Cengage Learning

Higher Education

Principles of Cost Accounting, 16th Edition

  • Edward J. Vanderbeck Xavier University
  • ISBN-10: 1133187862  |  ISBN-13: 9781133187868
  • 600 Pages
  • Previous Editions: 2010, 2008, 2005
  • © 2013 | Published
  • Newer Edition Available
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PRINCIPLES OF COST ACCOUNTING introduces the essentials of cost accounting in a well-organized, practical, and concise new edition. Within the book’s unique 10-chapter format, students gain a thorough understanding of cost concepts, cost behavior, and cost accounting techniques as they apply to manufacturing and service businesses. Unlike other texts, PRINCIPLES OF COST ACCOUNTING ensures that students master the fundamentals before progressing to more complex topics. Students begin with job order costing, and then advance to process costing before delving into specialized topics, such as budgeting, standard costing and variance analysis, costing for service businesses, and cost analysis for management decisions. PRINCIPLES OF COST ACCOUNTING meets the unique learning needs of today’s student by introducing concepts in small, manageable sections that are immediately reinforced with proven questions, demonstration problems, exercises, and self-study quizzes. Students develop the competitive edge needed for success in today’s job market as they learn how to determine the costs of products and services accurately and set effective selling prices. Students discover how to bid on products and analyze the relative profitability of various products and services. The book’s easily accessible presentation focuses on techniques to measure the performance of managers within an organization, design an accounting system to fit the production and distribution system of an organization, and use the accounting system as a tool to motivate managers toward an organization’s goals. Count on PRINCIPLES OF COST ACCOUNTING for the most logical, relevant, and real approach to your cost accounting course.

Features and Benefits

  • Brief Text: The concise 10-chapter format, unique to this text, makes it appropriate for shorter courses, while still thoroughly covering the cost accounting topics students need today.
  • Comprehensive End-Of-Chapter Materials: Verified and updated end-of-chapter materials address a wide variety of subjects in varying degrees of difficulty to give you the flexibility you need in assignments and the critical review students need with key terms and corresponding page reference numbers, self-study problems, study questions, exercises, problems, mini-cases, and Internet exercises.
  • Service Business Coverage: Focus on Service Business (Ch. 9) demonstrates how these businesses apply cost accounting and reflects the shift in the U.S. economy from manufacturing to service industries.
  • ABC & JIT Coverage: Integration of newer costing methods addresses topics such as ABC and JIT where appropriate throughout the text to ensure students are familiar with the most recent costing techniques and methods.

Table of Contents

1. Introduction to Cost Accounting.
2. Accounting for Materials.
3. Accounting for Labor.
4. Accounting for Factory Overhead.
5. Process Cost Accounting--General Procedures.
6. Process Cost Accounting--Additional Procedures; Accounting for Joint Products and By-Products.
7. The Master Budget and Flexible Budgeting.
8. Standard Cost Accounting--Materials, Labor, and Factory Overhead.
9. Cost Accounting for Service Businesses and the Balanced Scorecard.
10. Cost Analysis for Management Decision Making.

What's New

  • Practical Applications: A business currents feature has been added to call out the practical applications of cost accounting in the real world. This feature illustrates how cost accounting concepts from the chapter are practiced in business today. An end-of-chapter mini-case reinforces the concept and concludes the situation presented in the chapter introduction.
  • Online Homework: Online homework is now a possibility with PRINCIPLES OF COST ACCOUNTING. The new edition boasts the addition of CengageNow to help instructors easily assign and grade homework.
  • More End-Of-Chapter Problems: New and additional end-of-chapter problems have been added to expand the amount of homework instructors can assign and allow students even more practice than before.
  • Updated Recall and Review Problems: The Recall and Review problems have been updated and revamped to reinforce the concepts that are presented one at a time within manageable sections of text. Specifically designated questions, exercises, problems, and self-study quizzes further test and reinforce the student’s understanding of the material.
  • Emphasis on Ethics: New and additional emphasis on ethics throughout this edition further reinforces these topics of growing importance.

Learning Resource Bundles

Choose the textbook packaged with the resources that best meet your course and student needs. Contact your Learning Consultant for more information.

ePack: Text + CengageNOW Instant Access Code

ISBN-10: 1133904491  | ISBN-13: 9781133904496

Printed Text + MindLink for CengageNOW 1-Semester Instant Access

ISBN-10:  0495964875 | ISBN-13:  9780495964872

Efficacy and Outcomes


"This textbook teaches students how to DO cost accounting; how to account for materials, labor and FOH, and how to use job order, process, and standard costing."

— Theresa Laws-Dahl, Blackhawk Technical

"We like the conciseness, how it is well focused, relevance and the ten chapter format. The directed assignments in the chapters are excellent."

— Stephen Richards, Davidson County CC


All supplements have been updated in coordination with the main title. Select the main title's "About" tab, then select "What's New" for updates specific to title's edition.

For more information about these supplements, or to obtain them, contact your Learning Consultant.

Instructor Supplements

Instructor’s Resource CD-ROM  (ISBN-10: 1133187870 | ISBN-13: 9781133187875)

This all-in-one tool places all the resources you need to plan and teach at your fingertips. You will find Test Bank in Microsoft® Word and ExamView® testing software, as well as PowerPoint® slides, and Solutions Manual.

CengageNOW Instant Access  (ISBN-10: 1133663419 | ISBN-13: 9781133663416)

Succeed in your accounting course with CengageNOW, a powerful online homework tool that optimizes your learning experience. This interactive system generates a diagnostic Personalized Study Plan (with a chapter-specific Pre-test, Study Plan, and Post-test) to help you master concepts, prepare for exams, and get a better grade

Student Supplements

MindLink for CengageNOW, 1 term (6 months) Instant Access  (ISBN-10: 1285321650 | ISBN-13: 9781285321653)

Succeed in your accounting course with 1-semester access to CengageNOW, a powerful online homework tool that optimizes your learning experience. This interactive system generates a diagnostic Personalized Study Plan (with a chapter-specific Pre-test, Study Plan, and Post-test) to help you master concepts, prepare for exams, and get a better grade

Meet the Author

Author Bio

Edward J. Vanderbeck

Edward J. Vanderbeck has been a professor of accounting for 30 years and Chair of the Department of Accountancy at Xavier University, Cincinnati, Ohio, for 22 years. Before retiring in 2008, Professor Vanderbeck specialized in teaching cost accounting to accounting majors and managerial accounting to undergraduate and MBA students. He has taught at the two-year college level at SUNY--Delhi. He has a BA in accounting from SUNY--Binghamton and an MS in business administration from SUNY--Albany. He is licensed as a CPA (inactive) in the state of Ohio. Professor Vanderbeck has worked as an internal revenue agent, and has performed a faculty internship at what was formerly the Big Eight accounting firm of Touche-Ross. He has served as a developmental editor and marketing manager for accounting publications with South-Western. Professor Vanderbeck is an avid tennis player and a student of casino gaming strategies.