Solution,Manual,for,Managerial,Accounting,
18th,Edition
By,Ray,Garrison,,Eric,Noreen,and,Peter,Brewer
Verified,Chapter's,1,-,16,|,Complete
,Table of Contents
, ,
Chapter,One:,Managerial,Accounting,and,Cost,Concepts
Chapter,Two:,Job-Order,Costing:,Calculating,Unit,Product,Costs
Chapter,Three:,Job-Order,Costing:,Cost,Flows,and,External,Reporting
Chapter,Four:,Process,Costing
Chapter,Five:,Cost-Volume-Profit,Relationships
Chapter,Six:,Variable,Costing,and,Segment,Reporting:,Tools,for,Management
Chapter,Seven:,Activity-Based,Costing:,A,Tool,to,Aid,Decision,Making
Chapter,Eight:,Master,Budgeting
Chapter,Nine:,Flexible,Budgets,and,Performance,Analysis
Chapter,Ten:,Standard,Costs,and,Variances
Chapter,Eleven:,Responsibility,Accounting,Systems
Chapter,Twelve:,Strategic,Performance,Measurement
Chapter,Thirteen:,Differential,Analysis:,The,Key,to,Decision,Making
Chapter,Fourteen:,Capital,Budgeting,Decisions
Chapter,Fifteen:,Statement,of,Cash,Flows
Chapter,Sixteen:,Financial,Statement,Analysis
,Chapter,1
Managerial,Accounting,and,Cost,Concepts
Questions
1-1 The,three,major,types,of,product,costs 1-4
,in,a,manufacturing,company,are,direct,materi a. Variable,cost:,The,variable,cost,per,unit,is
als,,direct,labor,,and,manufacturing,overhead. ,constant,,but,total,variable,cost,changes,i
n,direct,proportion,to,changes,in,volume.
1-2 b. Fixed,cost:,The,total,fixed,cost,is,constant,
a. Direct,materials,are,an,integral,part,of,a within,the,relevant,range.,The,average,fixed
,finished,product,and,their,costs,can,be,conve ,cost,per,unit,varies,inversely,with,changes
niently,traced,to,it. , in,volume.
b. Indirect,materials,are,generally,small,ite c. Mixed,cost:,A,mixed,cost,contains,both
ms,of,material,such,as,glue,and,nails.,They,ma ,variable,and,fixed,cost,elements.
y,be,an,integral,part,of,a,finished,product,but,th
eir,costs,can,be,traced,to,the,product,only,at,gr 1-5
eat,cost,or,inconvenience. a. Unit,fixed,costs,decrease,as,the,activity,level
c. Direct,labor,consists,of,labor,costs,that ,increases.
,can,be,easily,traced,to,particular,products. b. Unit,variable,costs,remain,constant,as,the
Direct,labor,is,also,called,―touch,labor.‖ ,activity,level,increases.
d. Indirect,labor,consists,of,the,labor,costs c. Total,fixed,costs,remain,constant,as,the
,of,janitors,,supervisors,,materials,handlers,,an ,activity,level,increases.
d,other,factory,workers,that,cannot,be,conveni d. Total,variable,costs,increase,as,the,activity
ently,traced,to,particular,products.,These,labor ,level,increases.
,costs,are,incurred,to,support,production,,but,t
he,workers,involved,do,not,directly,work,on,th 1-6
e,product. a. Cost,behavior:,Cost,behavior,refers,to,the,
e. Manufacturing,overhead,includes,all,man way,in,which,costs,change,in,response,to,
ufacturing,costs,except,direct,materials,and,dire changes,in,a,measure,of,activity,such,as,s
ct,labor.,Consequently,,manufacturing,overhead ales,volume,,production,volume,,or,orders,
,includes,indirect,materials,and,indirect,labor,as, processed.
well,as,other,manufacturing,costs. b. Relevant,range:,The,relevant,range,is,the
,range,of,activity,within,which,assumption
1-3 s,about,variable,and,fixed,cost,behavior,a
A,product,cost,is,any,cost,involved,in,p re,valid.
urchasing,or,manufacturing,goods.,In,the,case,
of,manufactured,goods,,these,costs,consist,of,d 1-7 An,activity,base,is,a,measure,of,wh
irect,materials,,direct,labor,,and,manufacturing, atever,causes,the,incurrence,of,a,variable,co
overhead.,A,period,cost,is,a,cost,that,is,taken,d st.,Examples,of,activity,bases,include,units,p
irectly,to,the,income,statement,as,an,expense,i roduced,,units,sold,,letters,typed,,beds,in,a,
n,the,period,in,which,it,is,incurred. hospital,,meals,served,in,a,cafe,,service,calls
, ,made,,etc.
1-8 The,linear,assumption,is,reasonably,v
alid,providing,that,the,cost,formula,is,used,onl
y,within,the,relevant,range.
18th,Edition
By,Ray,Garrison,,Eric,Noreen,and,Peter,Brewer
Verified,Chapter's,1,-,16,|,Complete
,Table of Contents
, ,
Chapter,One:,Managerial,Accounting,and,Cost,Concepts
Chapter,Two:,Job-Order,Costing:,Calculating,Unit,Product,Costs
Chapter,Three:,Job-Order,Costing:,Cost,Flows,and,External,Reporting
Chapter,Four:,Process,Costing
Chapter,Five:,Cost-Volume-Profit,Relationships
Chapter,Six:,Variable,Costing,and,Segment,Reporting:,Tools,for,Management
Chapter,Seven:,Activity-Based,Costing:,A,Tool,to,Aid,Decision,Making
Chapter,Eight:,Master,Budgeting
Chapter,Nine:,Flexible,Budgets,and,Performance,Analysis
Chapter,Ten:,Standard,Costs,and,Variances
Chapter,Eleven:,Responsibility,Accounting,Systems
Chapter,Twelve:,Strategic,Performance,Measurement
Chapter,Thirteen:,Differential,Analysis:,The,Key,to,Decision,Making
Chapter,Fourteen:,Capital,Budgeting,Decisions
Chapter,Fifteen:,Statement,of,Cash,Flows
Chapter,Sixteen:,Financial,Statement,Analysis
,Chapter,1
Managerial,Accounting,and,Cost,Concepts
Questions
1-1 The,three,major,types,of,product,costs 1-4
,in,a,manufacturing,company,are,direct,materi a. Variable,cost:,The,variable,cost,per,unit,is
als,,direct,labor,,and,manufacturing,overhead. ,constant,,but,total,variable,cost,changes,i
n,direct,proportion,to,changes,in,volume.
1-2 b. Fixed,cost:,The,total,fixed,cost,is,constant,
a. Direct,materials,are,an,integral,part,of,a within,the,relevant,range.,The,average,fixed
,finished,product,and,their,costs,can,be,conve ,cost,per,unit,varies,inversely,with,changes
niently,traced,to,it. , in,volume.
b. Indirect,materials,are,generally,small,ite c. Mixed,cost:,A,mixed,cost,contains,both
ms,of,material,such,as,glue,and,nails.,They,ma ,variable,and,fixed,cost,elements.
y,be,an,integral,part,of,a,finished,product,but,th
eir,costs,can,be,traced,to,the,product,only,at,gr 1-5
eat,cost,or,inconvenience. a. Unit,fixed,costs,decrease,as,the,activity,level
c. Direct,labor,consists,of,labor,costs,that ,increases.
,can,be,easily,traced,to,particular,products. b. Unit,variable,costs,remain,constant,as,the
Direct,labor,is,also,called,―touch,labor.‖ ,activity,level,increases.
d. Indirect,labor,consists,of,the,labor,costs c. Total,fixed,costs,remain,constant,as,the
,of,janitors,,supervisors,,materials,handlers,,an ,activity,level,increases.
d,other,factory,workers,that,cannot,be,conveni d. Total,variable,costs,increase,as,the,activity
ently,traced,to,particular,products.,These,labor ,level,increases.
,costs,are,incurred,to,support,production,,but,t
he,workers,involved,do,not,directly,work,on,th 1-6
e,product. a. Cost,behavior:,Cost,behavior,refers,to,the,
e. Manufacturing,overhead,includes,all,man way,in,which,costs,change,in,response,to,
ufacturing,costs,except,direct,materials,and,dire changes,in,a,measure,of,activity,such,as,s
ct,labor.,Consequently,,manufacturing,overhead ales,volume,,production,volume,,or,orders,
,includes,indirect,materials,and,indirect,labor,as, processed.
well,as,other,manufacturing,costs. b. Relevant,range:,The,relevant,range,is,the
,range,of,activity,within,which,assumption
1-3 s,about,variable,and,fixed,cost,behavior,a
A,product,cost,is,any,cost,involved,in,p re,valid.
urchasing,or,manufacturing,goods.,In,the,case,
of,manufactured,goods,,these,costs,consist,of,d 1-7 An,activity,base,is,a,measure,of,wh
irect,materials,,direct,labor,,and,manufacturing, atever,causes,the,incurrence,of,a,variable,co
overhead.,A,period,cost,is,a,cost,that,is,taken,d st.,Examples,of,activity,bases,include,units,p
irectly,to,the,income,statement,as,an,expense,i roduced,,units,sold,,letters,typed,,beds,in,a,
n,the,period,in,which,it,is,incurred. hospital,,meals,served,in,a,cafe,,service,calls
, ,made,,etc.
1-8 The,linear,assumption,is,reasonably,v
alid,providing,that,the,cost,formula,is,used,onl
y,within,the,relevant,range.
