Solutions Manual
Managerial Accounting: Creating Value in a Dynamic
Business Environment, 13th Edition by Hilton
Chapters 1 - 17 Complete
,TABLE OF CONTENTS S S
ChapterS1:STheSChangingSRoleSofSManagerialSAccountingSinSaSDynamicSBusinessSE
nvironmentSChapterS2:SBasicSCostSManagementSConcepts
ChapterS3:SProductSCostingSandSCostSAccumulationSinSaSBatchSProductionSEnviron
mentSChapterS4:SProcessSCostingSandSHybridSProduct-CostingSSystems
ChapterS5:SActivity-BasedSCostingSandSManagement
ChapterS6:SActivitySAnalysis,SCostSBehavior,SandSCostSEst
imationSChapterS7:SCost-Volume-ProfitSAnalysis
ChapterS8:SVariableSCostingSandStheSMeasurementSofSESGSandSQualitySC
ostsSChapterS9:SFinancialSPlanningSandSAnalysis:STheSMasterSBudget
ChapterS10:SStandardSCostingSandSAnalysisSofSDirectSCosts
ChapterS11:SFlexibleSBudgetingSandStheSManagementSofSOverheadSandSSupportSActi
vitySCostsSChapterS12:SResponsibilitySAccountingSandStheSBalancedSScorecard
ChapterS13:SInvestmentSCentersSandSTransferSPricing
S ChapterS14:SDecisionSMaking:SRelevantSCostsSandSBe
nefits
ChapterS15:STargetSCostingSandSCostSAnalysisSforSPricingSD
ecisionsSChapterS16:SCapitalSExpenditureSDecisions
ChapterS17:SAllocationSofSSupportSActivitySCostsSandSJointSCosts
AppendixSI:STheSSarbanes-
OxleySAct,SInternalSControls,SandSManagementSAccountingSAppendixSII:SCompoundS
InterestSandStheSConceptSofSPresentSValue
AppendixSIII:SInventorySManagement
,CHAPTER 1 S
The Crucial Role of Managerial Accounting in
S S S S S S S
a Dynamic Business Environment
S S S
FOCUSSONSETHICSS(LocatedSbeforeStheSChapterSSummarySinStheStext.)
TheSfocus-on-
ethicsSinsetSforSChapterS1SisStheSIMASStatementSofSEthicalSProfessionalSPractice.SInstructorsS
canSuseSthisSlistSofSethicalS principlesS andSstandardsStoSleadSaSclassSdiscussion.STheSdis
cussionScanSalsoSrangeStoSconsiderationSofShowStheseSstandardsSmayShaveSbeenSvi
olatedSbySaccountantsSandSmanagersSinvolvedSinStheSvariousS ethicalSscandalsSuncovere
dSoverStheSpastSseveralSyears.SItSisSalsoSusefulStoSdiscussStheSprosSandSconsSofStheSproce
duresSthatSIMASsuggestsSforSitsSmembersSwhenStheySbelieveStheySknowSaboutSethicalSla
psesSinStheirSorganizations.
ANSWERSSTOSREVIEWSQUESTIONS
1-1 TheSexplosionS inS e-
commerceS willS affectS managersSinS significantS ways.S OneS effectS willSbeSaSdrasticSre
ductionSinSpaperS work.S MillionsSofS transactionsSbetweenS businessesS areSnowSbein
gSconductedSelectronicallySwithSnoShard-
copySdocumentation.SAlongSwithSthisSmethodSofScommunicatingSforSbusinessStr
ansactionsScomesStheSverySsignificantSissueSofSinformationSsecurity.SBusinessesS
needStoSfindSwaysStoSprotectSconfidentialSinformationSinStheirSownScomputers,
SinScloudS computingS dataS centers,S andS whileS movingS acrossS theS internet,S whil
eS atStheS sameS timeS sharingS theS informationS necessaryStoScompleteStransactions.SA
notherSeffectSofSe-
commerceSisS theS dramaticallyS increasedSspeedSwithSwhichSbusinessStransactionsS
canSbeSconducted.SInSaddition,SthereSwillSbeSdramaticSchangesSinStheSwaySmanag
erialSaccountingSproceduresSareScarriedSout,SoneSexampleSbeingScloud-
basedSbudgeting,SwhichSisStheSenterprise-
wideSandSelectronicScompletionSofSaScompany’sSbudgetingSprocessSusingScloud-
basedSsoftwareSandSdataSstorage.
, 1-2 PlausibleS goalsS forS theS organizationsS listedS areS asS follows:
(a) Amazon.com:S(1)SToSachieveSandSmaintainSprofitability,SandS(2)StoSgrowS
on-
lineSsalesSofStheirSmanySproducts.SAmazonSisSalsoSfamousS(infamous)SforSwa
ntingStoShaveSeveryS productSinStheSworldSonSitsSsite.
(b) AmericanSRedSCross:S(1)SToSraiseSfundsSfromStheSgeneralSpublicSsufficientStoS
haveSresourcesSavailableStoSmeetSanySdisasterSthatSmaySoccur,SandS(2)StoS
provideSassistanceStoSpeopleSwhoSareSvictimsSofSaSdisasterSanywhereSinStheSworld
SonSshortSnotice.
(c) GeneralSMotors:S(1)SToSearnSincomeSsufficientStoSprovideSaSgoodSreturnS
onStheSinvestmentSofStheScompany'sSstockholders,SandS(2)StoSprovideStheShig
hest-qualitySproductSpossible.
(d) Wal-
Mart:S(1)SToSpenetrateStheSretailSmarketSinS virtuallySeverySlocationSinStheSUnitedS
States,SandS(2)StoSgrowSoverStimeSinStermsS ofSnumberSofSretailSlocations,S totalS as
sets,SandS earnings.S Also,StoS beScompetitiveS withS AmazonSinStheSe-
retailS space.
(e) CitySofSSeattle:S(1)SToSmaintainSanSurbanSenvironmentSasSfreeSofSpollutio
nSasSpossible,SandS(2)StoSprovideSpublicSsafety,Spolice,SandSfireSprotectionStoSt
heScity'sScitizens.
(f) Hertz:S(1)SToSbeSaSrecognizableShouseholdSnameSassociatedSwithSrentalSc
arSservices,SandS(2)StoSprovideSreliableSandSeconomicalStransportationSservicesSto
StheScompany's Scustomers.
1-3 TheS fourS basicS managementS activitiesS areS listedS andS definedS asS follows:
(a) DecisionS making:S ChoosingS amongS theS availableS alternatives.
(b) Planning:S DevelopingS aS detailedS financialS andS operationalS descrip
tionS ofSanticipatedSoperations.
(c) DirectingS operations:S RunningS theS organizationS onS aS day-to-dayS basis.
(d) Controlling:S EnsuringS thatS theS organizationS operatesS inS theS intendedS man
nerS andSachievesSitsSgoals.
Managerial Accounting: Creating Value in a Dynamic
Business Environment, 13th Edition by Hilton
Chapters 1 - 17 Complete
,TABLE OF CONTENTS S S
ChapterS1:STheSChangingSRoleSofSManagerialSAccountingSinSaSDynamicSBusinessSE
nvironmentSChapterS2:SBasicSCostSManagementSConcepts
ChapterS3:SProductSCostingSandSCostSAccumulationSinSaSBatchSProductionSEnviron
mentSChapterS4:SProcessSCostingSandSHybridSProduct-CostingSSystems
ChapterS5:SActivity-BasedSCostingSandSManagement
ChapterS6:SActivitySAnalysis,SCostSBehavior,SandSCostSEst
imationSChapterS7:SCost-Volume-ProfitSAnalysis
ChapterS8:SVariableSCostingSandStheSMeasurementSofSESGSandSQualitySC
ostsSChapterS9:SFinancialSPlanningSandSAnalysis:STheSMasterSBudget
ChapterS10:SStandardSCostingSandSAnalysisSofSDirectSCosts
ChapterS11:SFlexibleSBudgetingSandStheSManagementSofSOverheadSandSSupportSActi
vitySCostsSChapterS12:SResponsibilitySAccountingSandStheSBalancedSScorecard
ChapterS13:SInvestmentSCentersSandSTransferSPricing
S ChapterS14:SDecisionSMaking:SRelevantSCostsSandSBe
nefits
ChapterS15:STargetSCostingSandSCostSAnalysisSforSPricingSD
ecisionsSChapterS16:SCapitalSExpenditureSDecisions
ChapterS17:SAllocationSofSSupportSActivitySCostsSandSJointSCosts
AppendixSI:STheSSarbanes-
OxleySAct,SInternalSControls,SandSManagementSAccountingSAppendixSII:SCompoundS
InterestSandStheSConceptSofSPresentSValue
AppendixSIII:SInventorySManagement
,CHAPTER 1 S
The Crucial Role of Managerial Accounting in
S S S S S S S
a Dynamic Business Environment
S S S
FOCUSSONSETHICSS(LocatedSbeforeStheSChapterSSummarySinStheStext.)
TheSfocus-on-
ethicsSinsetSforSChapterS1SisStheSIMASStatementSofSEthicalSProfessionalSPractice.SInstructorsS
canSuseSthisSlistSofSethicalS principlesS andSstandardsStoSleadSaSclassSdiscussion.STheSdis
cussionScanSalsoSrangeStoSconsiderationSofShowStheseSstandardsSmayShaveSbeenSvi
olatedSbySaccountantsSandSmanagersSinvolvedSinStheSvariousS ethicalSscandalsSuncovere
dSoverStheSpastSseveralSyears.SItSisSalsoSusefulStoSdiscussStheSprosSandSconsSofStheSproce
duresSthatSIMASsuggestsSforSitsSmembersSwhenStheySbelieveStheySknowSaboutSethicalSla
psesSinStheirSorganizations.
ANSWERSSTOSREVIEWSQUESTIONS
1-1 TheSexplosionS inS e-
commerceS willS affectS managersSinS significantS ways.S OneS effectS willSbeSaSdrasticSre
ductionSinSpaperS work.S MillionsSofS transactionsSbetweenS businessesS areSnowSbein
gSconductedSelectronicallySwithSnoShard-
copySdocumentation.SAlongSwithSthisSmethodSofScommunicatingSforSbusinessStr
ansactionsScomesStheSverySsignificantSissueSofSinformationSsecurity.SBusinessesS
needStoSfindSwaysStoSprotectSconfidentialSinformationSinStheirSownScomputers,
SinScloudS computingS dataS centers,S andS whileS movingS acrossS theS internet,S whil
eS atStheS sameS timeS sharingS theS informationS necessaryStoScompleteStransactions.SA
notherSeffectSofSe-
commerceSisS theS dramaticallyS increasedSspeedSwithSwhichSbusinessStransactionsS
canSbeSconducted.SInSaddition,SthereSwillSbeSdramaticSchangesSinStheSwaySmanag
erialSaccountingSproceduresSareScarriedSout,SoneSexampleSbeingScloud-
basedSbudgeting,SwhichSisStheSenterprise-
wideSandSelectronicScompletionSofSaScompany’sSbudgetingSprocessSusingScloud-
basedSsoftwareSandSdataSstorage.
, 1-2 PlausibleS goalsS forS theS organizationsS listedS areS asS follows:
(a) Amazon.com:S(1)SToSachieveSandSmaintainSprofitability,SandS(2)StoSgrowS
on-
lineSsalesSofStheirSmanySproducts.SAmazonSisSalsoSfamousS(infamous)SforSwa
ntingStoShaveSeveryS productSinStheSworldSonSitsSsite.
(b) AmericanSRedSCross:S(1)SToSraiseSfundsSfromStheSgeneralSpublicSsufficientStoS
haveSresourcesSavailableStoSmeetSanySdisasterSthatSmaySoccur,SandS(2)StoS
provideSassistanceStoSpeopleSwhoSareSvictimsSofSaSdisasterSanywhereSinStheSworld
SonSshortSnotice.
(c) GeneralSMotors:S(1)SToSearnSincomeSsufficientStoSprovideSaSgoodSreturnS
onStheSinvestmentSofStheScompany'sSstockholders,SandS(2)StoSprovideStheShig
hest-qualitySproductSpossible.
(d) Wal-
Mart:S(1)SToSpenetrateStheSretailSmarketSinS virtuallySeverySlocationSinStheSUnitedS
States,SandS(2)StoSgrowSoverStimeSinStermsS ofSnumberSofSretailSlocations,S totalS as
sets,SandS earnings.S Also,StoS beScompetitiveS withS AmazonSinStheSe-
retailS space.
(e) CitySofSSeattle:S(1)SToSmaintainSanSurbanSenvironmentSasSfreeSofSpollutio
nSasSpossible,SandS(2)StoSprovideSpublicSsafety,Spolice,SandSfireSprotectionStoSt
heScity'sScitizens.
(f) Hertz:S(1)SToSbeSaSrecognizableShouseholdSnameSassociatedSwithSrentalSc
arSservices,SandS(2)StoSprovideSreliableSandSeconomicalStransportationSservicesSto
StheScompany's Scustomers.
1-3 TheS fourS basicS managementS activitiesS areS listedS andS definedS asS follows:
(a) DecisionS making:S ChoosingS amongS theS availableS alternatives.
(b) Planning:S DevelopingS aS detailedS financialS andS operationalS descrip
tionS ofSanticipatedSoperations.
(c) DirectingS operations:S RunningS theS organizationS onS aS day-to-dayS basis.
(d) Controlling:S EnsuringS thatS theS organizationS operatesS inS theS intendedS man
nerS andSachievesSitsSgoals.
