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Previews: About the Author Charles T. Horngren is 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 Ph.D. from the University of Chicago. He is also the recipient of honorary doctorates from Marquette University and DePaul University. A Certified Public Accountant, Horngren served on the Accounting Principles Board for six years, the Financial Accounting Standards Board Advisory Council for five years, and the Council of the American Institute of Certified Public Accountants for three years. For six years, he served as a trustee of the Financial Accounting Foundation, which oversees the Financial Accounting Standards Board and the Government Accounting Standards Board. Horngren is a member of the Accounting Hall of Fame. A member of the American Accounting Association, he has been its President and its Director of Research. He received its first annual Outstanding Accounting Educator 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 its first Outstanding Educator Award to Horngren. Horngren was named Accountant of the Year, Education, by the national professional accounting fraternity, Beta Alpha Psi. Professor Horngren is also a member of the Institute of Management Accountants, from whom he received its Distinguished Service Award. He was also a member of the Institutes’ Board of Regents, which administers the Certified Management Accountant examinations. Horngren is the author of other accounting books published by Prentice Hall: Introduction to Management Accounting, 13th ed. (2005, with Sundem and Stratton); Introduction to Financial Accounting, 9th ed. (2005, with Sundem and Elliott); Accounting, 6th ed. (2005, with Harrison and Bamber); and Financial Accounting, 6th ed. (2005, with Harrison). Horngren is the Consulting Editor for the Charles T. Horngren Series in Accounting. Srikant M. Datar is the Arthur Lowes Dickinson Professor of Business Administration at Harvard University. A graduate with distinction from the University of Bombay, he received gold medals upon graduation from the Indian Institute of Management, Ahmedabad, and the Institute of Cost and Works Accountants of India. A Chartered Accountant, he holds two masters degrees and a Ph.D. from Stanford University. Cited by his students as a dedicated and innovative teacher, Datar received the George Leland Bach Award for Excellence in the Classroom at Carnegie Mellon University and the Distinguished Teaching Award at Stanford University. Datar has published his research in various journals, including The Accounting Review, Contemporary Accounting Research, Journal of Accounting, Auditing and Finance, Journal of Accounting and Economics, Journal of Accounting Research, and Management Science. He has also served on the editorial board of several journals and presented his research to corporate executives and academic audiences in North America, South America, Asia, Africa, and Europe. Datar is a member of the Board of Directors of Novartis A.G. and has worked with many organizations, including Apple Computer, AT&T, Boeing, British Columbia Telecommunications, The Cooperative Bank, Du Pont, Ford, General Motors, Hewlett- Packard, Kodak, Mellon Bank, PepsiCo, Solectron, Store 24, Stryker, TRW, Visa, and the World Bank. He is a member of the American Accounting Association and the Institute of Management Accountants. George Foster is the Paul L. and Phyllis Wattis Professor of Management at Stanford University. He graduated with a university medal from the University of Sydney and has a Ph.D. from Stanford University. He has been awarded honorary doctorates from the University of Ghent, Belgium, and from the University of Vaasa, Finland. He has received the Outstanding Educator Award from the American Accounting Association. Foster has received the Distinguished Teaching Award at Stanford University and the Faculty Excellence Award from the California Society of Certified Public Accountants. He has been a Visiting Professor to Mexico for the American Accounting Association. Research awards Foster has received include the Competitive Manuscript Competition Award of the American Accounting Association, the Notable Contribution to Accounting Literature Award of the American Institute of Certified Public Accountants, and the Citation for Meritorious Contribution to Accounting Literature Award of the Australian Society of Accountants. He is the author of Financial Statement Analysis, published by Prentice Hall. He is coauthor of Activity-Based Management Consortium Study (APQC and CAM-I) and Marketing, Cost Management and Management Accounting (CAM-I). He is also co-author of two monographs published by the American Accounting Association-Security Analyst Multi-Year Earnings Forecasts and The Capital Market and Market Microstructure and Capital Market Information Content Research. Journals publishing his articles include Abacus, The Accounting Review, Harvard Business Review, Journal of Accounting and Economics, Journal of Accounting Research, Journal of Cost Management, Journal of Management Accounting Research, Management Accounting, and Review of Accounting Studies. Foster works actively with many companies, including Apple Computer, ARCO, BHP, Digital Equipment Corp., Exxon, Frito-Lay Corp., Hewlett-Packard, McDonalds Corp., Octel Communications, PepsiCo, Santa Fe Corp., and Wells Fargo. He also has worked closely with Computer Aided Manufacturing-International (CAM-I) in the development of a framework for modern cost management practices. Foster has presented seminars on new developments in cost accounting in North and South America, Asia, Australia, and Europe. NEW Authors: Madhav Rajan -- Madhav Rajan is the Gregor G. Peterson Professor of Accounting at the Graduate School of Business, Stanford University. He is also Professor of Law (by courtesy) at Stanford Law School. Madhav joined Stanford University in 2001 and, since 2002, has served as the area coordinator for Accounting at Stanford GSB. Madhav received his undergraduate degree in Commerce from the University of Madras, India, and his MS in Accounting, MBA, and Ph.D degrees from the Graduate School of Industrial Administration at Carnegie Mellon University. In 1990, his dissertation won the Alexander Henderson Award for Excellence in Economic Theory. After completing his doctoral studies, Madhav joined the faculty of the Wharton School of the University of Pennsylvania and was promoted to the rank of tenured Associate Professor in 1996, and Professor in 2000. Madhav’s primary area of research interest is the economics-based analysis of management accounting issues, especially as they relate to the choice of internal control and performance systems in firms. His theoretical work has examined the optimal choice of information and incentive systems and the rationale behind observed internal accounting practices related to cost allocation and capital budgeting. Madhav has also carried out empirical research, using both archival and field data, on the role of incentive systems, quality-based programs, and buyer-supplier relations. In 2004, he received the Notable Contribution to Management Accounting Literature award for his work with Stan Baiman on “The Role of Information and Opportunism in the Choice of Buyer-Supplier Relationships.” Madhav’s most recent work focuses on the internal control of multi-divisional firms. Topics include the efficiency of auction markets at allocating resources across divisions and the usefulness of bonus pools as a means for incorporating subjective measures of managerial performance. He is also currently involved in a research project that looks at whether and how accounting measures of performance can be used to infer the economic profitability of firms. Madhav has served as an editor of The Accounting Review for the past six years. He is an associate editor for both the Accounting and Operations areas for Management Science, and for the Journal of Accounting, Auditing and Finance. He is a member of the Management Accounting section of the American Accounting Association and has twice been a plenary speaker at the AAA Management Accounting Conference. Madhav has taught courses in managerial accounting at the undergraduate, MBA, and executive MBA levels. He also teaches an elective class in financial reporting to students at Stanford Law School. Madhav has won several teaching awards at Wharton and Stanford, including the David W. Hauck Award, the highest undergraduate teaching honor at Wharton. At Stanford, Madhav participates a variety of executive education programs including the flagship Stanford Executive Program and the National Football League Program for Managers. He has made invited presentations to the Labor Seminar of the National Football League Management Council and recently taught in the inaugural National Basketball Players Association Program. Christopher D. Ittner is the Ernst & Young Professor of Accounting at The Wharton School of the University of Pennsylvania. A graduate of California State University, Long Beach, he received his MBA from UCLA and a Doctorate in Business Administration from Harvard University. Ittner has received a number of teaching awards from Wharton students, and teaches management accounting courses for doctoral students from throughout the United States and Europe. His research has been published in leading accounting, marketing, and operations management journals, including The Accounting Review, Journal of Accounting and Economics, Journal of Accounting Research, Management Science, and Operation Research, among others. Awards for his research include the American Accounting Association’s Notable Contribution to Management Accounting Literature and Outstanding Dissertation in Management Accounting. He is also co-author of the book Linking Quality to Profits: Quality-Based Cost Management (ASQC and IMA). Ittner is an Associate Editor of Accounting, Organizations and Society and Management Science and serves on the editorial boards of a number of other accounting and operations management journals. Ittner is a founding board member of the Performance Measurement Association and a member of the American Accounting Association, Institute of Management Science, and Production and Operations Management Society. He has worked with a large number of companies on cost accounting and performance measurement issues, including Capital One, EDS, Ernst & Young, General Motors, and Sunoco Read more

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