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Foundations of Managerial AccountingI wrote this text at the prompting of some participants in a Fall 2021 exec MBA class. Juggling even busier schedules during the Covid year, they did not have the time or inclination to read a standard accounting textbook the usually weighty and expensive tome with hundreds of pages of text, distracting pictures, and one that did not align well with the sequence in which I present the subject of managerial accounting. Accordingly, this text errs on
I wrote this text at the prompting of some participants in a Fall 2021 exec - MBA class. Juggling even busier schedules during the Covid year, they did not have the time or inclination to read a standard accounting textbook Ñ the usually weighty and expensive tome with hundreds of pages of text, distracting pictures, and one that did not align well with the sequence in which I present the subject of managerial accounting.
Accordingly, this text errs on the side of minimalism. I present the reasons for studying managerial accounting in chapter 1, discuss basic cost terms and concepts in Chapter 2, and, over the remaining four chapters, lay out the fundamental techniques of cost accounting that help managers make decisions.
Brevity is not only the soul of wit but also a road to understanding. The essence of something is best revealed when the ornamentation surrounding it is removed. However, the absence of repetitious texts, reinforcing pictures, interesting examples from the business world, and problems worked out step by step demand more significant effort from the reader. Do not confuse simple and clear exposition for simplistic explanations. If you read this comparatively short text carefully and follow my lead in doing all the problems listed at the end of each chapter, you will have all you need to know for a solid foundation in managerial accounting.
This text has been improved by the comments and corrections suggested by multiple groups of undergraduate and graduate students. Carlton Jarmon deserves special mention for reviewing this text, wearing the hat of both student and teaching assistant. Teaching is a collaborative venture, and future iterations of this book depend on your efforts to improve it.
Sajay Samuel
State College, PA
February, 2024
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