{"product_id":"accounting-business-reporting-for-decision-making-9th-edition-isbn-9781394333943","title":"Accounting: Business Reporting for Decision Making, 9th Edition","description":"Birt’s \u003ci\u003eAccounting: Business Reporting for Decision Making, 9th Edition\u003c\/i\u003e is the market-leading text for core accounting units in business and commerce degrees, specifically designed for first-year students across all business disciplines, including marketing and HRM. What sets this text apart is its focus on the connection between accounting and business decision-making, presented from a management and stakeholder perspective rather than a technical accounting view.  \u003cp\u003ePreface x\u003c\/p\u003e \u003cp\u003eAbout the Authors xiii\u003c\/p\u003e \u003cp\u003eHow to use this text xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction to accounting and business decision making 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 2\u003c\/p\u003e \u003cp\u003e1.1 The accounting process 2\u003c\/p\u003e \u003cp\u003e1.2 Accounting information and its role in decision making 3\u003c\/p\u003e \u003cp\u003e1.3 Financial accounting and management accounting 5\u003c\/p\u003e \u003cp\u003e1.4 Role of accounting information in business planning 7\u003c\/p\u003e \u003cp\u003eBenefits of a business plan 8\u003c\/p\u003e \u003cp\u003eOperation of the business 8\u003c\/p\u003e \u003cp\u003eEvaluation of the business plan 8\u003c\/p\u003e \u003cp\u003e1.5 Globalisation of accounting 8\u003c\/p\u003e \u003cp\u003e1.6 Accounting information systems 9\u003c\/p\u003e \u003cp\u003e1.7 Digital disruption and the impact on accounting 9\u003c\/p\u003e \u003cp\u003e1.8 Careers in accounting 10\u003c\/p\u003e \u003cp\u003eNew opportunities 10\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 13\u003c\/p\u003e \u003cp\u003eKey terms 14\u003c\/p\u003e \u003cp\u003eApply your knowledge 15\u003c\/p\u003e \u003cp\u003eComprehension questions 15\u003c\/p\u003e \u003cp\u003eProblems 15\u003c\/p\u003e \u003cp\u003eDecision-making activities 16\u003c\/p\u003e \u003cp\u003eReferences 16\u003c\/p\u003e \u003cp\u003eAcknowledgements 17\u003c\/p\u003e \u003cp\u003eAppendix 1A: Excel primer 18\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Sustainability and reporting 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 40\u003c\/p\u003e \u003cp\u003e2.1 Sources of company regulation 40\u003c\/p\u003e \u003cp\u003eAustralian Securities and Investments Commission (ASIC) 40\u003c\/p\u003e \u003cp\u003eAustralian Securities Exchange (ASX) 41\u003c\/p\u003e \u003cp\u003eAustralian Competition and Consumer Commission (ACCC) 41\u003c\/p\u003e \u003cp\u003eReserve Bank of Australia (RBA) 41\u003c\/p\u003e \u003cp\u003eAustralian Prudential Regulation Authority (apra) 41\u003c\/p\u003e \u003cp\u003eAustralian Taxation Office (ATO) 42\u003c\/p\u003e \u003cp\u003eOther government agencies 42\u003c\/p\u003e \u003cp\u003e2.2 Australian and international accounting standards 42\u003c\/p\u003e \u003cp\u003eFinancial Reporting Council (FRC) 43\u003c\/p\u003e \u003cp\u003eDevelopment of accounting standards 43\u003c\/p\u003e \u003cp\u003eRegulation in New Zealand 43\u003c\/p\u003e \u003cp\u003eRole of professional associations 44\u003c\/p\u003e \u003cp\u003e2.3 Business sustainability 45\u003c\/p\u003e \u003cp\u003eTheories of business sustainability 47\u003c\/p\u003e \u003cp\u003e2.4 Sustainability reporting and disclosure 48\u003c\/p\u003e \u003cp\u003e2.5 Role of the Conceptual Framework 49\u003c\/p\u003e \u003cp\u003eObjective of financial reporting 49\u003c\/p\u003e \u003cp\u003eQualitative characteristics of useful financial information 50\u003c\/p\u003e \u003cp\u003eCost constraint on useful financial reporting 51\u003c\/p\u003e \u003cp\u003eDefinition and recognition of the elements of financial statements 51\u003c\/p\u003e \u003cp\u003e2.6 Corporate governance 52\u003c\/p\u003e \u003cp\u003eWhat is corporate governance? 53\u003c\/p\u003e \u003cp\u003e2.7 Corporate governance principles, guidelines and practices 54\u003c\/p\u003e \u003cp\u003e2.8 Ethics in business 55\u003c\/p\u003e \u003cp\u003eEthics and regulation 55\u003c\/p\u003e \u003cp\u003eProfessional codes of ethics 56\u003c\/p\u003e \u003cp\u003eEthical decision-making methods 56\u003c\/p\u003e \u003cp\u003e2.9 Limitations of accounting information 57\u003c\/p\u003e \u003cp\u003eInformation not reported in financial reports 58\u003c\/p\u003e \u003cp\u003ePotential costs of providing accounting information 58\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 60\u003c\/p\u003e \u003cp\u003eKey terms 61\u003c\/p\u003e \u003cp\u003eApply your knowledge 62\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 63\u003c\/p\u003e \u003cp\u003eComprehension questions 65\u003c\/p\u003e \u003cp\u003eExercises 67\u003c\/p\u003e \u003cp\u003eProblems 69\u003c\/p\u003e \u003cp\u003eDecision-making activities 70\u003c\/p\u003e \u003cp\u003eReferences 71\u003c\/p\u003e \u003cp\u003eAcknowledgements 71\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Business structures 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 74\u003c\/p\u003e \u003cp\u003e3.1 Forms of business entities 74\u003c\/p\u003e \u003cp\u003e3.2 Definition and features of a sole trader 74\u003c\/p\u003e \u003cp\u003e3.3 Advantages and disadvantages of a sole trader 75\u003c\/p\u003e \u003cp\u003eAdvantages 75\u003c\/p\u003e \u003cp\u003eDisadvantages 75\u003c\/p\u003e \u003cp\u003e3.4 Definition and features of a partnership 76\u003c\/p\u003e \u003cp\u003eThe partnership agreement 77\u003c\/p\u003e \u003cp\u003e3.5 Advantages and disadvantages of a partnership 77\u003c\/p\u003e \u003cp\u003eAdvantages 77\u003c\/p\u003e \u003cp\u003eDisadvantages 77\u003c\/p\u003e \u003cp\u003e3.6 Definition and features of a company 78\u003c\/p\u003e \u003cp\u003eForming a company 78\u003c\/p\u003e \u003cp\u003e3.7 Types of companies 79\u003c\/p\u003e \u003cp\u003eProprietary companies 79\u003c\/p\u003e \u003cp\u003ePublic companies 80\u003c\/p\u003e \u003cp\u003e3.8 Advantages and disadvantages of a company 81\u003c\/p\u003e \u003cp\u003eAdvantages 81\u003c\/p\u003e \u003cp\u003eDisadvantages 82\u003c\/p\u003e \u003cp\u003e3.9 Definition and features of a trust 82\u003c\/p\u003e \u003cp\u003e3.10 Advantages and disadvantages of a trust 82\u003c\/p\u003e \u003cp\u003e3.11 Comparison of business reports 83\u003c\/p\u003e \u003cp\u003eSole trader reports 83\u003c\/p\u003e \u003cp\u003ePartnership reports 84\u003c\/p\u003e \u003cp\u003eCompany reports — private company 85\u003c\/p\u003e \u003cp\u003eCompany reports — public company 86\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 90\u003c\/p\u003e \u003cp\u003eKey terms 91\u003c\/p\u003e \u003cp\u003eApply your knowledge 92\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 93\u003c\/p\u003e \u003cp\u003eComprehension questions 95\u003c\/p\u003e \u003cp\u003eExercises 95\u003c\/p\u003e \u003cp\u003eProblems 98\u003c\/p\u003e \u003cp\u003eDecision-making activities 100\u003c\/p\u003e \u003cp\u003eReferences 101\u003c\/p\u003e \u003cp\u003eAcknowledgements 101\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Business transactions 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 104\u003c\/p\u003e \u003cp\u003e4.1 Recognising business transactions 104\u003c\/p\u003e \u003cp\u003eExamples of business transactions 104\u003c\/p\u003e \u003cp\u003e4.2 Business and personal transactions and business events 105\u003c\/p\u003e \u003cp\u003e4.3 The accounting equation 105\u003c\/p\u003e \u003cp\u003eThe concept of duality 105\u003c\/p\u003e \u003cp\u003e4.4 Analysis of business transactions 106\u003c\/p\u003e \u003cp\u003e4.5 The accounting worksheet 107\u003c\/p\u003e \u003cp\u003e4.6 Capturing accounting information: journals and ledger accounts 111\u003c\/p\u003e \u003cp\u003eThe journal 111\u003c\/p\u003e \u003cp\u003eThe ledger 111\u003c\/p\u003e \u003cp\u003eChart of accounts 111\u003c\/p\u003e \u003cp\u003e4.7 Rules of debit and credit 112\u003c\/p\u003e \u003cp\u003e4.8 The trial balance 114\u003c\/p\u003e \u003cp\u003e4.9 Accounting errors 115\u003c\/p\u003e \u003cp\u003eSingle-entry error 115\u003c\/p\u003e \u003cp\u003eTransposition error 115\u003c\/p\u003e \u003cp\u003eIncorrect entry 115\u003c\/p\u003e \u003cp\u003eUsing the accounting equation to solve for missing figures 115\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 118\u003c\/p\u003e \u003cp\u003eKey terms 119\u003c\/p\u003e \u003cp\u003eApply your knowledge 119\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 120\u003c\/p\u003e \u003cp\u003eComprehension questions 125\u003c\/p\u003e \u003cp\u003eExercises 125\u003c\/p\u003e \u003cp\u003eProblems 127\u003c\/p\u003e \u003cp\u003eDecision-making activities 131\u003c\/p\u003e \u003cp\u003eReference 132\u003c\/p\u003e \u003cp\u003eAcknowledgements 132\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Statement of financial position 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 134\u003c\/p\u003e \u003cp\u003e5.1 Financial reporting obligations 134\u003c\/p\u003e \u003cp\u003eRules for the preparation of financial statements 134\u003c\/p\u003e \u003cp\u003eGeneral purpose and special purpose financial statements 135\u003c\/p\u003e \u003cp\u003e5.2 Nature and purpose of the statement of financial position 136\u003c\/p\u003e \u003cp\u003e5.3 Accounting policy choices, estimates and judgements 139\u003c\/p\u003e \u003cp\u003e5.4 The definition of assets 140\u003c\/p\u003e \u003cp\u003eAsset definition 140\u003c\/p\u003e \u003cp\u003e5.5 The definition of liabilities 141\u003c\/p\u003e \u003cp\u003eLiability definition 141\u003c\/p\u003e \u003cp\u003e5.6 The definition and nature of equity 143\u003c\/p\u003e \u003cp\u003e5.7 Assets, liabilities and equity 143\u003c\/p\u003e \u003cp\u003e5.8 Format of the statement of financial position 144\u003c\/p\u003e \u003cp\u003e5.9 Presentation and disclosure of elements in the statement of financial position 147\u003c\/p\u003e \u003cp\u003eCurrent and non-current assets and liabilities 147\u003c\/p\u003e \u003cp\u003ePresentation and disclosure of assets, liabilities and equity 148\u003c\/p\u003e \u003cp\u003e5.10 Measurement of various assets and liabilities 157\u003c\/p\u003e \u003cp\u003eMeasurement principles 157\u003c\/p\u003e \u003cp\u003eMeasuring receivables 158\u003c\/p\u003e \u003cp\u003eMeasuring inventory 159\u003c\/p\u003e \u003cp\u003eMeasuring non-current assets 161\u003c\/p\u003e \u003cp\u003e5.11 Potential limitations of the statement of financial position 164\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 167\u003c\/p\u003e \u003cp\u003eKey terms 169\u003c\/p\u003e \u003cp\u003eApply your knowledge 171\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 171\u003c\/p\u003e \u003cp\u003eComprehension questions 174\u003c\/p\u003e \u003cp\u003eExercises 175\u003c\/p\u003e \u003cp\u003eProblems 179\u003c\/p\u003e \u003cp\u003eDecision-making activities 182\u003c\/p\u003e \u003cp\u003eReferences 184\u003c\/p\u003e \u003cp\u003eAcknowledgements 184\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Statement of profit or loss and statement of changes in equity 185\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 186\u003c\/p\u003e \u003cp\u003e6.1 Purpose and importance of measuring financial performance 186\u003c\/p\u003e \u003cp\u003e6.2 Accounting concepts for financial reporting 188\u003c\/p\u003e \u003cp\u003eThe reporting period 188\u003c\/p\u003e \u003cp\u003eAccrual accounting versus cash accounting 188\u003c\/p\u003e \u003cp\u003eDepreciation 191\u003c\/p\u003e \u003cp\u003e6.3 Effects of accounting policy choices, estimates and judgements on financial statements 191\u003c\/p\u003e \u003cp\u003eQuality of earnings 193\u003c\/p\u003e \u003cp\u003e6.4 Measuring financial performance 194\u003c\/p\u003e \u003cp\u003e6.5 Income 195\u003c\/p\u003e \u003cp\u003eIncome definition 195\u003c\/p\u003e \u003cp\u003eIncome classification 195\u003c\/p\u003e \u003cp\u003e6.6 Expenses 195\u003c\/p\u003e \u003cp\u003eExpense definition 195\u003c\/p\u003e \u003cp\u003eExpense classification 196\u003c\/p\u003e \u003cp\u003e6.7 Applying recognition criteria to income and expenses 197\u003c\/p\u003e \u003cp\u003eIncome (revenue) recognition 198\u003c\/p\u003e \u003cp\u003eExpense recognition 199\u003c\/p\u003e \u003cp\u003e6.8 Presenting the statement of profit or loss 201\u003c\/p\u003e \u003cp\u003ePrescribed format for general purpose financial statements 201\u003c\/p\u003e \u003cp\u003eMaterial income and expenses 202\u003c\/p\u003e \u003cp\u003eFormat for entities not required to comply with accounting standards 204\u003c\/p\u003e \u003cp\u003e6.9 Financial performance measures 205\u003c\/p\u003e \u003cp\u003eGross profit 205\u003c\/p\u003e \u003cp\u003eProfit pre- and post-tax 206\u003c\/p\u003e \u003cp\u003eProfit pre- and post-interest 206\u003c\/p\u003e \u003cp\u003eProfit pre- and post-depreciation and amortisation 207\u003c\/p\u003e \u003cp\u003eProfit pre- and post-material items 207\u003c\/p\u003e \u003cp\u003eProfit from continuing and discontinued operations 207\u003c\/p\u003e \u003cp\u003eManagement-defined performance measures 207\u003c\/p\u003e \u003cp\u003e6.10 The statement of comprehensive income 208\u003c\/p\u003e \u003cp\u003eThe statement of changes in equity 209\u003c\/p\u003e \u003cp\u003e6.11 The link between the financial statements 210\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 214\u003c\/p\u003e \u003cp\u003eKey terms 215\u003c\/p\u003e \u003cp\u003eApply your knowledge 217\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 217\u003c\/p\u003e \u003cp\u003eComprehension questions 219\u003c\/p\u003e \u003cp\u003eExercises 220\u003c\/p\u003e \u003cp\u003eProblems 224\u003c\/p\u003e \u003cp\u003eDecision-making activities 228\u003c\/p\u003e \u003cp\u003eReferences 230\u003c\/p\u003e \u003cp\u003eAcknowledgements 231\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Statement of cash flows 233\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 234\u003c\/p\u003e \u003cp\u003e7.1 The purpose and usefulness of a statement of cash flows 234\u003c\/p\u003e \u003cp\u003eDifference between cash and accrual accounting 235\u003c\/p\u003e \u003cp\u003eRelationship of the statement of cash flows to other financial statements 237\u003c\/p\u003e \u003cp\u003e7.2 Format of the statement of cash flows 245\u003c\/p\u003e \u003cp\u003eOperating activities 246\u003c\/p\u003e \u003cp\u003eInvesting activities 247\u003c\/p\u003e \u003cp\u003eFinancing activities 248\u003c\/p\u003e \u003cp\u003eReconciliation of cash from operating activities with operating profit 248\u003c\/p\u003e \u003cp\u003ePresentation of the statement of cash flows 249\u003c\/p\u003e \u003cp\u003e7.3 Preparing the statement of cash flows 250\u003c\/p\u003e \u003cp\u003e7.4 Analysing the statement of cash flows 258\u003c\/p\u003e \u003cp\u003eTrend and ratio analysis 260\u003c\/p\u003e \u003cp\u003eComplexity of transactions 263\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 265\u003c\/p\u003e \u003cp\u003eKey terms 265\u003c\/p\u003e \u003cp\u003eApply your knowledge 266\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 267\u003c\/p\u003e \u003cp\u003eComprehension questions 271\u003c\/p\u003e \u003cp\u003eExercises 272\u003c\/p\u003e \u003cp\u003eProblems 276\u003c\/p\u003e \u003cp\u003eDecision-making activities 280\u003c\/p\u003e \u003cp\u003eReferences 281\u003c\/p\u003e \u003cp\u003eAcknowledgements 282\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Analysis and interpretation of financial statements 283\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 284\u003c\/p\u003e \u003cp\u003e8.1 Users and decision making 284\u003c\/p\u003e \u003cp\u003e8.2 Nature and purpose of financial analysis 285\u003c\/p\u003e \u003cp\u003e8.3 Analytical methods 286\u003c\/p\u003e \u003cp\u003eHorizontal analysis 286\u003c\/p\u003e \u003cp\u003eTrend analysis 289\u003c\/p\u003e \u003cp\u003eVertical analysis 290\u003c\/p\u003e \u003cp\u003eRatio analysis 292\u003c\/p\u003e \u003cp\u003eBenchmarks 293\u003c\/p\u003e \u003cp\u003e8.4 Profitability analysis 294\u003c\/p\u003e \u003cp\u003eReturn on equity 294\u003c\/p\u003e \u003cp\u003eReturn on assets 295\u003c\/p\u003e \u003cp\u003eProfit margin ratios 295\u003c\/p\u003e \u003cp\u003eAnalysis of profitability: JB Hi-Fi Ltd 296\u003c\/p\u003e \u003cp\u003e8.5 Asset efficiency analysis 298\u003c\/p\u003e \u003cp\u003eAsset turnover ratio 298\u003c\/p\u003e \u003cp\u003eDays inventory and days debtors ratios 298\u003c\/p\u003e \u003cp\u003eAnalysis of asset efficiency: JB Hi-Fi Ltd 299\u003c\/p\u003e \u003cp\u003e8.6 Liquidity analysis 301\u003c\/p\u003e \u003cp\u003eCurrent ratio and quick ratio 301\u003c\/p\u003e \u003cp\u003eCash flow ratio 301\u003c\/p\u003e \u003cp\u003eAnalysis of liquidity: JB Hi-Fi Ltd 302\u003c\/p\u003e \u003cp\u003e8.7 Capital structure analysis 302\u003c\/p\u003e \u003cp\u003eCapital structure ratios 303\u003c\/p\u003e \u003cp\u003eInterest servicing ratios 304\u003c\/p\u003e \u003cp\u003eDebt coverage ratio 304\u003c\/p\u003e \u003cp\u003eAnalysis of capital structure: JB Hi-Fi Ltd 304\u003c\/p\u003e \u003cp\u003e8.8 Market performance analysis 306\u003c\/p\u003e \u003cp\u003eNet tangible assets per share 306\u003c\/p\u003e \u003cp\u003eEarnings, cash flow and dividend per share 306\u003c\/p\u003e \u003cp\u003ePrice earnings ratio 307\u003c\/p\u003e \u003cp\u003eAnalysis of market performance: JB Hi-Fi Ltd 307\u003c\/p\u003e \u003cp\u003e8.9 Ratio interrelationships 308\u003c\/p\u003e \u003cp\u003e8.10 Limitations of ratio analysis 309\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 313\u003c\/p\u003e \u003cp\u003eSummary of ratios 314\u003c\/p\u003e \u003cp\u003eKey terms 316\u003c\/p\u003e \u003cp\u003eApply your knowledge 317\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 318\u003c\/p\u003e \u003cp\u003eComprehension questions 324\u003c\/p\u003e \u003cp\u003eExercises 324\u003c\/p\u003e \u003cp\u003eProblems 331\u003c\/p\u003e \u003cp\u003eDecision-making activities 336\u003c\/p\u003e \u003cp\u003eReferences 339\u003c\/p\u003e \u003cp\u003eAcknowledgements 339\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Budgeting 341\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 342\u003c\/p\u003e \u003cp\u003e9.1 Strategic planning and budgeting 342\u003c\/p\u003e \u003cp\u003e9.2 Budgets 343\u003c\/p\u003e \u003cp\u003eThe budgeting process 343\u003c\/p\u003e \u003cp\u003e9.3 Types of budgets 344\u003c\/p\u003e \u003cp\u003e9.4 Master budget 345\u003c\/p\u003e \u003cp\u003ePreparation of an operating budget for a service entity 346\u003c\/p\u003e \u003cp\u003ePreparation of an operating budget for a manufacturing entity 349\u003c\/p\u003e \u003cp\u003e9.5 The cash budget 352\u003c\/p\u003e \u003cp\u003e9.6 Budgets: planning and control 354\u003c\/p\u003e \u003cp\u003eImproving cash flow 355\u003c\/p\u003e \u003cp\u003eBudgeting and planning in times of upheaval 356\u003c\/p\u003e \u003cp\u003e9.7 Behavioural aspects of budgeting 357\u003c\/p\u003e \u003cp\u003eStyles of budgeting 357\u003c\/p\u003e \u003cp\u003eEffect of budget targets on behaviour 357\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 360\u003c\/p\u003e \u003cp\u003eKey terms 360\u003c\/p\u003e \u003cp\u003eApply your knowledge 361\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 361\u003c\/p\u003e \u003cp\u003eComprehension questions 362\u003c\/p\u003e \u003cp\u003eExercises 363\u003c\/p\u003e \u003cp\u003eProblems 368\u003c\/p\u003e \u003cp\u003eDecision-making activities 374\u003c\/p\u003e \u003cp\u003eReference 377\u003c\/p\u003e \u003cp\u003eAcknowledgements 377\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Cost–volume–profit analysis 379\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 380\u003c\/p\u003e \u003cp\u003e10.1 Cost behaviour 380\u003c\/p\u003e \u003cp\u003eFixed, variable and mixed costs 380\u003c\/p\u003e \u003cp\u003e10.2 Break-even analysis 382\u003c\/p\u003e \u003cp\u003eBreak-even analysis for a single product or service 383\u003c\/p\u003e \u003cp\u003eBreak-even analysis for multiple products 386\u003c\/p\u003e \u003cp\u003e10.3 Contribution margin ratio 388\u003c\/p\u003e \u003cp\u003e10.4 CVP assumptions 389\u003c\/p\u003e \u003cp\u003e10.5 Using break-even data 389\u003c\/p\u003e \u003cp\u003e10.6 Operating leverage 390\u003c\/p\u003e \u003cp\u003e10.7 Contribution margin per limiting factor 391\u003c\/p\u003e \u003cp\u003e10.8 Relevant information for decision making 392\u003c\/p\u003e \u003cp\u003e10.9 Outsourcing decisions 393\u003c\/p\u003e \u003cp\u003e10.10 Special order decisions 396\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 401\u003c\/p\u003e \u003cp\u003eKey terms 402\u003c\/p\u003e \u003cp\u003eApply your knowledge 402\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 403\u003c\/p\u003e \u003cp\u003eComprehension questions 404\u003c\/p\u003e \u003cp\u003eExercises 405\u003c\/p\u003e \u003cp\u003eProblems 411\u003c\/p\u003e \u003cp\u003eDecision-making activities 417\u003c\/p\u003e \u003cp\u003eReferences 418\u003c\/p\u003e \u003cp\u003eAcknowledgements 419\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Costing and pricing in an entity 421\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 422\u003c\/p\u003e \u003cp\u003e11.1 Use of cost information 422\u003c\/p\u003e \u003cp\u003e11.2 Direct and indirect costs 423\u003c\/p\u003e \u003cp\u003e11.3 Cost allocation 425\u003c\/p\u003e \u003cp\u003eCost drivers 425\u003c\/p\u003e \u003cp\u003e11.4 Allocation process 427\u003c\/p\u003e \u003cp\u003eDetermination of full cost 428\u003c\/p\u003e \u003cp\u003e11.5 Inventoriable product cost 434\u003c\/p\u003e \u003cp\u003e11.6 Pricing of products and services 439\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 443\u003c\/p\u003e \u003cp\u003eKey terms 443\u003c\/p\u003e \u003cp\u003eApply your knowledge 444\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 445\u003c\/p\u003e \u003cp\u003eComprehension questions 446\u003c\/p\u003e \u003cp\u003eExercises 446\u003c\/p\u003e \u003cp\u003eProblems 450\u003c\/p\u003e \u003cp\u003eDecision-making activities 454\u003c\/p\u003e \u003cp\u003eReference 456\u003c\/p\u003e \u003cp\u003eAcknowledgements 456\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Capital investment 457\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 458\u003c\/p\u003e \u003cp\u003e12.1 The nature and scope of investment decisions 458\u003c\/p\u003e \u003cp\u003eThe process of decision making 459\u003c\/p\u003e \u003cp\u003e12.2 Accounting rate of return 461\u003c\/p\u003e \u003cp\u003eDecision rule for ARR 462\u003c\/p\u003e \u003cp\u003eAdvantages and disadvantages of ARR 462\u003c\/p\u003e \u003cp\u003e12.3 Payback period 462\u003c\/p\u003e \u003cp\u003eDecision rule for payback period 463\u003c\/p\u003e \u003cp\u003eAdvantages and disadvantages of PP 463\u003c\/p\u003e \u003cp\u003e12.4 Net present value 464\u003c\/p\u003e \u003cp\u003eTime value of money 464\u003c\/p\u003e \u003cp\u003eDecision rule for NPV 465\u003c\/p\u003e \u003cp\u003eDiscount tables 465\u003c\/p\u003e \u003cp\u003eDetermining the discount rate 465\u003c\/p\u003e \u003cp\u003eAdvantages and disadvantages of the NPV method 466\u003c\/p\u003e \u003cp\u003e12.5 Practical issues in making decisions 467\u003c\/p\u003e \u003cp\u003eSustainability and ESG reporting 468\u003c\/p\u003e \u003cp\u003eEthical investing 468\u003c\/p\u003e \u003cp\u003eCollecting data 468\u003c\/p\u003e \u003cp\u003eTaxation effects 469\u003c\/p\u003e \u003cp\u003eFinance 469\u003c\/p\u003e \u003cp\u003eHuman resources 469\u003c\/p\u003e \u003cp\u003eGoodwill and future opportunities 469\u003c\/p\u003e \u003cp\u003eConclusion — Coconut Plantations’ potential coconut oil manufacturers’ investment decisions 470\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 473\u003c\/p\u003e \u003cp\u003eKey terms 473\u003c\/p\u003e \u003cp\u003eApply your knowledge 474\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 475\u003c\/p\u003e \u003cp\u003eComprehension questions 475\u003c\/p\u003e \u003cp\u003eExercises 476\u003c\/p\u003e \u003cp\u003eProblems 477\u003c\/p\u003e \u003cp\u003eDecision-making activities 479\u003c\/p\u003e \u003cp\u003eReferences 480\u003c\/p\u003e \u003cp\u003eAcknowledgements 480\u003c\/p\u003e \u003cp\u003eAppendix 12A 481\u003c\/p\u003e \u003cp\u003eAppendix 12B 481\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Financing the business 483\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 484\u003c\/p\u003e \u003cp\u003e13.1 Managing net working capital 484\u003c\/p\u003e \u003cp\u003eDeciding the appropriate level of net working capital 484\u003c\/p\u003e \u003cp\u003e13.2 Managing cash 486\u003c\/p\u003e \u003cp\u003eThe need to have sufficient cash 486\u003c\/p\u003e \u003cp\u003eThe timing of cash flows 486\u003c\/p\u003e \u003cp\u003eThe cost of cash 487\u003c\/p\u003e \u003cp\u003eThe cost of not having enough cash 487\u003c\/p\u003e \u003cp\u003e13.3 Managing accounts receivable 488\u003c\/p\u003e \u003cp\u003eBenefits and costs of granting credit 488\u003c\/p\u003e \u003cp\u003eDeterminants of the level of accounts receivable 488\u003c\/p\u003e \u003cp\u003e13.4 Managing inventories 490\u003c\/p\u003e \u003cp\u003eTypes of inventories 491\u003c\/p\u003e \u003cp\u003eBenefits and costs of holding inventories 491\u003c\/p\u003e \u003cp\u003eInventory management techniques 492\u003c\/p\u003e \u003cp\u003e13.5 Sources of short-term finance 493\u003c\/p\u003e \u003cp\u003eAccrued wages and taxes 493\u003c\/p\u003e \u003cp\u003eTrade credit 493\u003c\/p\u003e \u003cp\u003eBank overdrafts 494\u003c\/p\u003e \u003cp\u003eCommercial bills and promissory notes 494\u003c\/p\u003e \u003cp\u003eFactoring or debtor\/invoice\/trade finance 495\u003c\/p\u003e \u003cp\u003eInventory loans or floor-plan finance 495\u003c\/p\u003e \u003cp\u003e13.6 Sources of long-term debt finance 496\u003c\/p\u003e \u003cp\u003eIntermediated finance 496\u003c\/p\u003e \u003cp\u003eDebt finance from the Australian market 498\u003c\/p\u003e \u003cp\u003e13.7 Equity finance 498\u003c\/p\u003e \u003cp\u003eOrdinary shares 499\u003c\/p\u003e \u003cp\u003ePreference shares 499\u003c\/p\u003e \u003cp\u003eRights and options 500\u003c\/p\u003e \u003cp\u003e13.8 Hybrid finance 500\u003c\/p\u003e \u003cp\u003eConvertible notes 500\u003c\/p\u003e \u003cp\u003eConvertible preference shares 501\u003c\/p\u003e \u003cp\u003e13.9 International sources of funding 501\u003c\/p\u003e \u003cp\u003e13.10 New funding opportunities for business 501\u003c\/p\u003e \u003cp\u003eGreen finance 502\u003c\/p\u003e \u003cp\u003eVenture capital 502\u003c\/p\u003e \u003cp\u003eAngel investors 502\u003c\/p\u003e \u003cp\u003eCrowdfunding 502\u003c\/p\u003e \u003cp\u003eSecurity token offerings (STOs) 502\u003c\/p\u003e \u003cp\u003eMicrocredit (microloans) 502\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 505\u003c\/p\u003e \u003cp\u003eKey terms 506\u003c\/p\u003e \u003cp\u003eApply your knowledge 507\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 508\u003c\/p\u003e \u003cp\u003eComprehension questions 509\u003c\/p\u003e \u003cp\u003eExercises 509\u003c\/p\u003e \u003cp\u003eProblems 510\u003c\/p\u003e \u003cp\u003eDecision-making activities 512\u003c\/p\u003e \u003cp\u003eReferences 513\u003c\/p\u003e \u003cp\u003eAcknowledgements 513\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Performance measurement 515\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChapter preview 516\u003c\/p\u003e \u003cp\u003e14.1 Organisational performance measurement 516\u003c\/p\u003e \u003cp\u003eBalanced scorecard 517\u003c\/p\u003e \u003cp\u003e14.2 Divisional performance measurement 519\u003c\/p\u003e \u003cp\u003eDivisional performance evaluation 521\u003c\/p\u003e \u003cp\u003ePricing guide 522\u003c\/p\u003e \u003cp\u003eEvaluation of investment level 523\u003c\/p\u003e \u003cp\u003e14.3 Investment centre performance evaluation 524\u003c\/p\u003e \u003cp\u003eResidual income 526\u003c\/p\u003e \u003cp\u003eEconomic value added 527\u003c\/p\u003e \u003cp\u003eROI, RI and EVA compared 528\u003c\/p\u003e \u003cp\u003eThe investment base 529\u003c\/p\u003e \u003cp\u003e14.4 Environmental and social performance 530\u003c\/p\u003e \u003cp\u003eEco-efficiency 531\u003c\/p\u003e \u003cp\u003e14.5 Individual performance measurement 531\u003c\/p\u003e \u003cp\u003e14.6 Non-financial performance evaluation 533\u003c\/p\u003e \u003cp\u003e14.7 Data visualisation 535\u003c\/p\u003e \u003cp\u003eSummary of learning objectives 539\u003c\/p\u003e \u003cp\u003eKey terms 539\u003c\/p\u003e \u003cp\u003eApply your knowledge 540\u003c\/p\u003e \u003cp\u003eSelf-evaluation activities 541\u003c\/p\u003e \u003cp\u003eComprehension questions 543\u003c\/p\u003e \u003cp\u003eExercises 544\u003c\/p\u003e \u003cp\u003eProblems 546\u003c\/p\u003e \u003cp\u003eDecision-making activities 550\u003c\/p\u003e \u003cp\u003eReferences 552\u003c\/p\u003e \u003cp\u003eAcknowledgements 552\u003c\/p\u003e \u003cp\u003eAppendix I 553\u003c\/p\u003e \u003cp\u003eAppendix II 573\u003c\/p\u003e \u003cp\u003eIndex 609\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988654833893,"sku":"NP9781394333943","price":70.5,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781394333943.jpg?v=1761781136","url":"https:\/\/k12savings.com\/products\/accounting-business-reporting-for-decision-making-9th-edition-isbn-9781394333943","provider":"K12savings","version":"1.0","type":"link"}