Principles of Accounting Volume 2 Managerial Accounting

Principles of Accounting is designed to meet the scope and sequence requirements of a two-semester accounting course that covers the fundamentals of financial and managerial accounting. Due to the comprehensive nature of the material, we are offering the book in two volumes.

This book is specifically designed to appeal to both accounting and non-accounting majors, exposing students to the core concepts of accounting in familiar ways to build a strong foundation that can be applied across business fields.


Each chapter opens with a relatable real-life scenario for today’s college student. Thoughtfully designed examples are presented throughout each chapter, allowing students to build on emerging accounting knowledge. Concepts are further reinforced through applicable connections to more detailed business processes. Students are immersed in the “why” as well as the “how” aspects of accounting in order to reinforce concepts and promote comprehension over rote memorization.

Table of Contents

  • 1. Accounting as a Tool for Managers
  • 2. Building Blocks of Managerial Accounting
  • 3. Cost-Volume-Profit Analysis
  • 4. Job Order Costing
  • 5. Process Costing
  • 6. Activity-Based, Variable, and Absorption Costing
  • 7. Budgeting
  • 8. Standard Costs and Variances
  • 9. Responsibility Accounting and Decentralization
  • 10. Short-Term Decision Making
  • 11. Capital Budgeting Decisions
  • 12. Balanced Scorecard and Other Performance Measures
  • 13. Sustainability Reporting
  • 14. Answer Key

About the Contributors


Senior Contributing Authors
Patty Graybeal, University of Michigan-Dearborn (Managerial Accounting)
Mitchell Franklin, LeMoyne College (Financial Accounting)
Dixon Cooper, Ouachita Baptist University