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Solutions Manual
Managerial Accounting: Creating Value in a Dynamic
Business Environment, 13th Edition by Hilton
Chapters 1 - 17 Complete

,TABLE OF CONTENTSE E




ChapterE1:ETheEChangingERoleEofEManagerialEAccountingEinEaEDynamicEBusinessEEn

vironmentEChapterE2:EBasicECostEManagementEConcepts

ChapterE3:EProductECostingEandECostEAccumulationEinEaEBatchEProductionEEnviron

mentEChapterE4:EProcessECostingEandEHybridEProduct-CostingESystems

ChapterE5:EActivity-BasedECostingEandEManagement

ChapterE6:EActivityEAnalysis,ECostEBehavior,EandECostEEsti

mationEChapterE7:ECost-Volume-ProfitEAnalysis

ChapterE8:EVariableECostingEandEtheEMeasurementEofEESGEandEQualityEC

ostsEChapterE9:EFinancialEPlanningEandEAnalysis:ETheEMasterEBudget

ChapterE10:EStandardECostingEandEAnalysisEofEDirectECosts

ChapterE11:EFlexibleEBudgetingEandEtheEManagementEofEOverheadEandESupportEActiv

ityECostsEChapterE12:EResponsibilityEAccountingEandEtheEBalancedEScorecard

ChapterE13:EInvestmentECentersEandETransferEPricingE

ChapterE14:EDecisionEMaking:ERelevantECostsEandEBen

efits

ChapterE15:ETargetECostingEandECostEAnalysisEforEPricingEDe

cisionsEChapterE16:ECapitalEExpenditureEDecisions

ChapterE17:EAllocationEofESupportEActivityECostsEandEJointECosts




AppendixEI:ETheESarbanes-

OxleyEAct,EInternalEControls,EandEManagementEAccountingEAppendixEII:ECompoundE

InterestEandEtheEConceptEofEPresentEValue

AppendixEIII:EInventoryEManagement

,CHAPTER 1 E



The Crucial Role of Managerial Accounting in
E E E E E E E



a Dynamic Business Environment
E E E




FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
E E E E E E E E E E



The focus-on-
E

ethics inset for Chapter 1 is the IMA Statement of Ethical Professional Practice. Instructors
E E E E E E E E E E E E E E

can use this list of ethical principles and standards to lead a class discussion. The disc
E E E E E E E E E E E E E E E

ussion can also range to consideration of how these standards may have been viol
E E E E E E E E E E E E E

ated by accountants and managers involved in the various ethical scandals uncovered
E E E E E E E E E E E E

over the past several years. It is also useful to discuss the pros and cons of the procedu
E E E E E E E E E E E E E E E E E

res that IMA suggests for its members when they believe they know about ethical lapse
E E E E E E E E E E E E E E

s in their organizations.
E E E




ANSWERS TO REVIEW QUESTIONS E E E



1-1 The explosion in e- E E E

commerce will affect managers in significant ways. One effect will be a drastic re
E E E E E E E E E E E E E

duction in paper work. Millions of transactions between businesses are now bein
E E E E E E E E E E E

g conducted electronically with no hard-
E E E E E

copy documentation. Along withthis method of communicating for business tr
E E E E E E E E E E

ansactions comes the very significant issue of information security. Businesses
E E E E E E E E E E

need to find ways to protect confidential information in their own computers,
E E E E E E E E E E E E

in cloud computing data centers, and while moving across the internet, while
E E E E E E E E E E E

Eat the same time sharing the information necessary to complete transactions. An
E E E E E E E E E E E

other effect of e- E E E

commerce is the dramatically increased speed with which business transactions c
E E E E E E E E E E

an be conducted. In addition, there will be dramatic changes in the way manager
E E E E E E E E E E E E E

ial accounting procedures are carried out, one example being cloud-
E E E E E E E E E

based budgeting, which is the enterprise-
E E E E E

wide and electroniccompletion of a company’s budgeting process using cloud-
E E E E E E E E E E

based software and data storage.E E E E

, 1-2 Plausible goals for the organizations listed are as follows:
E E E E E E E E



(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to grow
E E E E E E E E E E E

on-
line sales of their many products. Amazon is also famous (infamous) for wan
E E E E E E E E E E E E

ting to have every product in the world on its site.
E E E E E E E E E E



(b) American Red Cross: (1) To raise funds from the general public sufficient to
E E E E E E E E E E E E E

have resources available to meet any disaster that may occur, and (2) to
E E E E E E E E E E E E E

provide assistance to people who are victims of a disaster anywhere in the world
E E E E E E E E E E E E E E

on short notice.
E E



(c) General Motors: (1) To earn income sufficient to provide a good return o
E E E E E E E E E E E E

n the investment of the company's stockholders, and (2) to provide the highe
E E E E E E E E E E E E

st-quality product possible. E E



(d) Wal-
Mart: (1) To penetrate the retail market in virtually every location in the United S
E E E E E E E E E E E E E E

tates, and (2) to grow over time in terms of number of retail locations, total asse
E E E E E E E E E E E E E E E

ts, and earnings. Also, to be competitive with Amazon in the e-retail space.
E E E E E E E E E E E E



(e) City of Seattle: (1) To maintain an urban environment as free of pollutio
E E E E E E E E E E E E

n as possible, and (2) to provide public safety, police, and fire protection to t
E E E E E E E E E E E E E E

he city's citizens.
E E



(f) Hertz: (1) To be a recognizable household name associated with rental c
E E E E E E E E E E E

ar services, and (2) to provide reliable and economical transportation services to
E E E E E E E E E E E E

the company's customers.
E E



1-3 The four basic management activities are listed and defined as follows:
E E E E E E E E E E



(a) Decision making: Choosing among the available alternatives.
E E E E E E



(b) Planning: Developing a detailed financial and operational descript
E E E E E E E

ion ofanticipated operations.
E E E



(c) Directing operations: Running the organization on a day-to-day basis.
E E E E E E E E



(d) Controlling: Ensuring that the organization operates in the intended man
E E E E E E E E E

ner andachieves its goals.
E E E E