Solutions Manual for Managerial Accounting, 18th Edition by Ray H. Garrison, Eric Noreen, and Peter C. Brewer |All chapters covered|

Solution Manual for Managerial Accounting,
ub ub ub ub




18th Edition ub




By Ray Garrison, Eric Noreen and Peter Brewer
ub ub ub ub ub ub ub




Verified Chapter's 1 - 16 | Complete
ub ub ub ub ub ub

,Table of Contentsub ub




Chapter One: Managerial Accounting and Cost Concepts
ub ub ub ub ub ub




Chapter Two: Job-Order Costing: Calculating Unit Product Costs
ub ub ub ub ub ub ub




Chapter Three: Job-Order Costing: Cost Flows and External Reporting
ub ub ub ub ub ub ub ub




Chapter Four: Process Costing
ub ub ub




Chapter Five: Cost-Volume-Profit Relationships
ub ub ub




Chapter Six: Variable Costing and Segment Reporting: Tools for Management
ub ub ub ub ub ub ub ub ub




Chapter Seven: Activity-Based Costing: A Tool to Aid Decision Making
ub ub ub ub ub ub ub ub ub




Chapter Eight: Master Budgeting
ub ub ub




Chapter Nine: Flexible Budgets and Performance Analysis
ub ub ub ub ub ub




Chapter Ten: Standard Costs and Variances
ub ub ub ub ub




Chapter Eleven: Responsibility Accounting Systems
ub ub ub ub




Chapter Twelve: Strategic Performance Measurement
ub ub ub ub




Chapter Thirteen: Differential Analysis: The Key to Decision Making
ub ub ub ub ub ub ub ub




Chapter Fourteen: Capital Budgeting Decisions
ub ub ub ub




Chapter Fifteen: Statement of Cash Flows
ub ub ub ub ub




Chapter Sixteen: Financial Statement Analysis
ub ub ub ub

,Chapter 1 ub




Managerial Accounting and Cost Concepts ub ub ub ub




Questions


1-1 The three major types of product costs ub ub ub ub ub ub 1-4
in a manufacturing company are direct
ub ub ub ub ub ub a. Variable cost: The variable cost per unit is ub ub ub ub ub ub ub




materials, direct labor, and manufacturing
ub ub ub ub ub constant, but total variable cost changes in
ub ub ub ub ub ub ub




overhead.
ub direct proportion to changes in volume.
ub ub ub ub ub ub




b. Fixed cost: The total fixed cost is constant
ub ub ub ub ub ub ub




1-2 within the relevant range. The average fixed
ub ub ub ub ub ub ub




a. Direct materials are an integral part of a ub ub ub ub ub ub ub cost per unit varies inversely with changes
ub ub ub ub ub ub ub




finished product and their costs can be
ub ub ub ub ub ub ub in volume.
u b ub




conveniently traced to it.
ub ub ub ub c. Mixed cost: A mixed cost contains both ub ub ub ub ub ub




b. Indirect materials are generally small ub ub ub ub variable and fixed cost elements.
ub ub ub ub ub




items of material such as glue and nails. They
ub ub ub ub ub ub ub ub ub




may be an integral part of a finished product but
ub ub ub ub ub ub ub ub ub ub 1-5
their costs can be traced to the product only at
ub ub ub ub ub ub ub ub ub ub a. Unit fixed costs decrease as the activity level
ub ub ub ub ub ub ub




great cost or inconvenience.
ub ub ub ub increases.
ub




c. Direct labor consists of labor costs that ub ub ub ub ub ub b. Unit variable costs remain constant as the
ub ub ub ub ub ub




can be easily traced to particular products.
ub ub ub ub ub ub ub activity level increases.
ub ub ub




Direct labor is also called ―touch labor.‖
ub ub ub ub ub ub c. Total fixed costs remain constant as the
ub ub ub ub ub ub




d. Indirect labor consists of the labor costs ub ub ub ub ub ub activity level increases.
ub ub ub




of janitors, supervisors, materials handlers, and
ub ub ub ub ub ub d. Total variable costs increase as the activity
ub ub ub ub ub ub




other factory workers that cannot be
ub ub ub ub ub ub level increases.
ub ub




conveniently traced to particular products.
ub ub ub ub ub




These labor costs are incurred to support
ub ub ub ub ub ub ub 1-6
production, but the workers involved do not
ub ub ub ub ub ub ub a. Cost behavior: Cost behavior refers to the
ub ub ub ub ub ub




directly work on the product.
ub ub ub ub ub way in which costs change in response to
ub ub ub ub ub ub ub ub




e. Manufacturing overhead includes all ub ub ub changes in a measure of activity such as
ub ub ub ub ub ub ub ub




manufacturing costs except direct materials and
ub ub ub ub ub ub sales volume, production volume, or orders
ub ub ub ub ub ub




direct labor. Consequently, manufacturing
ub ub ub ub processed.
ub




overhead includes indirect materials and indirect
ub ub ub ub ub ub b. Relevant range: The relevant range is the ub ub ub ub ub ub




labor as well as other manufacturing costs.
ub ub ub ub ub ub ub range of activity within which assumptions
ub ub ub ub ub ub




about variable and fixed cost behavior are
ub ub ub ub ub ub ub




1-3 A product cost is any cost involved in
ub ub ub ub ub ub ub valid.
ub




purchasing or manufacturing goods. In the case
ub ub ub ub ub ub ub




of manufactured goods, these costs consist of
ub ub ub ub ub ub ub 1-7 An activity base is a measure of ub ub ub ub ub ub




direct materials, direct labor, and manufacturing
ub ub ub ub ub ub whatever causes the incurrence of a variable
ub ub ub ub ub ub ub




overhead. A period cost is a cost that is taken
ub ub ub ub ub ub ub ub ub ub cost. Examples of activity bases include units
ub ub ub ub ub ub ub




directly to the income statement as an expense
ub ub ub ub ub ub ub ub produced, units sold, letters typed, beds in a
ub ub ub ub ub ub ub ub




in the period in which it is incurred.
ub ub ub ub ub ub ub ub hospital, meals served in a cafe, service calls
ub ub ub ub ub ub ub ub




made, etc.
ub ub




1-8 The linear assumption is reasonably
ub ub ub ub

, ub valid providing that the cost formula is used only
ub ub ub ub ub ub ub ub




ub within the relevant range.
ub ub ub