Peer Review

Introduction to Managerial Accounting Managerial and Cost Accounting

Material Detail page

Reviewed:: Nov 6, 2017 by Business

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Ratings

Overall Rating:

Content Quality:

Effectiveness:

Ease of Use:

Overview:

This free book is the eighth of fifteen books which introduce the basic principles of accounting. In this book students learn about managerial accounting. Key managerial cost accounting terminology is introduced. Students will learn the difference between financial and managerial accounting as well as financial statement issues unique to managerial accounting. Other topics addressed include: planning, directing and controlling; cost components; and product versus period costs.

Type of Material:

Open Textbook

Recommended Uses:

In lieu of an expensive hard copy textbook.

Technical Requirements:

Internet, PDF reader software

Identify Major Learning Goals:

After studying this book/chapter, students will be able to understand:

The distinguishing characteristics of managerial accounting.
The role of managerial accounting in support of planning, directing, and controlling.
Key production cost components: direct labor, direct materials, and factory overhead.
Product versus period costs.
Categories of inventories for manufacturers and related financial statement implications.

Target Student Population:

Sophomore business majors completing the principles of managerial accounting class.
Also applicable for professional development.

Prerequisite Knowledge or Skills:

Principles of Financial Accounting

Content Quality

Rating:
Strengths:: This 34 page book is really the equivalent to chapter 8 of a 15 chapter textbook. It provides an excellent explanation of the definition of managerial accounting and its relationship to financial accounting. Content is accurate, current, relevant, and informed by scholarship.The material is very clear and concise, and the amount of material presented is just enough to promote understanding of the core topics within managerial accounting. Real world examples have been included to connect theory to practice. The final segment of the chapter discusses thinking critically about cost flows. A 36 page Cost Analysis book is the next chapter in the sequence.
Concerns:: The material is not self-contained. It would be an excellent supplement if used with other materials, especially the earlier chapters of the text that are referenced. An assignment addressing the concepts presented would be optimal but is not provided with the content. The book chapter ends rather abruptly without summarizing concepts.

Potential Effectiveness as a Teaching Tool

Rating:
Strengths:: Learning objectives are stated clearly at the beginning of the material. Prerequisite understanding of accounting and business concepts are addressed and explained briefly. Concepts are introduced logically and progressively, building on prior concepts. Relationships between concepts are clearly explained. The content contained in the book/chapter may lend itself well to assignments.
Concerns:: No exercises or problems have been included to reinforce or apply knowledge. Some faculty may find having to develop their own exercises to be time consuming when compared to all of the supplementary features of a traditional textbook.

Ease of Use for Both Students and Faculty

Rating:
Strengths:: This material is very easy to use and has clear instructions. The professional graphics used to depict ideas make the material very appealing and easy to follow. The use of first person voice periodically helps to engage the reader. Users can link from the detailed table of contents directly to specific sections of the text.
Concerns:: The advertisements at the bottom of the pages are distracting. This book/chapter lacks interactivity, as well as typical end of chapter content (summary, glossary, practice multiple choice questions, and practice exercises).

Other Issues and Comments:: The authors do provide a series of managerial and cost accounting exercise materials, however, they target the more advanced concepts addressed in the books/chapters that follow.
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