SOLUTION MANUAL Horngren's Accounting, 13th Edition Managerial by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9 Complete Solutions

SOLUTION MANUAL
Horngren's Accounting, 13th Edition Managerial
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9

,THE MANAGERIAL CHAPTERS
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1. Introduction to Managerial Accounting
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2. Job Order Costing
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3. Process Costing hd




4. Cost-Volume-Profit Analysis hd




5. Master Budgets hd




6. Flexible Budgets and Standard Cost Systems
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7. Cost Allocation and Responsibility Accounting
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8. Short-Term Business Decisions hd hd




9. Capital Investment Decisions
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,Chapter 1 hd




Introduction to Managerial Accounting hd hd hd




Review Questions hd




1. The primary purpose of managerial accounting is to provide information to help managers pl
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an,direct, control, and make decisions.
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2. Financial accounting and managerial accounting differ on the following 6 dimensions: (1) primar
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yusers, (2) purpose of information, (3) focus and time dimension of the information, (4) rules an
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d restrictions, (5) scope of information, and (6) behavioral.
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3. Line positions are directly involved in providing goods or services to customers. Staff positio
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nssupport line positions.
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4. Planning means choosing goals and deciding how to achieve them. Directing involves running the
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day-to-
day operations of a business. Controlling is the process of monitoring operations and keepingthe
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company on track. hd hd




5. The four IMA standards of ethical practice and a description of each follow.
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I. Competence.
 Maintain an appropriate level of professional leadership and expertise by enhanci
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ngknowledge and skills. d
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 Perform professional duties in accordance with relevant laws, regulations, and techni
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calstandards. d
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 Provide decision support information and recommendations that are accurate, clear, conc
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ise,and timely. d
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 Recognise and help mange risk. hd hd hd hd




II. Confidentiality.
 Keep information confidential except when disclosure is authorized or legally required.
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 Inform all relevant parties regarding appropriate use of confidential information. Monito
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r toensure compliance.hd d
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 Refrain from using confidential information for unethical or illegal advantage.
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III. Integrity.
 Mitigate actual conflicts of interest. Regularly communicate with business associates to avo
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idapparent conflicts of interest. Advise all parties of any potential conflicts.
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 Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
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,  Abstain from engaging in or supporting any activity that might discredit the profession.
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 Contribute to a positive ethical culture and place integrity of the profession above perso
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nalinterest. d
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5, cont.
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IV. Credibility.
 Communicate information fairly and objectively. hd hd hd hd




 Provide all relevant information that could reasonably be expected to influence an inten
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deduser’s understanding of the reports, analyses, or recommendations.
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 Report any delays or deficiencies in information, timeliness, processing, or internal contro
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lsin conformance with organization policy and/or applicable law.
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 Communicate any professional limitations or other constraints that would preclude respo hd hd hd hd hd hd hd hd hd hd




nsi-ble judgment or successful performance of an activity.
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6. Service companies sell time, skills, and knowledge. Examples of service companies include pho
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neservice companies, banks, cleaning service companies, accounting firms, law firms, medical p
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hysicians, and online auction services. hd hd hd hd




7. Merchandising companies resell products they buy from suppliers. Merchandisers keep an invento
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ryof products, and managers are accountable for the purchasing, storage, and sale of the products
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. Examples of merchandising companies include toy stores, grocery stores, and clothing stores.
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8. Merchandising companies resell products they previously bought from suppliers, whereas manuf
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acturing companies use labor, equipment, supplies, and facilities to convert raw materials intone
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w finished products. In contrast to merchandising companies, manufacturing companies have a b
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road range of production activities that require tracking costs on three kinds of inventory.
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9. The three inventory accounts used by manufacturing companies are Raw Materials Inventory, Wo
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rk-in-Process Inventory, and Finished Goods Inventory.
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Raw Materials Inventory includes materials used to manufacture a product. Work-in-
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ProcessInventory includes goods that have been started in the manufacturing process but are not
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yet complete. Finished Goods Inventory includes completed goods that have not yet been sold.
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10. A direct cost is a cost that can be easily and cost-
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effectively traced to a cost object (which is anything for which managers want a separate meas
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urement of cost). An indirect cost is a cost thatcannot be easily or cost-
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effectively traced to a cost object. hd hd hd hd hd




11. The three manufacturing costs for a manufacturing company are direct materials, direct labor, an
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d manufacturing overhead. Direct materials are materials that become a physical part of a finishe
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d product and whose costs are easily traceable to the finished product. Direct labor is the labor
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