Horngren's Accounting (14th Ed) Managerial Chapters Solutions | Chapters 1-9

SOLUTION MANUAL ii




Horngren's Accounting, The Managerial Chapters, 14th Edition
ii ii ii ii ii ii




By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
ii ii ii ii ii ii ii ii ii

,Table of contents
ii ii




1. Introduction to Managerial Accounting
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2. Job Order Costing
ii ii




3. Process Costing ii




4. Cost-Volume-Profit Analysis ii




5. Master Budgetsii




6. Flexible Budgets and Standard Cost Systems
ii ii ii ii ii




7. Cost Allocation and Responsibility Accounting
ii ii ii ii




8. Short-Term Business Decisions ii ii




9. Capital Investment Decisions
ii ii

,Chapter M:1 ii



Introduction to Managerial Accounting
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Review Questions
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1. What iiis iithe iiprimary iipurpose iiof iimanagerial iiaccounting?

The iiprimary iipurpose iiof iimanagerial iiaccounting iiis iito iiprovide iiinformation iito iihelp iimanagers
iiplan,idirect, iicontrol, iiand iimake iidecisions.




2. List iisix iidifferences iibetween iifinancial iiaccounting iiand iimanagerial iiaccounting.

Financial iiaccounting iiand iimanagerial iiaccounting iidiffer iion iithe iifollowing ii6 iidimensions: ii(1) iiprimary
iusers, ii(2) iipurpose iiof iiinformation, ii(3) iifocus iiand iitime iidimension iiof iithe iiinformation, ii(4) iirules iiand


iire-istrictions, ii(5) iiscope iiof iiinformation, iiand ii(6) iibehavioral.




3. Explain iithe iidifference iibetween iiline iipositions iiand iistaff iipositions.

Line iipositions iiare iidirectly iiinvolved iiin iiproviding iigoods iior iiservices iito iicustomers. iiStaff
iipositionss
i upport iiline iipositions.




4. Explain iithe iidifferences iibetween iiplanning, iidirecting, iiand iicontrolling.

Planning iimeans iichoosing iigoals iiand iideciding iihow iito iiachieve iithem. iiDirecting iiinvolves iirunning iithe
iiday-to-day iioperations iiof iia iibusiness. iiControlling iiis iithe iiprocess iiof iimonitoring iioperations iiand

iikeepingithe iicompany iion iitrack.




5. List iithe iifour iiIMA iistandards iiof iiethical iipractice iiand iibriefly iidescribe iieach.

The iifour iiIMA iistandards iiof iiethical iipractice iiand iia iidescription iiof iieach iifollow.
I. Competence.
Maintain iian iiappropriate iilevel iiof iiprofessional iileadership iiand iiexpertise iiby
iienhancingiknowledge iiand iiskills.


Perform iiprofessional iiduties iiin iiaccordance iiwith iirelevant iilaws, iiregulations, iiand iitechnical
istandards.


Provide iidecision iisupport iiinformation iiand iirecommendations iithat iiare iiaccurate, iiclear, iiconcise,

, and iitimely.
Recognise iiand iihelp iimange iirisk.
II. Confidentiality.
Keep iiinformation iiconfidential iiexcept iiwhen iidisclosure iiis iiauthorized iior iilegally iirequired.
Inform iiall iirelevant iiparties iiregarding iiappropriate iiuse iiof iiconfidential iiinformation. i i Monitor
iitoiensure iicompliance.


Refrain iifrom iiusing iiconfidential iiinformation iifor iiunethical iior iiillegal iiadvantage.
III. Integrity.
Mitigate iiactual iiconflicts iiof iiinterest. iiRegularly iicommunicate iiwith iibusiness iiassociates iito iiavoid
iapparent iiconflicts iiof iiinterest. ii iiAdvise iiall iiparties iiof iiany iipotential iiconflicts.


Refrain iifrom iiengaging iiin iiany iiconduct iithat iiwould iiprejudice iicarrying iiout iiduties iiethically.
Abstain iifrom iiengaging iiin iior iisupporting iiany iiactivity iithat iimight iidiscredit iithe iiprofession.
Contribute iito iia iipositive iiethical iiculture iiand iiplace iiintegrity iiof iithe iiprofession iiabove
iipersonaliinterest.




5, iicont.
IV. Credibility.
Communicate iiinformation iifairly iiand iiobjectively.
Provide iiall iirelevant iiinformation iithat iicould iireasonably iibe iiexpected iito iiinfluence iian
iiintendediuser’s iiunderstanding iiof iithe iireports, iianalyses, iior iirecommendations.


Report iiany iidelays iior iideficiencies iiin iiinformation, iitimeliness, iiprocessing, iior iiinternal iicontrols
iin iiconformance iiwith iiorganization iipolicy iiand/or iiapplicable iilaw.


Communicate iiany iiprofessional iilimitations iior iiother iiconstraints iithat iiwould iipreclude
iiresponsi-ible iijudgment iior iisuccessful iiperformance iiof iian iiactivity.




6. Describe iia iiservice iicompany iiand iigive iian iiexample.

Service iicompanies iisell iitime, iiskills, iiand iiknowledge. iiExamples iiof iiservice iicompanies iiinclude iiphone
iservice iicompanies, iibanks, iicleaning iiservice iicompanies, iiaccounting iifirms, iilaw iifirms, iimedical iiphysi-


icians, iiand iionline iiauction iiservices.




7. Describe iia iimerchandising iicompany iiand iigive iian iiexample.

Merchandising iicompanies iiresell iiproducts iithey iibuy iifrom iisuppliers. iiMerchandisers iikeep iian iiinventory
iof iiproducts, iiand iimanagers iiare iiaccountable iifor iithe iipurchasing, iistorage, iiand iisale iiof iithe iiproducts.


iiEx- iiamples iiof iimerchandising iicompanies iiinclude iitoy iistores, iigrocery iistores, iiand iiclothing iistores.




8. How iido iimanufacturing iicompanies iidiffer iifrom iimerchandising iicompanies?

Merchandising iicompanies iiresell iiproducts iithey iipreviously iibought iifrom iisuppliers, iiwhereas iimanufac-
iituring iicompanies iiuse iilabor, iiequipment, iisupplies, iiand iifacilities iito iiconvert iiraw iimaterials iiinto iinew


iifin-iished iiproducts. iiIn iicontrast iito iimerchandising iicompanies, iimanufacturing iicompanies iihave iia


iibroad iirange iiof iiproduction iiactivities iithat iirequire iitracking iicosts iion iithree iikinds iiof iiinventory.