GLOBAL
EDITION
INTRODUCTION TO
MANAGEMENT
ACCOUNTING
SEVENTEENTH EDITION
CHARLES T. HORNGREN
GARY L. SUNDEM
DAVID BURGSTAHLER
JEFF SCHATZBERG
, SEVENTEENTH EDITION
GLOBAL EDITION
I n t ro d u c t i o n t o
Management
Accounting
Charles T. Horngren
Stanford University
Gary L. Sundem
University of Washington – Seattle
David Burgstahler
University of Washington – Seattle
Jeff Schatzberg
University of Arizona
,Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page of
appearance or in the Credits on pages.
Cover image by Ronsmith/Shutterstock
Pearson Education Limited
KAO Two
KAO Park
Hockham Way
Harlow
Essex
CM17 9SR
United Kingdom
and Associated Companies throughout the world
Visit us on the World Wide Web at: www.pearsonglobaleditions.com
© Pearson Education Limited 2023
The rights of Paul Newbold, William L. Carlson, and Betty M. Thorne, to be identified as the authors of this
work, have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
Authorized adaptation from the United States edition, entitled Introduction to Management Accounting, 16th Edition, ISBN 978-0-13-305878-9 by
Charles T. Horngren, Gary L. Sundem, David Burgstahler, and Jeff Schatzberg, published by Pearson Education © 2014.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying
in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any
trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such
owners. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and
Permissions department, please visit www.pearsoned.com/permissions/.
This eBook is a standalone product and may or may not include all assets that were part of the print version. It also does not provide
access to other Pearson digital products like MyLab and Mastering. The publisher reserves the right to remove any material in this
eBook at any time.
ISBN 10: 1-292-41256-9 (print)
ISBN 13: 978-1-292-41256-6 (print)
eBook ISBN 13: 978-1-292-41270-2 (uPDF)
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
1 23
Typeset in Times NR MT Pro by B2R Technologies Pvt. Ltd
, About the Authors
Charles T. Horngren was the Edmund W. Littlefield Professor of Accounting, emeritus,
at Stanford University. A graduate of Marquette University, he received his MBA from Harvard
University and his PhD from the University of Chicago. He also received honorary doctorates
from Marquette University and DePaul University.
A certified public accountant, Horngren served on the Accounting Principles Board, the
Financial Accounting Standards Board Advisory Council, and the Council of the American
Institute of Certified Public Accountants and served as a trustee of the Financial Accounting
Foundation, which oversees the Financial Accounting Standards Board and the Government
Accounting Standards Board. He is a member of the Accounting Hall of Fame.
Horngren served the American Accounting Association as its president and as director of
research. He received the association’s first annual Outstanding Accounting Educator Award. He
also received its Lifetime Contribution to Management Accounting Award.
The California Certified Public Accountants Foundation gave Horngren its Faculty
Excellence Award and its Distinguished Professor Award. He is the first person to have received
both awards. The American Institute of Certified Public Accountants presented him with its first
Outstanding Educator Award. He was also named Accountant of the Year, Education, by the
national professional accounting fraternity, Beta Alpha Psi.
Professor Horngren was a member of the Institute of Management Accountants, where he
received its Distinguished Service Award. He was a member of the Institute’s Board of Regents,
which administers the Certified Management Accountant examinations.
Horngren authored several other accounting books published by Prentice Hall: Cost
Accounting: A Managerial Emphasis, Introduction to Financial Accounting, Accounting, and
Financial Accounting. He was also the Consulting Editor for the Charles T. Horngren Series in
Accounting.
Gary L. Sundem is professor of accounting emeritus at the University of Washington,
Seattle. He received his BA from Carleton College and his MBA and PhD from Stanford
University.
Professor Sundem has served as President of the American Accounting Association,
Executive Director of the Accounting Education Change Commission, and Editor of The
Accounting Review. He is currently president of the International Association for Accounting
Education and Research.
Sundem is a past president of the Seattle chapter of the IMA (formerly the Institute of
Management Accountants). He has served on IMA’s national board of directors and chaired its
Academic Relations and Professional Development committees. He has chaired the AACSB’s
Accounting Accreditation Committee He currently serves on the Board of Trustees of Rainier
Mutual Funds and the Board of Trustees of Carleton College, where he chairs the audit committee.
He received the Carleton College Outstanding Alumni award in 2002.
Professor Sundem has numerous publications in accounting and finance journals including
Issues in Accounting Education, The Accounting Review, Journal of Accounting Research, and
Journal of Finance. He was selected as the Outstanding Accounting Educator by the American
Accounting Association in 1998 and by the Washington Society of CPAs in 1987.
3
EDITION
INTRODUCTION TO
MANAGEMENT
ACCOUNTING
SEVENTEENTH EDITION
CHARLES T. HORNGREN
GARY L. SUNDEM
DAVID BURGSTAHLER
JEFF SCHATZBERG
, SEVENTEENTH EDITION
GLOBAL EDITION
I n t ro d u c t i o n t o
Management
Accounting
Charles T. Horngren
Stanford University
Gary L. Sundem
University of Washington – Seattle
David Burgstahler
University of Washington – Seattle
Jeff Schatzberg
University of Arizona
,Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page of
appearance or in the Credits on pages.
Cover image by Ronsmith/Shutterstock
Pearson Education Limited
KAO Two
KAO Park
Hockham Way
Harlow
Essex
CM17 9SR
United Kingdom
and Associated Companies throughout the world
Visit us on the World Wide Web at: www.pearsonglobaleditions.com
© Pearson Education Limited 2023
The rights of Paul Newbold, William L. Carlson, and Betty M. Thorne, to be identified as the authors of this
work, have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
Authorized adaptation from the United States edition, entitled Introduction to Management Accounting, 16th Edition, ISBN 978-0-13-305878-9 by
Charles T. Horngren, Gary L. Sundem, David Burgstahler, and Jeff Schatzberg, published by Pearson Education © 2014.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying
in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any
trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such
owners. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and
Permissions department, please visit www.pearsoned.com/permissions/.
This eBook is a standalone product and may or may not include all assets that were part of the print version. It also does not provide
access to other Pearson digital products like MyLab and Mastering. The publisher reserves the right to remove any material in this
eBook at any time.
ISBN 10: 1-292-41256-9 (print)
ISBN 13: 978-1-292-41256-6 (print)
eBook ISBN 13: 978-1-292-41270-2 (uPDF)
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
1 23
Typeset in Times NR MT Pro by B2R Technologies Pvt. Ltd
, About the Authors
Charles T. Horngren was the Edmund W. Littlefield Professor of Accounting, emeritus,
at Stanford University. A graduate of Marquette University, he received his MBA from Harvard
University and his PhD from the University of Chicago. He also received honorary doctorates
from Marquette University and DePaul University.
A certified public accountant, Horngren served on the Accounting Principles Board, the
Financial Accounting Standards Board Advisory Council, and the Council of the American
Institute of Certified Public Accountants and served as a trustee of the Financial Accounting
Foundation, which oversees the Financial Accounting Standards Board and the Government
Accounting Standards Board. He is a member of the Accounting Hall of Fame.
Horngren served the American Accounting Association as its president and as director of
research. He received the association’s first annual Outstanding Accounting Educator Award. He
also received its Lifetime Contribution to Management Accounting Award.
The California Certified Public Accountants Foundation gave Horngren its Faculty
Excellence Award and its Distinguished Professor Award. He is the first person to have received
both awards. The American Institute of Certified Public Accountants presented him with its first
Outstanding Educator Award. He was also named Accountant of the Year, Education, by the
national professional accounting fraternity, Beta Alpha Psi.
Professor Horngren was a member of the Institute of Management Accountants, where he
received its Distinguished Service Award. He was a member of the Institute’s Board of Regents,
which administers the Certified Management Accountant examinations.
Horngren authored several other accounting books published by Prentice Hall: Cost
Accounting: A Managerial Emphasis, Introduction to Financial Accounting, Accounting, and
Financial Accounting. He was also the Consulting Editor for the Charles T. Horngren Series in
Accounting.
Gary L. Sundem is professor of accounting emeritus at the University of Washington,
Seattle. He received his BA from Carleton College and his MBA and PhD from Stanford
University.
Professor Sundem has served as President of the American Accounting Association,
Executive Director of the Accounting Education Change Commission, and Editor of The
Accounting Review. He is currently president of the International Association for Accounting
Education and Research.
Sundem is a past president of the Seattle chapter of the IMA (formerly the Institute of
Management Accountants). He has served on IMA’s national board of directors and chaired its
Academic Relations and Professional Development committees. He has chaired the AACSB’s
Accounting Accreditation Committee He currently serves on the Board of Trustees of Rainier
Mutual Funds and the Board of Trustees of Carleton College, where he chairs the audit committee.
He received the Carleton College Outstanding Alumni award in 2002.
Professor Sundem has numerous publications in accounting and finance journals including
Issues in Accounting Education, The Accounting Review, Journal of Accounting Research, and
Journal of Finance. He was selected as the Outstanding Accounting Educator by the American
Accounting Association in 1998 and by the Washington Society of CPAs in 1987.
3
