Solution Manual for Managerial Accounting 18th Edition By Ray Garrison, Eric Noreen and Peter Brewer 2024

Solution Manual for Managerial Accounting,
18th Edition
By Ray Garrison, Eric Noreen and Peter Brewer
Verified Chapter's 1 - 16 | Complete

,TableofContents h
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Chapter One: Managerial Accounting and Cost Concepts Ch
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apter Two: Job-Order Costing: Calculating Unit Product Costs
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Chapter Three: Job- hl hl




Order Costing: Cost Flows and External Reporting Chapter Four: Process Co
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sting

Chapter Five: Cost-Volume-Profit Relationships
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Chapter Six: Variable Costing and Segment Reporting: Tools for Managemen
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t Chapter Seven: Activity-
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Based Costing: A Tool to Aid Decision Making Chapter Eight: Master B
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udgeting

Chapter Nine: Flexible Budgets and Performance Analysis Chapt
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er Ten: Standard Costs and Variances
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Chapter Eleven: Responsibility Accounting Systems Cha
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pter Twelve: Strategic Performance Measurement
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Chapter Thirteen: Differential Analysis: The Key to Decision Making Cha
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pter Fourteen: Capital Budgeting Decisions
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Chapter Fifteen: Statement ofDCash Flows Ch
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apter Sixteen: Financial Statement Analysis
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,Chapter1 h
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Managerial Accounting and Cost Concepts hl hl hl hl




Questions


1-1 The three major types of product cost hl hl hl hl hl hl hl 1-4
s in a manufacturing company are direct mat
hl hl hl hl hl hl hl hl a. Variable cost: The variable costDper unit i hl hl hl hl hl hl h


erials, direct labor, and manufacturing overhe
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ad. s in direct proportion to changes in volu
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me.
1-2 b. Fixed cost: The total fixed cost is constant
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a. Direct materials are an integral part ofD hl hl hl hl hl hl within the relevant range. The average fix hl hl hl hl hl hl hl

h la finished productDand their costs can be con
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veniently traced to it.
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b. Indirect materials are generally small ite hl hl hl hl hl hl c. Mixed cost: A mixed cost contains bot hl hl hl hl hl hl hl


ms of material such as glue and nails. They m a
hl hl hl hl hl hl hl hl hl hl h variable and fixed cost elements.
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y be an integral part ofDa finished product but t
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heir costs can be traced to the product o
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nly at great cost or inconvenience.
hl hl hl hl hl a. Unit fixed costs decrease as the activity lev
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c. Direct labor consists of labor costs th hl hl hl hl hl hl hl el increases. hl


at can be easily traced to particular product
hl hl hl hl hl hl hl hl b. Unit variable costs remain constantDas th
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s. e activity level increases.
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Direct labor is also called ―touch labor.‖
hl hl hl hl hl hl c. Total fixed costs remain constant as thhl hl hl hl hl hl hl


d. Indirect labor consists of the labor cost hl hl hl hl hl hl h e activity level increases.
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l s ofDjanitors, supervisors, materials handlers,
hl hl hl hl hl d. Total variable costs increase as the activit
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a nd other factory workers that cannotDbe conv
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eniently traced to particular products. These l
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abor costs are incurred to support production,
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but the workers involved do not directly wor kD
hl hl hl hl hl hl hl hl a. Cost behavior: CostDbehavior refers to the
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on the product.
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e. Manufacturing overhead includes all ma hl hl hl hl hl t o changes in a measure of activity such
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nufacturing costs except direct materials and d hl hl hl hl hl hl hl a s sales volume, production volume, or
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irectDlabor. Consequently, manufacturing overh hl hl hl hl ord ers processed. hl hl

ead includes indirect materials and indirect lab
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or as well as other manufacturing costs.
hl hl hl hl hl hl e range of activity within which assumpti
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ons about variable and fixed cost behavi
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1-3 or are valid. hl hl

A product cost is any costDinvolved in hl hl hl hl hl hl hl


purchasing or manufacturing goods. In the cas hl hl hl hl hl hl h 1-7 An activity base is a measure ofDw h hl hl hl hl hl hl hl


e of manufactured goods, these costs consist
l hl hl hl hl hl hl h atever causes the incurrence of a variable co
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l of direct materials, direct labor, and manufact
hl hl hl hl hl hl st. Examples of activity bases include uni ts
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u ring overhead. A period cost is a cost that is
hl hl hl hl hl hl hl hl hl hl hl produced, units sold, letters typed, beds in hl hl hl hl hl h l hl


t aken directly to the income statement as an e
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xpense in the period in which it is incurred.
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, 1-8 The linear assumption is reasonably v
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alid providing that the cost formula is used on
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ly within the relevant range.
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