Fundamentals Of
Cost Accounting 7th
ST
Edition
UV
SOLUTIONS
IA
MANUAL
_A
PP
William Lanen
Shannon Anderson
RO
Michael Maher
────────────────────────────────────────────────────
Comprehensive Solutions Manual for Instructors
VE
and Students
D?
© William Lanen, Shannon Anderson & Michael Maher.
All rights reserved. Reproduction or distribution without permission is prohibited.
?
© Successhands
, Solutions Manual for Fundamentals of Cost Accounting (7th Edition)
William Lanen, Shannon Anderson & Michael Maher
ISBN: 9781264927289
INTRODUCTION AND OVERVIEW
ST
Chapter 1. Cost Accounting: Information for Decision Making
Chapter 2. Cost Concepts and Behavior
COST ANALYSIS AND ESTIMATION
UV
Chapter 3. Fundamentals of Cost-Volume-Profit Analysis
Chapter 4. Fundamentals of Cost Analysis for Decision Making
Chapter 5. Cost Estimation
COST MANAGEMENT SYSTEMS
IA
Chapter 6. Fundamentals of Product and Service Costing
Chapter 7. Job Costing
Chapter 8. Process Costing
_A
Chapter 9. Activity-Based Costing
Chapter 10. Fundamentals of Cost Management
Chapter 11. Service Department and Joint Cost Allocation
MANAGEMENT CONTROL SYSTEMS
PP
Chapter 12. Fundamentals of Management Control Systems
Chapter 13. Planning and Budgeting
Chapter 14. Business Unit Performance Measurement
Chapter 15. Transfer Pricing
RO
Chapter 16. Fundamentals of Variance Analysis
Chapter 17. Additional Topics in Variance Analysis
Chapter 18. Performance Measurement to Support Business Strategy
VE
D?
?
© Successhands
, SOLUTION MANUAL FOR
Fundamentals Of Cost Accounting 7th Edition William
SMT
Lanen
UEDV
1
Cost Accounting: Information for Decision
ICAO
Making
_NA
Solutions to Review Questions
1-1.
PNPO
Among the goals of an organization, a central one is to create and increase value. Cost
accounting systems are designed to provide information to decision makers in the
organization with the information they need to accomplish this goal. Therefore, the
designers of the cost accounting system need to understand how value is created in the
organization to design systems for their organization.
RISO
1-2.
Financial accounting is designed to provide information about the firm to external users.
External users include investors, creditors, government authorities, regulators,
customers, competitors, suppliers, labor unions, and so on. Cost accounting systems
SVE
are designed to provide information to internal users (managers).
This difference is important, because it affects the design of the systems. Financial
EDU
accounting systems are based on standards or rules. This allows the user to compare
the results of different firms. Managerial accounting systems do not require rules. Each
firm is free to develop managerial accounting systems that best serve the needs of the
decision makers (managers).
?R?
1-3.
B Providing cost information for financial reporting
A Identifying the best store in a chain
Solutions Manual, Chapter 4 1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw Hill LLC.
, C Determining which plant to use for production
1-4.
The value chain is the set of activities that transforms raw resources into the goods and
SMT
services end users purchase and consume. The supply chain includes the set of firms
and individuals that sells goods and services to the firm. The distribution chain is the set
of firms and individuals that buys and distributes goods and services from the firm.
UEDV
1-5.
The customers of cost accounting are managers, from plant managers to the CEO.
ICAO
1-6.
Value-added activities are activities that customers perceive as adding utility to the
goods or services they purchase. Nonvalue-added activities do not add value to the
goods or services. By classifying costs this way, the cost accounting system can help
_NA
the manager identify areas (processes) that can be improved, lowering costs and
adding value to the organization.
1-7.
PNPO
Answers will vary, but should include some of the following:
Title Major Responsibilities and Major Duties
Chief financial officer (CFO) .... Manages entire finance and accounting function
RISO
Treasurer................................. Manages liquid assets
Conducts business with banks and other
financial institutions
Oversees public issues of stock and debt
SVE
Controller................................. Plans and designs information and incentive
systems
EDU
Internal auditor ........................ Ensures compliance with laws, regulations, and
company policies and procedures
Provides consulting and auditing services within
the firm
?R?
Cost accountant ...................... Records, measures, estimates, and analyzes
costs
Works with financial and operational manager to
2 Fundamentals of Cost Accounting, 7e
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw Hill LLC.
Cost Accounting 7th
ST
Edition
UV
SOLUTIONS
IA
MANUAL
_A
PP
William Lanen
Shannon Anderson
RO
Michael Maher
────────────────────────────────────────────────────
Comprehensive Solutions Manual for Instructors
VE
and Students
D?
© William Lanen, Shannon Anderson & Michael Maher.
All rights reserved. Reproduction or distribution without permission is prohibited.
?
© Successhands
, Solutions Manual for Fundamentals of Cost Accounting (7th Edition)
William Lanen, Shannon Anderson & Michael Maher
ISBN: 9781264927289
INTRODUCTION AND OVERVIEW
ST
Chapter 1. Cost Accounting: Information for Decision Making
Chapter 2. Cost Concepts and Behavior
COST ANALYSIS AND ESTIMATION
UV
Chapter 3. Fundamentals of Cost-Volume-Profit Analysis
Chapter 4. Fundamentals of Cost Analysis for Decision Making
Chapter 5. Cost Estimation
COST MANAGEMENT SYSTEMS
IA
Chapter 6. Fundamentals of Product and Service Costing
Chapter 7. Job Costing
Chapter 8. Process Costing
_A
Chapter 9. Activity-Based Costing
Chapter 10. Fundamentals of Cost Management
Chapter 11. Service Department and Joint Cost Allocation
MANAGEMENT CONTROL SYSTEMS
PP
Chapter 12. Fundamentals of Management Control Systems
Chapter 13. Planning and Budgeting
Chapter 14. Business Unit Performance Measurement
Chapter 15. Transfer Pricing
RO
Chapter 16. Fundamentals of Variance Analysis
Chapter 17. Additional Topics in Variance Analysis
Chapter 18. Performance Measurement to Support Business Strategy
VE
D?
?
© Successhands
, SOLUTION MANUAL FOR
Fundamentals Of Cost Accounting 7th Edition William
SMT
Lanen
UEDV
1
Cost Accounting: Information for Decision
ICAO
Making
_NA
Solutions to Review Questions
1-1.
PNPO
Among the goals of an organization, a central one is to create and increase value. Cost
accounting systems are designed to provide information to decision makers in the
organization with the information they need to accomplish this goal. Therefore, the
designers of the cost accounting system need to understand how value is created in the
organization to design systems for their organization.
RISO
1-2.
Financial accounting is designed to provide information about the firm to external users.
External users include investors, creditors, government authorities, regulators,
customers, competitors, suppliers, labor unions, and so on. Cost accounting systems
SVE
are designed to provide information to internal users (managers).
This difference is important, because it affects the design of the systems. Financial
EDU
accounting systems are based on standards or rules. This allows the user to compare
the results of different firms. Managerial accounting systems do not require rules. Each
firm is free to develop managerial accounting systems that best serve the needs of the
decision makers (managers).
?R?
1-3.
B Providing cost information for financial reporting
A Identifying the best store in a chain
Solutions Manual, Chapter 4 1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw Hill LLC.
, C Determining which plant to use for production
1-4.
The value chain is the set of activities that transforms raw resources into the goods and
SMT
services end users purchase and consume. The supply chain includes the set of firms
and individuals that sells goods and services to the firm. The distribution chain is the set
of firms and individuals that buys and distributes goods and services from the firm.
UEDV
1-5.
The customers of cost accounting are managers, from plant managers to the CEO.
ICAO
1-6.
Value-added activities are activities that customers perceive as adding utility to the
goods or services they purchase. Nonvalue-added activities do not add value to the
goods or services. By classifying costs this way, the cost accounting system can help
_NA
the manager identify areas (processes) that can be improved, lowering costs and
adding value to the organization.
1-7.
PNPO
Answers will vary, but should include some of the following:
Title Major Responsibilities and Major Duties
Chief financial officer (CFO) .... Manages entire finance and accounting function
RISO
Treasurer................................. Manages liquid assets
Conducts business with banks and other
financial institutions
Oversees public issues of stock and debt
SVE
Controller................................. Plans and designs information and incentive
systems
EDU
Internal auditor ........................ Ensures compliance with laws, regulations, and
company policies and procedures
Provides consulting and auditing services within
the firm
?R?
Cost accountant ...................... Records, measures, estimates, and analyzes
costs
Works with financial and operational manager to
2 Fundamentals of Cost Accounting, 7e
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw Hill LLC.
