Managerial Accounting

Ray H. Garrison, D.B.A., CPA Professor Emeritus Brigham Young University Theresa Libby, Ph.D., CPA, CA University of Waterloo Alan Webb, Ph.D., FCPA, FCA University of Waterloo Eric W. Noreen, Ph.D., CMA (Co-Author, U.S. Edition) Professor Emeritus University of Washington Peter C. Brewer, Ph.D., CPA (Co-Author, U.S. Edition) Wake Forest University—Winston-Salem, North Carolina MANAGERIAL ACCOUNTING Tenth Canadian Edition Copyright © 2015, 2012, 2009, 2004, 2001, 1999 by McGraw-Hill Ryerson Limited. Copyright © 2012, 2010, 2008, 2006, 2003, 2000, 1997, 1994, 1991, 1988, 1985, 1982, 1979, 1976 by McGraw-Hill Education LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in a data base or retrieval system, without the prior written permission of McGraw-Hill Ryerson Limited, or in the case of photocopying or other reprographic copying, a license from The Canadian Copyright Licensing Agency (Access Copyright). For an Access Copyright license, visit www.accesscopyright.ca or call toll free to 1-800-893-5777. Statistics Canada information is used with the permission of Statistics Canada. Users are forbidden to copy the data and redisseminate them, in an original or modified form, for commercial purposes, without permission from Statistics Canada. Information on the availability of the wide range of data from Statistics Canada can be obtained from Statistics Canada’s Regional Offices, its World Wide Web site at www.statcan.gc.ca, and its toll-free access number 1-800-263-1136. The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Ryerson, and McGraw-Hill Ryerson does not guarantee the accuracy of the information presented at these sites. ISBN-13: 978-1-25-902490-0 ISBN-10: 1-25-902490-3 1 2 3 4 5 6 7 8 9 10 TCP 1 9 8 7 6 5 Printed and bound in Canada. Care has been taken to trace ownership of copyright material contained in this text; however, the publisher will welcome any information that enables it to rectify any reference or credit for subsequent editions. Director of Product Management: Rhondda McNabb Product Manager: Keara Emmett Executive Marketing Manager: Joy Armitage Taylor Product Developer: Amy Rydzanicz Senior Product Team Associate: Stephanie Giles Supervising Editor: Jessica Barnoski Photo/Permissions Editor: Indu Arora Copy Editor/Proofreader: Julia Cochrane Plant Production Coordinator: Sheryl MacAdam Manufacturing Production Coordinator: Lena Keating Cover Design: Katherine Strain Cover Image: Steven Hayes/Getty Images Interior Design: Katherine Strain Page Layout: Aptara®, Inc. Printer: Transcontinental Printing Group Library and Archives Canada Cataloguing in Publication Garrison, Ray H., author           Managerial accounting / Ray H. Garrison, D.B.A., CPA, Professor Emeritus, Brigham Young University, Theresa Libby, Ph.D., CPA, CA, University of Waterloo, Alan Webb, Ph.D., FCPA, FCA, University of Waterloo, Eric W. Noreen, Ph.D., CMA (Co-Author, U.S. Edition), Professor Emeritus, University of Washington, Peter C. Brewer, Ph.D., CPA (Co-Author, U.S. Edition), Wake Forest University—Winston-Salem, North Carolina. — Tenth Canadian edition. Revision of Managerial accounting / Ray H. Garrison . . . [et al.]. — 9th Canadian ed. — [Toronto]: McGraw-Hill Ryerson, [2011], ©2012. Includes bibliographical references and index. ISBN 978-1-25-902490-0 (bound) 1. Managerial accounting—Textbooks.  I. Libby, Theresa, 1963-, author  II. Webb, Alan (Professor), author  III. Noreen, Eric W., author  IV. Brewer, Peter C., author V. Title. HF5657.4.M38 2014                               658.15'11                              C2014-903642-6 Dedication To our families, and the students and instructors who will use this