Solution Manual for Management
j h j h j h
j h Accounting for Decision Makers:
j h j h j h j h
11th Edition By Peter Atrill, Eddie
j h j h j h j h j h
j h McLaney All Chapters 1 - 12
j h j h j h j h j h j h
,TABLE OF CONTENTSjh jh
1. Introduction to management accounting jh jh jh
2. Relevant costs and benefits for decision making
jh jh jh jh jh jh
3. Cost–volume–profit analysis jh
4. Full costing
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5. Costing and cost management in a competitive environment
jh jh jh jh jh jh jh
6. Budgeting
7. Accounting for control jh jh
8. Making capital investment decisions
jh jh jh
9. Managing risk jh
10.Strategic management accounting: performance evaluation and
jh jh jh jh jh
jh pricing in a competitive environment
jh jh jh jh
11.Measuring divisional performance jh jh
12.Managing working capital jh jh
, SECTION j h A
Authors’ note to tutors jh jh jh
Using the book jh jh
The book is designed to provide readers with a sound introduction to management accounting. It
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
assumes no previous knowledge of the subject and recognises that students using it may come
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
from a wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
not assume a high level of numerical ability from students. It has been class tested by students on
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
various courses and we have modified and refined the material to take account of their comments.
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
We have also taken account of the comments made by lecturers who used the first nine editions of
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
the book and of specially commissioned reviews.
jh jh jh jh jh jh jh
The book aims to encourage an active approach to learning by providing activities and self-assessment
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
questions at appropriate points. This approach is designed to stimulate thought concerning particular
jh jh jh jh jh jh jh jh jh jh jh jh jh
issues and to give the readers the opportunity to test their understanding of the principles covered.
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
The book is supplemented by a password-controlled lecturers’ website and a student website
jh jh jh jh jh jh jh jh jh jh jh jh
available to all readers.
jh jh jh jh
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
used as recommended reading for a traditional course based on lectures and tutorials. There are
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
critical review questions and exercises at the end of each chapter that can be used as the basis for
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
tutorials. It could also provide the basis for a distance learning approach for part-time or off-
jh j h jh jh jh jh jh jh jh jh jh jh jh jh jh jh
campus students. For these students, the interactive nature of the book may be extremely useful
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
where access to a tutor is restricted. The book can also be used as the basis for an open learning
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
approach for full-time campus-based students. We have successfully used it in this way at the
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
University of Plymouth Business School. Accounting ‘surgeries’ have also been provided to give
jh jh jh jh jh jh jh jh jh jh jh jh jh
students the opportunity for one-to-one help with any problems they face.
jh jh jh jh jh jh jh jh jh jh jh
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study.
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
For full-time students, this will often be covered in one academic year.
jh jh jh jh jh jh jh jh jh jh jh jh
PowerPoint slides jh
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
slides to help in delivering lectures and tutorials and these can be downloaded from the lecturers’
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
website.
jh
Practice/assessment material jh
The activities, whose solutions immediately follow them, and self-assessment questions, whose
jh jh jh jh jh jh jh jh jh jh
solutions are at the end of the book, form an integral part of it. In addition, there are various
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
other
jh
, practice/assessment materials. At the end of each chapter there are four critical review questions. jh jh jh jh jh jh jh jh jh jh jh jh jh
These are short, narrative questions involving recall, explanation and brief discussion. The
jh jh jh jh jh jh jh jh jh jh jh jh
solutions to these are given at the end of the book. At the end of all chapters, except Chapter 1
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
(where there are two), there are eight exercises. These are questions, many involving calculations,
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
which are similar in nature to examination-style questions. The solutions to five of these are given
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
at the end of the book and are, therefore, accessible to students. Solutions to the other three are
jh jh jh j h jh jh jh jh jh jh jh jh jh jh jh jh jh jh
in the following pages of this manual and are not accessible to students.
jh jh j h jh jh jh jh jh jh jh jh jh jh
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of-
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
chapter exercises there are:
jh jh jh jh
Two progress tests with solutions. These tests comprise multiple-choice questions, missing-
jh jh jh jh jh jh jh jh jh jh
word questions and questions that are similar to the end-of-chapter exercises. One test
jh jh jh jh jh jh jh jh jh jh jh jh jh
corresponds to Chapters 1 to 5, and the other to Chapters 6 to 12.
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
Supplementary questions (10 of them) with solutions. jh jh jh jh jh jh
Tutorial/seminar questions with solutions. jh jh jh
None of this material, except the case study comments, is accessible to students.
jh jh jh jh jh jh jh jh jh jh jh jh
jh On the student website, there are five types of material:
jh jh jh jh jh jh jh jh jh
Revision exercises, similar in style to the end-of-chapter exercises, with solutions.
jh jh jh jh jh jh jh jh jh jh
Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled jh jh jh jh jh jh jh jh jh jh jh jh
online, where they will be automatically graded.
jh jh jh jh jh jh jh
Missing-word questions, typically 10 for each chapter. These too can be attempted and jh jh jh jh jh jh jh jh jh jh jh jh
graded online.
jh jh
The multiple-choice questions and missing-word questions are intended to provide students with a
jh jh jh jh jh jh jh jh jh jh jh jh
quick assessment of their mastery of the material of each chapter.
jh jh jh jh jh jh jh jh jh jh jh
The solutions to all of this material, except to the multiple-choice and missing-word questions, are
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
fully annotated in order to give the necessary feedback to students.
jh jh jh jh jh jh jh jh jh jh jh
We intend to expand the number and scope of the practice/assessment materials on a continuing
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
basis.
jh
We hope that you and your students will find the book both accessible and interesting. We should
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
much appreciate any suggestions you may have on how the book and supplementary material may
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
be improved.
jh jh
Peter Atrill jh
Eddie
jh
McLaney
jh
j h j h j h
j h Accounting for Decision Makers:
j h j h j h j h
11th Edition By Peter Atrill, Eddie
j h j h j h j h j h
j h McLaney All Chapters 1 - 12
j h j h j h j h j h j h
,TABLE OF CONTENTSjh jh
1. Introduction to management accounting jh jh jh
2. Relevant costs and benefits for decision making
jh jh jh jh jh jh
3. Cost–volume–profit analysis jh
4. Full costing
jh
5. Costing and cost management in a competitive environment
jh jh jh jh jh jh jh
6. Budgeting
7. Accounting for control jh jh
8. Making capital investment decisions
jh jh jh
9. Managing risk jh
10.Strategic management accounting: performance evaluation and
jh jh jh jh jh
jh pricing in a competitive environment
jh jh jh jh
11.Measuring divisional performance jh jh
12.Managing working capital jh jh
, SECTION j h A
Authors’ note to tutors jh jh jh
Using the book jh jh
The book is designed to provide readers with a sound introduction to management accounting. It
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
assumes no previous knowledge of the subject and recognises that students using it may come
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
from a wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
not assume a high level of numerical ability from students. It has been class tested by students on
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
various courses and we have modified and refined the material to take account of their comments.
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
We have also taken account of the comments made by lecturers who used the first nine editions of
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
the book and of specially commissioned reviews.
jh jh jh jh jh jh jh
The book aims to encourage an active approach to learning by providing activities and self-assessment
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
questions at appropriate points. This approach is designed to stimulate thought concerning particular
jh jh jh jh jh jh jh jh jh jh jh jh jh
issues and to give the readers the opportunity to test their understanding of the principles covered.
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
The book is supplemented by a password-controlled lecturers’ website and a student website
jh jh jh jh jh jh jh jh jh jh jh jh
available to all readers.
jh jh jh jh
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
used as recommended reading for a traditional course based on lectures and tutorials. There are
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
critical review questions and exercises at the end of each chapter that can be used as the basis for
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
tutorials. It could also provide the basis for a distance learning approach for part-time or off-
jh j h jh jh jh jh jh jh jh jh jh jh jh jh jh jh
campus students. For these students, the interactive nature of the book may be extremely useful
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
where access to a tutor is restricted. The book can also be used as the basis for an open learning
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
approach for full-time campus-based students. We have successfully used it in this way at the
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
University of Plymouth Business School. Accounting ‘surgeries’ have also been provided to give
jh jh jh jh jh jh jh jh jh jh jh jh jh
students the opportunity for one-to-one help with any problems they face.
jh jh jh jh jh jh jh jh jh jh jh
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study.
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
For full-time students, this will often be covered in one academic year.
jh jh jh jh jh jh jh jh jh jh jh jh
PowerPoint slides jh
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
slides to help in delivering lectures and tutorials and these can be downloaded from the lecturers’
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
website.
jh
Practice/assessment material jh
The activities, whose solutions immediately follow them, and self-assessment questions, whose
jh jh jh jh jh jh jh jh jh jh
solutions are at the end of the book, form an integral part of it. In addition, there are various
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
other
jh
, practice/assessment materials. At the end of each chapter there are four critical review questions. jh jh jh jh jh jh jh jh jh jh jh jh jh
These are short, narrative questions involving recall, explanation and brief discussion. The
jh jh jh jh jh jh jh jh jh jh jh jh
solutions to these are given at the end of the book. At the end of all chapters, except Chapter 1
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
(where there are two), there are eight exercises. These are questions, many involving calculations,
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
which are similar in nature to examination-style questions. The solutions to five of these are given
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
at the end of the book and are, therefore, accessible to students. Solutions to the other three are
jh jh jh j h jh jh jh jh jh jh jh jh jh jh jh jh jh jh
in the following pages of this manual and are not accessible to students.
jh jh j h jh jh jh jh jh jh jh jh jh jh
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of-
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
chapter exercises there are:
jh jh jh jh
Two progress tests with solutions. These tests comprise multiple-choice questions, missing-
jh jh jh jh jh jh jh jh jh jh
word questions and questions that are similar to the end-of-chapter exercises. One test
jh jh jh jh jh jh jh jh jh jh jh jh jh
corresponds to Chapters 1 to 5, and the other to Chapters 6 to 12.
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
Supplementary questions (10 of them) with solutions. jh jh jh jh jh jh
Tutorial/seminar questions with solutions. jh jh jh
None of this material, except the case study comments, is accessible to students.
jh jh jh jh jh jh jh jh jh jh jh jh
jh On the student website, there are five types of material:
jh jh jh jh jh jh jh jh jh
Revision exercises, similar in style to the end-of-chapter exercises, with solutions.
jh jh jh jh jh jh jh jh jh jh
Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled jh jh jh jh jh jh jh jh jh jh jh jh
online, where they will be automatically graded.
jh jh jh jh jh jh jh
Missing-word questions, typically 10 for each chapter. These too can be attempted and jh jh jh jh jh jh jh jh jh jh jh jh
graded online.
jh jh
The multiple-choice questions and missing-word questions are intended to provide students with a
jh jh jh jh jh jh jh jh jh jh jh jh
quick assessment of their mastery of the material of each chapter.
jh jh jh jh jh jh jh jh jh jh jh
The solutions to all of this material, except to the multiple-choice and missing-word questions, are
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
fully annotated in order to give the necessary feedback to students.
jh jh jh jh jh jh jh jh jh jh jh
We intend to expand the number and scope of the practice/assessment materials on a continuing
jh jh jh jh jh jh jh jh jh jh jh jh jh jh
basis.
jh
We hope that you and your students will find the book both accessible and interesting. We should
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
much appreciate any suggestions you may have on how the book and supplementary material may
jh jh jh jh jh jh jh jh jh jh jh jh jh jh jh
be improved.
jh jh
Peter Atrill jh
Eddie
jh
McLaney
jh