Nelson Higher Education

Higher Education

Cornerstones of Managerial Accounting, 5th Edition

  • Maryanne M. Mowen
  • Don R. Hansen
  • Dan L. Heitger
  • ISBN-10: 1133943985
  • ISBN-13: 9781133943983
  • 800 Pages | Hardcover
  • Previous Editions: 2012, 2009, 2008
  • COPYRIGHT: 2014 Published
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About the Product

Get your students where they need to be with CORNERSTONES OF MANAGERIAL ACCOUNTING. Cornerstones delivers a truly unique learning system that is integrated through the entire introductory managerial accounting journey — ensuring students will leave the course with the knowledge they need to be future business leaders. Students are guided through: Building A Strong Foundation: Students need to build a strong foundation of the fundamentals before they can move forward in this course. The unique Cornerstones approach gets them through the fundamentals FASTER so that they can transition to analyzing and applying concepts. Understanding Relationships: Rather than focusing on concepts in isolation, students should understand accounting as a system and recognize how the end result changes based on how the numbers affect each other. CORNERSTONES aids students in this step as an important part in training them to be good decision makers. Making Decisions: Armed with the knowledge they have gained from working through the other aspects of the Cornerstones approach, students are now given the tools to bring their knowledge full-circle and practice making good business decisions. Students love this approach because it presents materials the way they learn. Instructors love it because it gets students to master the foundations more quickly and allows more time to learn and apply the analysis and decision making of accounting. Get There with Cornerstones! Available with InfoTrac® Student Collections


  • Carefully crafted in response to studies on student reading behavior and market research, the innovative Cornerstones approach has been proven to increase student engagement and preparedness while improving grades. Each major concept is illustrated in a Cornerstone, which supports accounting concepts with a compelling example, followed by step-by-step calculations to solve a business problem, and finally a link to a brief video segment that reinforces and summarizes key concepts and procedures. In addition, end-of-chapter Cornerstones Exercises refer to Cornerstones in the chapter, allowing students to consider relevant examples when completing assignments, something they highly value and that can help them become more independent learners as they work.

  • Each chapter opens with an Experience Managerial Decisions vignette that shows how real companies — including Hard Rock Cafe, Cold Stone Creamery, Washburn Guitars, Google, Apple, and more — are using accounting information to make better decisions. Featured companies are referenced throughout the chapter to emphasize the importance of managerial accounting concepts in the real world, and the vignettes are supported by engaging videos in the Experience Accounting Video Series.

  • Included in every chapter, a Here's the Real Kicker continuing case (based on author interviews with Stillwater Designs, a company that makes dynamic speaker systems and audio gear) features interesting anecdotes and engaging examples to show how real financial information is used to make strong business decisions in a working business context. Corresponding end-of-chapter Kicker Problems allow students to work with actual financial data and address real situations facing the company.

  • To succeed in today's business climate, students need to be able to analyze business situations thoughtfully and make informed, ethical decisions. The text weaves Ethical Decisions features throughout the chapters to encourage students to develop these essential skills and consider the ethical implications of their actions in every situation.

  • Engage your students with the Experience Accounting Video Series. These 14 videos focus on how progressive companies in the manufacturing and service sectors—including Hard Rock Cafe, Cold Stone Creamery, Washburn Guitars, Google, Apple, and more—incorporate managerial accounting to fuel better business performance. Critical thinking exercises accompany each video to test student comprehension and stimulate classroom discussion.


"The Cornerstone examples are excellent and helpful for the students."
— Courtney Greer Naismith, Collin College

About the Author

Maryanne M. Mowen

Maryanne M. Mowen is associate professor of accounting emerita at Oklahoma State University. She received her Ph.D. from Arizona State University. With degrees in economics and history, she brings a unique interdisciplinary perspective to teaching and writing in both cost accounting and management accounting. Her research interests include management accounting, behavioral decision theory, and Sarbanes-Oxley compliance. She also teaches an ethics course about the impact of Sarbanes-Oxley on the accounting profession. Dr. Mowen has published articles in journals such as Decision Science, Journal of Economic Psychology and Journal of Management Accounting Research. She has also served as a consultant to mid-sized and Fortune 100 companies and works with corporate controllers on management accounting issues. Currently, she advises entrepreneurs and nonprofit organizations. Outside the classroom, she enjoys hiking, travelling, reading mysteries and solving crossword puzzles.

Don R. Hansen

Dr. Don R. Hansen is professor emeritus of Oklahoma State University. He has an undergraduate degree in mathematics from Brigham Young University. He received his Ph.D. from the University of Arizona. Dr. Hansen has published articles in both accounting and engineering journals, including The Accounting Review, The Journal of Management Accounting Research, Accounting Organizations and Society, Accounting Horizons and IIE Transactions. He has also served on the editorial board of The Accounting Review. His outside interests include family, church activities, reading, movies and watching sports.

Dan L. Heitger

Dr. Dan L. Heitger is the Deloitte Professor of Accounting and Co-Director of the Center for Business Excellence at Miami University. He received his Ph.D. from Michigan State University and his undergraduate degree in accounting from Indiana University. He actively works with executives and students of all levels in developing and teaching courses in managerial accounting, business sustainability, risk management, stakeholder management, governance, and business reporting. He co-founded an organization that provides executive education for large international organizations. His interactions with business professionals, through executive education and the Center, allow him to bring a current and real-world perspective to his writing. His published research focuses on managerial accounting and risk management issues and has appeared in HARVARD BUSINESS REVIEW, BEHAVIORAL RESEARCH IN ACCOUNTING, ACCOUNTING HORIZONS, ISSUES IN ACCOUNTING EDUCATION, JOURNAL OF ACCOUNTANCY, and MANAGEMENT ACCOUNTING QUARTERLY. His outside interests include hiking with his family in the National Park system.

Table of Contents

1. Introduction to Managerial Accounting.
2. Basic Managerial Accounting Concepts.
3. Cost Behavior.
4. Cost-Volume-Profit Analysis: A Managerial Planning Tool.
5. Job-Order Costing.
6. Process Costing.
7. Activity-Based Costing and Management.
8. Absorption and Variable Costing, and Inventory Management.
9. Profit Planning.
10. Standard Costing: A Managerial Control Tool.
11. Flexible Budgets and Overhead Analysis.
12. Performance Evaluation and Decentralization.
13. Short-Run Decision-Making: Relevant Costing.
14. Capital Investment Decisions.
15. Statement of Cash Flows.
16. Financial Statement Analysis.

New to this edition

  • Addition of "Why" to Cornerstone Examples: Each Cornerstone now includes a "Why" portion, reinforcing for students the reasons behind doing the calculations.
  • Additional conceptual material in end-of-chapter: Additional Conceptual Connection questions are identified in the end-of-chapter content. These questions ask students to go beyond the calculations and articulate the conceptual context behind the work they've just completed and how that may impact a company's decision-making.
  • Additional Excel Spreadsheet Templates: To give students additional practice using Excel to complete their homework, each chapter will have an average of two additional templates.
  • Author-revised feedback: CengageNOW helps students get further outside the classroom and keeps them from getting stuck by providing them with meaningful, written feedback as they work. This edition, that feedback has been fully revised by the author team to guide students and to be consistent with material presented in the text.
  • Post-Submission Feedback: Also available in CengageNOW is the ability to show the full solution in addition to newly added source calculations to enhance the learning process. Now students can see where they may have gone wrong so that they can correct it through further practice.


All supplements have been updated in coordination with the Main title.
Please see Main title page for new to this edition information.

Instructor Supplements

Instructor's Resource CD-ROM  (ISBN-10: 1285055098 | ISBN-13: 9781285055091)

Place all of the key teaching resources you need at your fingertips with this all-in-one resource, which includes everything you need to plan, teach, grade, and assess student understanding and progress. This CD includes the Solutions Manual, Test Bank in Microsoft® Word and ExamView®, Microsoft PowerPoint® slides and Instructor's Manual. All resources on the IRCD are also available on the password protected portion of the text's web site.

Solutions Manual  (ISBN-10: 1285055071 | ISBN-13: 9781285055077)

Author-written and carefully verified multiple times to ensure accuracy and consistency with the text, the Solutions Manual contains answers to all Discussion Questions, Multiple-Choice Exercises, Cornerstone Exercises, Exercises, Problems, and Cases that appear in the text. These solutions help you easily plan, assign, and efficiently grade assignments. All solutions are given in simplified Excel spreadsheets and also available in PDF format. The Solutions Manual is available on the Instructor's Resources CD-ROM and on the password protected portion of the text's website.

Cengage Learning Write Experience 2.0 Powered by MyAccess with eBook, 1 term (6 months) Instant Access  (ISBN-10: 1285178246 | ISBN-13: 9781285178240)

Student Supplements

Cengage Learning Write Experience 2.0 Powered by MyAccess with eBook, 1 term (6 months) Instant Access  (ISBN-10: 1285178246 | ISBN-13: 9781285178240)

Successfully complete your accounting writing assignments with Write Experience 2.0. This innovative system scores your writing instantly and provides you with detailed revision goals and feedback to put you on track for writing excellence.