Title: A Critical Review of Cost Accounting: Planning and Control (9th Edition) by Matz and Usry: A Foundational Text in Managerial Accounting
Abstract This paper provides a comprehensive analysis of the 9th edition of Cost Accounting: Planning and Control by Adolph Matz and Milton F. Usry. For decades, this text served as a cornerstone of accounting education, bridging the gap between theoretical cost accumulation and practical managerial control. This review examines the book’s structural organization, its treatment of job-order and process costing, the integration of standard costing and variance analysis, and the now-historic perspective it provides on quantitative methods. The paper argues that while subsequent editions and modern texts have adapted more aggressively to the digital age and Activity-Based Costing (ABC), the 9th edition remains a critical reference for understanding the foundational mechanics of cost accounting systems. cost accounting matz usry 9th edition pdf
Before discussing the 9th edition, it is crucial to appreciate the authors' authority. Adolph Matz was a professor at the Wharton School of the University of Pennsylvania. Milton F. Usry was a dean at the University of West Florida and a former president of the National Association of Accountants (now IMA). Title: A Critical Review of Cost Accounting: Planning
Their textbook, simply titled Cost Accounting, dominated the market from the 1960s through the 1990s. Unlike competitors that focused purely on manufacturing, Matz and Usry introduced concepts like activity-based costing (ABC) and just-in-time (JIT) in their early forms. The 9th edition, published in the mid-1990s by South-Western Educational Publishing, was the last edition to carry the full spirit of the original authors before newer editions diluted their voice with multiple co-authors. Chapter 1: The Historical Context – Who Were Matz and Usry
For many Certified Management Accountant (CMA) candidates of the 1990s, this book was their bible.
The text provides exhaustive coverage of job order costing and process costing. The 9th edition excels in detailing the nuances of manufacturing overhead application. The authors present complex scenarios regarding the allocation of service department costs to production departments, utilizing methods such as the direct method, the step-down method, and the reciprocal allocation method. These chapters are critical for understanding how overhead distorts product costs if not allocated scientifically—a concept that laid the groundwork for later developments in Activity-Based Costing (ABC).