This was Chapter 7 in the eighth edition and has been revised and updated. This was Chapter 8 in the eighth edition and has been revised and updated. This new chapter covers activity-based costing. The ABC material in the book has been completely rewritten to emphasize decision making in both service and manufacturing companies. The balanced scorecard has been added to the chapter and integrated with the material on operating performance measures.
Much greater emphasis is given to the control of overhead costs in service companies.
The chapter has been reorganized. The discussion of decentralization now comes first, followed by the segment margin. The transfer pricing appendix has been completely rewritten with a new approach based on the economics of negotiated transfer prices. The preference ranking material that was previously in Chapter 15 has been brought forward to Chapter 14. Chapter 18 Trend analysis now includes time-series plots of data.