Solutions Manual for Managerial
Accounting, 6th Canadian Edition by Karen
W. Braun | Wendy M. Tietz | Louis Beaubien
Complete Chapters Included (Chap 1 to 14) | Updated Solutions 2026/2027
Chapter 1
Introduction to Managerial Accounting
Quick Check
Answers:
1. b 3. d 5. c 7. c
2. b 4. d 6. c 8. b
Short Exercises
(5–10 min.) S1-1
The four primary responsibilities of managers include planning, directing, controlling, and decision making.
Managers plan by setting goals and objectives for the company and devising strategies for achieving those
goals. Then they direct the day-to-day operations of the company in light of the goals and objectives. They
control the company by comparing actual results to plans and then use that feedback to adjust plans and
operations. Throughout all aspects of these duties, management is making critical business decisions.
Student responses may vary.
(5–10 min.) S1-2
a. Managerial accounting
b. Managerial accounting
c. Financial accounting
d. Financial accounting
e. Managerial accounting
f. Managerial accounting
g. Financial accounting
h. Managerial accounting
i. Financial accounting
j. Financial accounting
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,Managerial Accounting Sixth Canadian Edition Instructor’s Solutions Manual
k. Financial accounting
l. Financial accounting
m. Managerial accounting
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,Managerial Accounting Sixth Canadian Edition Instructor’s Solutions Manual
(5–10 min.) S1-3
a. Internal auditing department
b. Controller
c. Treasurer
d. Internal auditing department
e. Controller
f. Controller
g. Treasurer
h. Internal auditing department
i. Controller
j. Controller
k. Treasurer
l. Internal auditing department
m. Controller
(5–10 min.) S1-4
Characteristic Check (ü) if related to
internal auditing
a. Helps to ensure that the company’s internal controls are ü
functioning properly
b. Reports to the treasurer or controller
c. Required by the Toronto Stock Exchange if company stock ü
is publicly traded on the TSX
d. Reports directly to the audit committee ü
e. Ensures that the company achieves its profit goals
f. Is part of the accounting department
g. Usually reports to a senior executive (CFO or CEO) for ü
administrative matters
h. Performs the same function as independent certified public
accountants
i. External audits can be performed by the internal auditing
department
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, Managerial Accounting Sixth Canadian Edition Instructor’s Solutions Manual
(10 min.) S1-5
Each of the five ethical principles contributes to maintaining CPA Canada’s expectation that management
accountants will uphold the highest principles of ethical behaviour.
Without the necessary competence, management accountants will be unable to perform their responsibilities.
Even if they do recognize an ethical dilemma, they could lack the competence required to determine all the
alternative courses of action and the implications of each alternative. Having independence is important for
minimizing or eliminating the impact of others’ influences. Management accountants need to provide
opinions based on their own interpretation of data rather than the interpretations of other stakeholders.
Management accountants have access to confidential information. If they do not maintain that
confidentiality, their companies could suffer. Their companies would be reluctant to provide access to
information, which would prevent management accountants from performing their responsibilities.
Additionally, employers must have confidence that management accountants have the integrity to apply their
skills appropriately and avoid being prejudiced by any conflicts of interest.
Management accountants should have the ability as well to effectively analyze situations so that they
might communicate them faithfully to employers, regulators, or clients to ensure proper action is taken.
Finally, an important part of management accountants’ responsibilities is communicating information and
providing reports to senior management. To be able to rely on these reports, management must have
confidence that the management accountant is not hiding inconvenient facts or presenting a biased view.
Student responses may vary.
(5 min.) S1-6
a. Providing earnings information to your brother before it is publicly announced violates the concept of
client confidentiality and fails to uphold trust.
b. Stealing from your employer is a violation of the concept of integrity and is illegal.
c. Skipping continuing education sessions could violate the requirement to maintain professional
competence in enabling competencies. If your company paid for you to attend the conference, skipping
the sessions also violates the notion of integrity.
d. Failing to read the specifications of the software package before purchasing it violates professional
competence in enabling competencies.
e. Failing to provide job description information to management because you fear it may be used to cut
a position in your department violates the notion of integrity and the required skills of a competent
accountant.
4 Copyright © 2027
Accounting, 6th Canadian Edition by Karen
W. Braun | Wendy M. Tietz | Louis Beaubien
Complete Chapters Included (Chap 1 to 14) | Updated Solutions 2026/2027
Chapter 1
Introduction to Managerial Accounting
Quick Check
Answers:
1. b 3. d 5. c 7. c
2. b 4. d 6. c 8. b
Short Exercises
(5–10 min.) S1-1
The four primary responsibilities of managers include planning, directing, controlling, and decision making.
Managers plan by setting goals and objectives for the company and devising strategies for achieving those
goals. Then they direct the day-to-day operations of the company in light of the goals and objectives. They
control the company by comparing actual results to plans and then use that feedback to adjust plans and
operations. Throughout all aspects of these duties, management is making critical business decisions.
Student responses may vary.
(5–10 min.) S1-2
a. Managerial accounting
b. Managerial accounting
c. Financial accounting
d. Financial accounting
e. Managerial accounting
f. Managerial accounting
g. Financial accounting
h. Managerial accounting
i. Financial accounting
j. Financial accounting
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,Managerial Accounting Sixth Canadian Edition Instructor’s Solutions Manual
k. Financial accounting
l. Financial accounting
m. Managerial accounting
2 Copyright © 2027
,Managerial Accounting Sixth Canadian Edition Instructor’s Solutions Manual
(5–10 min.) S1-3
a. Internal auditing department
b. Controller
c. Treasurer
d. Internal auditing department
e. Controller
f. Controller
g. Treasurer
h. Internal auditing department
i. Controller
j. Controller
k. Treasurer
l. Internal auditing department
m. Controller
(5–10 min.) S1-4
Characteristic Check (ü) if related to
internal auditing
a. Helps to ensure that the company’s internal controls are ü
functioning properly
b. Reports to the treasurer or controller
c. Required by the Toronto Stock Exchange if company stock ü
is publicly traded on the TSX
d. Reports directly to the audit committee ü
e. Ensures that the company achieves its profit goals
f. Is part of the accounting department
g. Usually reports to a senior executive (CFO or CEO) for ü
administrative matters
h. Performs the same function as independent certified public
accountants
i. External audits can be performed by the internal auditing
department
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, Managerial Accounting Sixth Canadian Edition Instructor’s Solutions Manual
(10 min.) S1-5
Each of the five ethical principles contributes to maintaining CPA Canada’s expectation that management
accountants will uphold the highest principles of ethical behaviour.
Without the necessary competence, management accountants will be unable to perform their responsibilities.
Even if they do recognize an ethical dilemma, they could lack the competence required to determine all the
alternative courses of action and the implications of each alternative. Having independence is important for
minimizing or eliminating the impact of others’ influences. Management accountants need to provide
opinions based on their own interpretation of data rather than the interpretations of other stakeholders.
Management accountants have access to confidential information. If they do not maintain that
confidentiality, their companies could suffer. Their companies would be reluctant to provide access to
information, which would prevent management accountants from performing their responsibilities.
Additionally, employers must have confidence that management accountants have the integrity to apply their
skills appropriately and avoid being prejudiced by any conflicts of interest.
Management accountants should have the ability as well to effectively analyze situations so that they
might communicate them faithfully to employers, regulators, or clients to ensure proper action is taken.
Finally, an important part of management accountants’ responsibilities is communicating information and
providing reports to senior management. To be able to rely on these reports, management must have
confidence that the management accountant is not hiding inconvenient facts or presenting a biased view.
Student responses may vary.
(5 min.) S1-6
a. Providing earnings information to your brother before it is publicly announced violates the concept of
client confidentiality and fails to uphold trust.
b. Stealing from your employer is a violation of the concept of integrity and is illegal.
c. Skipping continuing education sessions could violate the requirement to maintain professional
competence in enabling competencies. If your company paid for you to attend the conference, skipping
the sessions also violates the notion of integrity.
d. Failing to read the specifications of the software package before purchasing it violates professional
competence in enabling competencies.
e. Failing to provide job description information to management because you fear it may be used to cut
a position in your department violates the notion of integrity and the required skills of a competent
accountant.
4 Copyright © 2027
