Cost Management, 6th Edition by
Don R. Hansen
Complete Chapter Solutions Manual
are included (Ch 1 to 21)
** Immediate Download
** Swift Response
** All Chapters included
** Excel Templates
,Table of Contents are given below
1. Introduction to Cost Management
2. Basic Cost Management Concepts
3. Cost Behavior and Forecasting
4. Unit-Based and Activity-Based Costing Systems
5. Job-Order Costing
6. Process Costing
7. Allocating Costs of Support Departments and Joint Products
8. Budgeting for Planning and Control
9. Standard Costing: A Functional-Based Control Approach
10. Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer
Pricing
11. Strategic Cost Management
12. Activity-Based Management
13. Strategic-Based Control Systems and the Balanced Scorecard
14. Quality and Environmental Cost Management
15. Lean Accounting and Productivity Measurement
16. Cost-Volume-Profit Analysis
17. Activity Resource Usage Model and Tactical Decision Making
18. Pricing and Profitability Analysis
19. Capital Investment
20. Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints
21. International Issues in Cost Management
, CHAPTER 1
INTRODUCTION TO COST MANAGEMENT
EXERCISES
Exercise 1-1
a. FS g. CMS
b. FS h. FS
c. CMS i. CMS
d. CMS j. CMS
e. FS k. FS
f. CMS l. FS
Exercise 1-2
1. Customers can be internal or external. Users of the component produced by
Barry’s department are his internal customers. This includes the Assembly
Department and the Rework Department. They are directly affected by the
quality of the product produced by Barry’s department. In a sense, those who
buy the cell phones are his customers too—after all, the functionality of the
MP3 player is affected by the quality and reliability of its components.
2. Barry’s department is producing a low-quality component. One out of every
50 units is having a high defect rate and is causing a lot of rework. Being
sensitive would require a dramatic reduction in the defect rate. A reduction in
the defect rate would decrease cycle time, lower the rework rate, and
decrease costs. These improvements in quality create the potential to
increase value for external customers and make the life of internal customers
much easier. In turn, these quality enhancements will likely help Hepworth
please a key stakeholder (customers) more consistently, thereby increasing
sales and/or decreasing quality-related costs, both of which increase
Hepworth’s value over the long term.
3. Cost management can provide information concerning quality—both financial
and nonfinancial. Defect rates can be tracked over time. Rework costs
attributable to defective components from Barry’s department can be
measured and tracked over time. Cycle time reductions due to improved
quality can be measured and reported. Product cost reductions attributable to
improved quality can be reported.
1
, Exercise 1-3
a. Planning and control h. Planning and control
b. Costing of service i. Decision making
c. Costing of product/activity j. Costing of service
d. Planning and control k. Costing of an activity
e. Planning and control l. Planning and control
f. Decision making m. Decision making
g. Costing of product
Exercise 1-4
The manager is clearly considering unethical behaviors, especially the decisions
associated with reducing maintenance and promotional salaries. Extending asset
life for depreciation has less clear ethical implications. Reducing maintenance
may not hurt much in the short run but will have long-run negative financial
consequences. Furthermore, the decision for promotions has been made with a
given set of financial expectations, and reducing the salary increases by 50
percent for deserving employees is obviously unfair to them. Although the
manager is not a cost or management accountant, they are violating the ethical
standard under integrity that requires him to “refrain from engaging in any
conduct that would prejudice carrying out duties ethically” (III-2).
The reduction in promotional salary increases is particularly egregious in that they
are reducing the salaries of others so that they may benefit. In effect, they are
stealing from their subordinates. The reduction in maintenance budget is also a form
of stealing—robbing future service potential to produce a current personal benefit.
An ethical dilemma does exist if the manager carries through with his plans. The
dilemma exists because the manager wants to manipulate income to achieve
personal financial gain. A company code of ethics and compliance monitoring is
one recommendation. An internal audit could be used to detect and deter such
questionable behavior. Furthermore, a company policy requiring managers to
justify any expenditure reductions in writing to both the employees and higher
management could discourage behavior like the manager’s. The best control,
however, is hiring managers with the integrity to do the right thing even when
faced with the opportunity to cheat or steal.
2
Don R. Hansen
Complete Chapter Solutions Manual
are included (Ch 1 to 21)
** Immediate Download
** Swift Response
** All Chapters included
** Excel Templates
,Table of Contents are given below
1. Introduction to Cost Management
2. Basic Cost Management Concepts
3. Cost Behavior and Forecasting
4. Unit-Based and Activity-Based Costing Systems
5. Job-Order Costing
6. Process Costing
7. Allocating Costs of Support Departments and Joint Products
8. Budgeting for Planning and Control
9. Standard Costing: A Functional-Based Control Approach
10. Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer
Pricing
11. Strategic Cost Management
12. Activity-Based Management
13. Strategic-Based Control Systems and the Balanced Scorecard
14. Quality and Environmental Cost Management
15. Lean Accounting and Productivity Measurement
16. Cost-Volume-Profit Analysis
17. Activity Resource Usage Model and Tactical Decision Making
18. Pricing and Profitability Analysis
19. Capital Investment
20. Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints
21. International Issues in Cost Management
, CHAPTER 1
INTRODUCTION TO COST MANAGEMENT
EXERCISES
Exercise 1-1
a. FS g. CMS
b. FS h. FS
c. CMS i. CMS
d. CMS j. CMS
e. FS k. FS
f. CMS l. FS
Exercise 1-2
1. Customers can be internal or external. Users of the component produced by
Barry’s department are his internal customers. This includes the Assembly
Department and the Rework Department. They are directly affected by the
quality of the product produced by Barry’s department. In a sense, those who
buy the cell phones are his customers too—after all, the functionality of the
MP3 player is affected by the quality and reliability of its components.
2. Barry’s department is producing a low-quality component. One out of every
50 units is having a high defect rate and is causing a lot of rework. Being
sensitive would require a dramatic reduction in the defect rate. A reduction in
the defect rate would decrease cycle time, lower the rework rate, and
decrease costs. These improvements in quality create the potential to
increase value for external customers and make the life of internal customers
much easier. In turn, these quality enhancements will likely help Hepworth
please a key stakeholder (customers) more consistently, thereby increasing
sales and/or decreasing quality-related costs, both of which increase
Hepworth’s value over the long term.
3. Cost management can provide information concerning quality—both financial
and nonfinancial. Defect rates can be tracked over time. Rework costs
attributable to defective components from Barry’s department can be
measured and tracked over time. Cycle time reductions due to improved
quality can be measured and reported. Product cost reductions attributable to
improved quality can be reported.
1
, Exercise 1-3
a. Planning and control h. Planning and control
b. Costing of service i. Decision making
c. Costing of product/activity j. Costing of service
d. Planning and control k. Costing of an activity
e. Planning and control l. Planning and control
f. Decision making m. Decision making
g. Costing of product
Exercise 1-4
The manager is clearly considering unethical behaviors, especially the decisions
associated with reducing maintenance and promotional salaries. Extending asset
life for depreciation has less clear ethical implications. Reducing maintenance
may not hurt much in the short run but will have long-run negative financial
consequences. Furthermore, the decision for promotions has been made with a
given set of financial expectations, and reducing the salary increases by 50
percent for deserving employees is obviously unfair to them. Although the
manager is not a cost or management accountant, they are violating the ethical
standard under integrity that requires him to “refrain from engaging in any
conduct that would prejudice carrying out duties ethically” (III-2).
The reduction in promotional salary increases is particularly egregious in that they
are reducing the salaries of others so that they may benefit. In effect, they are
stealing from their subordinates. The reduction in maintenance budget is also a form
of stealing—robbing future service potential to produce a current personal benefit.
An ethical dilemma does exist if the manager carries through with his plans. The
dilemma exists because the manager wants to manipulate income to achieve
personal financial gain. A company code of ethics and compliance monitoring is
one recommendation. An internal audit could be used to detect and deter such
questionable behavior. Furthermore, a company policy requiring managers to
justify any expenditure reductions in writing to both the employees and higher
management could discourage behavior like the manager’s. The best control,
however, is hiring managers with the integrity to do the right thing even when
faced with the opportunity to cheat or steal.
2
