P. Carey School of Business at Arizona State University. She received her PhD and Masters of Accounting from The University of Oklahoma and her Bachelors in Business Administration from Texas Tech University. Stacey teaches managerial accounting and has received numerous awards for outstanding teaching at the undergraduate and graduate level. Stacey’s research interests center around the use of decision aids to improve the decision-making behavior of financial analysts, managers, and auditors. Her research has been published in The Accounting Review, Organizational Behavior and Human Decision Processes, Behavioral Research in Accounting, Auditing: A Journal of Practice and Theory, and The Journal of Behavioral Decision Making. Stacey and her husband Mark enjoy traveling and the many outdoor activities Arizona has to offer with their two children, Riley and Carley. Robert Libby Robert Libby is the David A. Thomas Professor of Accounting and Accounting Area Coordinator at Cornell University, where he teaches the introductory financial accounting course. He previously taught at the University of Illinois, Pennsylvania State University, the University of Texas at Austin, the University of Chicago, and the University of Michigan. He received his BS from Pennsylvania State University, where he was selected as the 2018 Outstanding Accounting Alumnus, and his MAS and PhD from the University of Illinois; he also completed the CPA exam (Illinois). Bob was selected as the AAA Outstanding Educator in 2000 and received the AAA Outstanding Service Award in 2006 and the AAA Notable Contributions to the Literature Award in 1985 and 1996. He has received the Core Faculty Teaching Award multiple times at Cornell. Bob is a widely published author iv whi64957_fm_i-1 iv 10/24/18 06:18 PM whi64957_fm_i-1 v 10/24/18 06:18 PM Final PDF to printer and researcher specializing in behavioral accounting. He has published numerous articles in The Accounting Review; Journal of Accounting Research; Accounting, Organizations, and Society; and other accounting journals. He has held a variety of offices, including vice president, in the American Accounting Association, and he is a member of the American Institute of CPAs. Fred Phillips Fred Phillips is a professor at the University of Saskatchewan, where he has taught introductory financial accounting for more than 20 years. He also has taught introductory accounting at the University of Texas at Austin and the University of Manitoba. He previously worked as an audit manager at KPMG. Fred holds an undergraduate business degree in accounting, and earned a PhD in accounting from the University of Texas at Austin. He is a non-practicing CPA, CA (in Canada). Fred’s main career interest is accounting education. He has been recognized with more than 30 awards, as chosen by his students and peers. His peer- reviewed publications include education-focused research and instructional cases in Issues in Accounting Education, as well as professional judgment studies in the Journal of Accounting Research and Organizational Behavior and Human Decision Processes, among others. He is a current member of the Teaching, Curriculum, & Learning and Two-Year College sections of the American Accounting Association. In his spare time, Fred is a Tennis Canada official, calling lines at ATP, WTA, and ITF matches. v whi64957_fm_i-1 iv 10/24/18 06:18 PM whi64957_fm_i-1 v 10/24/18 06:18 PM Final PDF to printer Preparing Students for Success in Business From the award-winning, market-leading Libby/Phillips author team comes a modern, relevant, and engaging textbook for today’s managerial accounting student. Whitecotton/Libby/Phillips Managerial Accounting brings lively and engaging coverage of managerial accounting topics and decision-making focus to the managerial accounting course. Pair Managerial Accounting with Phillips/Libby/Libby Funda- mentals of Financial Accounting, 6e, to provide a truly comprehensive solution to your students. McGraw-Hill Education/Jill ©Jeff Pachoud/AFP/Getty Images ©GaudiLab/Shutterstock Braaten, photographer Chapters 5 & 6 Focus Company: Chapters 7 Focus Company: IKEA Chapters 10 & 11 Focus Company: Apple Starbucks Coffee vi whi64957_fm_i-1 vi 10/24/18 06:18 PM Final PDF to printer Managerial Accounting by Whitecotton/Libby/Phillips This text prepares students for success in business by incorporating four key I would describe components that will motivate and guide them through managerial account- Whitecotton as the best ing and beyond: introductory managerial textbook that I have 1 Managerial accounting builds student interest used, because of its M anagerial accounting instructors face significant challenges; how to writing style, its inclusion engage students in the managerial accounting course, how to keep them of only relevant material, motivated throughout the course, and how to teach them accounting in a its choice of focus way that connects conceptual understanding to the real world. Managerial companies that students Accounting engages and motivates students by presenting accounting easily relate to, and the in the context of recognizable companies such as Starbucks, Toyota, common sense manner Levi Strauss & Company, and Apple, and then integrates those companies in which the material is throughout the chapter discussions. explained 2 Managerial accounting fosters decision making and —Laura Ilcisin, University of analytical skills Nebraska at Omaha Most students taking managerial accounting will not become accounting majors and accountants; instead, they will use accounting information in their professional lives to make business decisions. Managerial Account- ing shows students how managers use accounting information to make business decisions in companies they know from their everyday lives. This is one of the best This approach helps students develop the analytical and critical thinking textbooks for the skills they will need to succeed in their future careers. introductory managerial 3 Managerial accounting helps students become better accounting course. The book covers all of the problem solvers relevant topics for this Students’ problem solving skills are put to the test through robust end course and is extremely of chapter content. Additionally, Demonstration Cases and Skills Develop- well organized. Each ment Cases provide students with an opportunity to practice their compre- chapter begins with hension and understanding of the material. solid learning objectives 4 Managerial accounting uses technology to enhance linked to the text and student learning uses a focus company, Today’s students have diverse learning styles and numerous commitments. which relates to the They want technology supplements that will help them study more efficiently students, to illustrate the and effectively. McGraw-Hill Connect, which includes adaptive and inter- concepts of the chapter. active study features such as SmartBook, Concept Overview Videos, —Ronald O. Reed, University Auto-Graded Excel Simulations, and Guided Examples, as well as a of Northern Colorado repository of additional resources tied directly to Managerial Account- ing, will improve students’ engagement in and out of class, help them maxi- mize their study time, and make their learning experience more enjoyable. vii whi64957_fm_i-1 vii 10/24/18 06:18 PM Final PDF to printer Engaging Features and Relevant Pedagogy Managerial Accounting has a variety of features that complement the way you One of the greatest teach and the way today’s students learn. From study tips and advice to guide strengths of Whitecotton students through difficult topics to clear and relevant examples, each chapter is the focus companies. offers students the tools they need to succeed. The utilization of these companies allows students to connect managerial accounting concepts to real-world enterprises. © Mark Dierker/McGraw-Hill Education ©SumanBhaumik/Shutterstock —Tal Kroll, Ozarks Chapter 4 Focus Company: Toyota Chapters 8 & 9 Focus Company: Technical Community College Levi Strauss & Co. This is a freshly written Chapter Openers—Focus Companies managerial accounting Each chapter of Managerial Accounting opens with an engaging scenario or textbook. It addresses story using a familiar company. The same focus company is used throughout a complete range of the entire chapter so that students can see how the concepts and calculations managerial accounting apply to a real-world company they are already familiar with. topics critical to today’s First Pages First Pages business environment. The language is as easy to understand as the discussion 10 is in depth. I would definitely Decentralized Performance rmeyc ocmolmleeangdu e[tsh aiss bao gooko] dto CHAPTER TEN Evaluation ©GaudiLab/Shutterstock choice for the course. YOUR LEARNING OBJECTIVES FOCUS COMPANY: APPLE INC. LO 10–1 List and explain the advantages and disadvantages of Apple Computers Inc. began in 1976 when two guys named Steve started building Monm—ouRtohn Uanldiv Zehrsaioty, L LOO 1100––23 dDeDapnxeeeepdrcssfle ccoaenrrrixiinmtbbpr eeahalal onittizhhnwcaeee htm .idfoooainwfunf. erat hrdgeeiemnyrt se at nyroepsf ieeousans ecsoh dfo rtftey otsph epeevo aabnrlasueliaa betnievlcita eyml udcaa enstnceaotgdere.resrci aaalnr dd Whacstr oulehowfdeaf innttto h .t t eeBhpmrueamtyy is ScCw nfg.ito otrheoAocrmiv tlu set ethp ith tSh Se uJeteb ttoe ceeicobrvovr iaes rfmeCci r rs dWuspJlousitooto mb bbnzbi.en seinogS h niwa ataoteorksa wdvr sgdwtse ecae,a h olrWrhnleas na fog navoivtze mir,etnn h“ cb5itetSaoehi0ytkt diee o shc mwvaueoae as ldlm lso s ie os cpltitn oltauhdvtt llteere eefser er urypteclsep lrado,pce ps,wteh nhlhginr ee eseaicurcuitn rorat a odtmbllsh o iiwlnpegveoomueigtkz t.etiaa enhWbsrsrgedta se m egctp’wodkte rsb oh es iguobtntkoeay lse bt rt uth tmuh tasehhiet el ie tw sg pt a tahapohasresarew a tc r sgfntocHis ge ool clou aanmoamrtn imen3pnderd0ugp ab t-t alhrtde oeenferaouswsynyrtt., LO 10–4 Compute and interpret return on investment, investment them. And we could turn the whole cycle around in ten days and get paid. It worked really great turnover, and profit margin. because we had only one level of management.”1 LO 10–5 Compute and interpret residual income. buildW, mheanrk ceot,m dpisatnriibeus tea,r ea nsdm aplrli,c eth eth eoiwr nperrosd uccatns manadk es earllv iocef st.h eB udt eacsis iao ncso mabpoaunty hgorwow tso, LO 10–6 Explain how transfer prices are set in decentralized takes on outside investors, expands into new regions, introduces new products, and hires organizations. employees to manage various parts of the business, it is no longer possible for the owners to be directly involved in every aspect of the company’s operations. Instead, owners must delegate responsibility to employees and managers to make decisions on their behalf. The delegation of responsibility and decision-making authority throughout an organization is called decentralization. Today, Apple Inc. is a multibillion dollar company that designs and markets some of the world’s most popular consumer electronics, including the iPhone, iPad, and Apple watch, as 1h oSmteepbhreenw W_aonzdn_iahko,w “_Hthoem_eabprpelwe. pahnpd How the Apple Came to Be,” n.d., http://www.atariarchives.org/deli/ 438 439 whi64957_ch10_438-481 438 08/06/18 02:36 PM whi64957_ch10_438-481 439 08/06/18 02:36 PM viii whi64957_fm_i-1 viii 10/24/18 06:18 PM whi64957_fm_i-1 ix 10/24/18 06:18 PM Final PDF to printer Bring Managerial Accounting Content to Life First Pages CHAPTER 1 Introduction to Managerial Accounting 9 How’s It Going? The best way to know whether How’s it going? Self-Study Practice ycoaure afurlel yr eeandoiunggh t hise tcoh saepet ehro w Self-Study Practice well you do on a short exercise. Therefore, at important points 1. Which of the following statements best describes the difference between financial throughout each chapter, you Research shows that students learn best when accounting and managerial accounting? will find an exercise that will reinforce the concepts you a. Managerial accounting targets external stakeholders while financial accounting tar- have just learned and provide they actively engage in the learning process. gets individuals within the company. feedback on how well you b. Financial accounting relies more on subjective, future-oriented information than man- learned them. We urge you not Self-Study Practice quizzes ask students agerial accounting does. to skip these practices. When c. A major focus of managerial accounting is the preparation of the income statement, you are finished, check your while a major focus of financial accounting is the preparation of the budget. answers against the solution to pause at critical points throughout each d. Managerial accounting tends to focus on relevant, subjective, and future-oriented below in the margiFn.irst Pages information while financial accounting relies primarily on objective, reliable, and his- chapter to ensure they understand the material torical information. 2. Which of the following statement(s) regarding the key management functions is true? pCreosaenctehd’s b eTfoipres moving ahead. tpAAhe AleBrtf hftcoeMorurbd uacmys ....got Aoueh mPaIaCAd hNmAcd laoleaahjvlpBnDrsu nei.o le ts CncferfAv itoionm mS entwislshs lge etUhtiea-phn nneei sadotsnStgf isr,tosvf nta cTieera oghntcoi seAel ogctvf cmiilnbi kenvuInA ejNesvyedeac onBloclesyeuAltletsMysrs vit a sv aaBteadsai,enls rn erlssI mpe ygwLs.oc o.i teaofIglrsr nTomussnta nhieaeYbpgge.gdlae a-e ortrit.neisopnsr etsmgp rthh ra ooeato ivucsbootiljnuddleuaae ctalil to mtidntrveeesae mcsnisnuia p saltgihttno seetd nromts so ta hswC mrtegprHii aeltnsahdaA.hnm eodPn rtelTeoittn-dEa tie iemRlo ret mbphd4jle ee itsncmaeAtfc ioeatcvinrtcecimtvtss iit tvahynati-eeintBoi cdaepnes sl seam astdnboaa .oC rkbyuoie ntst togin g and Cost Management 2. a 1. d 17Solution to Self-Study Practice7 the cost of activities, it can be adapted to provide managers with sustainability-related infor- mation. For example, a well-designed ABC system could capture and report information about envaisr oan wmheonlteasla lceors tasn ds utchhe na se xgpraenednehdo uinseto gtahse (rGetHaiGl m) aermkeists. iOonthse. rR watehlle-rk nthoawnn arsestiaginle-rs Every student needs encouragement and ing costs i(nacnlu edceo Wnoamlmica rmt,e Masaucrye)’s t,o B aecdt iBviattihes & a nBde ythoennd ,t oa npdr oSdaufecwtsa ayn.d services, the system co uld∙ t racSee GrvHicGe ecmomisspiaonnise (sa np reonvviidreo nam seenrtvailc me etaos ucrues)t otom aecrtsi voitri ecsl aienndt st.h eAn tfoe wpr owdeulcl-tks naonwd n Coach’s Tips are just one of the ways services. sSeurvchic ea psyrostveimde rws oaurled Hprioltvoind eH aoctteilosn, aSboleu tihnwfoersmt aAtiiorlnin feosr, mExanpaegdeiar.sc owmho, ahnadv eF beedeenra l tasked wiEthx prreedsusc. iMnga nGyH sGm aelml bisussiionness,s ejus spt raosv itdraed sietirovniacle sA tBo Cco dnastuam perrosv aidneds omthaenra bguesrsin wesisthes , Managerial Accounting fulfills that need. actionablien icnlufodrimnga thioanir fsoarl orends,u lcaiwng f ciromstss,. architects, and home repair specialists. As an example, Toyota had a stated goal to reduce GHG emissions from its North Ameri- can opInercarteiaosnins gblyy, 1th2e plienrecse nbte tfwroemen 2m0a1n0u ftaoc t2u0r1in6g. , Amse rocfh a2n0d1i4si,n tgh,e a ncdo msepravnicye hcaodm apcahniieevse adr e Coach’s Tips appear throughout the text a b9e cpoemrcienngt lreesdsu cclteioarn. Manadn yw absu swineelsl soens, iitnsc wluadyin tgo Cmaelieftoirnngi at hPiisz zgao aKl.i tAchcecno, rddion gn otto faTlol ynoetaat,l y mianntoa gae srsin agclhe iceavtee gthoeriyr. eSnovmireo nwmouenldt aclo gnosaidlse ru sCiPngK t thoe bsea ma es ekraviizceen f i(rcmon btiencuaouuses iitm sperrovvese mfoeondt )t o offering tips, advice, and suggestions about apcpursotoamche rtsh.e O ctohmerps awnoyu ilsd fcaomnsoiudse rf oitr —a mbayn cuofanctitnuurionugs clyo manpaalnyyz ibnegc atuhseeir i tp proucrcehssaeses st ora wid emnatitfeyr i- waalyss ( tion gmreadkiee ntthse)m an md ocroen vceorstts- ethffeimci einntt oa sa wfinelils haesd e pnreorgdyu-cet f(fai cmieenatl.) F. Aorn edx wamhaptl ea,b omuatn tahgee frrso zaet n how to learn the key concepts. omnCNeelPe tsoiKntfl g épT ,i powzryzohoacistcea hts’hs sp a,p atr yaeyrsdot Csuu c PmciKnaang na ub GrfuoaHyyc Gatiuln try eiymn fogeiue srd s (iilpvooeincsrasci loe bnnsyust a p3ege3leri6 mmo fmai nrskeaatetlreeti?dsc rTateo hvmnoessna eujp oeper)rr o styotdee uupacs rte( saa icnatstrdi evr esimtcayviap)in eniusgnf aat$nch5tdeu5 rb,ce0rhda0i n0pbd y. in annAuasl wopee wraitliln sge ec oisnt sl.a (tehrt tpch:/a/wptwerws,. ttohyeo ftoa.ccuosm o/fu smaa/ennavgierroinaml aecnctoreupnotirnt2g 0i1s 4s/ocmarebwonh.ahtt mdilf)fer- ent in manufacturing firms than in merchandising and service firms. In the past, managerial accountants focused much of their efforts on preparing reports to keep track of the costs of raw mturaSitnePgri OaflisrT,m LlsaI bGmoraH,k aeTn u dOp o Ntahne riS nccorseutass iinnsgculyrt rleaadr gteoi ppnrroopdaourcteiob an poihfy ltshiiceta ml yparrokdetupclta.c Te.o dIna y2, 0n1o7n,m thaen uUfa.Sc-. Spotlight Features government estimated that 80.2 percent of the nation’s gross domestic product (GDP) stemmed froWmh sieler vsicues taacitniavbitiileitsy. 4 iTs hme ofosltl oowftienng cahsasrotc sihaotewds twhieth tr eenndv iirno enmmpelnotyaml iennitti ainti vgeoso,d sth-per otrdipuclein bg ottom line should andm seearsvuicree- ppreorvfoidrminagn icned uinst trhierse eo vaerre tahse: epacsotn 4o0m yieca (rpsr.o Afist) ,y eonuv ciraonn smeee,n tth (ep lnaunmetb),e ar nodf esmocpileotyy- (people). The third Eoanc imh pchoartpatnetr cinocnlcuedpetss ,S spuocthlig ahst dfeeactiusiroens mfoackuisningg enaebusopttmhh uiwleebtla oe 8fsrrrTo 5 ku(oolp%ilroyfnre o owgeoout mfiapinn nt’lpsgdeh ls ei)sogne iuyrpsgovse e aoteicoaclsfsoptei n:ewlm esanoe mb ecorimkultvioitnepynril r gtsojlioeo tyirbosnea s kdtim ene hig dnaawyns , A hubainifmulcascthceo ra ter utii ahnctrsreciauen l dluwgcy d o odjseomrrukasbspm smita anahnei tnaniyascao s aobnrulempllreymee a bsroana uivounteseffea rissnd ct.oe thruTcseeoris laiapy nlst oagiitmsvrt aatfe pi’t4lseeya0 lg cdp cytyseo, e oisnsnauhsprctcsolaleh,uu n -wdlaftdo.ish n Tcmihgluoee astda hketalheetdyhe , ws soeucslli-tabali enisiansbgui eloitsfy i atis np ietriimaotrpiivtlyoe ysa esine wcsl eualdnl.de care, education, and retail, and the trend toward service industries is expected to continue. • Ensuring employee safety and well-being, including workplace safety and physical and mental health programs. or ethics. These features are designed to further 4CI •A , ThlDoe ecWvaoelr plldoe pFramscoetbnnonto ekol,. fh thtpusm://wanw wre.csiao.guorvc/elibsr atrhyr/opuubglihc aetiodnusc/raestioounrc,e os/nth-et-hweo-rjlodb-f-atcrtabionoikn/gge, oas/nuds. hptmrol.grams to develop and promote engage students and provide instructors with • Fostering an environment of diversity and inclusion by increasing opportunities for women in the workforce and pro- grams to help employees achieve an appropriate work/life balance. • Creating a positive work environment, including programs to increase employee loyalty and a culture of teamwork material for in-class discussion. New to this through communication and friendly competition. Toyota keeps track of various metrics to gauge performance toward all of these goals, just as they track measures edition are Big Data and Analytics features that of economic performance and environmental impact. These measures are reported in Toyota’s annual corporate social whi6r4e95s7p_coh0n1s_0i0b2i-l0i4t7y (9C SR) report and on the company website. Refer to Skills Development Case 4–5 for more details o0n8/ 0h7/o18w 1 1:46 AM highlight how big data and analytics can affect Toyota measures performance in all areas of sustainability (economic, environmental, and social). www.toyota-global.com/sustainability/society/employees/#approach03 how managers make decisions. JUST-IN-TIME (JIT) Some manufacturing firms use an approach called just-in-time (JIT) to eliminate non-value- • Spotlight on Decision Making—Good decision making is aeddseds aectinvittiieas, rle diunce bcosuts,s ainnd iempsrosve, qwualhity.e Utnhdeer a rJI Ty soystuem ,a a rceom ppanry epuprchaasreisn g, using, or analyzing accounting information. Spotlight on Decision Making featumcurasetteormsiael sru aonrsdde emrsa. nrJuIeTfa caitsu lra-e swd epmrooadnrudcl-tdps ua ltle jsuyxsst tatehmem riingp hwt lhteiimchse ma ntadote irn ia ijlulsls uta nthsde tprrrigoahdtu tqcetusa nattrieht yp etuol lferildle levance of accounting to decision making. through the manufacturing system based on customer demand. In traditional manufacturing settings, products are pushed through the manufacturing process and often end up sitting in • Spotlight on Ethics—Making ethical business decisions is more crucial than ever. Spotlight on Ethics features convey the importance of acting responsibly in business. • Spotlight on Service—The majority of today’s students will graduate prepared to take a job in the country’s ever-growing service whi64957_ch04_156-207 177 07/24/18 01:33 PM sector. Spotlight on Service features describe how key managerial accounting topics are applied in service settings. • Spotlight on Sustainability—Sustainability is a growing area of concern for businesses. Spotlight on Sustainability features describe how and why managers in modern organizations make decisions based on more than economic results, including measures of environmental performance and societal impact. • Spotlight on Big Data Analytics—A topic that is becoming increasingly important to managers and accountants is the use of big data and analytics to help managers make more informed business decisions. At opportune places throughout this text we will highlight how managers in our focus company or other real-world organizations use big data and analytics to make managerial decisions. ix whi64957_fm_i-1 viii 10/24/18 06:18 PM whi64957_fm_i-1 ix 10/24/18 06:18 PM
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