Solution Manual for Managerial Accounting, 18th Edition By Ray Garrison, Eric Noreen and Peter Brewer Verified Chapter's 1 - 16 | Complete

Solution Manual for Managerial
Accounting,
18th Edition
By Ray Garrison, Eric Noreen and Peter
Brewer Verified Chapter's 1 - 16 |
Complete

,Table of Contents
9b 9b




Chapter9bOne:9bManagerial9bAccounting9band9bCost9b

Concepts9 b Chapter9bTwo:9bJob-

Order9bCosting:9bCalculating9bUnit9bProduct9bCosts

Chapter9bThree:9bJob-

Order9bCosting:9bCost9bFlows9band9bExternal9bReporting9 b Chapter9bF

our:9bProcess9bCosting

Chapter9bFive:9bCost-Volume-Profit9bRelationships

Chapter9bSix:9bVariable9bCosting9band9bSegment9bReporting:9bTools9b

for9bManagement9 b Chapter9bSeven:9bActivity-

Based9bCosting:9bA9bTool9bto9bAid9bDecision9bMaking9 b Chapter9bEigh

t:9bMaster9bBudgeting

Chapter9bNine:9bFlexible9bBudgets9band9bPerforman

ce9bAnalysis9 b Chapter9bTen:9bStandard9bCosts9band9b

Variances

Chapter9bEleven:9bResponsibility9bAccounting9bSyst

ems9 b Chapter9bTwelve:9bStrategic9bPerformance9bM

easurement

Chapter9bThirteen:9bDifferential9bAnalysis:9bThe9bKey9bto9bDecisio

n9bMaking9 b Chapter9bFourteen:9bCapital9bBudgeting9bDecisions9b

Chapter9bFifteen:9bStatement9bof9bCash

Flows9bChapter9bSixteen:9bFinancial9bStatem

ent9bAnalysis

, Chapter 1 9b



Managerial Accounting and Cost Concep
9b 9b 9b 9b9b


ts

Questions

9bstatement9 b as9 b an9 b expense9bin9bthe9bperi
1-1 The9bthree9bmajor9btypes9bof9bprod
od9bin9bwhich9bit9bis9bincurred.
uct9bcosts9 b in9ba9bmanufacturing9bcompa
ny9bare9bdirect9bmaterials,9bdirect9blabor,
9band9bmanufacturing9 b overhead.


1-2
a. Direct9bmaterials9bare9ban9bintegr
al9bpart9bof9ba9 b finished9bproduct9band9
btheir9bcosts9bcan9bbe9 b conveniently 9btr
aced9bto9bit.
b. Indirect9bmaterials9bare9bgenerally9b
small9 b items9bof9bmaterial9bsuch9bas9bglue9b
and9bnails.9bThey9 b may9bbe9ban9bintegral9bp
art9bof9ba9bfinished9bproduct9bbut9btheir9bco
sts9bcan9bbe9btraced9bto9bthe9bproduct9bonly9
bat9 b great9bcost9bor9binconvenience.
c. Direct9blabor9bconsists9bof9bla
bor9bcosts9bthat9 b can9bbe9beasily9bt
raced9bto9bparticular9bproducts.
Direct9blabor9bis9balso9bcalled9b―touch9blabor
.‖
d. Indirect9blabor9bconsists9bof9bthe9bla
bor9bcosts9 b of9bjanitors,9bsupervisors,9bm
aterials9bhandlers,9band9 b other9bfactory9b
workers9bthat9bcannot9bbe9bconveniently9b
traced9bto9bparticular9bproducts.9bThese9bl
abor9bcosts9 b are9bincurred9bto9bsupport9 b
production,9bbut9bthe9bworkers9binvolved9
bdo9bnot9 b directly9b work9bon9bthe9bproduc
t.
e. Manufacturing9 b overhead9 b includes
9ball9 b manufacturing9bcosts9bexcept9b direc
t9bmaterials9band9 b direct9blabor.9bConsequ
ently,9bmanufacturing9boverhead9bincludes
9bindirect9bmaterials9band9bindirect9 b labor9
bas9bwell9b as9b other9bmanufacturing9bcosts.


1-3
A9bproduct9bcost9bis9bany9bcost9binvo
lved9bin9bpurchasing9bor9bmanufacturing9bg
oods.9bIn9bthe9bcase9 b of9bmanufactured9bgo
ods,9bthese9bcosts9bconsist9bof9 b direct9bma
terials,9bdirect9blabor,9band9bmanufacturin
g9 b overhead.9bA9bperiod9bcost9bis9ba9bcost9b
that9bis9btaken9 b directly9bto9 b the9 b income

, 1-4
a. Variable9bcost:9bThe9bvariable9bcost
9bper9b unit9bis9bconstant,9bbut9btota
l9bvariable9bcost9bchanges9bin9bdire
ct9bproportion9bto9bchanges9bin9bvol
ume.
b. Fixed9bcost:9bThe9btotal9bfixed9bcost9
bis9bconstant9 b within9bthe9brelevant9
brange.9b The9baverage9bfixed9 b cost9
bper9b unit9bvaries9binversely 9b with9bc
hanges9bin9bvolume.
c. Mixed9bcost:9bA9bmixed9bcost9bc
ontains9bboth9 b variable9band9bf
ixed9bcost9belements.

1-5
a. Unit9bfixed9bcosts9bdecrease9b
as9bthe9bactivity9blevel9bincre
ases.
b. Unit9bvariable9bcosts9bremain9bco
nstant9bas9bthe9 b activity 9blevel9b
increases.
c. Total9bfixed9bcosts9bremain9bco
nstant9bas9bthe9 b activity 9bleve
l9bincreases.
d. Total9bvariable9bcosts9bincrease9b
as9bthe9bactivity9blevel9bincrease
s.

1-6
a. Cost9bbehavior:9bCost9bbehavior9br
efers9 b to9bthe9bway9bin9bwhich9bco
sts9bchange9bin9bresponse9bto9bchan
ges9bin9ba9bmeasure9bof9bactivity9bs
uch9bas9 b sales9bvolume,9bproducti
on9bvolume,9bor9borders9bprocessed
.
b. Relevant9brange:9bThe9brelevant9br
ange9 b is9bthe9 b range9bof9bactivity
9bwithin9b which9b assumptions 9 b ab
out9bvariable9band9 b fixed9bcost9bb
ehavior9bare9 b valid.

1-7 An9 b activity9 b base9 b is9 b a9 b
measure9bof9 b whatever9bcauses9bthe
9bincurrence9bof9ba9bvariable9 b cost.9b
Examples9bof9bactivity9bbases9binclud
e9bunits9 b produced,9bunits9bsold,9ble
tters9btyped,9bbeds9bin9ba9 b hospital,9
bmeals9bserved9bin9b a9bcafe,9bservice9
bcalls9b made,9b etc.


1-8 The9b linear9b assumption9 b is9b reasona
bly