Nelson Higher Education

Higher Education

Cornerstones of Cost Accounting, 1st Edition

  • Don Hansen
  • Maryanne Mowen
  • George Gekas
  • David McConomy
  • ISBN-10: 0176500936
  • ISBN-13: 9780176500931
  • 0 Pages | Hardcover
  • COPYRIGHT: 2013 Published
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About the Product

Get your students where they need to be with CORNERSTONES. Cornerstones is the only text that delivers a truly unique learning system through the entire journey of introductory accounting—ensuring they will leave the course with the needed elements to be future business leaders. The unique Cornerstones pedagogy, carefully crafted from the ground up, is at the heart of this text, providing consistent step-by-step examples to help students solve fundamental calculations. There is a “Cornerstone” for every major calculation in the book, serving as a “How To” guide. When students are able to master the foundations of cost accounting, it is easier to understand the greater context in the business world.


  • Companion Website Visit for additional resources, including spreadsheet templates, self-testing review quizzes, glossary terms, flashcards, and the Cornerstones video podcasts. The Cornerstones Learning System is based on how students learn accounting today. This system incorporates the following key features: The actual Cornerstones within the chapters—unique to this family of texts, the Cornerstones references within the end-of-chapter Cornerstones Exercises, the summary of Cornerstones at the end of each chapter, with page references, online reinforcement of Cornerstones concepts with video podcasts at

About the Author

Don Hansen

Don R. Hansen is Arthur Andersen Professor of Accounting and a Regents Service Professor at Oklahoma State University. He received his Ph.D. from the University of Arizona in 1977. He has an undergraduate degree in mathematics from Brigham Young University. His research interests include activity-based costing and mathematical modeling. He has published articles in both accounting and engineering journals including The Accounting Review, The Journal of Management Accounting Research, Accounting Horizons, and IIE Transactions. He has served on the editorial board of The Accounting Review. His outside interests include family, church activities, reading, movies, and watching sports.

Maryanne Mowen

Maryanne M. Mowen is Associate Professor Emerita of Accounting at Oklahoma State University. She currently teaches online classes in cost and management accounting for Oklahoma State University. She received her Ph.D. from Arizona State University. She brings an interdisciplinary perspective to teaching and writing in cost and management accounting, with degrees in history and economics. She has taught classes in ethics and the impact of the Sarbanes-Oxley Act on accountants. Her scholarly research is in the areas of management accounting, behavioral decision theory, and compliance with the Sarbanes-Oxley Act. She has published articles in journals such as Decision Science, The Journal of Economics and Psychology, and The Journal of Management Accounting Research. Dr. Mowen has served as a consultant to mid-sized and Fortune 100 companies and works with corporate controllers on management accounting issues. She is a member of the Northern New Mexico chapter of SCORE and serves as a counselor, assisting small and start-up businesses. Outside the classroom, she enjoys hiking, traveling, reading mysteries, and working crossword puzzles.

George Gekas

Dr. Gekas is a Management Accountant (CMA), a FCMA and he is actively involved in the Society of Management Accountants of Ontario where he held a number of important positions. Currently he is serving as Chair of the Complaints Committee Recently; he was appointed CMA in residence at the Ted Rogers School of Business Management the first of such appointment in Canada awarded the prestigious FCMA designation. Dr. Gekas’ active research program includes several research projects, grants, and a number of articles in a wide variety of business topics, teaching aids and manuals. His expertise covers the entire financial management spectrum with a special emphasis in Management Accounting strategic management, operational efficiency, accountability, and corporate performance. As a university educator and educational administrator, Professor Gekas has been involved in a variety of capacities in a number of post-secondary educational projects and is fully immersed in the issues facing Canadian postsecondary institutions and universities. Dr. Gekas has also a genuine interest in issues of community and social development.

David McConomy

After qualifying as a Chartered Accountant with Arthur Andersen & Co. in Toronto, Mr. McConomy's thirty year career in business has focused on the Finance and Accounting requirements of small to medium sized businesses. He has gained considerable experience assisting young companies, mainly in the technology field, in strategic planning and corporate finance. As Chief Financial Officer of Systemhouse Ltd. (which was later sold to MCI and subsequently to EDS), he was instrumental in the process of taking that company public. During his tenure with Systemhouse, revenues rose from $16.5 million to in excess of $100 million. While with Antares Electronics Inc., he raised $20 million (through venture capital investments, sale and leaseback transactions and restructuring bank lines of credit) to enable the company to become one of Profit Magazine's fastest growing companies, as revenues increased over a three year period from $36 million to $100 million. Latterly, he assisted ComentiX Computer Systems Inc. to become a public company and to raise funds from a variety of sources to fund its growth. He is currently Assistant Professor at Queen’s School of Business. Since joining the Queen’s Faculty in 2001, he has won numerous Faculty Teaching Awards and prides himself in engaging with the students both within the classroom and outside of it. Mr. McConomy is the Director of the Queen’s Graduate Diploma in Accounting program. He has taught accounting, financial management and business strategy (at the undergraduate and MBA levels) on both a full time and part time basis at Queen's University, University of Ottawa and, internationally, in association with the Academy of Economic Studies in Bucharest, Romania and in Beijing, China.

Table of Contents

Part One: Planning
Chapter 1: Basic Cost Management Concepts
Chapter 2: Cost Behaviour
Chapter 3: Cost-Volume-Profit Analysis
Chapter 4: Job-Order Costing Systems

Part Two: Costing
Chapter 5: Process Costing
Chapter 6: Activity-Based Costing
Chapter 7: Allocating Costs of Support Departments and Joint Products
Chapter 8: Budgeting for Planning and Control
Chapter 9: Standard Costing: A Functional-Based Control Approach
Chapter 10: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Part Three: Control
Chapter 11: Tactical Decision Making
Chapter 12: Pricing and Profitability Analysis
Chapter 13: Strategic Cost Management
Chapter 14: Activity-Based Management

Part Four: Strategic Cost Management
Chapter 15: The Balanced Scorecard: Strategic-Based Control
Chapter 16: Quality and Environmental Cost Management
Chapter 17: Lean Accounting and Productivity Measurement
Chapter 18: Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints (WEB ONLY)

New to this edition

  • The Canadian edition has been divided into four Parts: Planning, Costing, Control, and Strategic Cost Management. Each Part now contains an opening page which details the concepts covered within, and closes with a Comprehensive Problem that uses concepts from all chapters within the Part.
  • Chapters in the Canadian edition have been significantly reorganized, in order to better reflect the sequence in which Canadian instructors teach, and to group like topics in a more logical order. We have: reduced the number of chapters from 20 to 18 (Chapter 18 will appear online only), dropped US Chapter 19 (Capital Investment), combined US Chapters 1 and 2, with Chapter 2 used as the base chapter; content has been streamlined
  • The number of Cornerstones boxes has been reduced to avoid redundancy/unnecessary material (5 fewer in our Canadian edition). See the attached Cornerstones box list for further details.
  • Figures have been combined where possible, to a full concept in a single location (e.g., traditional, flexible, and activity-based budgets in Chapter 8; 3 figures are now 1).
  • Headings have been revised throughout, to more accurately reflect the content found under each.
  • Cyber Research Cases (involve Internet research; 1 per chapter) are being moved from the end-of-chapter pedagogy to the Web.
  • A number of Canadian examples have been included throughout the text (mostly within “Real World Example” boxes). Companies/institutions include Canada Post, Bombardier, RIM, Magna, Toronto Maple Leafs, Air Canada, Porter Airlines, Petro Canada, and the Canadian Institute of Chartered Accountants.
  • Cost accumulation content has been added to Chapter 1, and repetitive activity-based costing content/problems removed (covered in Chapter 6).
  • Greater emphasis has been placed on the “why” of process costing in Chapter 5; challenging exhibits in this chapter have been modified for easier understanding.
  • Focus on product costing emphasized in introduction to Chapter 9.
  • Each chapter now contains CMA Problems (added to chapters where previously missing).


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

Instructor Supplements

Instructors' Resource CD for Cornerstones of Cost Accounting  (ISBN-10: 0176633456 | ISBN-13: 9780176633455)

Instructor’s Resource CD Key instructor ancillaries are provided on the Instructor’s Resource CD (ISBN 0-17-663345-6), offering instructors the ultimate tool for customizing lectures and presentations. The IRCD includes the following: