SOLUTION MANUAL
Horngren's Accounting, 13th Edition Managerial
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
,THE MANAGERIAL CHAPTERS
1. Introduction to Managerial Accounting
2. Job Order Costing
3. Process Costing
4. Cost-Volume-Profit Analysis
5. Master Budgets
6. Flexible Budgets and Standard Cost Systems
7. Cost Allocation and Responsibility Accounting
8. Short-Term Business Decisions
9. Capital Investment Decisions
,Chapter 1
Introduction to Managerial Accounting
Review Questions
1. TheAprimaryApurposeAofAmanagerialAaccountingAisAtoAprovideAinformationAtoAhelpAmanagersAplan,Adi
rect,Acontrol,AandAmakeAdecisions.
2. FinancialAaccountingAandAmanagerialAaccountingAdifferAonAtheAfollowingA6Adimensions:A(1)AprimaryAuse
rs,A(2)ApurposeAofAinformation,A(3)AfocusAandAtimeAdimensionAofAtheAinformation,A(4)ArulesAandArestrict
ions,A(5)AscopeAofAinformation,AandA(6)Abehavioral.
3. LineApositionsAareAdirectlyAinvolvedAinAprovidingAgoodsAorAservicesAtoAcustomers.AStaffApositionsAsu
pportAlineApositions.
4. PlanningAmeansAchoosingAgoalsAandAdecidingAhowAtoAachieveAthem.ADirectingAinvolvesArunningAtheAday
-to-
dayAoperationsAofAaAbusiness.AControllingAisAtheAprocessAofAmonitoringAoperationsAandAkeepingAtheAcom
panyAonAtrack.
5. TheAfourAIMAAstandardsAofAethicalApracticeAandAaAdescriptionAofAeachAfollow.
I. Competence.
MaintainAanAappropriateAlevelAofAprofessionalAleadershipAandAexpertiseAbyAenhancingAk
nowledgeAandAskills.
PerformAprofessionalAdutiesAinAaccordanceAwithArelevantAlaws,Aregulations,AandAtechnicalAsta
ndards.
ProvideAdecisionAsupportAinformationAandArecommendationsAthatAareAaccurate,Aclear,Aconcise,Aa
ndAtimely.
RecogniseAandAhelpAmangeArisk.
II. Confidentiality.
KeepAinformationAconfidentialAexceptAwhenAdisclosureAisAauthorizedAorAlegallyArequired.
InformAallArelevantApartiesAregardingAappropriateAuseAofAconfidentialAinformation.A MonitorAtoAe
nsureAcompliance.
RefrainAfromAusingAconfidentialAinformationAforAunethicalAorAillegalAadvantage.
III. Integrity.
MitigateAactualAconflictsAofAinterest.ARegularlyAcommunicateAwithAbusinessAassociatesAtoAavoidAap
parentAconflictsAofAinterest.AAAdviseAallApartiesAofAanyApotentialAconflicts.
RefrainAfromAengagingAinAanyAconductAthatAwouldAprejudiceAcarryingAoutAdutiesAethically.
, AbstainAfromAengagingAinAorAsupportingAanyAactivityAthatAmightAdiscreditAtheAprofession.
ContributeAtoAaApositiveAethicalAcultureAandAplaceAintegrityAofAtheAprofessionAaboveApersonalAin
terest.
5,Acont.
IV. Credibility.
CommunicateAinformationAfairlyAandAobjectively.
ProvideAallArelevantAinformationAthatAcouldAreasonablyAbeAexpectedAtoAinfluenceAanAintendedAu
ser’sAunderstandingAofAtheAreports,Aanalyses,AorArecommendations.
ReportAanyAdelaysAorAdeficienciesAinAinformation,Atimeliness,Aprocessing,AorAinternalAcontrolsAinA
conformanceAwithAorganizationApolicyAand/orAapplicableAlaw.
CommunicateAanyAprofessionalAlimitationsAorAotherAconstraintsAthatAwouldAprecludeAresponsi-
bleAjudgmentAorAsuccessfulAperformanceAofAanAactivity.
A
6. ServiceAcompaniesAsellAtime,Askills,AandAknowledge.A ExamplesAofAserviceAcompaniesAincludeAphoneAser
viceAcompanies,Abanks,AcleaningAserviceAcompanies,AaccountingAfirms,AlawAfirms,AmedicalAphysicians,Aa
ndAonlineAauctionAservices.
7. MerchandisingAcompaniesAresellAproductsAtheyAbuyAfromAsuppliers.AMerchandisersAkeepAanAinventoryAofA
products,AandAmanagersAareAaccountableAforAtheApurchasing,Astorage,AandAsaleAofAtheAproducts.AExample
sAofAmerchandisingAcompaniesAincludeAtoyAstores,AgroceryAstores,AandAclothingAstores.
8. MerchandisingAcompaniesAresellAproductsAtheyApreviouslyAboughtAfromAsuppliers,AwhereasAmanufacturi
ngAcompaniesAuseAlabor,Aequipment,Asupplies,AandAfacilitiesAtoAconvertArawAmaterialsAintoAnewAfinishedAp
roducts.AInAcontrastAtoAmerchandisingAcompanies,AmanufacturingAcompaniesAhaveAaAbroadArangeAofApro
ductionAactivitiesAthatArequireAtrackingAcostsAonAthreeAkindsAofAinventory.
9. TheAthreeAinventoryAaccountsAusedAbyAmanufacturingAcompaniesAareARawAMaterialsAInventory,AWork-
in-ProcessAInventory,AandAFinishedAGoodsAInventory.
A
RawAMaterialsAInventoryAincludesAmaterialsAusedAtoAmanufactureAaAproduct.AWork-in-
ProcessAInventoryAincludesAgoodsAthatAhaveAbeenAstartedAinAtheAmanufacturingAprocessAbutAareAnotAyetAc
omplete.A FinishedAGoodsAInventoryAincludesAcompletedAgoodsAthatAhaveAnotAyetAbeenAsold.
10. AAdirectAcostAisAaAcostAthatAcanAbeAeasilyAandAcost-
effectivelyAtracedAtoAaAcostAobjectA(whichAisAanythingAforAwhichAmanagersAwantAaAseparateAmeasureme
ntAofAcost).AAnAindirectAcostAisAaAcostAthatAcannotAbeAeasilyAorAcost-effectivelyAtracedAtoAaAcostAobject.
11. TheAthreeAmanufacturingAcostsAforAaAmanufacturingAcompanyAareAdirectAmaterials,AdirectAlabor,AandAma
nufacturingAoverhead.ADirectAmaterialsAareAmaterialsAthatAbecomeAaAphysicalApartAofAaAfinishedAproductA
andAwhoseAcostsAareAeasilyAtraceableAtoAtheAfinishedAproduct.A DirectAlaborAisAtheAlaborAcostAofAtheAempl
oyeesAwhoAconvertAmaterialsAintoAfinishedAproducts.AManufacturingAoverheadAincludesAallAmanufacturin
gAcostsAexceptAdirectAmaterialsAandAdirectAlabor,AsuchAasAindirectAmaterials,AindirectAlabor,AfactoryAdeprec
iation,AfactoryArent,AandAfactoryApropertyAtaxes.
Horngren's Accounting, 13th Edition Managerial
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
,THE MANAGERIAL CHAPTERS
1. Introduction to Managerial Accounting
2. Job Order Costing
3. Process Costing
4. Cost-Volume-Profit Analysis
5. Master Budgets
6. Flexible Budgets and Standard Cost Systems
7. Cost Allocation and Responsibility Accounting
8. Short-Term Business Decisions
9. Capital Investment Decisions
,Chapter 1
Introduction to Managerial Accounting
Review Questions
1. TheAprimaryApurposeAofAmanagerialAaccountingAisAtoAprovideAinformationAtoAhelpAmanagersAplan,Adi
rect,Acontrol,AandAmakeAdecisions.
2. FinancialAaccountingAandAmanagerialAaccountingAdifferAonAtheAfollowingA6Adimensions:A(1)AprimaryAuse
rs,A(2)ApurposeAofAinformation,A(3)AfocusAandAtimeAdimensionAofAtheAinformation,A(4)ArulesAandArestrict
ions,A(5)AscopeAofAinformation,AandA(6)Abehavioral.
3. LineApositionsAareAdirectlyAinvolvedAinAprovidingAgoodsAorAservicesAtoAcustomers.AStaffApositionsAsu
pportAlineApositions.
4. PlanningAmeansAchoosingAgoalsAandAdecidingAhowAtoAachieveAthem.ADirectingAinvolvesArunningAtheAday
-to-
dayAoperationsAofAaAbusiness.AControllingAisAtheAprocessAofAmonitoringAoperationsAandAkeepingAtheAcom
panyAonAtrack.
5. TheAfourAIMAAstandardsAofAethicalApracticeAandAaAdescriptionAofAeachAfollow.
I. Competence.
MaintainAanAappropriateAlevelAofAprofessionalAleadershipAandAexpertiseAbyAenhancingAk
nowledgeAandAskills.
PerformAprofessionalAdutiesAinAaccordanceAwithArelevantAlaws,Aregulations,AandAtechnicalAsta
ndards.
ProvideAdecisionAsupportAinformationAandArecommendationsAthatAareAaccurate,Aclear,Aconcise,Aa
ndAtimely.
RecogniseAandAhelpAmangeArisk.
II. Confidentiality.
KeepAinformationAconfidentialAexceptAwhenAdisclosureAisAauthorizedAorAlegallyArequired.
InformAallArelevantApartiesAregardingAappropriateAuseAofAconfidentialAinformation.A MonitorAtoAe
nsureAcompliance.
RefrainAfromAusingAconfidentialAinformationAforAunethicalAorAillegalAadvantage.
III. Integrity.
MitigateAactualAconflictsAofAinterest.ARegularlyAcommunicateAwithAbusinessAassociatesAtoAavoidAap
parentAconflictsAofAinterest.AAAdviseAallApartiesAofAanyApotentialAconflicts.
RefrainAfromAengagingAinAanyAconductAthatAwouldAprejudiceAcarryingAoutAdutiesAethically.
, AbstainAfromAengagingAinAorAsupportingAanyAactivityAthatAmightAdiscreditAtheAprofession.
ContributeAtoAaApositiveAethicalAcultureAandAplaceAintegrityAofAtheAprofessionAaboveApersonalAin
terest.
5,Acont.
IV. Credibility.
CommunicateAinformationAfairlyAandAobjectively.
ProvideAallArelevantAinformationAthatAcouldAreasonablyAbeAexpectedAtoAinfluenceAanAintendedAu
ser’sAunderstandingAofAtheAreports,Aanalyses,AorArecommendations.
ReportAanyAdelaysAorAdeficienciesAinAinformation,Atimeliness,Aprocessing,AorAinternalAcontrolsAinA
conformanceAwithAorganizationApolicyAand/orAapplicableAlaw.
CommunicateAanyAprofessionalAlimitationsAorAotherAconstraintsAthatAwouldAprecludeAresponsi-
bleAjudgmentAorAsuccessfulAperformanceAofAanAactivity.
A
6. ServiceAcompaniesAsellAtime,Askills,AandAknowledge.A ExamplesAofAserviceAcompaniesAincludeAphoneAser
viceAcompanies,Abanks,AcleaningAserviceAcompanies,AaccountingAfirms,AlawAfirms,AmedicalAphysicians,Aa
ndAonlineAauctionAservices.
7. MerchandisingAcompaniesAresellAproductsAtheyAbuyAfromAsuppliers.AMerchandisersAkeepAanAinventoryAofA
products,AandAmanagersAareAaccountableAforAtheApurchasing,Astorage,AandAsaleAofAtheAproducts.AExample
sAofAmerchandisingAcompaniesAincludeAtoyAstores,AgroceryAstores,AandAclothingAstores.
8. MerchandisingAcompaniesAresellAproductsAtheyApreviouslyAboughtAfromAsuppliers,AwhereasAmanufacturi
ngAcompaniesAuseAlabor,Aequipment,Asupplies,AandAfacilitiesAtoAconvertArawAmaterialsAintoAnewAfinishedAp
roducts.AInAcontrastAtoAmerchandisingAcompanies,AmanufacturingAcompaniesAhaveAaAbroadArangeAofApro
ductionAactivitiesAthatArequireAtrackingAcostsAonAthreeAkindsAofAinventory.
9. TheAthreeAinventoryAaccountsAusedAbyAmanufacturingAcompaniesAareARawAMaterialsAInventory,AWork-
in-ProcessAInventory,AandAFinishedAGoodsAInventory.
A
RawAMaterialsAInventoryAincludesAmaterialsAusedAtoAmanufactureAaAproduct.AWork-in-
ProcessAInventoryAincludesAgoodsAthatAhaveAbeenAstartedAinAtheAmanufacturingAprocessAbutAareAnotAyetAc
omplete.A FinishedAGoodsAInventoryAincludesAcompletedAgoodsAthatAhaveAnotAyetAbeenAsold.
10. AAdirectAcostAisAaAcostAthatAcanAbeAeasilyAandAcost-
effectivelyAtracedAtoAaAcostAobjectA(whichAisAanythingAforAwhichAmanagersAwantAaAseparateAmeasureme
ntAofAcost).AAnAindirectAcostAisAaAcostAthatAcannotAbeAeasilyAorAcost-effectivelyAtracedAtoAaAcostAobject.
11. TheAthreeAmanufacturingAcostsAforAaAmanufacturingAcompanyAareAdirectAmaterials,AdirectAlabor,AandAma
nufacturingAoverhead.ADirectAmaterialsAareAmaterialsAthatAbecomeAaAphysicalApartAofAaAfinishedAproductA
andAwhoseAcostsAareAeasilyAtraceableAtoAtheAfinishedAproduct.A DirectAlaborAisAtheAlaborAcostAofAtheAempl
oyeesAwhoAconvertAmaterialsAintoAfinishedAproducts.AManufacturingAoverheadAincludesAallAmanufacturin
gAcostsAexceptAdirectAmaterialsAandAdirectAlabor,AsuchAasAindirectAmaterials,AindirectAlabor,AfactoryAdeprec
iation,AfactoryArent,AandAfactoryApropertyAtaxes.
