Financial & Managerial Accounting for Decision Makers is a dual-course textbook used in financial and managerial accounting courses. We tutor both courses and cover the difference between financial accounting and managerial accounting here. Hanlon, Magee, Pfeiffer, and Dyckman wrote Financial & Managerial Accounting for Decision Makers. Some editions also have Al L. Hartgraves and Wayne J. Morse as authors. Business schools use this textbook as the required textbook or recommended textbook for graduate or undergraduate programs. This financial accounting and cost accounting textbook is not only a comprehensive textbook but is also very up-to-date, using the most recent financial statements. To illustrate, students encounter actual financial statements of over 20 companies in the fifth edition of the textbook published in 2024.
GraduateTutor.com offers one-on-one private accounting tutoring for this popular accounting textbook, Financial & Managerial Accounting for Decision Makers , by Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse, ensuring students grasp the essential topics in accounting. Financial & Managerial Accounting for Decision Makers is published by Cambridge Business Publishers. This page explores the features, structure, and relevance of Financial & Managerial Accounting for Decision Makers written by Hanlon, Magee, Pfeiffer, and Dyckman.Other Accounting Textbooks by Hanlon, Magee, Pfeiffer, and Dyckman.
- Why We Offer Tutoring for Financial & Managerial Accounting for Decision Makers by Hanlon, Magee, Pfeiffer, and Dyckman.
- Teaching Plan / Structure of Financial & Managerial Accounting for Decision Makers
- Other Accounting Textbooks by Hanlon, Magee, Pfeiffer, and Dyckman
- Various Editions of Financial & Managerial Accounting for Decision Makers
- Financial & Managerial Accounting for Decision Makers: Authors
- Accounting Tutoring for “Financial & Managerial Accounting for Decision Makers”
Why We Offer Tutoring for Financial & Managerial Accounting for Decision Makers by Hanlon, Magee, Pfeiffer, and Dyckman.
We love Financial & Managerial Accounting for Decision Makers because it is a dual course textbook. This textbook, written by Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse, is used in both financial accounting and managerial accounting courses separately, as well as combination courses at the introductory accounting level.
Students can appreciate the principles of financial accounting and the processes of building the three financial statements from a reporting perspective, as well as the cost accounting concepts and its managerial decision-making aspects in one textbook.
Another reason is that this textbook familiarises students with real-world financial statements. Over the course of the textbook, students encounter over 20 companies’ financial statements.
This textbook, Financial & Managerial Accounting for Decision Makers, is written by Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse, it does not hide the complexities of accounting but still makes it accessible for students. Our accounting tutors provide live one-on-one tutoring services to help MBA students understand the various financial accounting, financial statement analysis, cost accounting, budgeting, and strategic decision-making concepts they will encounter in this course. Our accounting tutors help students grasp the financial and managerial accounting concepts and apply them to their coursework and assignments.
Teaching Plan / Structure of Financial & Managerial Accounting for Decision Makers
The textbook is structured well so that professors can organize their courses by topic depending on the length of their semesters. The first part of the textbook focuses on financial accounting. The second part of the textbook covers managerial accounting.
Part 1: Financial Accounting Chapters
Chapter 1 of the Financial & Managerial Accounting for Decision Maker’s textbook provides students with a broad introduction to financial accounting, starting with who uses financial statements, the different types of financial statements, etc. Authors Hanlon, Magee, Pfeiffer, and Dyckman use Nike’s financial statements to drive home the introductory financial accounting concepts.
In Chapter 2, titled Constructing Financial Statements, authors Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse introduce students to the process of preparing financial statements. Students dive into understanding the balance sheet, income statement, and statement of cash flows and use Walgreen’s financial statements as examples. Here, students learn about T-accounts, journal entries, etc.
Chapter 3 of the Financial & Managerial Accounting for Decision Makers textbook deals with adjusting entries and continues with Walgreens’s financials. This chapter explains the need to adjust accounts at the end of an accounting period to ensure compliance with the accrual concept in financial reporting.
Chapter 4 of the textbook Financial & Managerial Accounting for Decision Makers introduces students to the cash flow statements. Authors Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse use CVS Health financial statements to teach students how cashflows are reported and how to analyze cash flow statements to evaluate a company’s liquidity and financial health.
Students are introduced to the different tools and techniques for analyzing financial statements in Chapter 5. Pepsi’s financial statements are used to demonstrate financial ratio analysis and how to evaluate a company’s profitability, liquidity, solvency, etc. Here, students are also taught how to forecast financial statements using historical financial statements and ratio analysis.
Chapter 6 of the Financial & Managerial Accounting for Decision Maker’s textbook is titled Reporting and Analyzing Revenues, Receivables, and Operating Income. This chapter goes deeper in the rules and concepts around revenue recognition, accounting for receivables, etc. It also shows students how to evaluate operating income to measure a company’s financial performance using Microsoft’s financial statements.
In Chapter 7, authors Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse focus on reporting and analyzing inventory using Home Depot’s annual report. Students review different inventory accounting methods, including LIFO and FIFO, and their implications, such as the LIFO reserve and liquidation.
P&G is used as an example company in Chapter 8 to teach students about the accounting challenges in reporting and analyzing long-term operating assets. This chapter of the Financial & Managerial Accounting for Decision Makers textbook examines the acquisition, depreciation, and disposal of long-term operating assets and their effects on financial performance.
Chapter 9 of the Financial & Managerial Accounting for Decision Makers textbook uses Verizon to teach students Reporting and Analyzing Liabilities. Still, in the financial accounting side of things, this chapter discusses rules related to recognizing, measuring, and analyzing current liabilities, such as payables, and long-term liabilities, such as bonds and loans.
In Chapter 10, authors Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse cover the reporting and analyses of leases, pensions, income taxes, and commitments and contingencies. This chapter provides an in-depth look at complex accounting topics such as lease agreements, pension obligations, deferred taxes, and contingent liabilities using John Deere’s financial statements.
Chapter 11 of the Financial & Managerial Accounting for Decision Makers, written by Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse, covers reporting and presentation of the stockholders’ equity section of a balance sheet. Using Pfizer’s balance sheet, MBA students learn about stockholders’ equity accounts, including stock issuance, dividends, and treasury stock, and their impact on financial ratios.
The ever-hot company Google, now Alphabet, is used as an example in Chapter 12 of the Financial & Managerial Accounting for Decision Makers textbook to discuss the rules regarding financial investments. This is important given the recent changes in rules regarding accounting for investments in securities, including equity and debt investments, and their valuation on financial statements -as well as the categorization of held-to-maturity securities, trading securities, control, and significant influence.
Part 2: Cost / Managerial Accounting Chapters
Part 2 of the Financial & Managerial Accounting for Decision Makers, written by Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse, covers the cost / managerial accounting topics. In chapter 13, the authors introduce students to the difference between financial accounting and managerial accounting. Then, the authors Hanlon, Magee, Pfeiffer, and Dyckman cover Managerial Accounting and discuss the objectives of management and managerial accounting using Warby Parker’s financial statements.
Chapter 14 starts students off on the technical aspects of managerial accounting. Here, using Block Inc., the authors introduce cost centers, cost behavior, activity analysis, and cost estimation. This chapter in the Financial & Managerial Accounting for Decision Makers textbook explains how costs behave in response to changes in activity levels and introduces methods for estimating and analyzing costs.
Cost-volume-profit analysis (CVP analysis) and Planning are introduced in Chapter 15 of the Financial & Managerial Accounting for Decision Makers textbook. Students learn how to use cost-volume-profit analysis to understand the relationships between costs, sales, and profits using Razon USA as an example.
In chapter 16, authors Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse teach students relevant costs and differential analysis for decision-making using the popular company Boston Beer! The focus is on identifying relevant costs for decision-making and using differential analysis to evaluate business alternatives.
In Chapter 17, the authors introduce the importance of product costing for a company’s success. This chapter describes different types of operational processes accounting, including job, continuous, multiple product and process operations, etc. It introduces how job order and process costing systems allocate costs to products in different production environments, using Samsung as an example.
Chapter 18 of the Financial & Managerial Accounting for Decision Makers textbook covers Activity-Based Costing (ABC costing), customer profitability, and activity-based management. Students explore activity-based costing methods and their use in assessing customer profitability and improving operational efficiency using Uniliver.
In chapter 19, authors Hanlon, Magee, Pfeiffer, and Dyckman cover additional topics in product costing using Whole Foods. Advanced product costing topics such as service costing, Just-In-Time (JIT) inventory management/lean production, allocation issues, excess capacity, etc., are discussed in chapter 19 of the Financial & Managerial Accounting for Decision Makers textbook.
Potbelly is the company in focus in Chapter 20, where the authors introduce the all-important topic of pricing. : Decision-Making: Pricing and Product Cost Management
The chapter examines how pricing decisions are influenced by cost management strategies. It also highlights the link between product costs and the company’s strategy. Topics include cost-based pricing, value-based pricing, price-based costing, etc.
Chapter 21 of the Financial & Managerial Accounting for Decision Maker’s textbook goes into operational budgeting and profit planning topics. Students learn about the different types of budgets, the process of preparing operational budgets, and how they support profit planning and performance evaluation.
In chapter 22, authors Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse introduce variance analysis. Students learn about standard costs, performance reports, static budgets, flexible budgets, and the many kinds of variance analysis used in performance and efficiency management. using Samsonite as the company in focus.
Chapter 23 discusses performance measurement using segment reporting, transfer pricing, balanced scorecard, etc. The authors Hanlon, Magee, Pfeiffer, Dyckman, Hartgraves and Morse introduce advanced performance measurement techniques, including segment reporting, transfer pricing, balanced scorecard, investment analysis including RoI, RoA, RoE, residual income, EVA – economic value add, etc., using Volkswagen as the company in focus. Our finance tutors and accounting tutors cover these topics.
Finally, Chapter 24 of the Financial & Managerial Accounting for Decision Makers textbook deals with Capital Budgeting Decisions. Amazon is the company in focus. Other long-term investment decision tools, such as net present value, internal rate of return, and payback analysis, are covered in Chapter 24.
Various Editions of Financial & Managerial Accounting for Decision Makers
“Financial & Managerial Accounting for Decision Makers” by Hanlon, Magee, Pfeiffer, and Dyckman has been published in multiple editions, each incorporating updates to enhance its relevance and effectiveness:
- The First Edition, published in 2011, introduced a comprehensive approach to integrating financial and managerial accounting concepts that are tailored for decision-makers.
- The Second Edition, written in 2014, Included updated accounting standards and expanded coverage of real-world applications to reflect the evolving business environment.
- The Third Edition of “Financial & Managerial Accounting for Decision Makers” was published in 2017 and enhanced focus on data analytics and its role in accounting, along with the introduction of new end-of-chapter exercises.
- The Fourth Edition, published in 2020, incorporated the latest changes in accounting regulations and standards and added more on ethical considerations in accounting practices.
- The Fifth Edition of “Financial & Managerial Accounting for Decision Makers” was published in 2024 and added new co-authors Susan Kulp and Amie Dragoo. Interactive digital resources branded as myBusinessCourse integration were added.
Other Accounting Textbooks by Hanlon, Magee, Pfeiffer, and Dyckman
Authors Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman, Al L. Hartgraves and Wayne J. Morse have written other accounting textbooks over the years. Two of the popular textbooks are:
Financial Accounting: This textbook provides a comprehensive introduction to financial accounting. Unlike Financial & Managerial Accounting for Decision Makers, which covers financial and cost accounting, the Financial Accounting book only focuses on financial accounting principles, uses of financial accounting, and the processes involved in preparing financial statements.
Professor Michelle Hanlon has also published an Intermediate Accounting textbook with other authors, Leslie Hodder, Karen K. Nelson, Darren Roulstone, and Amie L. Dragoo. This book is for more advanced financial accounting courses, whereas the Financial and Managerial Accounting for Decision Makers by Hanlon, Magee, Pfeiffer, and Dyckman applies to more introductory-level courses.
Professor Glenn Pfeiffer has published three accounting textbooks, an accounting casebook, and numerous case studies in financial accounting and reporting.
Financial & Managerial Accounting for Decision Makers: Authors
The authors of Financial & Managerial Accounting for Decision Makers bring a wealth of expertise to this textbook, addressing the dual perspectives of accounting: financial reporting for external stakeholders and managerial decision-making for internal purposes.
Professor Michelle Hanlon is a distinguished professor and renowned expert in financial accounting, currently serving as the Howard W. Johnson Professor and head of the Accounting group at the MIT Sloan School of Management. Her research primarily focuses on the intersection of taxation and financial accounting, exploring topics such as corporate tax policy, tax avoidance, and the influence of tax-related decisions on financial reporting and firm value. Hanlon’s work has been widely published in leading academic journals, including The Accounting Review, Journal of Accounting and Economics, and Journal of Financial Economics
Professor Robert Magee is a distinguished scholar and professor emeritus at Northwestern University’s Kellogg School of Management, where he served as a professor of accounting and information systems. Known for his expertise in managerial accounting and decision-making, Magee has made significant contributions to the academic and practical understanding of how accounting information supports business strategy and operations. His research has been published in leading journals, including The Accounting Review and Journal of Accounting Research, focusing on performance measurement, cost management, and the use of accounting data in decision-making.
Thomas Pfeiffer is a highly regarded academic and author specializing in accounting and finance, with a focus on managerial accounting and cost analysis. His work emphasizes the application of accounting principles to enhance decision-making and improve business performance. Pfeiffer is a co-author of the influential textbook Financial & Managerial Accounting for Decision Makers, where he contributes his expertise in performance measurement, budgeting, and activity-based costing. His ability to translate complex accounting concepts into practical tools for students and professionals has made him a respected figure in the field. Pfeiffer’s research and teaching have had a lasting impact on how accounting is understood and applied in modern business contexts, particularly in the areas of operational efficiency and financial strategy.
Professor Glenn M. Pfeiffer did his M.S. in Finance and Ph.D. in Accounting from Cornell University. Professor Pfeiffer’s research focuses on accounting disclosures and capital markets. He has investigated issues relating to financial reporting of leases, inventories and earnings per share, fair value disclosures, executive compensation, corporate reorganization, etc. He has published peer-reviewed research articles in several accounting, finance, economics, and management academic journals.
Professor Pfeiffer teaches financial accounting and financial analysis to undergraduate, MBA, Executive MBA, and Law students. Prior to joining the faculty at the Argyros School, he held faculty appointments at the University of Washington, the University of Chicago, the University of Arizona, and San Diego State University.
Professor Thomas R. Dyckman is the Ann Whitney Olin Professor of Accounting Emeritus at Cornell University. Professor Thomas Dyckman is known for his work in financial and managerial accounting. He served for years at the SC Johnson College of Business. Two of his well recognized paper are Efficient Capital Markets and Accounting: A Critical Analysis (with David Downs and Robert Magee) and Empirical Research in Accounting.
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