Request for consultation

Thanks for your request. You’ll soon be chatting with a consultant to get the answers you need.
{{formPostErrorMessage.message}} [{{formPostErrorMessage.code}}]
First Name is required. 'First Name' must contain at least 0 characters 'First Name' cannot exceed 0 characters Please enter a valid First Name
Last Name is required. 'Last Name' must contain at least 0 characters 'Last Name' cannot exceed 0 characters Please enter a valid Last Name
Institution is required.
Discipline is required.
Why are you contacting us today? is required. 'Why are you contacting us today?' must contain at least 0 characters 'Why are you contacting us today?' cannot exceed 0 characters Please enter a valid Why are you contacting us today?

Cornerstones of Cost Management 4th Edition

Don R. Hansen, Maryanne M. Mowen

  • Published
  • Previous Editions 2015
  • 1120 Pages
Starting At 130.00 See pricing and ISBN options


Hansen/Mowen’s CORNERSTONES OF COST MANAGEMENT, 4E demonstrates the dynamic nature of cost accounting in today’s changing business environment. The book covers functional-based cost and control, and then activity-based cost systems, giving students the skills to manage any cost management system. Developed using extensive research on student learning behavior, this book presents concepts in a unique format that speaks to how students learn. Cornerstones examples in each chapter emphasize the How, Why, and What-Ifs of basic cost management concepts, while delving into the conceptual nature of each equation or topic. An integrated CengageNOW™v2 package reinforces concepts with additional computerized exercises and problems.

Don R. Hansen, Oklahoma State University

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, Oklahoma State University

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.
  • NEW MATERIAL ON SUSTAINABILITY AND BIG DATA ANALYSIS IS WOVEN INTO EACH CHAPTER. Additional content in this edition relates the topics in each chapter to cost accounting and reinforces their importance to the cost and management accountant.
  • NEW COVERAGE HIGHLIGHTS DURATION-BASED COSTING. This costing methodology generally matches the cost assignments of ABC but provides a significantly simplified approach that requires considerably less data than ABC. It is introduced in the ABC chapter (Ch. 4) and is also used in the chapter on Lean Accounting (Ch. 15).
  • BUDGETING COVERAGE IS PRESENTED WITH RELATED TOPICS IN A SINGLE CHAPTER. To provide a more integrated discussion, all budgeting and activity-based budgeting topics are covered extensively within one comprehensive chapter.
  • BOOK PROVIDES REAL-WORLD FOCUS TO ENSURE MATERIAL IS RELEVANT. All chapters include numerous references to real companies, such as the Walt Disney Company, McDonald's, RadioShack, and Lands' End, to illustrate each topic clearly for students. These examples ensure your students understand the relevance and real-world application of the concepts discussed.
  • REVIEW PROBLEMS PROVIDE ADDITIONAL PRACTICE. All chapters (except Chapter 1) include extensive review problems with solutions. These problems demonstrate the computational aspects of chapter materials and reinforce students understanding of chapter concepts before they undertake end-of-chapter materials.
  • ADDITIONAL ONLINE EXERCISES REINFORCE THE MOST HEAVILY USED CONCEPTS IN THE TEXT. Meaningful online exercises were developed based on actual faculty input describing the most important problems for student understanding.
  • CPA-TYPE EXERCISES PREPARE YOUR STUDENTS FOR SUCCESS ON THE EXAM. A section at the end of each chapter includes five exercises either taken directly from previous CPA exams or written specifically for this edition by the authors to provide examples of what students may encounter on the exam. These problems specifically prepare your students for a successful future in accounting.
  • "CORNERSTONES EXAMPLES" PROVIDE STEP-BY-STEP COVERAGE OF THE HOW, WHY, AND WHAT-IFS. These unique examples in each chapter help students solve and master basic cost management concepts. This method presents a model to help readers grasp the calculations and more easily complete homework, while also emphasizing why students are completing the calculation. The "What If" feature challenges students to think past the numbers and understand the actual concepts behind the equations.
  • "CORNERSTONES EXERCISES" CORRESPOND WITH SPECIFIC EXAMPLES AND CONCEPTS. Based on extensive research into student learning behavior, the authors have also created specific "Cornerstones Exercises." These exercises at the end of each chapter are structured like the "Cornerstones Examples" in the text and list which "Cornerstone Example" with which they correspond. These questions provide your students with precise guidance and detailed practice before moving on to the more complex questions at the end of the chapter.
  • STUDENT-FRIENDLY ORGANIZATION OF MATERIAL REINFORCES UNDERSTANDING. In addition to end-of-chapter material, such as the "Cornerstones Exercises" and a list of important equations discussed within that chapter, this edition includes a guide to the "Cornerstones Examples" that enables students to quickly reference examples when needed. All exercises and problems in the end of chapter material also list a corresponding learning objective. This assists you in deciding what to assign to your students and helps students understand what skills they should master from each exercise.
  • SERVICE SECTOR FOCUS EMPHASIZES THE IMPORTANCE OF THESE TYPES OF BUSINESSES IN COST MANAGEMENT. The significance of the service sector is recognized in this text through the extensive application of cost management principles to services. The book explains that services are not simply less complicated manufacturing settings but, instead, have their own unique characteristics and challenges.
  • COST MANAGEMENT INFORMATION SYSTEMS APPROACH OFFERS EXTENSIVE FLEXIBLITY. By focusing on ABC or unit-based systems and the implications of implementing those systems separately, the book’s discussion of these specific approaches stands alone. This book’s approach gives you the flexibility to modify the coverage to best meet the needs of your specific course.
1. Introduction to Cost Management.
2. Basic Cost Management Concepts.
3. Cost Behavior.
4. Activity-Based Costing.
Integrative Exercises.
5. Product and Service Costing: Job-Order System.
6. Process Costing.
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.
Integrative Exercises.
11. Strategic Cost Management.
12. Activity-Based Management.
13. The Balanced Scorecard: Strategic-Based Control.
14. Quality and Environmental Cost Management.
15. Lean Accounting and Productivity Measurement.
Integrative Exercises.
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.
Integrative Exercises.
Check Figures.
CengageNOWv2 combines the way students use textbooks and online resources to learn, study and complete homework, allowing them to achieve ultimate success in this course in a digital world.

This Cengage solution can be seamlessly integrated into most Learning Management Systems (Blackboard, Brightspace by D2L, Canvas, Moodle, and more) but does require a different ISBN for access codes. Please work with your Cengage Learning Consultant to ensure the proper course set up and ordering information. For additional information, please visit the LMS Integration site.

Standalone Digital Access — Ultimate Value

Recommended and most popular

  • ISBN-10: 1305970756
  • ISBN-13: 9781305970755
  • Bookstore Wholesale Price $130.00
  • RETAIL $130.00

Digital Access + Print — Flexible Value

Recommended and most popular

  • ISBN-10: 1337539082
  • ISBN-13: 9781337539081
  • Bookstore Wholesale Price $132.50
  • RETAIL $175.95

  • ISBN-10: 133753904X
  • ISBN-13: 9781337539043
  • Bookstore Wholesale Price $266.25
  • RETAIL $353.95

Textbook Only Options

Traditional eBook and Print Options

{{collapseContainerClosed['detail_0'] ? 'Show More' : 'Show Less'}}

  • STARTING AT $49.49

  • ISBN-10: 1337667986
  • ISBN-13: 9781337667982
  • STARTING AT $64.99

  • ISBN-10: 1305970667
  • ISBN-13: 9781305970663
  • Bookstore Wholesale Price $187.50
  • RETAIL $249.95

“Cornerstone has been around a long time and is a trusted resource.”

“Cornerstones pedagogy bring more thought provoking avenues for the students to learn the material.”

Cengage provides a range of supplements that are updated in coordination with the main title selection. For more information about these supplements, contact your Learning Consultant.


Instructor's Companion Website

ISBN: 9781337298162
Everything you need for your course in one place! This collection of product-specific lecture and class tools is available online via the instructor resource center at You'll be able to access and download materials such as PowerPoint presentations, images, instructor’s manual, videos, and more.

Solutions Manual

ISBN: 9781337298155
Contains fully worked-out solutions to all of the [odd-numbered exercises] in the text, giving students a way to check their answers and ensure that they took the correct steps to arrive at an answer.

Cengage Learning Testing, powered by Cognero® Instant Access

ISBN: 9781305970687
Cengage Learning Testing, powered by Cognero®, is a flexible, online system that allows you to import, edit, and manipulate content from the text's test bank or elsewhere, including your own favorite test questions. Create multiple test versions in an instant and deliver tests from your LMS, your classroom, or wherever you want.