Solution Manual for Management
1 w 1 w 1 w
1 w Accounting for Decision Makers:
1 w 1 w 1 w 1 w
11th Edition By Peter Atrill, Eddie
1 w 1 w 1 w 1 w 1 w
1 w McLaney All Chapters 1 - 12
1 w 1 w 1 w 1 w 1 w 1 w
,TABLE OF CONTENTS1w 1w
1. Introduction to management accounting 1w 1w 1w
2. Relevant costs and benefits for decision making
1w 1w 1w 1w 1w 1w
3. Cost–volume–profit analysis 1w
4. Full costing
1w
5. Costing and cost management in a competitive environment
1w 1w 1w 1w 1w 1w 1w
6. Budgeting
7. Accounting for control 1w 1w
8. Making capital investment decisions
1w 1w 1w
9. Managing risk 1w
10.Strategic management accounting: performance evaluation and
1w 1w 1w 1w 1w
1w pricing in a competitive environment
1w 1w 1w 1w
11.Measuring divisional performance 1w 1w
12.Managing working capital 1w 1w
, SECTION A 1 w
Authors’ note to tutors 1w 1w 1w
Using the book 1w 1w
The book is designed to provide readers with a sound introduction to management accounting. It
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
assumes no previous knowledge of the subject and recognises that students using it may come from a
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not assume a
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
high level of numerical ability from students. It has been class tested by students on various courses and
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
we have modified and refined the material to take account of their comments. We have also taken
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
account of the comments made by lecturers who used the first nine editions of the book and of specially
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
commissioned reviews.
1w 1w
The book aims to encourage an active approach to learning by providing activities and self-assessment
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
questions at appropriate points. This approach is designed to stimulate thought concerning particular
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
issues and to give the readers the opportunity to test their understanding of the principles covered.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
The book is supplemented by a password-controlled lecturers’ website and a student website available
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
to all readers.
1w 1w 1w
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used as
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
recommended reading for a traditional course based on lectures and tutorials. There are critical review
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
questions and exercises at the end of each chapter that can be used as the basis for tutorials. It could also
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1 w 1w 1w
provide the basis for a distance learning approach for part-time or off-campus students. For these
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
students, the interactive nature of the book may be extremely useful where access to a tutor is restricted.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
The book can also be used as the basis for an open learning approach for full-time campus-based
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
students. We have successfully used it in this way at the University of Plymouth Business School.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
Accounting ‘surgeries’ have also been provided to give students the opportunity for one-to-one help
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
with any problems they face.
1w 1w 1w 1w 1w
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study. For
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
full-time students, this will often be covered in one academic year.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
PowerPoint slides 1w
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint slides to
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
help in delivering lectures and tutorials and these can be downloaded from the lecturers’ website.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
Practice/assessmentmaterial w
1
The activities, whose solutions immediately follow them, and self-assessment questions, whose
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
solutions are at the end of the book, form an integral part of it. In addition, there are various other
1w 1 w 1 w 1 w 1 w 1 w 1w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w
, practice/assessment materials. At the end of each chapter there are four critical review questions. 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
These are short, narrative questions involving recall, explanation and brief discussion. The solutions to
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
these are given at the end of the book. At the end of all chapters, except Chapter 1 (where there are two),
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
there are eight exercises. These are questions, many involving calculations, which are similar in nature
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
to examination-style questions. The solutions to five of these are given at the end of the book and are,
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1 w 1w 1w 1w 1w
therefore, accessible to students. Solutions to the other three are in the following pages of this manual
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1 w 1w 1w 1w 1w
and are not accessible to students.
1w 1w 1w 1w 1w 1w
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of-
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
chapter exercises there are:
1w 1w 1w 1w
• Two progress tests with solutions. These tests comprise multiple-choice questions, missing- word
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
questions and questions that are similar to the end-of-chapter exercises. One test corresponds to
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
Chapters 1 to 5, and the other to Chapters 6 to 12.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
• Supplementary questions (10 of them) with solutions. 1w 1w 1w 1w 1w 1w
• Tutorial/seminarquestionswith solutions. 1w 1w 1w
None of this material, except the case study comments, is accessible to students. On the
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
1w student website, there are five types of material:
1w 1w 1w 1w 1w 1w 1w
• Revision exercises, similar in style to the end-of-chapter exercises, with solutions.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
• Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled online, 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
where they will be automatically graded.
1w 1w 1w 1w 1w 1w
• Missing-word questions, typically 10 for each chapter. These too can be attempted and graded 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
online.
1w
The multiple-choice questions and missing-word questions are intended to provide students with a
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
quick assessment of their mastery of the material of each chapter.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
The solutions to all of this material, except to the multiple-choice and missing-word questions, are fully
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
annotated in order to give the necessary feedback to students.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
We intend to expand the number and scope of the practice/assessment materials on a continuing basis.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
We hope that you and your students will find the book both accessible and interesting. We should much
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
appreciate any suggestions you may have on how the book and supplementary material may be
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
improved.
1w
Peter Atrill 1w
EddieMcLaney
1w 1w
1 w 1 w 1 w
1 w Accounting for Decision Makers:
1 w 1 w 1 w 1 w
11th Edition By Peter Atrill, Eddie
1 w 1 w 1 w 1 w 1 w
1 w McLaney All Chapters 1 - 12
1 w 1 w 1 w 1 w 1 w 1 w
,TABLE OF CONTENTS1w 1w
1. Introduction to management accounting 1w 1w 1w
2. Relevant costs and benefits for decision making
1w 1w 1w 1w 1w 1w
3. Cost–volume–profit analysis 1w
4. Full costing
1w
5. Costing and cost management in a competitive environment
1w 1w 1w 1w 1w 1w 1w
6. Budgeting
7. Accounting for control 1w 1w
8. Making capital investment decisions
1w 1w 1w
9. Managing risk 1w
10.Strategic management accounting: performance evaluation and
1w 1w 1w 1w 1w
1w pricing in a competitive environment
1w 1w 1w 1w
11.Measuring divisional performance 1w 1w
12.Managing working capital 1w 1w
, SECTION A 1 w
Authors’ note to tutors 1w 1w 1w
Using the book 1w 1w
The book is designed to provide readers with a sound introduction to management accounting. It
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
assumes no previous knowledge of the subject and recognises that students using it may come from a
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not assume a
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
high level of numerical ability from students. It has been class tested by students on various courses and
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
we have modified and refined the material to take account of their comments. We have also taken
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
account of the comments made by lecturers who used the first nine editions of the book and of specially
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
commissioned reviews.
1w 1w
The book aims to encourage an active approach to learning by providing activities and self-assessment
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
questions at appropriate points. This approach is designed to stimulate thought concerning particular
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
issues and to give the readers the opportunity to test their understanding of the principles covered.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
The book is supplemented by a password-controlled lecturers’ website and a student website available
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
to all readers.
1w 1w 1w
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used as
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
recommended reading for a traditional course based on lectures and tutorials. There are critical review
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
questions and exercises at the end of each chapter that can be used as the basis for tutorials. It could also
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1 w 1w 1w
provide the basis for a distance learning approach for part-time or off-campus students. For these
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
students, the interactive nature of the book may be extremely useful where access to a tutor is restricted.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
The book can also be used as the basis for an open learning approach for full-time campus-based
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
students. We have successfully used it in this way at the University of Plymouth Business School.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
Accounting ‘surgeries’ have also been provided to give students the opportunity for one-to-one help
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
with any problems they face.
1w 1w 1w 1w 1w
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study. For
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
full-time students, this will often be covered in one academic year.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
PowerPoint slides 1w
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint slides to
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
help in delivering lectures and tutorials and these can be downloaded from the lecturers’ website.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
Practice/assessmentmaterial w
1
The activities, whose solutions immediately follow them, and self-assessment questions, whose
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
solutions are at the end of the book, form an integral part of it. In addition, there are various other
1w 1 w 1 w 1 w 1 w 1 w 1w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w
, practice/assessment materials. At the end of each chapter there are four critical review questions. 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
These are short, narrative questions involving recall, explanation and brief discussion. The solutions to
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
these are given at the end of the book. At the end of all chapters, except Chapter 1 (where there are two),
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
there are eight exercises. These are questions, many involving calculations, which are similar in nature
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
to examination-style questions. The solutions to five of these are given at the end of the book and are,
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1 w 1w 1w 1w 1w
therefore, accessible to students. Solutions to the other three are in the following pages of this manual
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1 w 1w 1w 1w 1w
and are not accessible to students.
1w 1w 1w 1w 1w 1w
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of-
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
chapter exercises there are:
1w 1w 1w 1w
• Two progress tests with solutions. These tests comprise multiple-choice questions, missing- word
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
questions and questions that are similar to the end-of-chapter exercises. One test corresponds to
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
Chapters 1 to 5, and the other to Chapters 6 to 12.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
• Supplementary questions (10 of them) with solutions. 1w 1w 1w 1w 1w 1w
• Tutorial/seminarquestionswith solutions. 1w 1w 1w
None of this material, except the case study comments, is accessible to students. On the
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
1w student website, there are five types of material:
1w 1w 1w 1w 1w 1w 1w
• Revision exercises, similar in style to the end-of-chapter exercises, with solutions.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
• Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled online, 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
where they will be automatically graded.
1w 1w 1w 1w 1w 1w
• Missing-word questions, typically 10 for each chapter. These too can be attempted and graded 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
online.
1w
The multiple-choice questions and missing-word questions are intended to provide students with a
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
quick assessment of their mastery of the material of each chapter.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
The solutions to all of this material, except to the multiple-choice and missing-word questions, are fully
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
annotated in order to give the necessary feedback to students.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
We intend to expand the number and scope of the practice/assessment materials on a continuing basis.
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
We hope that you and your students will find the book both accessible and interesting. We should much
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
appreciate any suggestions you may have on how the book and supplementary material may be
1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w 1w
improved.
1w
Peter Atrill 1w
EddieMcLaney
1w 1w
