Higher Education

Cornerstones of Cost Management, 2nd Edition

  • Don R. Hansen Oklahoma State University
  • Maryanne M. Mowen Oklahoma State University
  • ISBN-10: 1111824401  |  ISBN-13: 9781111824402
  • 1120 Pages
  • Previous Editions: 2011, 2009, 2006
  • © 2013 | Published
  • College Bookstore Wholesale Price = $287.25
  • Newer Edition Available
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About

Overview

Providing the most up-to-date and thorough coverage of cost management topics, Hansen/Mowen's CORNERSTONES OF COST MANAGEMENT provides students with a solid foundation with its unique Cornerstones approach. Adapted from the leading Cost Management text also from Don Hansen and Maryanne Mowen, and created from our research on student learning behavior, this text presents concepts in a step-by-step format. This presentation helps students understand the How, Why, and What Ifs of solving and mastering basic cost management topics, while also getting at the conceptual nature of each equation or topic. Hansen/Mowen's CORNERSTONES OF COST MANAGEMENT demonstrates the dynamic, exciting nature of cost accounting in today's changing business environment. The text first covers functional-based cost and control and then activity-based cost systems, giving students the understanding and skills to manage any cost management system. Cornerstones examples throughout each chapter provide students with step-by-step coverage of the How, Why, and What Ifs of solving and mastering basic cost management concepts, while also getting at the conceptual understanding that students often struggle to grasp. This edition's expansive coverage and consistent attention to technical detail provide a thorough, well-researched foundation for learning. It includes new CPA-Type Exercises in each chapter that have been taken directly from past CPA Exams or have been written by the authors to prepare students for their futures in business.

Additional Product Information

Features and Benefits

  • Cornerstones Examples throughout each chapter provide students with step-by-step coverage of the How, Why, and What Ifs of solving and mastering basic cost management concepts. This method presents them with a model to help them truly grasp the calculations and therefore more easily complete homework, while also helping them understand why they are doing the calculation. The What If feature takes it a step further, challenging students to think past the numbers and understand the true concept behind the equations.
  • Cornerstones Exercises: Based on our research on student learning behavior, the authors have also created specific Cornerstones Exercises. These exercises in the end of chapter are structured like the Cornerstones Examples in the text and list which Cornerstone Example they match. These questions allow students to have some guidance and practice before moving on to the more complex questions in the end of chapter.
  • CPA-Type Exercises: This new section in the end-of-chapter includes five exercises either taken directly from the 2009, 2010, or 2011 CPA Exam or written specifically for this textbook by the authors to provide an example of what students can expect to encounter on the exam, preparing them for a future in Accounting.
  • Student-Friendly Organization: In addition to end of chapter material such as the Cornerstones Exercises and the list of the important equations discussed within that chapter, we have included a guide to the Cornerstones Examples and where to find them, allowing students to quickly reference them when needed. All exercises and problems in the End of Chapter also reference the learning objective they are addressing, making it easier for you to decide what to assign to your students, and helping your students understand what they should be learning from each exercise.
  • Service Sector Focus: The significance of the service sector is recognized in this text through the extensive application of cost management principles to services. The text explains that services are not simply less complicated manufacturing settings but instead have their own characteristics.
  • Cost Management Information Systems Approach: By focusing on ABC or unit-based systems and the implications of implementing those systems separately, the discussion of these specific approaches stands alone, giving you the flexibility to modify the coverage to best meet the needs of your specific course.
  • Budgeting Coverage: For a more integrated discussion, all budgeting and activity-based budgeting topics are covered extensively within one comprehensive chapter.
  • Real-World Focus: All chapters include numerous references to real companies such as the Walt Disney Company, McDonalds, RadioShack, Lands' End, and many more to help illustrate each topic for students, ensuring your students understand the relevance and real-world application of the concepts discussed.
  • Review Problems: All chapters (except Chapter 1) include review problems and solutions. These problems demonstrate the computational aspects of chapter materials and reinforce the students' understanding of chapter concepts before they undertake end-of-chapter materials.

Table of Contents

PART I: FOUNDATION CONCEPTS.
1. Introduction to Cost Management.
2. Basic Cost Management Concepts.
3. Cost Behavior.
4. Activity-Based Costing.
PART II: FUNDAMENTAL COSTING AND CONTROL.
5. Product and Service Costing: Job-Order System.
6. Product and Service Costing: A Process Systems Approach.
7. Allocating Costs of Support Departments and Joint Products.
8. Budgeting for Planning and Control.
9. Standard Costing: A Functional-Based Control Approach.
10. Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing.
PART III: ADVANCED COSTING AND CONTROL.
11. Strategic Cost Management.
12. Activity-Based Management.
13. The Balanced Scorecard: Strategic-Based Control.
14. Quality and Environmental Cost Management.
15. Productivity Measurement and Control and Lean Accounting.
PART IV: DECISION MAKING.
16. Cost-Volume-Profit Analysis.
17. Activity Resource Usage Model and Tactical Decision Making.
18. Pricing and Profitability Analysis.
19. Capital Investment.
20. Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints.

What's New

  • CPA-Type Exercises – A new section in the end-of-chapter includes five exercises either taken directly from the 2009, 2010, or 2011 CPA Exam or written specifically for this textbook by the authors to provide an example of what students can expect to encounter on the exam, preparing them for a future in Accounting.
  • The Test Bank has been thoroughly revised to include updated and new questions.

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.

Bundle: Text + CengageNOW Printed Access Card

ISBN-10: 1285486080  | ISBN-13: 9781285486086

List Price = $394.95  | College Bookstore Wholesale Price = $297.25

This Bundle Includes:

  • Cornerstones of Cost Management
    List Price = $382.95  | CengageBrain Price = $382.95  | College Bookstore Wholesale Price = $287.25
  • CengageNOW Printed Access Card
    List Price = $134.00  | College Bookstore Wholesale Price = $100.50


Printed Text + CengageNOW Instant Access

ISBN-10:  1285725344 | ISBN-13:  9781285725345

List Price = $401.95  | CengageBrain Price = $401.95  | College Bookstore Wholesale Price = $302.25

This Bundle Includes:

  • Cornerstones of Cost Management
    List Price = $382.95  | CengageBrain Price = $382.95  | College Bookstore Wholesale Price = $287.25
  • CengageNOW Instant Access
    List Price = $164.00  | CengageBrain Price = $164.00  | College Bookstore Wholesale Price = $164.00


Efficacy and Outcomes

Reviews

"I believe that the Cornerstones pedagogy is both unique and cutting edge."

— Bernard Bugg, Shaw University

"The book is a nice reference on the various tools that cost accounts use in costing, evaluating performance, planning, and decision making."

— Peter Woodlock, Youngstown State University

Supplements

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

Cornerstones of Cost Management  (ISBN-10: 1133597823 | ISBN-13: 9781133597827)

Providing the most up-to-date and thorough coverage of cost management topics, Hansen/Mowen's CORNERSTONES OF COST MANAGEMENT provides students with a solid foundation with its unique Cornerstones approach. Adapted from the leading Cost Management text also from Don Hansen and Maryanne Mowen, and created from our research on student learning behavior, this text presents concepts in a step-by-step format. This presentation helps students understand the How, Why, and What Ifs of solving and mastering basic cost management topics, while also getting at the conceptual nature of each equation or topic. Hansen/Mowen's CORNERSTONES OF COST MANAGEMENT demonstrates the dynamic, exciting nature of cost accounting in today's changing business environment. The text first covers functional-based cost and control and then activity-based cost systems, giving students the understanding and skills to manage any cost management system. Cornerstones examples throughout each chapter provide students with step-by-step coverage of the How, Why, and What Ifs of solving and mastering basic cost management concepts, while also getting at the conceptual understanding that students often struggle to grasp. This edition's expansive coverage and consistent attention to technical detail provide a thorough, well-researched foundation for learning. It includes new CPA-Type Exercises in each chapter that have been taken directly from past CPA Exams or have been written by the authors to prepare students for their futures in business.

List Price = $243.95  | CengageBrain Price = $243.95  | College Bookstore Wholesale Price = $183.00

CengageNOW Instant Access  (ISBN-10: 1133597874 | ISBN-13: 9781133597872)

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

List Price = $164.00  | CengageBrain Price = $164.00  | College Bookstore Wholesale Price = $164.00

Solutions Manual  (ISBN-10: 1133597750 | ISBN-13: 9781133597759)

CengageNOW on WebCT with eBook, 1 term (6 months) Instant Access  (ISBN-10: 1133601693 | ISBN-13: 9781133601692)

With its engaging learning and assessment tools, CengageNOW supports the entire student workflow, from motivation to mastery. For instructors, CengageNOW provides control and customization with the opportunity to tailor the learning experience to improve outcomes.

List Price = $134.00  | College Bookstore Wholesale Price = $134.00

CengageNOW with eBook on Blackboard®, 1 term (6 months) Instant Access  (ISBN-10: 1133601677 | ISBN-13: 9781133601678)

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Student Supplements

Cornerstones of Cost Management  (ISBN-10: 1133597823 | ISBN-13: 9781133597827)

Providing the most up-to-date and thorough coverage of cost management topics, Hansen/Mowen's CORNERSTONES OF COST MANAGEMENT provides you with a solid foundation with its unique Cornerstones approach. Created from our research on how you prefer to learn accounting, this text presents concepts in a step-by-step format. This presentation helps you to understand the How, Why, and What Ifs of solving and mastering basic cost management topics, while also getting at the conceptual nature of each equation or topic. Hansen/Mowen's CORNERSTONES OF COST MANAGEMENT demonstrates the dynamic, exciting nature of cost accounting in today's changing business environment. The text first covers functional-based cost and control and then activity-based cost systems, giving you the understanding and skills to manage any cost management system. Cornerstones examples throughout each chapter provide you with step-by-step coverage of the How, Why, and What Ifs of solving and mastering basic cost management concepts, while also getting at the conceptual understanding that can be difficult to grasp. This edition's expansive coverage and consistent attention to technical detail provide a thorough, well-researched foundation for learning. It includes new CPA-Type Exercises in each chapter that have been taken directly from past CPA Exams or have been written by the authors to prepare you for your futures in business.

List Price = $243.95  | CengageBrain Price = $243.95  | College Bookstore Wholesale Price = $183.00

CengageNOW Instant Access  (ISBN-10: 1133597874 | ISBN-13: 9781133597872)

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

List Price = $164.00  | CengageBrain Price = $164.00  | College Bookstore Wholesale Price = $164.00

MindLink for CengageNOW Instant Access  (ISBN-10: 1285322118 | ISBN-13: 9781285322117)

Succeed in your management 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.

List Price = $164.00  | CengageBrain Price = $164.00  | College Bookstore Wholesale Price = $164.00

Solutions Manual  (ISBN-10: 1133597750 | ISBN-13: 9781133597759)

List Price = $117.95  | College Bookstore Wholesale Price = $88.50

CengageNOW on WebCT with eBook, 1 term (6 months) Instant Access  (ISBN-10: 1133601693 | ISBN-13: 9781133601692)

Have the tools you need to be successful A variety of tools are available in CengageNOW™, all combined in one easy-to-use resource designed to improve your grades. Some resources get you prepared for class and help you succeed on homework, and others show you specific areas where you can work to improve. Stay ahead of the course requirements CengageNOW shows you the path through your course—from first day through finals. Once you know what’s expected, it’s easier to complete your assignments. Gain understanding that stays with you Do well on tests as well as the assignments! Bridge the gap between homework and tests by using CengageNOW to truly understand the material. Self-study and review materials keep you on the right track, to make sure your understanding goes beyond memorization. Set yourself up for better grades Why wonder where you stand? CengageNOW includes trackable assignments and grades. It tells you what to do to improve your grade, and gives you the tools to accomplish it! Student Testimonials: “I love the check your work option. Really, when you’re having a hard time figuring out an answer, sometimes working backwards is the best way to understand conceptually what you’re doing wrong.” - Brad Duncan University of Utah “I liked the videos because they were short enough to teach me and because they were short, I was able to find time to watch them again and again if I did not understand the first time.” - Jennifer Wright Northeast Wisconsin Technical College CTA: Ask your instructor about CengageNOW for this course.

List Price = $134.00  | College Bookstore Wholesale Price = $134.00

CengageNOW with eBook on Blackboard®, 1 term (6 months) Instant Access  (ISBN-10: 1133601677 | ISBN-13: 9781133601678)

Succeed in your management 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.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Meet the Author

Author Bio

Don R. Hansen

Dr. Don R. Hansen is Professor Emeritus of Oklahoma State University. He has an undergraduate degree in mathematics from Brigham Young University. He received his Ph.D. from the University of Arizona in 1977. Dr. Hansen has published articles in both accounting and engineering journals, including The Accounting Review, The Journal of Management Accounting Research, Accounting Organizations and Society, Accounting Horizons, and IIE Transactions. He has served on the editorial board of The Accounting Review. His outside interests include family, church activities, reading, movies, and watching sports.

Maryanne M. Mowen

Dr. Maryanne M. Mowen is Associate Professor Emerita of Accounting at Oklahoma State University. She currently teaches online classes in cost and management accounting for Oklahoma State University. She received her Ph.D. from Arizona State University. Dr. Mowen brings a unique interdisciplinary perspective to teaching and writing in cost and management accounting, with degrees in history and economics. She has taught classes in ethics and the impact of the Sarbanes-Oxley Act on accountants. Her scholarly research focuses on areas of management accounting, behavioral decision theory, and compliance with the Sarbanes-Oxley Act. She has published articles in journals, such as Decision Science, The Journal of Economics and Psychology, and The Journal of Management Accounting Research. Dr. Mowen has served as a consultant to mid-sized and Fortune 100 companies and works with corporate controllers on management accounting issues. She is a member of the Northern New Mexico chapter of SCORE and serves as a counselor, assisting small and start-up businesses. Outside the classroom, she enjoys hiking, traveling, reading mysteries, and working crossword puzzles.