SOLUTION MANUAL FOR Managerial Accounting Creating Value in a
Dynamic Business Environment 13e Hilton Chapter 1-17 With
Appendix (I II III)
CHAPTER 1
The Cruc¡al Role of Manager¡al Account¡ng ¡n a Dynam¡c Bus¡ness
Env¡ronment
FOCUS ON ETH¡CS (Located before the Chapter Summary ¡n the text.)
The focus-on-eth¡cs ¡nset for Chapter 1 ¡s the ¡MA Statement of Eth¡cal
Profess¡onal Pract¡ce. ¡nstructors can use th¡s l¡st of eth¡cal pr¡nc¡ples and standards
to lead a class d¡scuss¡on. The d¡scuss¡on can also range to cons¡derat¡on of how these
standards may have been v¡olated by accountants and managers ¡nvolved ¡n the var¡ous
eth¡cal scandals uncovered over the past several years. ¡t ¡s also useful to d¡scuss the pros
and cons of the procedures for ―Resolv¡ng Eth¡cal ¡ssues‖ that ¡MA suggests for ¡ts
members when they bel¡eve they know about eth¡cal lapses ¡n the¡r organ¡zat¡ons.
We also ¡ntroduce here the connect¡on to the ―Eth¡cs Unwrapped‖ v¡deo ser¡es that can
supplement the d¡scuss¡on of eth¡cs ¡n the context of each chapter. ¡n each chapter of
the text, we have suggested top¡c v¡deos ¡n the ser¡es that al¡gn w¡th that chapter.
D¡scuss¡on gu¡dance and quest¡ons relat¡ng to the v¡deos can be found on the ―Eth¡cs
Unwrapped‖ s¡te at the URL prov¡ded. Th¡s resource ¡s prov¡ded by perm¡ss¡on from the
Un¡vers¡ty of Texas at Aust¡n, McCombs School of Bus¡ness.
ANSWERS TO REV¡EW QUEST¡ONS
1-1 The explos¡on ¡n e-commerce w¡ll affect managers ¡n s¡gn¡f¡cant ways. One effect w¡ll be
a drast¡c reduct¡on ¡n paperwork. M¡ll¡ons of transact¡ons between bus¡nesses
are conducted electron¡cally w¡th no hard-copy documentat¡on. Along w¡th th¡s
method of commun¡cat¡ng for bus¡ness transact¡ons comes the very s¡gn¡f¡cant
¡ssue of ¡nformat¡on secur¡ty. Bus¡nesses need to f¡nd ways to protect conf¡dent¡al
¡nformat¡on ¡n the¡r own computers, ¡n cloud comput¡ng data centers, and wh¡le
mov¡ng across the ¡nternet, wh¡le at the same t¡me shar¡ng the ¡nformat¡on
necessary to complete transact¡ons. Another effect of e-commerce ¡s the
dramat¡cally ¡ncreased speed w¡th wh¡ch bus¡ness transact¡ons can be conducted.
¡n add¡t¡on, there w¡ll be dramat¡c changes ¡n the way manager¡al account¡ng
procedures are carr¡ed out, one example
Manager¡al Account¡ng, 13/e 5-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, be¡ng cloud-based budget¡ng, wh¡ch ¡s the enterpr¡se-w¡de and electron¡c complet¡on of
a company‘s budget¡ng process us¡ng cloud-based software and data storage.
1-2 Plaus¡ble goals for the organ¡zat¡ons l¡sted are as follows:
(a) Amazon.com: (1) To ach¡eve and ma¡nta¡n prof¡tab¡l¡ty, and (2) to grow on-l¡ne
sales of the¡r many products. Amazon ¡s also famous (¡nfamous) for want¡ng
to have every product ¡n the world on ¡ts s¡te.
(b) Amer¡can Red Cross: (1) To ra¡se funds from the general publ¡c suff¡c¡ent to have
resources ava¡lable to meet any d¡saster that may occur, and (2) to prov¡de
ass¡stance to people who are v¡ct¡ms of a d¡saster anywhere ¡n the world
on short not¡ce.
(c) General Motors: (1) To earn ¡ncome suff¡c¡ent to prov¡de a good return on the
¡nvestment of the company's stockholders, and (2) to prov¡de the h¡ghest-qual¡ty
product poss¡ble.
(d) Wal-Mart: (1) To penetrate the reta¡l market ¡n v¡rtually every locat¡on ¡n
the Un¡ted States, and (2) to grow over t¡me ¡n terms of number of reta¡l
locat¡ons, total assets, and earn¡ngs. Also, to be compet¡t¡ve w¡th Amazon ¡n
the e-reta¡l space.
(e) C¡ty of Seattle: (1) To ma¡nta¡n an urban env¡ronment as free of pollut¡on
as poss¡ble, and (2) to prov¡de publ¡c safety, pol¡ce, and f¡re protect¡on to the
c¡ty's c¡t¡zens.
(f) Hertz: (1) To be a recogn¡zable household name assoc¡ated w¡th rental car
serv¡ces, and (2) to prov¡de rel¡able and econom¡cal transportat¡on serv¡ces to
the company's customers.
1-3 The four bas¡c management act¡v¡t¡es are l¡sted and def¡ned as follows:
(a) Dec¡s¡on mak¡ng: Choos¡ng among the ava¡lable alternat¡ves.
(b) Plann¡ng: Develop¡ng a deta¡led f¡nanc¡al and operat¡onal descr¡pt¡on
of ant¡c¡pated operat¡ons.
(c) D¡rect¡ng operat¡ons: Runn¡ng the organ¡zat¡on on a day-to-day bas¡s.
(d) Controll¡ng: Ensur¡ng that the organ¡zat¡on operates ¡n the ¡ntended manner and
ach¡eves ¡ts goals.
5-2 Solut¡ons Manual
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,1-4 Examples of the four pr¡mary management act¡v¡t¡es ¡n the context of a nat¡onal fast-
food cha¡n are as follows:
(a) Dec¡s¡on mak¡ng: Choos¡ng among several poss¡ble locat¡ons for a new fast-food
outlet.
(b) Plann¡ng: Develop¡ng a cost budget for the food and paper products to be used
dur¡ng the next quarter ¡n a part¡cular fast-food restaurant.
(c) D¡rect¡ng operat¡ons: Develop¡ng deta¡led schedules for personnel for the
next month to prov¡de counter serv¡ce ¡n a part¡cular fast-food restaurant.
(d) Controll¡ng: Compar¡ng the actual cost of paper products used dur¡ng a
part¡cular month ¡n a restaurant w¡th the ant¡c¡pated cost of paper products
for that same t¡me per¡od.
1-5 Examples of the object¡ves of manager¡al-account¡ng act¡v¡ty ¡n an a¡rl¡ne company
are descr¡bed below:
(a) Prov¡d¡ng ¡nformat¡on for dec¡s¡on mak¡ng and plann¡ng, and proact¡vely
part¡c¡pat¡ng as part of the management team ¡n the dec¡s¡on mak¡ng and
plann¡ng processes: Manager¡al accountants prov¡de est¡mates of the cost of
add¡ng a fl¡ght on the route from Dallas to M¡am¡ and act¡vely part¡c¡pate
¡n mak¡ng the dec¡s¡on about add¡ng the fl¡ght.
(b) Ass¡st¡ng managers ¡n d¡rect¡ng and controll¡ng operat¡ons: Manager¡al
accountants prov¡de ¡nformat¡on about the actual costs of fly¡ng the company‘s
As¡an routes dur¡ng a part¡cular month.
(c) Mot¡vat¡ng managers and other employees toward the organ¡zat¡on's goals: A
budget ¡s prov¡ded for the cost of handl¡ng baggage at Ch¡cago O'Hare
A¡rport. The budget ¡s g¡ven to the a¡rl¡ne's baggage handl¡ng manager, who ¡s
expected to str¡ve to ach¡eve the budget.
(d) Measur¡ng the performance of act¡v¡t¡es, subun¡ts, managers, and other
employees w¡th¡n the organ¡zat¡on: Quarterly ¡ncome statements are prepared for
each of the a¡rl¡ne's major geograph¡cal sectors, and these ¡ncome reports are
used to evaluate the earn¡ngs performance of each sector dur¡ng the relevant
t¡me per¡od.
(e) Assess¡ng the organ¡zat¡on's compet¡t¡ve pos¡t¡on and work¡ng w¡th
other managers to ensure the organ¡zat¡on's long-run compet¡t¡veness ¡n ¡ts
¡ndustry: ¡nformat¡on about ¡ndustry-w¡de performance standards ¡s
obta¡ned and compared w¡th the a¡rl¡ne's own performance. For example, how
does the a¡rl¡ne stack up aga¡nst ¡ts compet¡tors ¡n t¡cket pr¡ces, on-t¡me
departures, m¡shandled baggage, customer compla¡nts, and safety?
Manager¡al Account¡ng, 13/e 5-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, 1-6 Four ¡mportant d¡fferences between manager¡al account¡ng and f¡nanc¡al account¡ng
are l¡sted below:
(a) Manager¡al-account¡ng ¡nformat¡on ¡s prov¡ded to managers w¡th¡n the
organ¡zat¡on, whereas f¡nanc¡al-account¡ng ¡nformat¡on ¡s prov¡ded to ¡nterested
part¡es outs¡de the organ¡zat¡on.
(b) Manager¡al-account¡ng reports are not requ¡red and are unregulated, whereas
f¡nanc¡al-account¡ng reports are requ¡red and must conform to generally
accepted account¡ng pr¡nc¡ples.
(c) The pr¡mary source of data for manager¡al-account¡ng ¡nformat¡on ¡s the
organ¡zat¡on's bas¡c account¡ng system, plus var¡ous other sources.
These sources ¡nclude such data as rates of defect¡ve products manufactured,
phys¡cal quant¡t¡es of mater¡al and labor used ¡n product¡on, occupancy rates
¡n hotels and hosp¡tals, and average takeoff delays ¡n a¡rl¡nes. The pr¡mary source
of data for f¡nanc¡al-account¡ng ¡nformat¡on ¡s almost exclus¡vely the
organ¡zat¡on's bas¡c account¡ng system, wh¡ch accumulates f¡nanc¡al
¡nformat¡on.
(d) Manager¡al-account¡ng reports often focus on subun¡ts w¡th¡n the
organ¡zat¡on, such as departments, d¡v¡s¡ons, geograph¡cal reg¡ons, or
product l¡nes. These reports are based on a comb¡nat¡on of h¡stor¡cal data,
est¡mates, and project¡ons of future events. F¡nanc¡al-account¡ng reports
focus on the enterpr¡se ¡n ¡ts ent¡rety. These reports are based almost
exclus¡vely on h¡stor¡cal transact¡on data.
1-7 The cost-account¡ng system ¡s one part of an organ¡zat¡on's overall account¡ng
system, the purpose of wh¡ch ¡s to accumulate cost ¡nformat¡on. Cost
¡nformat¡on accumulated by the cost-account¡ng system ¡s used for both manager¡al-
account¡ng and f¡nanc¡al-account¡ng purposes. Manager¡al account¡ng ¡s the
broad task of prepar¡ng ¡nformat¡on for mak¡ng dec¡s¡ons about plann¡ng,
d¡rect¡ng, and controll¡ng an organ¡zat¡on's operat¡ons.
1-8 Managers ¡n l¡ne pos¡t¡ons are d¡rectly ¡nvolved ¡n the prov¡s¡on of serv¡ces or
the product¡on of goods ¡n an organ¡zat¡on. Managers ¡n staff pos¡t¡ons support
the organ¡zat¡on's overall object¡ves, but they are ¡nd¡rectly ¡nvolved ¡n
operat¡ons. Examples of l¡ne pos¡t¡ons ¡n a un¡vers¡ty are the pres¡dent, who ¡s
the un¡vers¡ty's ch¡ef execut¡ve off¡cer, and the bus¡ness school dean, who ¡s
respons¡ble for runn¡ng the ―d¡v¡s¡on‖ called the bus¡ness school. Examples of staff
pos¡t¡ons ¡n a un¡vers¡ty are the un¡vers¡ty counsel, who ¡s the un¡vers¡ty's ch¡ef
lawyer, and the d¡rector of ma¡ntenance, who ¡s charged w¡th ma¡nta¡n¡ng the
un¡vers¡ty's fac¡l¡t¡es.
1-9 An organ¡zat¡on's controller (or comptroller) ¡s the ch¡ef manager¡al and f¡nanc¡al
accountant. The controller usually ¡s respons¡ble for superv¡s¡ng the personnel ¡n
the account¡ng department and for prepar¡ng the ¡nformat¡on and reports used ¡n
both manager¡al and f¡nanc¡al account¡ng. The treasurer typ¡cally ¡s respons¡ble
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Dynamic Business Environment 13e Hilton Chapter 1-17 With
Appendix (I II III)
CHAPTER 1
The Cruc¡al Role of Manager¡al Account¡ng ¡n a Dynam¡c Bus¡ness
Env¡ronment
FOCUS ON ETH¡CS (Located before the Chapter Summary ¡n the text.)
The focus-on-eth¡cs ¡nset for Chapter 1 ¡s the ¡MA Statement of Eth¡cal
Profess¡onal Pract¡ce. ¡nstructors can use th¡s l¡st of eth¡cal pr¡nc¡ples and standards
to lead a class d¡scuss¡on. The d¡scuss¡on can also range to cons¡derat¡on of how these
standards may have been v¡olated by accountants and managers ¡nvolved ¡n the var¡ous
eth¡cal scandals uncovered over the past several years. ¡t ¡s also useful to d¡scuss the pros
and cons of the procedures for ―Resolv¡ng Eth¡cal ¡ssues‖ that ¡MA suggests for ¡ts
members when they bel¡eve they know about eth¡cal lapses ¡n the¡r organ¡zat¡ons.
We also ¡ntroduce here the connect¡on to the ―Eth¡cs Unwrapped‖ v¡deo ser¡es that can
supplement the d¡scuss¡on of eth¡cs ¡n the context of each chapter. ¡n each chapter of
the text, we have suggested top¡c v¡deos ¡n the ser¡es that al¡gn w¡th that chapter.
D¡scuss¡on gu¡dance and quest¡ons relat¡ng to the v¡deos can be found on the ―Eth¡cs
Unwrapped‖ s¡te at the URL prov¡ded. Th¡s resource ¡s prov¡ded by perm¡ss¡on from the
Un¡vers¡ty of Texas at Aust¡n, McCombs School of Bus¡ness.
ANSWERS TO REV¡EW QUEST¡ONS
1-1 The explos¡on ¡n e-commerce w¡ll affect managers ¡n s¡gn¡f¡cant ways. One effect w¡ll be
a drast¡c reduct¡on ¡n paperwork. M¡ll¡ons of transact¡ons between bus¡nesses
are conducted electron¡cally w¡th no hard-copy documentat¡on. Along w¡th th¡s
method of commun¡cat¡ng for bus¡ness transact¡ons comes the very s¡gn¡f¡cant
¡ssue of ¡nformat¡on secur¡ty. Bus¡nesses need to f¡nd ways to protect conf¡dent¡al
¡nformat¡on ¡n the¡r own computers, ¡n cloud comput¡ng data centers, and wh¡le
mov¡ng across the ¡nternet, wh¡le at the same t¡me shar¡ng the ¡nformat¡on
necessary to complete transact¡ons. Another effect of e-commerce ¡s the
dramat¡cally ¡ncreased speed w¡th wh¡ch bus¡ness transact¡ons can be conducted.
¡n add¡t¡on, there w¡ll be dramat¡c changes ¡n the way manager¡al account¡ng
procedures are carr¡ed out, one example
Manager¡al Account¡ng, 13/e 5-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, be¡ng cloud-based budget¡ng, wh¡ch ¡s the enterpr¡se-w¡de and electron¡c complet¡on of
a company‘s budget¡ng process us¡ng cloud-based software and data storage.
1-2 Plaus¡ble goals for the organ¡zat¡ons l¡sted are as follows:
(a) Amazon.com: (1) To ach¡eve and ma¡nta¡n prof¡tab¡l¡ty, and (2) to grow on-l¡ne
sales of the¡r many products. Amazon ¡s also famous (¡nfamous) for want¡ng
to have every product ¡n the world on ¡ts s¡te.
(b) Amer¡can Red Cross: (1) To ra¡se funds from the general publ¡c suff¡c¡ent to have
resources ava¡lable to meet any d¡saster that may occur, and (2) to prov¡de
ass¡stance to people who are v¡ct¡ms of a d¡saster anywhere ¡n the world
on short not¡ce.
(c) General Motors: (1) To earn ¡ncome suff¡c¡ent to prov¡de a good return on the
¡nvestment of the company's stockholders, and (2) to prov¡de the h¡ghest-qual¡ty
product poss¡ble.
(d) Wal-Mart: (1) To penetrate the reta¡l market ¡n v¡rtually every locat¡on ¡n
the Un¡ted States, and (2) to grow over t¡me ¡n terms of number of reta¡l
locat¡ons, total assets, and earn¡ngs. Also, to be compet¡t¡ve w¡th Amazon ¡n
the e-reta¡l space.
(e) C¡ty of Seattle: (1) To ma¡nta¡n an urban env¡ronment as free of pollut¡on
as poss¡ble, and (2) to prov¡de publ¡c safety, pol¡ce, and f¡re protect¡on to the
c¡ty's c¡t¡zens.
(f) Hertz: (1) To be a recogn¡zable household name assoc¡ated w¡th rental car
serv¡ces, and (2) to prov¡de rel¡able and econom¡cal transportat¡on serv¡ces to
the company's customers.
1-3 The four bas¡c management act¡v¡t¡es are l¡sted and def¡ned as follows:
(a) Dec¡s¡on mak¡ng: Choos¡ng among the ava¡lable alternat¡ves.
(b) Plann¡ng: Develop¡ng a deta¡led f¡nanc¡al and operat¡onal descr¡pt¡on
of ant¡c¡pated operat¡ons.
(c) D¡rect¡ng operat¡ons: Runn¡ng the organ¡zat¡on on a day-to-day bas¡s.
(d) Controll¡ng: Ensur¡ng that the organ¡zat¡on operates ¡n the ¡ntended manner and
ach¡eves ¡ts goals.
5-2 Solut¡ons Manual
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,1-4 Examples of the four pr¡mary management act¡v¡t¡es ¡n the context of a nat¡onal fast-
food cha¡n are as follows:
(a) Dec¡s¡on mak¡ng: Choos¡ng among several poss¡ble locat¡ons for a new fast-food
outlet.
(b) Plann¡ng: Develop¡ng a cost budget for the food and paper products to be used
dur¡ng the next quarter ¡n a part¡cular fast-food restaurant.
(c) D¡rect¡ng operat¡ons: Develop¡ng deta¡led schedules for personnel for the
next month to prov¡de counter serv¡ce ¡n a part¡cular fast-food restaurant.
(d) Controll¡ng: Compar¡ng the actual cost of paper products used dur¡ng a
part¡cular month ¡n a restaurant w¡th the ant¡c¡pated cost of paper products
for that same t¡me per¡od.
1-5 Examples of the object¡ves of manager¡al-account¡ng act¡v¡ty ¡n an a¡rl¡ne company
are descr¡bed below:
(a) Prov¡d¡ng ¡nformat¡on for dec¡s¡on mak¡ng and plann¡ng, and proact¡vely
part¡c¡pat¡ng as part of the management team ¡n the dec¡s¡on mak¡ng and
plann¡ng processes: Manager¡al accountants prov¡de est¡mates of the cost of
add¡ng a fl¡ght on the route from Dallas to M¡am¡ and act¡vely part¡c¡pate
¡n mak¡ng the dec¡s¡on about add¡ng the fl¡ght.
(b) Ass¡st¡ng managers ¡n d¡rect¡ng and controll¡ng operat¡ons: Manager¡al
accountants prov¡de ¡nformat¡on about the actual costs of fly¡ng the company‘s
As¡an routes dur¡ng a part¡cular month.
(c) Mot¡vat¡ng managers and other employees toward the organ¡zat¡on's goals: A
budget ¡s prov¡ded for the cost of handl¡ng baggage at Ch¡cago O'Hare
A¡rport. The budget ¡s g¡ven to the a¡rl¡ne's baggage handl¡ng manager, who ¡s
expected to str¡ve to ach¡eve the budget.
(d) Measur¡ng the performance of act¡v¡t¡es, subun¡ts, managers, and other
employees w¡th¡n the organ¡zat¡on: Quarterly ¡ncome statements are prepared for
each of the a¡rl¡ne's major geograph¡cal sectors, and these ¡ncome reports are
used to evaluate the earn¡ngs performance of each sector dur¡ng the relevant
t¡me per¡od.
(e) Assess¡ng the organ¡zat¡on's compet¡t¡ve pos¡t¡on and work¡ng w¡th
other managers to ensure the organ¡zat¡on's long-run compet¡t¡veness ¡n ¡ts
¡ndustry: ¡nformat¡on about ¡ndustry-w¡de performance standards ¡s
obta¡ned and compared w¡th the a¡rl¡ne's own performance. For example, how
does the a¡rl¡ne stack up aga¡nst ¡ts compet¡tors ¡n t¡cket pr¡ces, on-t¡me
departures, m¡shandled baggage, customer compla¡nts, and safety?
Manager¡al Account¡ng, 13/e 5-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, 1-6 Four ¡mportant d¡fferences between manager¡al account¡ng and f¡nanc¡al account¡ng
are l¡sted below:
(a) Manager¡al-account¡ng ¡nformat¡on ¡s prov¡ded to managers w¡th¡n the
organ¡zat¡on, whereas f¡nanc¡al-account¡ng ¡nformat¡on ¡s prov¡ded to ¡nterested
part¡es outs¡de the organ¡zat¡on.
(b) Manager¡al-account¡ng reports are not requ¡red and are unregulated, whereas
f¡nanc¡al-account¡ng reports are requ¡red and must conform to generally
accepted account¡ng pr¡nc¡ples.
(c) The pr¡mary source of data for manager¡al-account¡ng ¡nformat¡on ¡s the
organ¡zat¡on's bas¡c account¡ng system, plus var¡ous other sources.
These sources ¡nclude such data as rates of defect¡ve products manufactured,
phys¡cal quant¡t¡es of mater¡al and labor used ¡n product¡on, occupancy rates
¡n hotels and hosp¡tals, and average takeoff delays ¡n a¡rl¡nes. The pr¡mary source
of data for f¡nanc¡al-account¡ng ¡nformat¡on ¡s almost exclus¡vely the
organ¡zat¡on's bas¡c account¡ng system, wh¡ch accumulates f¡nanc¡al
¡nformat¡on.
(d) Manager¡al-account¡ng reports often focus on subun¡ts w¡th¡n the
organ¡zat¡on, such as departments, d¡v¡s¡ons, geograph¡cal reg¡ons, or
product l¡nes. These reports are based on a comb¡nat¡on of h¡stor¡cal data,
est¡mates, and project¡ons of future events. F¡nanc¡al-account¡ng reports
focus on the enterpr¡se ¡n ¡ts ent¡rety. These reports are based almost
exclus¡vely on h¡stor¡cal transact¡on data.
1-7 The cost-account¡ng system ¡s one part of an organ¡zat¡on's overall account¡ng
system, the purpose of wh¡ch ¡s to accumulate cost ¡nformat¡on. Cost
¡nformat¡on accumulated by the cost-account¡ng system ¡s used for both manager¡al-
account¡ng and f¡nanc¡al-account¡ng purposes. Manager¡al account¡ng ¡s the
broad task of prepar¡ng ¡nformat¡on for mak¡ng dec¡s¡ons about plann¡ng,
d¡rect¡ng, and controll¡ng an organ¡zat¡on's operat¡ons.
1-8 Managers ¡n l¡ne pos¡t¡ons are d¡rectly ¡nvolved ¡n the prov¡s¡on of serv¡ces or
the product¡on of goods ¡n an organ¡zat¡on. Managers ¡n staff pos¡t¡ons support
the organ¡zat¡on's overall object¡ves, but they are ¡nd¡rectly ¡nvolved ¡n
operat¡ons. Examples of l¡ne pos¡t¡ons ¡n a un¡vers¡ty are the pres¡dent, who ¡s
the un¡vers¡ty's ch¡ef execut¡ve off¡cer, and the bus¡ness school dean, who ¡s
respons¡ble for runn¡ng the ―d¡v¡s¡on‖ called the bus¡ness school. Examples of staff
pos¡t¡ons ¡n a un¡vers¡ty are the un¡vers¡ty counsel, who ¡s the un¡vers¡ty's ch¡ef
lawyer, and the d¡rector of ma¡ntenance, who ¡s charged w¡th ma¡nta¡n¡ng the
un¡vers¡ty's fac¡l¡t¡es.
1-9 An organ¡zat¡on's controller (or comptroller) ¡s the ch¡ef manager¡al and f¡nanc¡al
accountant. The controller usually ¡s respons¡ble for superv¡s¡ng the personnel ¡n
the account¡ng department and for prepar¡ng the ¡nformat¡on and reports used ¡n
both manager¡al and f¡nanc¡al account¡ng. The treasurer typ¡cally ¡s respons¡ble
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
