SOLUTION MANUAL Horngren's Accounting, The Managerial Chapters, 14th Edition By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9

SOLUTION MANUAL
Horngren's Accounting, The Managerial Chapters, 14th Edition
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9

,Table of contents
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1. Introduction to Managerial Accounting
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2. Job Order Costing
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3. Process CostingY




4. Cost-Volume-Profit Analysis Y




5. Master Budgets
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6. Flexible Budgets and Standard Cost Systems
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7. Cost Allocation and Responsibility Accounting
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8. Short-Term Business Decisions
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9. Capital Investment Decisions
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,Chapter M:1 Y


Introduction to Managerial Accounting
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Review Questions
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1. WhatYisYtheYprimaryYpurposeYofYmanagerialYaccounting?

TheYprimaryYpurposeYofYmanagerialYaccountingYisYtoYprovideYinformationYtoYhelpYmanagersYplan,Ydire
ct,Ycontrol,YandYmakeYdecisions.

2. ListYsixYdifferencesYbetweenYfinancialYaccountingYandYmanagerialYaccounting.

FinancialYaccountingYandYmanagerialYaccountingYdifferYonYtheYfollowingY6Ydimensions:Y(1)YprimaryYusers,Y
(2)YpurposeYofYinformation,Y(3)YfocusYandYtimeYdimensionYofYtheYinformation,Y(4)YrulesYandYre-
Ystrictions,Y(5)YscopeYofYinformation,YandY(6)Ybehavioral.



3. ExplainYtheYdifferenceYbetweenYlineYpositionsYandYstaffYpositions.

LineYpositionsYareYdirectlyYinvolvedYinYprovidingYgoodsYorYservicesYtoYcustomers.YStaffYpositionsYsupp
ortYlineYpositions.

4. ExplainYtheYdifferencesYbetweenYplanning,Ydirecting,YandYcontrolling.

PlanningYmeansYchoosingYgoalsYandYdecidingYhowYtoYachieveYthem.YDirectingYinvolvesYrunningYtheYday-
to-
dayYoperationsYofYaYbusiness.YControllingYisYtheYprocessYofYmonitoringYoperationsYandYkeepingYtheYcompa
nyYonYtrack.

5. ListYtheYfourYIMAYstandardsYofYethicalYpracticeYandYbrieflyYdescribeYeach.

TheYfourYIMAYstandardsYofYethicalYpracticeYandYaYdescriptionYofYeachYfollow.
I. Competence.
MaintainYanYappropriateYlevelYofYprofessionalYleadershipYandYexpertiseYbyYenhancingYkno
wledgeYandYskills.
PerformYprofessionalYdutiesYinYaccordanceYwithYrelevantYlaws,Yregulations,YandYtechnicalYstan
dards.
ProvideYdecisionYsupportYinformationYandYrecommendationsYthatYareYaccurate,Yclear,Yconcise,

, andYtimely.
RecogniseYandYhelpYmangeYrisk.
II. Confidentiality.
KeepYinformationYconfidentialYexceptYwhenYdisclosureYisYauthorizedYorYlegallyYrequired.
InformYallYrelevantYpartiesYregardingYappropriateYuseYofYconfidentialYinformation.Y MonitorYtoYens
ureYcompliance.
RefrainYfromYusingYconfidentialYinformationYforYunethicalYorYillegalYadvantage.
III. Integrity.
MitigateYactualYconflictsYofYinterest.YRegularlyYcommunicateYwithYbusinessYassociatesYtoYavoidYappa
rentYconflictsYofYinterest.YYAdviseYallYpartiesYofYanyYpotentialYconflicts.
RefrainYfromYengagingYinYanyYconductYthatYwouldYprejudiceYcarryingYoutYdutiesYethically.
AbstainYfromYengagingYinYorYsupportingYanyYactivityYthatYmightYdiscreditYtheYprofession.
ContributeYtoYaYpositiveYethicalYcultureYandYplaceYintegrityYofYtheYprofessionYaboveYpersonalYinte
rest.

5,Ycont.
IV. Credibility.
CommunicateYinformationYfairlyYandYobjectively.
ProvideYallYrelevantYinformationYthatYcouldYreasonablyYbeYexpectedYtoYinfluenceYanYintendedYuse
r’sYunderstandingYofYtheYreports,Yanalyses,YorYrecommendations.
ReportYanyYdelaysYorYdeficienciesYinYinformation,Ytimeliness,Yprocessing,YorYinternalYcontrolsYinYco
nformanceYwithYorganizationYpolicyYand/orYapplicableYlaw.
CommunicateYanyYprofessionalYlimitationsYorYotherYconstraintsYthatYwouldYprecludeYresponsi-
YbleYjudgmentYorYsuccessfulYperformanceYofYanYactivity.



6. DescribeYaYserviceYcompanyYandYgiveYanYexample.

ServiceYcompaniesYsellYtime,Yskills,YandYknowledge.YExamplesYofYserviceYcompaniesYincludeYphoneYservic
eYcompanies,Ybanks,YcleaningYserviceYcompanies,YaccountingYfirms,YlawYfirms,YmedicalYphysi-
Ycians,YandYonlineYauctionYservices.



7. DescribeYaYmerchandisingYcompanyYandYgiveYanYexample.

MerchandisingYcompaniesYresellYproductsYtheyYbuyYfromYsuppliers.YMerchandisersYkeepYanYinventoryYofYpr
oducts,YandYmanagersYareYaccountableYforYtheYpurchasing,Ystorage,YandYsaleYofYtheYproducts.YEx-
YamplesYofYmerchandisingYcompaniesYincludeYtoyYstores,YgroceryYstores,YandYclothingYstores.



8. HowYdoYmanufacturingYcompaniesYdifferYfromYmerchandisingYcompanies?

MerchandisingYcompaniesYresellYproductsYtheyYpreviouslyYboughtYfromYsuppliers,YwhereasYmanufac-
YturingYcompaniesYuseYlabor,Yequipment,Ysupplies,YandYfacilitiesYtoYconvertYrawYmaterialsYintoYnewYfin-

YishedYproducts.YInYcontrastYtoYmerchandisingYcompanies,YmanufacturingYcompaniesYhaveYaYbroadYrangeYo

fYproductionYactivitiesYthatYrequireYtrackingYcostsYonYthreeYkindsYofYinventory.