Contents

xxix

Using the Cost of Production Report for Decision

Making 852
Chapter 20 Variable Costing for
Frozen Delight 852 Management Analysis 933
Holland Beverage Company 853
Yield 854 Income from Operations Under Absorption
Costing and Variable Costing 934
Just-in-Time Processing 854 Absorption Costing 934
Business Connection: Radical Improvement: Just in Variable Costing 935
Time for Pulaski’s Customers 856 Units Manufactured Equal Units Sold 937
Units Manufactured Exceed Units Sold 937
Appendix: Average Cost Method 856 Units Manufactured Less Than Units Sold 938
Determining Costs Using the Average Cost Method Effects on Income from Operations 940
856
The Cost of Production Report 858 Income Analysis Under Absorption and Variable
Costing 940
Chapter 19 Cost Behavior and Integrity, Objectivity, and Ethics in Business: Taking
Cost-Volume-Profit Analysis 883 an “Absorption Hit” 942
Using Absorption and Variable Costing 943
Cost Behavior 884 Controlling Costs 944
Variable Costs 885 Pricing Products 944
Fixed Costs 886 Planning Production 944
Mixed Costs 887 Analyzing Contribution Margins 944
Summary of Cost Behavior Concepts 889 Analyzing Market Segments 944
Business Connection: Franchising 889 Business Connection: Inventory Write-Downs 945
Cost-Volume-Profit Relationships 890 Analyzing Market Segments 945
Contribution Margin 890 Sales Territory Profitability Analysis 946
Contribution Margin Ratio 890 Product Profitability Analysis 947
Unit Contribution Margin 891 Salesperson Profitability Analysis 947
Mathematical Approach to Cost-Volume-Profit Business Connection: Chipotle Mexican Grill
Analysis 892 Contribution Margin By Store 949
Break-Even Point 892
Contribution Margin Analysis 949
Business Connection: Breaking Even in the Airline
Industry 896 Variable Costing for Service Firms 951
Reporting Income from Operations Using Variable
Target Profit 896
Costing for a Service Company 951
Integrity, Objectivity, and Ethics in Business: Orphan Market Segment Analysis for Service Company 952
Drugs 897 Contribution Margin Analysis 953

Graphic Approach to Cost-Volume-Profit

Analysis 897 Chapter 21 Budgeting 981
Cost-Volume-Profit (Break-Even) Chart 897
Profit-Volume Chart 899 Nature and Objectives of Budgeting 982
Use of Computers in Cost-Volume-Profit Analysis Objectives of Budgeting 982
901 Human Behavior and Budgeting 983
Assumptions of Cost-Volume-Profit Integrity, Objectivity, and Ethics in Business: Budget
Analysis 902
Games 984
Special Cost-Volume-Profit Relationships 902 Budgeting Systems 984
Sales Mix Considerations 902
Static Budget 985
Operating Leverage 903
Margin of Safety 905 Business Connection: U.S. Federal Budget Deficit
986
Appendix: Variable Costing 906
Flexible Budget 986
Computerized Budgeting Systems 988