Solution Manual for Managerial Accounting, 18th Edition By Ray Garrison, Eric Noreen and Peter Brewer Verified Chapter's 1 - 16 | Complete

Solution Manual for Managerial Accounting,
18th Edition
By Ray Garrison, Eric Noreen and Peter Brewer
Verified Chapter's 1 - 16 | Complete

,Table of Contents
D D




ChapterDOne:DManagerialDAccountingDandDCostDConcepts

ChapterDTwo:DJob-OrderDCosting:DCalculatingDUnitDProductDCosts

ChapterDThree:DJob-OrderDCosting:DCostDFlowsDandDExternalDReporting

ChapterDFour:DProcessDCosting

ChapterDFive:DCost-Volume-ProfitDRelationships

ChapterDSix:DVariableDCostingDandDSegmentDReporting:DToolsDforDManagement

ChapterDSeven:DActivity-BasedDCosting:DADToolDtoDAidDDecisionDMaking

ChapterDEight:DMasterDBudgeting

ChapterDNine:DFlexibleDBudgetsDandDPerformanceDAnalysis

ChapterDTen:DStandardDCostsDandDVariances

ChapterDEleven:DResponsibilityDAccountingDSystems

ChapterDTwelve:DStrategicDPerformanceDMeasurement

ChapterDThirteen:DDifferentialDAnalysis:DTheDKeyDtoDDecisionDMaking

ChapterDFourteen:DCapitalDBudgetingDDecisions

ChapterDFifteen:DStatementDofDCashDFlows

ChapterDSixteen:DFinancialDStatementDAnalysis

,Chapter 1 D



Managerial Accounting and Cost Concepts
D D D D




Questions


1-1 TheDthreeDmajorDtypesDofDproductDcost 1-4
sDinDaDmanufacturingDcompanyDareDdirectDmat a. VariableDcost:DTheDvariableDcostDperDunitDi
erials,DdirectDlabor,DandDmanufacturingDoverhe sDconstant,DbutDtotalDvariableDcostDchange
ad. sDinDdirectDproportionDtoDchangesDinDvolu
me.
1-2 b. FixedDcost:DTheDtotalDfixedDcostDisDconstant
a. DirectDmaterialsDareDanDintegralDpartDofD DwithinDtheDrelevantDrange.DTheDaverageDfix
aDfinishedDproductDandDtheirDcostsDcanDbeDcon edDcostDperDunitDvariesDinverselyDwithDchan
venientlyDtracedDtoDit. gesD inDvolume.
b. IndirectDmaterialsDareDgenerallyDsmallDite c. MixedDcost:DADmixedDcostDcontainsDbot
msDofDmaterialDsuchDasDglueDandDnails.DTheyDm hDvariableDandDfixedDcostDelements.
ayDbeDanDintegralDpartDofDaDfinishedDproductDbut
DtheirDcostsDcanDbeDtracedDtoDtheDproductDonlyD 1-5
atDgreatDcostDorDinconvenience. a. UnitDfixedDcostsDdecreaseDasDtheDactivityDlev
c. DirectDlaborDconsistsDofDlaborDcostsDth elDincreases.
atDcanDbeDeasilyDtracedDtoDparticularDproduct b. UnitDvariableDcostsDremainDconstantDasDth
s. eDactivityDlevelDincreases.
DirectDlaborDisDalsoDcalledD―touchDlabor.‖ c. TotalDfixedDcostsDremainDconstantDasDth
d. IndirectDlaborDconsistsDofDtheDlaborDcost eDactivityDlevelDincreases.
sDofDjanitors,Dsupervisors,DmaterialsDhandlers,Da d. TotalDvariableDcostsDincreaseDasDtheDactivit
ndDotherDfactoryDworkersDthatDcannotDbeDconv yDlevelDincreases.
enientlyDtracedDtoDparticularDproducts.DTheseDl
aborDcostsDareDincurredDtoDsupportDproduction, 1-6
DbutDtheDworkersDinvolvedDdoDnotDdirectlyDwor a. CostDbehavior:DCostDbehaviorDrefersDtoDthe
kDonDtheDproduct. DwayDinDwhichDcostsDchangeDinDresponseDt

e. ManufacturingDoverheadDincludesDallDma oDchangesDinDaDmeasureDofDactivityDsuchDa
nufacturingDcostsDexceptDdirectDmaterialsDandDd sDsalesDvolume,DproductionDvolume,DorDord
irectDlabor.DConsequently,DmanufacturingDoverh ersDprocessed.
eadDincludesDindirectDmaterialsDandDindirectDlab b. RelevantDrange:DTheDrelevantDrangeDisDth
orDasDwellDasDotherDmanufacturingDcosts. eDrangeDofDactivityDwithinDwhichDassumpti
onsDaboutDvariableDandDfixedDcostDbehavi
1-3 orDareDvalid.
ADproductDcostDisDanyDcostDinvolvedDinD
purchasingDorDmanufacturingDgoods.DInDtheDcas 1-7 AnDactivityDbaseDisDaDmeasureDofDw
eDofDmanufacturedDgoods,DtheseDcostsDconsistD hateverDcausesDtheDincurrenceDofDaDvariable
ofDdirectDmaterials,DdirectDlabor,DandDmanufactu Dcost.DExamplesDofDactivityDbasesDincludeDuni

ringDoverhead.DADperiodDcostDisDaDcostDthatDisDt tsDproduced,DunitsDsold,DlettersDtyped,DbedsD
akenDdirectlyDtoDtheDincomeDstatementDasDanDe inDaDhospital,DmealsDservedDinDaDcafe,Dservic
xpenseDinDtheDperiodDinDwhichDitDisDincurred. eDcallsDmade,Detc.

, 1-8 TheDlinearDassumptionDisDreasonablyDv
alidDprovidingDthatDtheDcostDformulaDisDusedDon
lyDwithinDtheDrelevantDrange.