SOLUTION MANUAL
Horngren's Accounting, 13th Edition Managerial
by Tracie Miller-Nobles, Brenda Mattison,
All Chapter 1-9
,THE MANAGERIAL CHAPTERS
c c
1. Introduction to Managerial Accounting
c c c
2. Job Order Costing
c c
3. Process Costingc
4. Cost-Volume-Profit Analysis c
5. Master Budgets
c
6. Flexible Budgets and Standard Cost Systems
c c c c c
7. Cost Allocation and Responsibility Accounting
c c c c
8. Short-Term Business Decisions
c c
9. Capital Investment Decisions
c c
,Chapter 1 c
Introduction to Managerial Accounting
c c c
Review Questions
c
1. Thecprimarycpurposecofcmanagerialcaccountingcisctocprovidecinformationctochelpcmanagerscplan,c
direct,ccontrol,candcmakecdecisions.
2. Financialcaccountingcandcmanagerialcaccountingcdifferconcthecfollowingc6cdimensions:c(1)cprimarycu
sers,c(2)cpurposecofcinformation,c(3)cfocuscandctimecdimensioncofcthecinformation,c(4)crulescandcrest
rictions,c(5)cscopecofcinformation,candc(6)cbehavioral.
3. Linecpositionscarecdirectlycinvolvedcincprovidingcgoodscorcservicesctoccustomers.cStaffcpositionscs
upportclinecpositions.
4. Planningcmeanscchoosingcgoalscandcdecidingchowctocachievecthem.cDirectingcinvolvescrunningcthecda
y-to-
daycoperationscofcacbusiness.cControllingciscthecprocesscofcmonitoringcoperationscandckeepingcthecco
mpanyconctrack.
5. ThecfourcIMAcstandardscofcethicalcpracticecandcacdescriptioncofceachcfollow.
I. Competence.
Maintaincancappropriateclevelcofcprofessionalcleadershipcandcexpertisecbycenhancin
gcknowledgecandcskills.
Performcprofessionalcdutiescincaccordancecwithcrelevantclaws,cregulations,candctechnica
lcstandards.
Providecdecisioncsupportcinformationcandcrecommendationscthatcarecaccurate,cclear,cconcis
e,candctimely.
Recognisecandchelpcmangecrisk.
II. Confidentiality.
Keepcinformationcconfidentialcexceptcwhencdisclosureciscauthorizedcorclegallycrequired.
Informcallcrelevantcpartiescregardingcappropriatecusecofcconfidentialcinformation.c Monitorct
ocensureccompliance.
Refraincfromcusingcconfidentialcinformationcforcunethicalcorcillegalcadvantage.
III. Integrity.
Mitigatecactualcconflictscofcinterest.cRegularlyccommunicatecwithcbusinesscassociatesctocavoidc
apparentcconflictscofcinterest.ccAdvisecallcpartiescofcanycpotentialcconflicts.
Refraincfromcengagingcincanycconductcthatcwouldcprejudiceccarryingcoutcdutiescethically.
, Abstaincfromcengagingcincorcsupportingcanycactivitycthatcmightcdiscreditcthecprofession.
Contributectocacpositivecethicalcculturecandcplacecintegritycofcthecprofessioncabovecpersona
lcinterest.
5,ccont.
IV. Credibility.
Communicatecinformationcfairlycandcobjectively.
Providecallcrelevantcinformationcthatccouldcreasonablycbecexpectedctocinfluencecancintende
dcuser’scunderstandingcofcthecreports,canalyses,corcrecommendations.
Reportcanycdelayscorcdeficienciescincinformation,ctimeliness,cprocessing,corcinternalccontrolsci
ncconformancecwithcorganizationcpolicycand/orcapplicableclaw.
Communicatecanycprofessionalclimitationscorcothercconstraintscthatcwouldcprecludecresponsi
-cblecjudgmentcorcsuccessfulcperformancecofcancactivity.
6. Serviceccompaniescsellctime,cskills,candcknowledge.c Examplescofcserviceccompaniescincludecphonecs
erviceccompanies,cbanks,ccleaningcserviceccompanies,caccountingcfirms,clawcfirms,cmedicalcphysicia
ns,candconlinecauctioncservices.
7. Merchandisingccompaniescresellcproductsctheycbuycfromcsuppliers.cMerchandisersckeepcancinventoryc
ofcproducts,candcmanagerscarecaccountablecforcthecpurchasing,cstorage,candcsalecofcthecproducts.cExa
mplescofcmerchandisingccompaniescincludectoycstores,cgrocerycstores,candcclothingcstores.
8. Merchandisingccompaniescresellcproductsctheycpreviouslycboughtcfromcsuppliers,cwhereascmanufact
uringccompaniescuseclabor,cequipment,csupplies,candcfacilitiesctocconvertcrawcmaterialscintocnewcfinis
hedcproducts.cInccontrastctocmerchandisingccompanies,cmanufacturingccompanieschavecacbroadcran
gecofcproductioncactivitiescthatcrequirectrackingccostsconcthreeckindscofcinventory.
9. ThecthreecinventorycaccountscusedcbycmanufacturingccompaniescarecRawcMaterialscInventory,cWork-
cin-ProcesscInventory, candcFinishedcGoodscInventory.
RawcMaterialscInventorycincludescmaterialscusedctocmanufacturecacproduct.cWork-in-
ProcesscInventorycincludescgoodscthatchavecbeencstartedcincthecmanufacturingcprocesscbutcarecnotcye
tccomplete.c FinishedcGoodscInventorycincludesccompletedcgoodscthatchavecnotcyetcbeencsold.
10. Acdirectccostciscaccostcthatccancbeceasilycandccost-
effectivelyctracedctocaccostcobjectc(whichciscanythingcforcwhichcmanagerscwantcacseparatecmeasure
mentcofccost).cAncindirectccostciscaccostcthatccannotcbeceasilycorccost-
effectivelyctracedctocaccostcobject.
11. Thecthreecmanufacturingccostscforcacmanufacturingccompanycarecdirectcmaterials,cdirectclabor,candc
manufacturingcoverhead.cDirectcmaterialscarecmaterialscthatcbecomecacphysicalcpartcofcacfinishedcpr
oductcandcwhoseccostscareceasilyctraceablectocthecfinishedcproduct.c Directclaborcisctheclaborccostcofcth
Horngren's Accounting, 13th Edition Managerial
by Tracie Miller-Nobles, Brenda Mattison,
All Chapter 1-9
,THE MANAGERIAL CHAPTERS
c c
1. Introduction to Managerial Accounting
c c c
2. Job Order Costing
c c
3. Process Costingc
4. Cost-Volume-Profit Analysis c
5. Master Budgets
c
6. Flexible Budgets and Standard Cost Systems
c c c c c
7. Cost Allocation and Responsibility Accounting
c c c c
8. Short-Term Business Decisions
c c
9. Capital Investment Decisions
c c
,Chapter 1 c
Introduction to Managerial Accounting
c c c
Review Questions
c
1. Thecprimarycpurposecofcmanagerialcaccountingcisctocprovidecinformationctochelpcmanagerscplan,c
direct,ccontrol,candcmakecdecisions.
2. Financialcaccountingcandcmanagerialcaccountingcdifferconcthecfollowingc6cdimensions:c(1)cprimarycu
sers,c(2)cpurposecofcinformation,c(3)cfocuscandctimecdimensioncofcthecinformation,c(4)crulescandcrest
rictions,c(5)cscopecofcinformation,candc(6)cbehavioral.
3. Linecpositionscarecdirectlycinvolvedcincprovidingcgoodscorcservicesctoccustomers.cStaffcpositionscs
upportclinecpositions.
4. Planningcmeanscchoosingcgoalscandcdecidingchowctocachievecthem.cDirectingcinvolvescrunningcthecda
y-to-
daycoperationscofcacbusiness.cControllingciscthecprocesscofcmonitoringcoperationscandckeepingcthecco
mpanyconctrack.
5. ThecfourcIMAcstandardscofcethicalcpracticecandcacdescriptioncofceachcfollow.
I. Competence.
Maintaincancappropriateclevelcofcprofessionalcleadershipcandcexpertisecbycenhancin
gcknowledgecandcskills.
Performcprofessionalcdutiescincaccordancecwithcrelevantclaws,cregulations,candctechnica
lcstandards.
Providecdecisioncsupportcinformationcandcrecommendationscthatcarecaccurate,cclear,cconcis
e,candctimely.
Recognisecandchelpcmangecrisk.
II. Confidentiality.
Keepcinformationcconfidentialcexceptcwhencdisclosureciscauthorizedcorclegallycrequired.
Informcallcrelevantcpartiescregardingcappropriatecusecofcconfidentialcinformation.c Monitorct
ocensureccompliance.
Refraincfromcusingcconfidentialcinformationcforcunethicalcorcillegalcadvantage.
III. Integrity.
Mitigatecactualcconflictscofcinterest.cRegularlyccommunicatecwithcbusinesscassociatesctocavoidc
apparentcconflictscofcinterest.ccAdvisecallcpartiescofcanycpotentialcconflicts.
Refraincfromcengagingcincanycconductcthatcwouldcprejudiceccarryingcoutcdutiescethically.
, Abstaincfromcengagingcincorcsupportingcanycactivitycthatcmightcdiscreditcthecprofession.
Contributectocacpositivecethicalcculturecandcplacecintegritycofcthecprofessioncabovecpersona
lcinterest.
5,ccont.
IV. Credibility.
Communicatecinformationcfairlycandcobjectively.
Providecallcrelevantcinformationcthatccouldcreasonablycbecexpectedctocinfluencecancintende
dcuser’scunderstandingcofcthecreports,canalyses,corcrecommendations.
Reportcanycdelayscorcdeficienciescincinformation,ctimeliness,cprocessing,corcinternalccontrolsci
ncconformancecwithcorganizationcpolicycand/orcapplicableclaw.
Communicatecanycprofessionalclimitationscorcothercconstraintscthatcwouldcprecludecresponsi
-cblecjudgmentcorcsuccessfulcperformancecofcancactivity.
6. Serviceccompaniescsellctime,cskills,candcknowledge.c Examplescofcserviceccompaniescincludecphonecs
erviceccompanies,cbanks,ccleaningcserviceccompanies,caccountingcfirms,clawcfirms,cmedicalcphysicia
ns,candconlinecauctioncservices.
7. Merchandisingccompaniescresellcproductsctheycbuycfromcsuppliers.cMerchandisersckeepcancinventoryc
ofcproducts,candcmanagerscarecaccountablecforcthecpurchasing,cstorage,candcsalecofcthecproducts.cExa
mplescofcmerchandisingccompaniescincludectoycstores,cgrocerycstores,candcclothingcstores.
8. Merchandisingccompaniescresellcproductsctheycpreviouslycboughtcfromcsuppliers,cwhereascmanufact
uringccompaniescuseclabor,cequipment,csupplies,candcfacilitiesctocconvertcrawcmaterialscintocnewcfinis
hedcproducts.cInccontrastctocmerchandisingccompanies,cmanufacturingccompanieschavecacbroadcran
gecofcproductioncactivitiescthatcrequirectrackingccostsconcthreeckindscofcinventory.
9. ThecthreecinventorycaccountscusedcbycmanufacturingccompaniescarecRawcMaterialscInventory,cWork-
cin-ProcesscInventory, candcFinishedcGoodscInventory.
RawcMaterialscInventorycincludescmaterialscusedctocmanufacturecacproduct.cWork-in-
ProcesscInventorycincludescgoodscthatchavecbeencstartedcincthecmanufacturingcprocesscbutcarecnotcye
tccomplete.c FinishedcGoodscInventorycincludesccompletedcgoodscthatchavecnotcyetcbeencsold.
10. Acdirectccostciscaccostcthatccancbeceasilycandccost-
effectivelyctracedctocaccostcobjectc(whichciscanythingcforcwhichcmanagerscwantcacseparatecmeasure
mentcofccost).cAncindirectccostciscaccostcthatccannotcbeceasilycorccost-
effectivelyctracedctocaccostcobject.
11. Thecthreecmanufacturingccostscforcacmanufacturingccompanycarecdirectcmaterials,cdirectclabor,candc
manufacturingcoverhead.cDirectcmaterialscarecmaterialscthatcbecomecacphysicalcpartcofcacfinishedcpr
oductcandcwhoseccostscareceasilyctraceablectocthecfinishedcproduct.c Directclaborcisctheclaborccostcofcth
