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 a. Variable |cost: |The |variable |cost |per |unit |is
|materials, |direct |labor, |and |manufacturing |constant, |but |total |variable |cost |changes |in
|overhead. |direct |proportion |to |changes |in |volume.
b. Fixed |cost: |The |total |fixed |cost |is |constant
1-2 |within |the |relevant |range. |The |average |fixed
a. Direct |materials |are |an |integral |part |of |a |cost |per |unit |varies |inversely |with |changes
|finished |product |and |their |costs |can |be | in |volume.
|conveniently |traced |to |it. c. Mixed |cost: |A |mixed |cost |contains |both
b. Indirect |materials |are |generally |small |variable |and |fixed |cost |elements.
|items |of |material |such |as |glue |and |nails. |They
|may |be |an |integral |part |of |a |finished |product 1-5
|but |their |costs |can |be |traced |to |the |product a. Unit |fixed |costs |decrease |as |the |activity |level
|only |at |great |cost |or |inconvenience. |increases.
c. Direct |labor |consists |of |labor |costs |that b. Unit |variable |costs |remain |constant |as |the
|can |be |easily |traced |to |particular |products. |activity |level |increases.
Direct |labor |is |also |called |―touch |labor.‖ c. Total |fixed |costs |remain |constant |as |the
d. Indirect |labor |consists |of |the |labor |costs |activity |level |increases.
|of |janitors, |supervisors, |materials |handlers, |and d. Total |variable |costs |increase |as |the |activity
|other |factory |workers |that |cannot |be |level |increases.
|conveniently |traced |to |particular |products.
|These |labor |costs |are |incurred |to |support 1-6
|production, |but |the |workers |involved |do |not a. Cost |behavior: |Cost |behavior |refers |to |the
|directly |work |on |the |product. |way |in |which |costs |change |in |response |to
e. Manufacturing |overhead |includes |all |changes |in |a |measure |of |activity |such |as
|manufacturing |costs |except |direct |materials |sales |volume, |production |volume, |or |orders
|and |direct |labor. |Consequently, |manufacturing |processed.
|overhead |includes |indirect |materials |and |indirect b. Relevant |range: |The |relevant |range |is |the
|labor |as |well |as |other |manufacturing |costs. |range |of |activity |within |which |assumptions
|about |variable |and |fixed |cost |behavior
1-3 A |product |cost |is |any |cost |involved |in |are |valid.
|purchasing |or |manufacturing |goods. |In |the
|case |of |manufactured |goods, |these |costs 1-7 An |activity |base |is |a |measure |of
|consist |of |direct |materials, |direct |labor, |and |whatever |causes |the |incurrence |of |a
|manufacturing |overhead. |A |period |cost |is |a |variable |cost. |Examples |of |activity |bases
|cost |that |is |taken |directly |to |the |income |include |units |produced, |units |sold, |letters
|statement |as |an |expense |in |the |period |in |typed, |beds |in |a |hospital, |meals |served |in |a
|which |it |is |incurred. |cafe, |service |calls |made, |etc.
1-8 The |linear |assumption |is |reasonably
, valid |providing |that |the |cost |formula |is |used
|
only |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 a. Variable |cost: |The |variable |cost |per |unit |is
|materials, |direct |labor, |and |manufacturing |constant, |but |total |variable |cost |changes |in
|overhead. |direct |proportion |to |changes |in |volume.
b. Fixed |cost: |The |total |fixed |cost |is |constant
1-2 |within |the |relevant |range. |The |average |fixed
a. Direct |materials |are |an |integral |part |of |a |cost |per |unit |varies |inversely |with |changes
|finished |product |and |their |costs |can |be | in |volume.
|conveniently |traced |to |it. c. Mixed |cost: |A |mixed |cost |contains |both
b. Indirect |materials |are |generally |small |variable |and |fixed |cost |elements.
|items |of |material |such |as |glue |and |nails. |They
|may |be |an |integral |part |of |a |finished |product 1-5
|but |their |costs |can |be |traced |to |the |product a. Unit |fixed |costs |decrease |as |the |activity |level
|only |at |great |cost |or |inconvenience. |increases.
c. Direct |labor |consists |of |labor |costs |that b. Unit |variable |costs |remain |constant |as |the
|can |be |easily |traced |to |particular |products. |activity |level |increases.
Direct |labor |is |also |called |―touch |labor.‖ c. Total |fixed |costs |remain |constant |as |the
d. Indirect |labor |consists |of |the |labor |costs |activity |level |increases.
|of |janitors, |supervisors, |materials |handlers, |and d. Total |variable |costs |increase |as |the |activity
|other |factory |workers |that |cannot |be |level |increases.
|conveniently |traced |to |particular |products.
|These |labor |costs |are |incurred |to |support 1-6
|production, |but |the |workers |involved |do |not a. Cost |behavior: |Cost |behavior |refers |to |the
|directly |work |on |the |product. |way |in |which |costs |change |in |response |to
e. Manufacturing |overhead |includes |all |changes |in |a |measure |of |activity |such |as
|manufacturing |costs |except |direct |materials |sales |volume, |production |volume, |or |orders
|and |direct |labor. |Consequently, |manufacturing |processed.
|overhead |includes |indirect |materials |and |indirect b. Relevant |range: |The |relevant |range |is |the
|labor |as |well |as |other |manufacturing |costs. |range |of |activity |within |which |assumptions
|about |variable |and |fixed |cost |behavior
1-3 A |product |cost |is |any |cost |involved |in |are |valid.
|purchasing |or |manufacturing |goods. |In |the
|case |of |manufactured |goods, |these |costs 1-7 An |activity |base |is |a |measure |of
|consist |of |direct |materials, |direct |labor, |and |whatever |causes |the |incurrence |of |a
|manufacturing |overhead. |A |period |cost |is |a |variable |cost. |Examples |of |activity |bases
|cost |that |is |taken |directly |to |the |income |include |units |produced, |units |sold, |letters
|statement |as |an |expense |in |the |period |in |typed, |beds |in |a |hospital, |meals |served |in |a
|which |it |is |incurred. |cafe, |service |calls |made, |etc.
1-8 The |linear |assumption |is |reasonably
, valid |providing |that |the |cost |formula |is |used
|
only |within |the |relevant |range.
|
