Solution Manual for Managerial Accounting,
18th Edition
By Ray Garrison, Eric Noreen and Peter Brewer
Verified Chapter's 1 - 16 | Complete
,Table of Contents cy cy
Chapter cyOne: cyManagerial cyAccounting cyand cyCost cyConcepts
cy Chapter cyTwo: cyJob-Order cyCosting: cyCalculating cyUnit cyProduct
Costs
cy
Chapter cyThree: cyJob-Order cyCosting: cyCost cyFlows cyand cyExternal cyReporting
cy Chapter cyFour: cyProcess cyCosting
Chapter cyFive: cyCost-Volume-Profit cyRelationships
Chapter cySix: cyVariable cyCosting cyand cySegment cyReporting: cyTools cyfor
Management cyChapter cySeven: cyActivity-Based cyCosting: cyA cyTool cyto cyAid
cy
cy Decision cyMaking cyChapter cyEight: cyMaster cyBudgeting
Chapter cyNine: cyFlexible cyBudgets cyand cyPerformance cyAnalysis
cy Chapter cyTen: cyStandard cyCosts cyand cyVariances
Chapter cyEleven: cyResponsibility cyAccounting cySystems
cy Chapter cyTwelve: cyStrategic cyPerformance cyMeasurement
Chapter cyThirteen: cyDifferential cyAnalysis: cyThe cyKey cyto cyDecision cyMaking
cy Chapter cyFourteen: cyCapital cyBudgeting cyDecisions
Chapter cyFifteen: cyStatement cyof cyCash cyFlows
cy Chapter cySixteen: cyFinancial cyStatement
Analysis
cy
,Chapter 1 cy
Managerial Accounting and Cost Concepts
cy cy cy cy
Questions
1-1 The cythree cymajor cytypes cyof cyproduct 1-4
cycosts cyin cya cymanufacturing cycompany cyare a. Variable cycost: cyThe cyvariable cycost cyper
cydirect cymaterials, cydirect cylabor, cyand cyunit cyis cyconstant, cybut cytotal cyvariable
cymanufacturing cyoverhead. cycost cychanges cyin cydirect cyproportion cyto
cychanges cyin cyvolume.
1-2 b. Fixed cycost: cyThe cytotal cyfixed cycost cyis
a. Direct cymaterials cyare cyan cyintegral cypart cyconstant cywithin cythe cyrelevant cyrange. cyThe
cyof cya cyfinished cyproduct cyand cytheir cycosts cyaverage cyfixed cycost cyper cyunit cyvaries
cycan cybe cyconveniently cytraced cyto cyit. cyinversely cywith cychanges cyin cyvolume.
b. Indirect cymaterials cyare cygenerally cysmall c. Mixed cycost: cyA cymixed cycost cycontains
cyitems cyof cymaterial cysuch cyas cyglue cyand cyboth cyvariable cyand cyfixed cycost
cynails. cyThey cymay cybe cyan cyintegral cypart cyof cya cyelements.
cyfinished cyproduct cybut cytheir cycosts cycan cybe
cytraced cyto cythe cyproduct cyonly cyat cygreat cycost 1-5
cyor cyinconvenience. a. Unit cyfixed cycosts cydecrease cyas cythe cyactivity
c. Direct cylabor cyconsists cyof cylabor cycosts cylevel cyincreases.
cythat cycan cybe cyeasily cytraced cyto cyparticular b. Unit cyvariable cycosts cyremain cyconstant cyas
cyproducts. cythe cyactivity cylevel cyincreases.
Direct cylabor cyis cyalso cycalled cy―touch cylabor.‖ c. Total cyfixed cycosts cyremain cyconstant cyas
d. Indirect cylabor cyconsists cyof cythe cylabor cythe cyactivity cylevel cyincreases.
cycosts cyof cyjanitors, cysupervisors, cymaterials d. Total cyvariable cycosts cyincrease cyas cythe
cyhandlers, cyand cyother cyfactory cyworkers cythat cyactivity cylevel cyincreases.
cycannot cybe cyconveniently cytraced cyto
cyparticular cyproducts. cyThese cylabor cycosts 1-6
cyare cyincurred cyto cysupport cyproduction, cybut a. Cost cybehavior: cyCost cybehavior cyrefers
cythe cyworkers cyinvolved cydo cynot cydirectly cyto cythe cyway cyin cywhich cycosts cychange
cywork cyon cythe cyproduct. cyin cyresponse cyto cychanges cyin cya
e. Manufacturing cyoverhead cyincludes cyall cymeasure cyof cyactivity cysuch cyas cysales
cymanufacturing cycosts cyexcept cydirect cymaterials cyvolume, cyproduction cyvolume, cyor cyorders
cyand cydirect cylabor. cyConsequently, cyprocessed.
cymanufacturing cyoverhead cyincludes cyindirect b. Relevant cyrange: cyThe cyrelevant cyrange
cymaterials cyand cyindirect cylabor cyas cywell cyas cyis cythe cyrange cyof cyactivity cywithin cywhich
cyother cymanufacturing cycosts. cyassumptions cyabout cyvariable cyand cyfixed
cycost cybehavior cyare cyvalid.
1-3 A cyproduct cycost cyis cyany cycost
cyinvolved cyin cypurchasing cyor cymanufacturing 1-7 An cyactivity cybase cyis cya cymeasure
cygoods. cyIn cythe cycase cyof cymanufactured cyof cywhatever cycauses cythe cyincurrence cyof cya
cygoods, cythese cycosts cyconsist cyof cydirect cyvariable cycost. cyExamples cyof cyactivity cybases
cymaterials, cydirect cylabor, cyand cymanufacturing cyinclude cyunits cyproduced, cyunits cysold,
cyoverhead. cyA cyperiod cycost cyis cya cycost cythat cyletters cytyped, cybeds cyin cya cyhospital, cymeals
cyis cytaken cydirectly cyto cythe cyincome cyserved cyin cya cycafe, cyservice cycalls cymade,
cystatement cyas cyan cyexpense cyin cythe cyperiod cyetc.
cyin cywhich cyit cyis cyincurred.
1-8 The cylinear cyassumption cyis cyreasonably
, valid cyproviding cythat cythe cycost cyformula cyis
cyused cyonly cywithin cythe cyrelevant cyrange.
18th Edition
By Ray Garrison, Eric Noreen and Peter Brewer
Verified Chapter's 1 - 16 | Complete
,Table of Contents cy cy
Chapter cyOne: cyManagerial cyAccounting cyand cyCost cyConcepts
cy Chapter cyTwo: cyJob-Order cyCosting: cyCalculating cyUnit cyProduct
Costs
cy
Chapter cyThree: cyJob-Order cyCosting: cyCost cyFlows cyand cyExternal cyReporting
cy Chapter cyFour: cyProcess cyCosting
Chapter cyFive: cyCost-Volume-Profit cyRelationships
Chapter cySix: cyVariable cyCosting cyand cySegment cyReporting: cyTools cyfor
Management cyChapter cySeven: cyActivity-Based cyCosting: cyA cyTool cyto cyAid
cy
cy Decision cyMaking cyChapter cyEight: cyMaster cyBudgeting
Chapter cyNine: cyFlexible cyBudgets cyand cyPerformance cyAnalysis
cy Chapter cyTen: cyStandard cyCosts cyand cyVariances
Chapter cyEleven: cyResponsibility cyAccounting cySystems
cy Chapter cyTwelve: cyStrategic cyPerformance cyMeasurement
Chapter cyThirteen: cyDifferential cyAnalysis: cyThe cyKey cyto cyDecision cyMaking
cy Chapter cyFourteen: cyCapital cyBudgeting cyDecisions
Chapter cyFifteen: cyStatement cyof cyCash cyFlows
cy Chapter cySixteen: cyFinancial cyStatement
Analysis
cy
,Chapter 1 cy
Managerial Accounting and Cost Concepts
cy cy cy cy
Questions
1-1 The cythree cymajor cytypes cyof cyproduct 1-4
cycosts cyin cya cymanufacturing cycompany cyare a. Variable cycost: cyThe cyvariable cycost cyper
cydirect cymaterials, cydirect cylabor, cyand cyunit cyis cyconstant, cybut cytotal cyvariable
cymanufacturing cyoverhead. cycost cychanges cyin cydirect cyproportion cyto
cychanges cyin cyvolume.
1-2 b. Fixed cycost: cyThe cytotal cyfixed cycost cyis
a. Direct cymaterials cyare cyan cyintegral cypart cyconstant cywithin cythe cyrelevant cyrange. cyThe
cyof cya cyfinished cyproduct cyand cytheir cycosts cyaverage cyfixed cycost cyper cyunit cyvaries
cycan cybe cyconveniently cytraced cyto cyit. cyinversely cywith cychanges cyin cyvolume.
b. Indirect cymaterials cyare cygenerally cysmall c. Mixed cycost: cyA cymixed cycost cycontains
cyitems cyof cymaterial cysuch cyas cyglue cyand cyboth cyvariable cyand cyfixed cycost
cynails. cyThey cymay cybe cyan cyintegral cypart cyof cya cyelements.
cyfinished cyproduct cybut cytheir cycosts cycan cybe
cytraced cyto cythe cyproduct cyonly cyat cygreat cycost 1-5
cyor cyinconvenience. a. Unit cyfixed cycosts cydecrease cyas cythe cyactivity
c. Direct cylabor cyconsists cyof cylabor cycosts cylevel cyincreases.
cythat cycan cybe cyeasily cytraced cyto cyparticular b. Unit cyvariable cycosts cyremain cyconstant cyas
cyproducts. cythe cyactivity cylevel cyincreases.
Direct cylabor cyis cyalso cycalled cy―touch cylabor.‖ c. Total cyfixed cycosts cyremain cyconstant cyas
d. Indirect cylabor cyconsists cyof cythe cylabor cythe cyactivity cylevel cyincreases.
cycosts cyof cyjanitors, cysupervisors, cymaterials d. Total cyvariable cycosts cyincrease cyas cythe
cyhandlers, cyand cyother cyfactory cyworkers cythat cyactivity cylevel cyincreases.
cycannot cybe cyconveniently cytraced cyto
cyparticular cyproducts. cyThese cylabor cycosts 1-6
cyare cyincurred cyto cysupport cyproduction, cybut a. Cost cybehavior: cyCost cybehavior cyrefers
cythe cyworkers cyinvolved cydo cynot cydirectly cyto cythe cyway cyin cywhich cycosts cychange
cywork cyon cythe cyproduct. cyin cyresponse cyto cychanges cyin cya
e. Manufacturing cyoverhead cyincludes cyall cymeasure cyof cyactivity cysuch cyas cysales
cymanufacturing cycosts cyexcept cydirect cymaterials cyvolume, cyproduction cyvolume, cyor cyorders
cyand cydirect cylabor. cyConsequently, cyprocessed.
cymanufacturing cyoverhead cyincludes cyindirect b. Relevant cyrange: cyThe cyrelevant cyrange
cymaterials cyand cyindirect cylabor cyas cywell cyas cyis cythe cyrange cyof cyactivity cywithin cywhich
cyother cymanufacturing cycosts. cyassumptions cyabout cyvariable cyand cyfixed
cycost cybehavior cyare cyvalid.
1-3 A cyproduct cycost cyis cyany cycost
cyinvolved cyin cypurchasing cyor cymanufacturing 1-7 An cyactivity cybase cyis cya cymeasure
cygoods. cyIn cythe cycase cyof cymanufactured cyof cywhatever cycauses cythe cyincurrence cyof cya
cygoods, cythese cycosts cyconsist cyof cydirect cyvariable cycost. cyExamples cyof cyactivity cybases
cymaterials, cydirect cylabor, cyand cymanufacturing cyinclude cyunits cyproduced, cyunits cysold,
cyoverhead. cyA cyperiod cycost cyis cya cycost cythat cyletters cytyped, cybeds cyin cya cyhospital, cymeals
cyis cytaken cydirectly cyto cythe cyincome cyserved cyin cya cycafe, cyservice cycalls cymade,
cystatement cyas cyan cyexpense cyin cythe cyperiod cyetc.
cyin cywhich cyit cyis cyincurred.
1-8 The cylinear cyassumption cyis cyreasonably
, valid cyproviding cythat cythe cycost cyformula cyis
cyused cyonly cywithin cythe cyrelevant cyrange.
