This free, online textbook is offered by the Global Text Project at University of Georgia. It is the international version of the 8th edition of the well-known accounting text, Accounting Principles: A Business Perspective, (First Global Text Edition), Volume 2, Managerial Accounting. This book is licensed under a Creative Commons Attribution 3.0 License. This review focussed on Chapters 19 and 22.
The textbook includes the following chapters/topics:
Chapter 19: Process Cost Systems
Chapter 20: Using Accounting for Quality and Cost Management
As a result of studying Chapter 19, students should be able to:
Understand the differences and similarities between process costing and job order costing.
Calculate equivalent units and cost per equivalent unit.
Allocate costs to ending inventory and cost of goods completed and transferred out.
Prepare a production cost report and journal entries.
Although the focus within the chapter is the Average Method, the FIFO method is included in an appendix. Students also have the opportunity to learn about the allocation of joint costs using physical and sales value methods.
As a result of studying Chapter 22, students should be able to:
Compare and contrast contribution margin income statements to traditional income statements.
Explain differential analysis and describe its components.
Use differential analysis to as a method of choosing the best solution.
Apply differential analysis to managerial problems.
Target Student Population:
Introductory Managerial Accounting Course for undergraduate college students.
Prerequisite Knowledge or Skills:
Introductory financial accounting concepts and procedures such as journalizing.
Type of Material:
Free, open textbook.
Online class or can be used to supplement in class discussion of introductory managerial accounting subjects.
Evaluation and Observation
For both chapters reviewed, content is clearly and concisely presented demonstrating core concepts of managerial accounting. The content is self-contained, includes an adequate amount of material, and summarizes concepts well. In Chapter 22, examples for each type of special decision are relevant, well defined, and clearly illustrated.
Chapter 19 - More examples and end of chapter materials could be provided. Could more concise.
Chapter 22 - Illustration of special decisions is limited to one example.
Potential Effectiveness as a Teaching Tool
Both chapters identify learning objectives, builds on prior concepts, proceeding from simple to complex and demonstrates relationships between concepts. Information flows logically from one example/concept to the next.
Both chapters include simple but relevant illustrations that to which students can relate. Clear examples are easy to follow and understand.
Instructors will find it easy to write assignments or to use the assignments provided by the authors.
The end of chapter materials include a glossary of important terms, a self-test (both T/F and M/C), and several exercises and problems. In addition, a number of group assignments and internet assignments are also included.
The answers to the self quiz are provided.
There is no indication of how to find the correct answers to the homework assignments.
Ease of Use for Both Students and Faculty
It is easy to navigate through the material.
For the most part, the design and visual appeal is acceptable for reading material.
The material is not designed to be interactive; it is an online textbook.
For Chapter 19, although some examples, illustrations, and exhibits are included, they are not visually appealing or of high design quality.
In Chapter 22, no graphic illustrations or pictures have been included. However, the lack of these features does not diminish the quality of the material.
Other Issues and Comments:
Given this module consists primarily of reading material, it was not designed to be interactive.
A variety of end-of-chapter assignments exist to develop competency in process costing.
Some end-of-chapter assignments focus on ethics, written communication, team projects, and Internet use.