Managerial Accounting Tools for Business Decision Making
i i i i i i
SOLUTION MANUAL i
ManagerialAccountingToolsforBusinessDecision
i i i i i
Making
i i 9th i
EditionbyJerryJ.Weygandt,PaulD.Kimmel
i i i i i i i i i
,TABLEOFCONTENTS
Chapter 1: Managerial Accounting
Chapter 2: Job Order Costing
Chapter 2A: Job Order Costing: Non-Debit and Credit
Approach Chapter 3: Process Costing
Chapter 3A: Process Costing: Non-Debit and Credit Approach
Chapter 4: Activity-Based Costing
Chapter 5: Cost-Volume-Profit
Chapter 6: Cost-Volume-Profit Analysis: Additional
Issues Chapter 7: Incremental Analysis
Chapter 8: Pricing
Chapter 9: Budgetary Planning
Chapter 10: Budgetary Control and Responsibility
Accounting Chapter 11: Standard Costs and Balanced
Scorecard Chapter 12: Planning for Capital
Investments
Chapter 13: Statement of Cash
,Flows Chapter 14: Financial
Analysis
, Managerial Accounting Tools for Business Decision Making
i i i i i i
CHAPTER1
ManagerialAccounting
Learning Objectives
1. Identify the features of managerial accounting and the functions of management.
2. Describe the classes of manufacturing costs and the differences between product
and period costs.
3. Demonstrate how to compute cost of goods manufactured and prepare financial
statements for a manufacturer.
4. Discuss trends in managerial accounting.
ANSWERSTOQUESTIONS
1. (a) Not true. Managerial accounting is a field of accounting that provides economic
and financial information for managers and other internal users.
(b) Joe is incorrect. Managerial accounting applies to all types of
businesses—service, merchandising, and manufacturing.
LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA:
Cost Management
2. (a) Financial accounting is concerned primarily with external users such as
stockholders, creditors, and regulators. In contrast, managerial accounting
is concerned primarily with internal users such as officers and managers.
(b) Financial statements are the end product of financial accounting. These statements
are prepared quarterly and annually. In managerial accounting, internal
reports may be prepared as frequently as needed.
(c) The purpose of financial accounting is to provide general-purpose
information for external users. The purpose of managerial accounting is
to provide special-purpose information for specific internal decisions.
LO1 BT: C Difficulty: Easy TOT: 5 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA
Cost Management
3. Differences in the content of the reports are as follows:
Financial Managerial
• Pertains to business as a whole and
data.
• Generallyacceptedaccounting
ishighly aggregated.
principles.
• Limited to accrual accounting and cost
i i i i i i
SOLUTION MANUAL i
ManagerialAccountingToolsforBusinessDecision
i i i i i
Making
i i 9th i
EditionbyJerryJ.Weygandt,PaulD.Kimmel
i i i i i i i i i
,TABLEOFCONTENTS
Chapter 1: Managerial Accounting
Chapter 2: Job Order Costing
Chapter 2A: Job Order Costing: Non-Debit and Credit
Approach Chapter 3: Process Costing
Chapter 3A: Process Costing: Non-Debit and Credit Approach
Chapter 4: Activity-Based Costing
Chapter 5: Cost-Volume-Profit
Chapter 6: Cost-Volume-Profit Analysis: Additional
Issues Chapter 7: Incremental Analysis
Chapter 8: Pricing
Chapter 9: Budgetary Planning
Chapter 10: Budgetary Control and Responsibility
Accounting Chapter 11: Standard Costs and Balanced
Scorecard Chapter 12: Planning for Capital
Investments
Chapter 13: Statement of Cash
,Flows Chapter 14: Financial
Analysis
, Managerial Accounting Tools for Business Decision Making
i i i i i i
CHAPTER1
ManagerialAccounting
Learning Objectives
1. Identify the features of managerial accounting and the functions of management.
2. Describe the classes of manufacturing costs and the differences between product
and period costs.
3. Demonstrate how to compute cost of goods manufactured and prepare financial
statements for a manufacturer.
4. Discuss trends in managerial accounting.
ANSWERSTOQUESTIONS
1. (a) Not true. Managerial accounting is a field of accounting that provides economic
and financial information for managers and other internal users.
(b) Joe is incorrect. Managerial accounting applies to all types of
businesses—service, merchandising, and manufacturing.
LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA:
Cost Management
2. (a) Financial accounting is concerned primarily with external users such as
stockholders, creditors, and regulators. In contrast, managerial accounting
is concerned primarily with internal users such as officers and managers.
(b) Financial statements are the end product of financial accounting. These statements
are prepared quarterly and annually. In managerial accounting, internal
reports may be prepared as frequently as needed.
(c) The purpose of financial accounting is to provide general-purpose
information for external users. The purpose of managerial accounting is
to provide special-purpose information for specific internal decisions.
LO1 BT: C Difficulty: Easy TOT: 5 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA
Cost Management
3. Differences in the content of the reports are as follows:
Financial Managerial
• Pertains to business as a whole and
data.
• Generallyacceptedaccounting
ishighly aggregated.
principles.
• Limited to accrual accounting and cost
