Solutions Manual
,PEARSON EDUCATION LIMITED
KAO
Two
KAO Park
Harlow CM17 9NA
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com
Ninth edition published 2019
Tenth edition published 2021
This edition published 2024
© 2024 Pearson Education Limited. All Rights Reserved.
The rights of Peter Atrill and Eddie McLaney to be identified as authors of this work have been
asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
Pearson Education is not responsible for the content of third-party internet sites.
All rights reserved. Permission is hereby given for the material in this publication to be reproduced
for OHP transparencies and student handouts, without express permission of the Publishers, for
educational purposes only. In all other cases, no part of this publication may be reproduced, stored
in a retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise without either the prior written permission of the Publishers
or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing
Agency Ltd., Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN. This book may not be lent, resold,
hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in
which it is published, without the prior consent of the Publishers.
Please note that, unless the material is specifically cited with a source, any company names used
within this Instructor’s Manual have been created by the authors and are intended to be fictitious.
The Financial Times. With a worldwide network of highly respected journalists, The
Financial Times provides global business news, insightful opinion and expert analysis of
business, finance and politics. With over 500 journalists reporting from 50 countries
worldwide, our in-depth coverage of international news is objectively reported and analysed
from an independent, global perspective. To find out more, visit www.ft.com/pearsonoffer.
, Contents
Chapters Pages
Section A: Authors’ Note to Tutors 4
Section B: Solutions to Exercises 6
Tutorial/seminar questions 83
While we work hard to present unbiased, fully accessible content, we want to hear from you about
any concerns or needs with this Pearson product so that we can investigate and address them:
Please contact us with concerns about any potential bias at
https://www.pearson.com/report-bias.html
For accessibility-related issues, such as using assistive technology with Pearson products,
alternative text requests, or accessibility documentation, email the Pearson Disability
Support team at
3
© 2024 Pearson Education Limited. All Rights Reserved
, SECTION A
Authors’ note to tutors
Using the book
The book is designed to provide readers with a sound introduction to management accounting. It
assumes no previous knowledge of the subject and recognises that students using it may come from
a wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not
assume a high level of numerical ability from students. It has been class tested by students on
various courses and we have modified and refined the material to take account of their comments.
We have also taken account of the comments made by lecturers who used the first 10 editions of the
book and of specially commissioned reviews.
The book aims to encourage an active approach to learning by providing activities and self-
assessment questions at appropriate points. This approach is designed to stimulate thought
concerning particular issues and to give the readers the opportunity to test their understanding of the
principles covered.
The book is supplemented by a password-controlled lecturers’ website and a student website
available to all readers.
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used
as recommended reading for a traditional course based on lectures and tutorials. There are critical
review questions and exercises at the end of each chapter that can be used as the basis for tutorials.
It could also provide the basis for a distance learning approach for part-time or off-campus students.
For these students, the interactive nature of the book may be extremely useful where access to a
tutor is restricted. The book can also be used as the basis for an open learning approach for full-time
campus-based students. We have successfully used it in this way at the University of Plymouth
Business School. Accounting ‘surgeries’ have also been provided to give students the opportunity
for one-to-one help with any problems they face.
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study.
For full-time students, this will often be covered in one academic year.
PowerPoint slides
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint
slides to help in delivering lectures and tutorials and these can be downloaded from the lecturers’
website.
4
,PEARSON EDUCATION LIMITED
KAO
Two
KAO Park
Harlow CM17 9NA
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com
Ninth edition published 2019
Tenth edition published 2021
This edition published 2024
© 2024 Pearson Education Limited. All Rights Reserved.
The rights of Peter Atrill and Eddie McLaney to be identified as authors of this work have been
asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
Pearson Education is not responsible for the content of third-party internet sites.
All rights reserved. Permission is hereby given for the material in this publication to be reproduced
for OHP transparencies and student handouts, without express permission of the Publishers, for
educational purposes only. In all other cases, no part of this publication may be reproduced, stored
in a retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise without either the prior written permission of the Publishers
or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing
Agency Ltd., Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN. This book may not be lent, resold,
hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in
which it is published, without the prior consent of the Publishers.
Please note that, unless the material is specifically cited with a source, any company names used
within this Instructor’s Manual have been created by the authors and are intended to be fictitious.
The Financial Times. With a worldwide network of highly respected journalists, The
Financial Times provides global business news, insightful opinion and expert analysis of
business, finance and politics. With over 500 journalists reporting from 50 countries
worldwide, our in-depth coverage of international news is objectively reported and analysed
from an independent, global perspective. To find out more, visit www.ft.com/pearsonoffer.
, Contents
Chapters Pages
Section A: Authors’ Note to Tutors 4
Section B: Solutions to Exercises 6
Tutorial/seminar questions 83
While we work hard to present unbiased, fully accessible content, we want to hear from you about
any concerns or needs with this Pearson product so that we can investigate and address them:
Please contact us with concerns about any potential bias at
https://www.pearson.com/report-bias.html
For accessibility-related issues, such as using assistive technology with Pearson products,
alternative text requests, or accessibility documentation, email the Pearson Disability
Support team at
3
© 2024 Pearson Education Limited. All Rights Reserved
, SECTION A
Authors’ note to tutors
Using the book
The book is designed to provide readers with a sound introduction to management accounting. It
assumes no previous knowledge of the subject and recognises that students using it may come from
a wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not
assume a high level of numerical ability from students. It has been class tested by students on
various courses and we have modified and refined the material to take account of their comments.
We have also taken account of the comments made by lecturers who used the first 10 editions of the
book and of specially commissioned reviews.
The book aims to encourage an active approach to learning by providing activities and self-
assessment questions at appropriate points. This approach is designed to stimulate thought
concerning particular issues and to give the readers the opportunity to test their understanding of the
principles covered.
The book is supplemented by a password-controlled lecturers’ website and a student website
available to all readers.
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used
as recommended reading for a traditional course based on lectures and tutorials. There are critical
review questions and exercises at the end of each chapter that can be used as the basis for tutorials.
It could also provide the basis for a distance learning approach for part-time or off-campus students.
For these students, the interactive nature of the book may be extremely useful where access to a
tutor is restricted. The book can also be used as the basis for an open learning approach for full-time
campus-based students. We have successfully used it in this way at the University of Plymouth
Business School. Accounting ‘surgeries’ have also been provided to give students the opportunity
for one-to-one help with any problems they face.
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study.
For full-time students, this will often be covered in one academic year.
PowerPoint slides
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint
slides to help in delivering lectures and tutorials and these can be downloaded from the lecturers’
website.
4
