Cost and Managerial Accounting in Government and Nonprofit Organizations

1. Introduction and Background Discussion

Contextual Framework
Relationship with Other Disciplines
A Brief Historical Development
Cost, Financial, and Managerial Accounting
Rules of Cost Commitment
Cost Accounting Standards
Cost Reporting and Audit
Ethics in Cost Accounting
Chapter Summary
Notes
Review Questions
References

Part I: Cost Basics

2. Cost Terms and Concepts
What is Cost?
Cost Classification
Cost, Expense, and Expenditure
Cost and Depreciation
Accelerated Depreciation
Other Methods of Depreciation
Chapter Summary
Notes
Review Questions
References

3. Price and Rate Structure of Cost
Pricing Strategies
Pricing Methods
Pricing Methods in Nonprofit Organizations
Rate Structure of Cost
Cost and Inflation
Municipal Cost Index
Chapter Summary
Notes
Review Questions
References

4. Cost Behavior and Estimation
Time Frame of Costs
Elasticity of Cost
Properties of Cost Functions
Cost Estimation
Cost Forecasts
Chapter Summary
Notes
Review Questions
References

Chapter 5: Break-Even Analysis
Background Discussion
Linear Break-Even Analysis
Nonlinear Break-Even Analysis
Chapter Summary
Notes
Review Questions
References

Chapter 6: Differential Analysis
Differential Cost Analysis
Buy or Lease
Benefit-Cost Analysis
Life-Cycle Costing
Chapter Summary
Notes
Review Questions
References

Part II: Cost Accounting Methods

Chapter 7: Job Costing
Cost Accounting System
Job Costing
Multiple Jobs
Variable vs. Absorption Costing
Batch Costing
Chapter Summary
Notes
Review Questions
References

Chapter 8: Contract Costing
Government Contracts
Characteristics of Contract Costing
Types of Contracts
Contracting Process
Contract Costing Standards
Contract Accounting Reports
Contract Performance Management
Active Contract Management
Nonprofit Contracts
Chapter Summary
Notes
Review Questions
References

Chapter 9: Process Costing
Process Costing vs. Job Costing
Process Costing Process
Cost Schedules
Joint Costing
Hybrid Costing
Process Loss and Wastes
Chapter Summary
Notes
Review Questions
References

Chapter 10: Cost Allocation
Cost Allocation Process
Methods of Cost Allocation
Returning to the Example
Cost Allocation and Normal Operating Costs
Dealing with Indirect Costs
Chapter Summary
Notes
Review Questions
References

Chapter 11: Activity-Based Costing
Background Discussion
ABC Process
Time-Driven Activity-Based Costing
Performance-Based Activity-Based Costing
Activity-Based Management
Chapter Summary
Notes
Review Questions
References

Part III: Cost Management and Control

Chapter 12: Standard Costing, Variance Analysis, and Cost Internal Control
The Need for Cost Control
Standard Costing
Variance Analysis
Ratio Analysis
Cost-Performance Index
Cost Status Report
Cost Internal Control
Chapter Summary
Notes
Review Questions
References

Chapter 13: Quality Control and Related Measures
Defining Quality
Variations in Quality
Use of Control Charts
Types of Control Charts
Process Capability
Other Measures of Quality Control
Quality Assurance
Quality Engineering
Costs in Quality Control
Total Quality Management
Chapter Summary
Notes
References

14: Budgeting for Planning and Control
Planning and Budgeting
Budget Process
Budget Forecasts
Operating Budget
Budget Structure
Implementation Strategies
Capital Budget
Flexible Budgets
Chapter Summary
Notes
Review Questions
References

Chapter 15: Emerging Trends
Organizational Dynamics
Emerging Trends
Likely Challenges
Other Considerations
Chapter Summary
Review Questions
References

Appendix A
Appendix B
Appendix C
Bibliography
Index

Biography

Aman Khan is Professor of Political Science and Public Administration at Texas Tech University, USA, where he teaches public budgeting, financial management, and cost and managerial accounting in government and nonprofit organizations. He is the author and co-author of several dozen publications in professional journals and edited volumes, including seven books. His most recent publications include US Infrastructure: Challenges and Directions for the 21st Century (with Klaus Becker, Routledge, 2019) and Fundamentals of Public Budgeting and Finance (2024). Trained as an economist and planner, Dr. Khan previously served as Director of the Graduate Program in Public Administration at Texas Tech University and also taught graduate finance at a business school. Dr. Khan is the founder and current Director of the Institute of Governmental Finance, which provides professional training to elected officials and middle- and upper-level managers in government.