Synopses & Reviews
To run a business, numbers must be taken into account and factored into everyday decision-making, both major and minor. Understanding the numbers associated with day-to-day operations is no longer just the domain of the finance and accounting departments--everyone from lower-level staff to senior managers should learn the fundamentals of the cost of the organization's product or service, the price strategies involved, and the impact that short- and long-term decisions have on the bottom line. ACCOUNTING ESSENTIALS is an introductory course that teaches the basics of finance, accounting, and economic strategies in an easy-to-follow, easy-to-understand format complete with glossaries, diagrams, and self-tests. A companion title to this book is THE ACCOUNTING CYCLE, another Crisp Series book by Jay Jacquet. This book was written especially for nonfinancial managers or new business owners, and can be used in an academic setting or for self-study. It is an indispensable primer for learning and understanding accounting fundamentals, such as cash and accrual accounting, basic recordkeeping, ledger and journal entries, and financial statement preparation.
Synopsis
To run a business, numbers must be taken into account and factored into everyday decision-making, both major and minor. Understanding the numbers associated with day-to-day operations is no longer just the domain of the finance and accounting departments.
Table of Contents
Part 1: Getting the "Right" Numbers Qualitative vs. Quantitative Decision-Making Standards Effective and Efficient Decisions Constraints Part 2: Review of the Financial Statements The Balance Sheet and Income Statement Statement of Cash Flow What the Financial Statements Do Not Tell You Part 3: Making Money Maximizing Profit or Minimizing Cost Thinking in Units Defining Cost Part 4: Identifying Costs and Their Behaviors Fixed, Variable, and Mixed Costs Relevant Range Cost Per Unit Cost Categories on the Income Statement Discerning Variable Costs Discerning Mixed Costs Part 5: Controlling Costs Contribution Margin on the Income Statement Activity-Based Costing Non-Value-Added Activity Part 6: Am I Breaking Even? The Cost-Volume-Profit Graph The Contribution Margin Approach to Break-Even Calculating "What If" Profit Margin of Safety Part 7: Operating Leverage Defining Operating Leverage Operating Leverage and the Bottom Line Part 8: Influences on Pricing Pricing in Line with the Competition Trade-Offs Between Price and Demand Elasticity of Demand Illustrated Market and Cost Influences on Pricing Qualitative Factors in Relation to Price Part 9: Making the Numbers Work for You Responsible Decision-Making Quality Management Appendix Review of the Numbers Appendix to Part 2 Appendix to Part 3 Appendix to Part 4 Appendix to Part 6 Appendix to Part 7 Additional Reading