Solutions Manual – Managerial Accounting, 8th Edition by Tietz & Braun

Solutions Manual - Managerial Accounting, 8th Edition
Wendy M. Tietz | Karen W. Braun
Chapter 1
Introduction to Managerial Accounting

Real World Reporting
(20–30 min.) RW1-1
1. CEO: Brian C. Cornell / CFO: Jim Lee
2. 23 new stores
3. 1.3% decrease
4. “If we are unable to positively differentiate ourselves from our competitors, our results of
operations and financial condition could be adversely affected.”

(20–30 min.) RW1-2
1. Edward P. Decker
2. Effective, per Item 9A of the 10-K
3. “Strong competition could adversely affect prices and demand for our products and services
and could decrease our market share.”
4. 11 subsidiaries

Quick Check
Answers
QC1-1. c
QC1-2. d
QC1-3. b
QC1-4. d
QC1-5. d
QC1-6. c
QC1-7. a
QC1-8. c
QC1-9. b
QC1-10. a
QC1-11. d
QC1-12. b




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,Managerial Accounting 8e Solutions Manual


Short Exercises
(5–10 min.) S1-1
a. Planning
b. Controlling
c. Directing
d. Directing
e. Directing, Controlling
(5–10 min.) S1-2
a. Financial accounting
b. Financial accounting
c. Financial accounting
d. Managerial accounting
e. Managerial accounting
f. Managerial accounting
g. Financial accounting
h. Financial accounting
i. Managerial accounting
j. Managerial accounting
k. Financial accounting
l. Managerial accounting
m. Financial accounting
(5–10 min.) S1-3
a. Internal Auditing Department
b. Controller
c. Internal Auditing Department
d. Internal Auditing Department
e. Treasurer
f. Controller
g. Controller
h. Controller
i. Controller
j. Controller
k. Controller
l. Treasurer
m. Treasurer



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, Chapter 1 Introduction to Managerial Accounting


(5–10 min.) S1-4
Characteristic Check (√) if related
to internal auditing
a. Reports directly to the audit committee √
b. Reports to treasurer or controller
c. Is part of the Accounting Department
d. Helps to ensure that company’s internal controls are functioning √
properly
e. Performs the same function as independent certified public
accountants
f. Usually reports to a senior executive (CFO or CEO) for √
administrative matters
g. External audits can be performed by the internal auditing
department
h. Required by the New York Stock Exchange if company stock is √
publicly traded on the NYSE
i. Ensures that the company achieves its profit goals

(10 min.) S1-5
a. The CEO is hired by the board of directors.
b. A subcommittee of the board of directors is called the audit committee.
c. Raising capital and investing funds are the direct responsibilities of the treasurer.
d. The CFO and the COO report to the CEO.
e. Financial accounting, managerial accounting, and tax reporting are the direct responsibilities
of the controller.
f. Management accountants often work on cross-functional teams.
g. The internal audit function reports to the CFO or the CEO and the audit committee.
h. The company’s operations are the direct responsibility of the COO.
(5 min.) S1-6
1. The Institute of Management Accountants (IMA) issues the Certified Management
Accountant (CMA) certification.
2. The certification offered by IMA, focuses on accounting and finance topics.
3. The monthly professional magazine published by the Institute of Management Accountants is
called Strategic Finance.
4. The certification launched in 2012 jointly by the AICPA-CIMAis called the Chartered Global
Management Accountant (CGMA).
5. To earn CMA certification, a candidate must have a(n) baccalaureate degree. The CMA exam
can be taken, however, before finishing this degree.


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, Managerial Accounting 8e Solutions Manual


(5 min.) S1-7
a. Failing to provide job description information to management because you fear it may be
used to cut a position in your department violates the credibility standard.
b. Providing earnings information to your sister before it is publicly announced violates the
confidentiality standard.
c. Failing to read the specifications of the software package before purchasing it violates the
competence standard.
d. Stealing from your employer is a violation of the integrity standard.
e. Skipping continuing education sessions could violate the requirement to maintain
professional competence. If your company paid for you to attend the conference, skipping the
sessions also violates the integrity standard.
(5 min.) S1-8
a. Sustainability
b. Sarbanes-Oxley Act (SOX)
c. Enterprise resource planning (ERP) system
d. Data analytics
(5 min.) S1-9
Standard
Letter Scenario violated
a. Aidan, an accountant for a smartphone manufacturer, told his
friends about a new model of smartphone being released by the
company in the following quarter. For competitive reasons, the
company keeps its models shrouded in secrecy until release
date. Confidentiality
b. The CFO directed that certain expenses be reclassified as assets,
so that target profit could be achieved. The CFO rationalized
that jobs would be saved by reaching the targeted income
figures. Integrity
c. Even though Meagan's company is adopting a new ERP system
that impacts the accounting system, Meagan (a management
accountant) has not completed the required ERP training from
the vendor. Competence
d. Mateo provides an analysis of the profitability of a company-
owned store that is managed by Mateo’s best friend, Akeno.
Mateo neglects to include allocated fixed costs in Akeno’s
report. If Mateo includes those allocated fixed costs, the store
will show a loss and Akeno’s job could be in danger. Credibility
e. Yimeng, a purchasing agent for their company, received two
tickets from a supplier to the upcoming Ohio State versus
University of Michigan football game. These tickets sell for
over $500 each. Integrity



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