TEST BANK For Managerial Accounting: Creating Value in a Dynamic Business Environment, 13th Edition by Hilton | Verified Chapter's 1 - 17 | Complete

Solutions Manual for Managerial Accounting:
Creating Value in a Dynamic Business
Environment, 13th Edition by Hilton

,Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business Environ
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mentChapter 2: Basic Cost Management Concepts
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Chapter 3: Product Costing and Cost Accumulation in a Batch Production EnvironmentCh
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apter 4: Process Costing and Hybrid Product-Costing Systems
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Chapter 5: Activity-Based Costing and Management
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Chapter 6: Activity Analysis, Cost Behavior, and Cost Estimat
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ionChapter 7: Cost-Volume-Profit Analysis
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Chapter 8: Variable Costing and the Measurement of ESG and Quality CostsC
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hapter 9: Financial Planning and Analysis: The Master Budget
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Chapter 10: Standard Costing and Analysis of Direct Costs
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Chapter 11: Flexible Budgeting and the Management of Overhead and Support Activity Co
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stsChapter 12: Responsibility Accounting and the Balanced Scorecard
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Chapter 13: Investment Centers and Transfer Pricing Cha
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pter 14: Decision Making: Relevant Costs and Benefits
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Chapter 15: Target Costing and Cost Analysis for Pricing Decisi
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onsChapter 16: Capital Expenditure Decisions
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Chapter 17: Allocation of Support Activity Costs and Joint Costs
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Appendix I: The Sarbanes- KO KO KO




Oxley Act, Internal Controls, and Management AccountingAppendix II: Compound Interest
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and the Concept of Present Value
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Appendix III: Inventory Management
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,CHAPTER 1 KO




The Crucial Role of Managerial Accounting in a D
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ynamic Business Environment KO KO




FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
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The focus-on-
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ethics inset for Chapter 1 is the IMA Statement of Ethical Professional Practice. Instructors can u
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se this list of ethical principles and standards to lead a class discussion. The discussion
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can also range to consideration of how these standards may have been violated by acc
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ountants and managers involved in the various ethical scandals uncovered over the past se
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veral years. It is also useful to discuss the pros and cons of the procedures that IMA sugges
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ts for its members when they believe they know about ethical lapses in their organizations.
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ANSWERS TO REVIEW QUESTIONS KO KO KO




1-1 The explosion in e-
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commerce will affect managers in significant ways. One effect will be a drastic red
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uction in paper work. Millions of transactions between businesses are now being co
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nducted electronically with no hard- KO KO KO KO



copy documentation. Along withthis method of communicating for business transa
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ctions comes the very significant issue of information security. Businesses need to fi
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nd ways to protect confidential information in their own computers, in cloud comp
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uting data centers, and while moving across the internet, while at the same time
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sharing the information necessary to complete transactions. Another effect of e-
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commerce is the dramatically increased speed with which business transactions can
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be conducted. In addition, there will be dramatic changes in the way managerial acco
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unting procedures are carried out, one example being cloud-
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based budgeting, which is the enterprise-
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wide and electroniccompletion of a company’s budgeting process using cloud-
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based software and data storage.KO KO KO KO

, 1-2 Plausible goals for the organizations listed are as follows:
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(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to grow on-KO KO KO KO KO KO KO KO KO KO KO



line sales of their many products. Amazon is also famous (infamous) for wanting
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to have every product in the world on its site.
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(b) American Red Cross: (1) To raise funds from the general public sufficient to have
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Oresources available to meet any disaster that may occur, and (2) to provide a
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ssistance to people who are victims of a disaster anywhere in the world on short noti
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ce.
(c) General Motors: (1) To earn income sufficient to provide a good return on th
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e investment of the company's stockholders, and (2) to provide the highest-
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quality product possible. KO KO




(d) Wal-
Mart: (1) To penetrate the retail market in virtually every location in the United States,
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and (2) to grow over time in terms of number of retail locations, total assets, and e
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arnings. Also, to be competitive with Amazon in the e-retail space.
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(e) City of Seattle: (1) To maintain an urban environment as free of pollution as
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possible, and (2) to provide public safety, police, and fire protection to the city's
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citizens.
(f) Hertz: (1) To be a recognizable household name associated with rental car se
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rvices, and (2) to provide reliable and economical transportation services to the comp
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any's customers. KO




1-3 The four basic management activities are listed and defined as follows:
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(a) Decision making: Choosing among the available alternatives.
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(b) Planning: Developing a detailed financial and operational description
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ofanticipated operations.
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(c) Directing operations: Running the organization on a day-to-day basis.
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(d) Controlling: Ensuring that the organization operates in the intended manner
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Oandachieves its goals.
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