Bhimani, Man
nagement and
d Cost Accoun
nting, 6e, Instru
uctor’s Manual
Insttructo
or’ss Man
M nua
al
Managem
mentt and
d Co
ost
A ountingg
Acco
Sixtth edittion
Alnoo or Bhiimani
Charless T. Ho
orngre
en
Srikannt M. Datarr
Madh hav V. Rajann
Faraah Ahaamed
For further
f instrucctor material
pleease vissit:
ww
ww.peearson
ned.coo.uk/b
bhimaani
ISBN: 978-1-292-0
9 06354-6
© Pearson Ed
ducation Limited
L 20015
Lectuurers adoptinng the mainn text are peermitted to download and
a photocoppy the manuual as
required.
1
© Pea
arson Educatio
on Limited 201
15
, Bhimani, Man
nagement and
d Cost Accoun
nting, 6e, Instru
uctor’s Manual
PEAR RSON EDU UCATION LIMITED L
Edinbburgh Gate
Harloow CM20 2JE
Uniteed Kingdom
Tel: ++44 (0)1279 623623
Web:: www.pearson.com/uk
-------------------------------------
First published Prrentice Hall Europe
E 19999
Seconnd edition puublished 2002
Thirdd edition pubblished 2005
Fourtth edition pubblished 20088
Fifth edition publlished 2012
This edition pub blished 2015
© Preentice Hall Europe
E 1999
© Peaarson Educattion Limitedd 2002, 2005,, 2008, 2012, 2015
The rrights of Alnoor Bhimanii, Charles T. Horngren, Srikant
S M. Daatar, Madhavv V. Rajan annd
Farahh Ahamed to be identifiedd as authors of this work has been assserted by theem in accordaance
with tthe Copyrighht, Designs and
a Patents Act
A 1988.
Pearsson Education is not responsible for th
he content off third-party internet sites.
N 978-1-292-0
ISBN 06354-6
All rrights reservved. Permisssion is herebby given foor the materrial in this publication to be
reprooduced for OHP
O transparrencies and student hanndouts, withoout express permission
p o the
of
Publiishers, for ed
ducational puurposes onlyy. In all otherr cases, no part
p of this puublication may
m be
reprooduced, stored in a retrievval system, or
o transmittedd in any form m or by any means, electtronic,
mechhanical, photocopying, reecording, or otherwise without
w either the prior written
w perm
mission
of thee Publishers or a licence permitting restricted coppying in the United
U Kingdom issued by b the
Copyyright Licenssing Agency Ltd., Saffronn House, 6––10 Kirby Strreet, Londonn EC1N 8TS. This
book may not be lent, resold, hired out orr otherwise disposed
d of by
b way of traade in any foorm of
binding or cover other than that in whicch is it is puublished, witthout the priior consent of o the
Publiishers.
All ttrademarks used
u herein are the prooperty of thheir respectiive owners. The use of o any
tradem mark in this text does noot vest in the author or puublisher any trademark ownership rigghts in
such trademarks, nor does thee use of suchh trademarks imply any affiliation
a with or endorseement
of thiis book by suuch owners.
Pearsson Education is not responsible for th
he content off third-party internet sites.
2
© Pea
arson Educatio
on Limited 201
15
, Bhimani, Management and Cost Accounting, 6e, Instructor’s Manual
Contents
Chapters Pages
Part I – Management and cost accounting fundamentals
1. The accountant’s role in the organisation 6
2. An introduction to cost terms and purposes 15
3. Job-costing systems 28
4. Process-costing systems 42
5. Cost allocation 66
6. Cost allocation: joint-cost situations 81
7. Income effects of alternative stock-costing methods 98
Part II – Accounting Information for decision making
8. Cost–volume–profit relationships 114
9. Determining how costs behave 131
10. Relevant information for decision making 145
11. Activity-based costing 156
12. Pricing, target costing and customer profitability analysis 167
13. Capital investment decisions 180
Part III – Planning and budgetary control systems
14. Motivation, budgets and responsibility accounting 200
15. Flexible budgets, variances and management control: I 213
16. Flexible budgets, variances and management control: II 230
17. Measuring yield, mix and quantity effects 249
Part IV – Management control systems and performance issues
18. Control systems and transfer pricing 270
19. Control systems and performance measurement 283
Part V – Quality, time and the strategic management of costs
20. Quality and throughput concerns in managing costs 300
21. Accounting for just-in-time systems 311
22. Strategic management accounting and emerging issues 328
Guide to case study solutions 336
3
© Pearson Education Limited 2015
, Bhimani, Management and Cost Accounting, 6e, Instructor’s Manual
Preface
This manual is intended to assist lecturers’ discussion of assignments and lecture
topics. ‘Points to stress and teaching tips’ are provided for each chapter to give
broad guidance on relevant issues or potential areas of difficulty to students.
Solutions are offered for end-of-chapter ‘assessment material’ in the text. Case
notes prepared (in most cases) by the case writer to all cases included in the text are
also provided.
A. Bhimani
C. Horngren
S. Datar
M. Rajan
F. Ahamed
4
© Pearson Education Limited 2015
nagement and
d Cost Accoun
nting, 6e, Instru
uctor’s Manual
Insttructo
or’ss Man
M nua
al
Managem
mentt and
d Co
ost
A ountingg
Acco
Sixtth edittion
Alnoo or Bhiimani
Charless T. Ho
orngre
en
Srikannt M. Datarr
Madh hav V. Rajann
Faraah Ahaamed
For further
f instrucctor material
pleease vissit:
ww
ww.peearson
ned.coo.uk/b
bhimaani
ISBN: 978-1-292-0
9 06354-6
© Pearson Ed
ducation Limited
L 20015
Lectuurers adoptinng the mainn text are peermitted to download and
a photocoppy the manuual as
required.
1
© Pea
arson Educatio
on Limited 201
15
, Bhimani, Man
nagement and
d Cost Accoun
nting, 6e, Instru
uctor’s Manual
PEAR RSON EDU UCATION LIMITED L
Edinbburgh Gate
Harloow CM20 2JE
Uniteed Kingdom
Tel: ++44 (0)1279 623623
Web:: www.pearson.com/uk
-------------------------------------
First published Prrentice Hall Europe
E 19999
Seconnd edition puublished 2002
Thirdd edition pubblished 2005
Fourtth edition pubblished 20088
Fifth edition publlished 2012
This edition pub blished 2015
© Preentice Hall Europe
E 1999
© Peaarson Educattion Limitedd 2002, 2005,, 2008, 2012, 2015
The rrights of Alnoor Bhimanii, Charles T. Horngren, Srikant
S M. Daatar, Madhavv V. Rajan annd
Farahh Ahamed to be identifiedd as authors of this work has been assserted by theem in accordaance
with tthe Copyrighht, Designs and
a Patents Act
A 1988.
Pearsson Education is not responsible for th
he content off third-party internet sites.
N 978-1-292-0
ISBN 06354-6
All rrights reservved. Permisssion is herebby given foor the materrial in this publication to be
reprooduced for OHP
O transparrencies and student hanndouts, withoout express permission
p o the
of
Publiishers, for ed
ducational puurposes onlyy. In all otherr cases, no part
p of this puublication may
m be
reprooduced, stored in a retrievval system, or
o transmittedd in any form m or by any means, electtronic,
mechhanical, photocopying, reecording, or otherwise without
w either the prior written
w perm
mission
of thee Publishers or a licence permitting restricted coppying in the United
U Kingdom issued by b the
Copyyright Licenssing Agency Ltd., Saffronn House, 6––10 Kirby Strreet, Londonn EC1N 8TS. This
book may not be lent, resold, hired out orr otherwise disposed
d of by
b way of traade in any foorm of
binding or cover other than that in whicch is it is puublished, witthout the priior consent of o the
Publiishers.
All ttrademarks used
u herein are the prooperty of thheir respectiive owners. The use of o any
tradem mark in this text does noot vest in the author or puublisher any trademark ownership rigghts in
such trademarks, nor does thee use of suchh trademarks imply any affiliation
a with or endorseement
of thiis book by suuch owners.
Pearsson Education is not responsible for th
he content off third-party internet sites.
2
© Pea
arson Educatio
on Limited 201
15
, Bhimani, Management and Cost Accounting, 6e, Instructor’s Manual
Contents
Chapters Pages
Part I – Management and cost accounting fundamentals
1. The accountant’s role in the organisation 6
2. An introduction to cost terms and purposes 15
3. Job-costing systems 28
4. Process-costing systems 42
5. Cost allocation 66
6. Cost allocation: joint-cost situations 81
7. Income effects of alternative stock-costing methods 98
Part II – Accounting Information for decision making
8. Cost–volume–profit relationships 114
9. Determining how costs behave 131
10. Relevant information for decision making 145
11. Activity-based costing 156
12. Pricing, target costing and customer profitability analysis 167
13. Capital investment decisions 180
Part III – Planning and budgetary control systems
14. Motivation, budgets and responsibility accounting 200
15. Flexible budgets, variances and management control: I 213
16. Flexible budgets, variances and management control: II 230
17. Measuring yield, mix and quantity effects 249
Part IV – Management control systems and performance issues
18. Control systems and transfer pricing 270
19. Control systems and performance measurement 283
Part V – Quality, time and the strategic management of costs
20. Quality and throughput concerns in managing costs 300
21. Accounting for just-in-time systems 311
22. Strategic management accounting and emerging issues 328
Guide to case study solutions 336
3
© Pearson Education Limited 2015
, Bhimani, Management and Cost Accounting, 6e, Instructor’s Manual
Preface
This manual is intended to assist lecturers’ discussion of assignments and lecture
topics. ‘Points to stress and teaching tips’ are provided for each chapter to give
broad guidance on relevant issues or potential areas of difficulty to students.
Solutions are offered for end-of-chapter ‘assessment material’ in the text. Case
notes prepared (in most cases) by the case writer to all cases included in the text are
also provided.
A. Bhimani
C. Horngren
S. Datar
M. Rajan
F. Ahamed
4
© Pearson Education Limited 2015
