Publishing: September 2026
Page Count: 816
ISBN (Digital): 979-8-88794-735-8

Fundamentals of Managerial Accounting

Version 4.0
By Kurt Heisinger and Joe Ben Hoyle

Included Supplements

Homework and supplements available September 30, 2026.

Manual

Slides

Tests

Key Features

Each chapter starts with a realistic managerial scenario outlining an issue that must be addressed by the management accountant, followed by a modular chapter format built around learning objectives. Each learning objective includes:
- embedded author-recorded videos using examples directly from the text
- detailed descriptions of important concepts
- section summary aligned with learning objectives called "Key Takeaways"
- flashcards to help reinforce student learning
- quizzes to help students assess their knowledge
- active exercises with solutions called "Review Problems" that engage students in active learning and help them master key concepts, and
- extensive end-of-chapter questions, exercises, problems, and cases closely aligned with the material presented within each learning objective.
Nearly 100 author-recorded video lessons directly tied to each section of the text enrich student learning and engagement. To provide consistency, videos use examples directly from the text and are embedded at the beginning of each learning objective section.
A question-and-answer approach is used throughout text to stimulate critical-thinking skills.
Essential topics are covered while maintaining academic rigor using a concise and jargon-free approach.
Author-written supplementary materials provide robust instructional support and include an instructor’s manual, solutions manual, test bank, quizzes and flashcards embedded into the online reader version, PowerPoint lecture slides, student working papers, and online homework questions.
Hyperlinks to companies and organizations are provided throughout the text to engage students with real-world applications of the concepts presented.
The extensive instructor manual provides effective guidance for instructors teaching online, in-class, or hybrid courses.
A free homework system is included that grades questions, furnishes feedback to students, and class statistics to instructors. Multiple versions of the same question are available to minimize student copying.
The online Homework for v4.0 will include autogradable versions of the end-of-chapter exercises, including SmartGrader for Excel exercises where students complete Excel files and upload them to be autoscored.
End-of-chapter assignments also include ethics cases, internet projects, group projects, real company analysis, and projects in Excel.
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Price: Online Access $37.95; Color Printed Textbook with Online Access $64.95

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Fundamentals of Managerial Accounting is suitable for introductory managerial accounting courses.

Precision meets practicality in Fundamentals of Managerial Accounting. This textbook offers a concise, high-impact approach to the core concepts every future manager needs. By following a logical scope and sequence, we help students bridge the gap between technical accounting and real-world organizational strategy.

The goal? To help accounting students move beyond the ledger and start thinking like a manager from day one, putting Business in Action.

New in This Version

New SmartGrader for Excel included in the FlatWorld Homework system:
- Uses custom formatted Excel spreadsheets that provide guidance for students to complete and submit end-of-chapter homework
- Uses auto grading feature to facilitate homework assignment grading
- Integrates seamlessly with popular Learning Management Systems such as Canvas
- Allows for autograding of Excel files completed in Microsoft Excel
- Helps students learn the basics of using Excel for managerial accounting purposes
Updated end-of-chapter content to reflect new and updated material within each chapter
All ancillaries updated including Excel working papers, solutions manual, PowerPoint lecture notes, instructor's manual, and test bank
Updated Business-in-Action (BIA) vignettes for the following:
- Planning and decision-making at Southwest Airlines, Apple, and Meta (BIA 1.1)
- Nonmanufacturing costs at PepsiCo (BIA 1.6)
- Product costs at Advanced Micro Devices (BIA 1.7)
- Production process at Coca Cola (BIA 4.1)
- Production process at Wrigley's Gum (BIA 4.2)
- Calculating full-time equivalent students (BIA 4.3)
- Production process for Hershey's chocolate (BIA 4.4)
- Controlling costs at United Airlines (BIA 5.1)
- Cost behavior patterns at Lowe's (BIA 5.3)
- Break-even price for oil companies (BIA 6.1)
- Cost of capital by industry (BIA 8.2)
- Controlling costs in the NBA (BIA 10.1)
- Segment reporting at Hewlett-Packard (BIA 11.2)
- Internal performance measures at General Electric (BIA 11.3)
- Cash flows at Southwest Airlines (BIA 12.1)
- Cash activity at Home Depot and Lowe's (BIA 12.2)
- Dividend payments and stock repurchases at Apple (BIA 12.4)
- Free cash flow at Amazon (BIA 12.5)
- Financial trends presented in annual reports (BIA 13.1)
- The importance of earning per share (BIA 13.3)
- Grocery store inventory and receivable turnover (BIA 13.4)

In Progress

All instructor supplements will be available by September 30, 2026.
Homework system for this title will be live by September 30, 2026.

1.1 Comparing Managerial Accounting and Financial Accounting

1.2 How Managers Use Planning and Control Functions

1.3 Finance and Accounting Organizational Structure

1.4 Ethical Standards for Accountants

1.5 Computerized Accounting Systems

1.6 Cost Classifications

1.7 The Flow of Product Costs Through Inventory Accounts

1.8 Manufacturing Company Income Statement

1.9 End-of-Chapter Exercises

Chapter 2: How Do Organizations Use Job Costing to Track Production Costs?

2.1 Distinguishing Between Job Costing and Process Costing

2.2 Using a Job Costing System to Track Production Costs

2.3 Assigning Manufacturing Overhead Costs to Jobs

2.4 Using a Job Costing System in Service Organizations

2.5 Summary of Cost Flows and Profitability Analysis at Custom Furniture Company

2.6 End-of-Chapter Exercises

Chapter 3: How Do Organizations Use Activity-Based Costing to Allocate Overhead Costs?

3.1 Why Do Organizations Allocate Overhead Costs?

3.2 Plantwide and Department Allocation of Overhead Costs

3.3 Activity-Based Costing Allocation of Overhead Costs

3.4 Using Activity-Based Management to Improve Operations

3.5 Activity-Based Costing (ABC) and Activity-Based Management (ABM) in Service Organizations

3.6 Variations of Cost Allocation and Cost Analysis

3.7 End-of-Chapter Exercises

Chapter 4: How Do Organizations Use Process Costing to Track Production Costs?

4.1 Comparing Product Cost Flows for Job Costing and Process Costing

4.2 Product Cost Flows in a Process Costing System

4.3 How to Calculate Equivalent Units

4.4 Using the Weighted Average Method for Process Costing

4.5 Preparing a Production Cost Report

4.6 End-of-Chapter Exercises

Chapter 5: How Are Cost Behavior Patterns Used to Predict Costs?

5.1 How Costs Behave with Changes in Volume

5.2 Methods For Estimating Fixed and Variable Costs

5.3 Contribution Margin Income Statement

5.4 Relevant Range and Nonlinear Costs

5.5 Appendix: Regression Analysis Using Excel

5.6 End-of-Chapter Exercises

Chapter 6: How Is Cost-Volume-Profit Analysis Used to Make Decisions?

6.1 Cost-Volume-Profit Analysis for Single-Product Companies

6.2 Cost-Volume-Profit Analysis for Multiple-Product and Service Companies

6.3 Performing Sensitivity Analysis Using Cost-Volume-Profit Models

6.4 How Changes in Cost Structure Impact Cost-Volume-Profit Analysis

6.5 Using a Contribution Margin with Resource Constraints to Make Decisions

6.6 Performing Cost-Volume-Profit Analysis For Companies with Income Taxes

6.7 Using Variable Costing for Decision Making

6.8 End-of-Chapter Exercises

Chapter 7: How Are Relevant Revenues and Costs Used to Make Short-Term Decisions?

7.1 Using Differential Analysis to Make Short-Term Decisions

7.2 Using Differential Analysis for Make-or-Buy Decisions

7.3 Using Differential Analysis for Product Line Decisions

7.4 Using Differential Analysis for Customer Decisions

7.5 Review of Cost Terms Used in Differential Analysis

7.6 Using Differential Analysis for Special Order Decisions

7.7 Cost-Plus Pricing and Target Costing

7.8 Identifying and Managing Bottlenecks

7.9 Qualitative Factors to Consider for Decision Making

7.10 Appendix: Making Decisions Involving Joint Costs

7.11 End-of-Chapter Exercises

Chapter 8: How Is Capital Budgeting Used to Make Long-Term Decisions?

8.1 Using Capital Budgeting to Make Long-Term Decisions

8.2 Net Present Value (NPV)

8.3 Internal Rate of Return (IRR)

8.4 Issues Impacting NPV and IRR

8.5 Payback Method

8.6 Complexities of Estimating Cash Flows

8.7 Performing Capital Budgeting for Companies with Income Taxes

8.8 Appendix: Present Value Tables

8.9 End-of-Chapter Exercises

Chapter 9: How Do Organizations Create and Analyze Operating Budgets?

9.1 The Process of Planning and Controlling Operations

9.2 The Budgeting Process

9.3 Creating the Master Budget in a Manufacturing Organization

9.4 Creating the Master Budget in a Nonmanufacturing Organization

9.5 Ethical Issues in Creating Operating Budgets

9.6 End-of-Chapter Exercises

Chapter 10: How Is Cost Variance Analysis Used to Evaluate Performance?

10.1 Flexible Budgets and Cost Variance Analysis

10.2 Establishing Standard Costs to Control Operations

10.3 Using Direct Materials Variance Analysis to Evaluate Performance

10.4 Using Direct Labor Variance Analysis to Evaluate Performance

10.5 Using Variable Manufacturing Overhead Variance Analysis to Evaluate Performance

10.6 Determining Which Cost Variances to Investigate

10.7 Using Variance Analysis with Activity-Based Costing to Evaluate Performance

10.8 Using Fixed Manufacturing Overhead Variance Analysis to Evaluate Performance

10.9 Appendix: Recording Standard Costs and Variances

10.10 End-of-Chapter Exercises

Chapter 11: How Are Responsibility Centers Used to Evaluate Performance?

11.1 Reasons for Decentralizing an Organization

11.2 Controlling Decentralized Organizations

11.3 Using Segmented Income to Evaluate Investment Centers

11.4 Using Return on Investment (ROI) to Evaluate Investment Centers

11.5 Using Residual Income (RI) to Evaluate Investment Centers

11.6 Using Economic Value Added (EVA) to Evaluate Investment Centers

11.7 Wrap-Up of Chapter Example

11.8 Appendix: Using Transfer Pricing Between Divisions

11.9 End-of-Chapter Exercises

Chapter 12: How Is the Statement of Cash Flows Prepared and Used to Evaluate Performance?

12.1 Purpose of the Statement of Cash Flows

12.2 Three Categories of Cash Flow Activities

12.3 Preparing the Statement of Cash Flows in Four Steps

12.4 Preparing the Statement of Cash Flows Using the Indirect Method

12.5 Analyzing Cash Flow Information

12.6 Appendix: Preparing the Statement of Cash Flows Using the Direct Method

12.7 End-of-Chapter Exercises

Chapter 13: How Do Managers Use Financial and Nonfinancial Performance Measures?

13.1 Using Trend Analysis to Evaluate Financial Information

13.2 Using Common-Size Analysis to Evaluate Financial Information

13.3 Using Ratio Analysis to Evaluate Financial Information

13.4 Wrap-Up of Chapter Example

13.5 Nonfinancial Performance Measures: The Balanced Scorecard

13.6 End-of-Chapter Exercises

Appendix A: Student Resources

Instructor’s Manual

The Instructor’s Manual guides you through the main concepts of each chapter and important elements such as learning objectives, key terms, and key takeaways. Can include answers to chapter exercises, group activity suggestions, and discussion questions.

PowerPoint Lecture Notes

A PowerPoint presentation highlighting key learning objectives and the main concepts for each chapter are available for you to use in your classroom. You can either cut and paste sections or use the presentation as a whole.

Solutions Manual

For exercises that need a little more explanation, our Solutions Manual will take you step by step through solving the problem and offer explanations on the answer.

Test Item File

Need assistance in supplementing your quizzes and tests? Our test-item files (in Word format) contain many multiple-choice, fill-in-the-blank, and short-answer questions.

Sample Syllabi

Sample syllabi provide useful templates to help new faculty adopters revise their teaching plans to match their assigned FlatWorld textbook or lend insights to existing adopters on how to organize their classes.

Other Supplements

Solutions manuals, sample exams, video learning segments, workbooks, cases and lab manuals are just some of the extras our books will offer depending on the needs of the course. Click here to see what this textbook offers.

At FlatWorld, we take pride in providing a range of high-quality supplements alongside our titles, to help instructors teach effectively. Supplements are available for instructors who have registered their adoption with us. If you need to review or preview something specific, please contact us.

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Kurt Heisinger

Sierra College

Kurt Heisinger (CMA, CPA, MBA) teaches financial and managerial accounting full time and holds a tenured position at Sierra College. He recently received the Faculty of the Year award, which was voted on and presented by the Associated Students of Sierra College. Kurt has also taught accounting classes at the University of California at Davis, Sacramento City College, and American River College.

Kurt began his career in public accounting with Ernst & Young and continued as a manager of a large local accounting firm in Northern California. He received his MBA at the University of California at Davis and is a certified management accountant (CMA) and certified public accountant (CPA). The knowledge Kurt gained from his seven years in industry and more than twenty years in education has enabled him to write a clear and concise book aimed at students with a variety of backgrounds.

Joe Ben Hoyle

University of Richmond

Joe Hoyle is an Associate Professor of Accounting at the Robins School of Business at the University of Richmond. In 2006, he was named by Businessweek as one of 26 favorite undergraduate business professors in the United States. In 2007, he was selected as the Virginia Professor of the Year by the Carnegie Foundation for the Advancement of Teaching and the Council for the Advancement and Support of Education. In 2009, he was judged to be one of the 100 most influential members of the accounting profession by Accounting Today. In 2015, he was the inaugural recipient of the J. Michael and Mary Anne Cook Prize, recognized for consistently demonstrating the attributes of a superior teacher in the accounting discipline at an undergraduate level. Hoyle earned his BA degree in accounting from Duke University and his MA degree in business and economics, with a minor in education, from Appalachian State University. Hoyle also has three decades of experience operating his own CPA (Certified Public Accountant) Exam review programs. In 2008, he created CPA Review for Free (http://www.CPAreviewforFREE.com), which provides thousands of free questions to help accountants around the world prepare for the CPA Exam.