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