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

SOLUTION MANUAL FOR uo uo




Managerial Accounting Creating Value in a Dynamic uo uo uo uo uo uo




uo Business Environment 13e Hilton uo uo uo




Chapter 1-17 With Appendix (I II III)
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CHAPTER 1 uo




The Crucial Role of Managerial Accounting in a Dynamic Business
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uo Environment

FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
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The focus-on-ethics inset for Chapter 1 is the IMA Statement of Ethical
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Professional Practice. Instructors can use this list of ethical principles and
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standards to lead a class discussion. The discussion can also range to
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consideration of how these standards may have been violated by accountants and
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managers involved in the various ethical scandals uncovered over the past several
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years. It is also useful to discuss the pros and cons of the procedures for
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―Resolving Ethical Issues‖ that IMA suggests for its members when they believe
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they know about ethical lapses in their organizations.
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We also introduce here the connection to the ―Ethics Unwrapped‖ video series
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that can supplement the discussion of ethics in the context of each chapter. In
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each chapter of the text, we have suggested topic videos in the series that align
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with that chapter. Discussion guidance and questions relating to the videos can be
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found on the ―Ethics Unwrapped‖ site at the URL provided. This resource is
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provided by permission from the University of Texas at Austin, McCombs School
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of Business.
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ANSWERS TO REVIEW QUESTIONS uo uo uo



1-1 The explosion in e-commerce will affect managers in significant ways.
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effect will be a drastic reduction in paperwork. Millions of transactions
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between businesses are conducted electronically with no hard-copy
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documentation. Along with this method of communicating for business
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transactions comes the very significant issue of information security.
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Businesses need to find ways to protect confidential information in their own
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computers, in cloud computing data centers, and while moving across the
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internet, while at the same time sharing the information necessary to
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complete transactions. Another effect of e-commerce is the dramatically
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increased speed with which business transactions can be conducted. In
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, addition, there will be dramatic changes in the way managerial accounting
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procedures are carried out, one example
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Managerial uoAccounting, uo13/e 5-1




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, being cloud-based budgeting, which is the enterprise-wide and electronic completion of
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a company‘s budgeting process using cloud-based software and data storage.
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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
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on-line sales of their many products. Amazon is also famous (infamous)
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for wanting 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
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have resources available to meet any disaster that may occur, and
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(2) to provide assistance to people who are victims of a disaster
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anywhere in the world on short notice.
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(c) General Motors: (1) To earn income sufficient to provide a good return
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on the investment of the company's stockholders, and (2) to provide the
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highest-quality product possible.
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(d) Wal-Mart: (1) To penetrate the retail market in virtually every location
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in the United States, and (2) to grow over time in terms of number of
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retail locations, total assets, and earnings. Also, to be competitive
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with Amazon in the e-retail space.
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(e) City of Seattle: (1) To maintain an urban environment as free of
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pollution as possible, and (2) to provide public safety, police, and fire
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protection to the city's citizens.
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(f) Hertz: (1) To be a recognizable household name associated with
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rental car services, and (2) to provide reliable and economical
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transportation services to the company's customers.
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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
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description of anticipated 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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and
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5-2 Solutions uoManual
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, 1-4 Examples of the four primary management activities in the context of a national
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fast- food chain are as follows:
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(a) Decision making: Choosing among several possible locations for a new fast-
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food outlet. uo



(b) Planning: Developing a cost budget for the food and paper products to
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be used during the next quarter in a particular fast-food restaurant.
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(c) Directing operations: Developing detailed schedules for personnel for the
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next month to provide counter service in a particular fast-food restaurant.
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(d) Controlling: Comparing the actual cost of paper products used
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during a particular month in a restaurant with the anticipated cost of
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paper products for that same time period.
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1-5 Examples of the objectives of managerial-accounting activity in an airline
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company
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(a) Providing information for decision making and planning, and
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proactively participating as part of the management team in the
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decision making and planning processes: Managerial accountants
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provide estimates of the cost of adding a flight on the route from
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Dallas to Miami and actively participate in making the decision about
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adding the flight.
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(b) Assisting managers in directing and controlling operations:
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Managerial accountants provide information about the actual costs of
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flying the company‘s Asian routes during a particular month.
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(c) Motivating managers and other employees toward the organization's
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goals: A budget is provided for the cost of handling baggage at
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Chicago O'Hare Airport. The budget is given to the airline's baggage
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handling manager, who is expected to strive to achieve the budget.
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(d) Measuring the performance of activities, subunits, managers, and
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other employees within the organization: Quarterly income statements are
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prepared for each of the airline's major geographical sectors, and these
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income reports are used to evaluate the earnings performance of each
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sector during the relevant time period.
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(e) Assessing the organization's competitive position and working with
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other managers to ensure the organization's long-run competitiveness in its
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industry: Information about industry-wide performance standards is
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obtained and compared with the airline's own performance. For example,
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how does the airline stack up against its competitors in ticket prices, on-
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time departures, mishandled baggage, customer complaints, and safety?
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