Solutions Manual
Managerial Accounting: Creating Value in a Dynamic
Business Environment, 13th Edition by Hilton
Chapters 1 - 17 Complete
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TABLE OF CONTENTS P P
ChapterP1: The Changing Role ofPManagerial Accounting in a Dynamic Business E
nvironment Chapter 2: Basic Cost Management Concepts
ChapterP3: Product Costing and Cost Accumulation in a Batch Production Environ
ment Chapter 4: Process Costing and Hybrid Product-Costing Systems
ChapterP5: Activity-Based Costing and Management
ChapterP6: Activity Analysis, CostPBehavior, and CostPEs
timation Chapter 7: Cost-Volume-Profit Analysis
ChapterP8: Variable Costing and the Measurement of ESG and Quality
Costs Chapter 9: Financial Planning and Analysis: The Master Budget
ChapterP10: Standard Costing and Analysis of Direct Costs
ChapterP11: Flexible Budgeting and the Management of Overhead and Support Act
ivity Costs ChapterP12: Responsibility Accounting and the Balanced Scorecard
ChapterP13: Investment Centers and Transfer Pricing
Chapter 14: Decision Making: Relevant Costs and Be
nefits
ChapterP15: Target Costing and Cost Analysis forPPricing D
ecisions Chapter 16: Capital Expenditure Decisions
ChapterP17: Allocation ofPSupport Activity Costs and Joint Costs
Appendix I: The Sarbanes-
Oxley Act, Internal Controls, and Management Accounting Appendix II: Compound
Interest and the Concept of Present Value
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Appendix III: Inventory Management
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CHAPTER 1
The Crucial Role of Managerial Accounting in
a Dynamic Business Environment
FOCUS ON ETHICS (LocatedPbefore the Chapter Summary in the text.)
The focus-on-
ethics insetPfor Chapter 1 is the IMA Statement of Ethical Professional Practice. Instructors
can use this list of ethical principles and standards to lead a class discussion. The di
scussion can also range to consideration of how these standards may have been v
iolated by accountants and managers involved in the various ethical scandals uncover
ed over the past several years. It is also useful to discuss the pros and cons of the proc
edures that IMAPsuggests for its members when they believe they know about Pethical l
apses in their organizations.
ANSWERS TO REVIEW QUESTIONS
1-1 The explosion in e-
commerce will affect managers in significant ways. One effect will be a drastic r
eduction inPpaper work. Millions of transactions between businesses are now bei
ng conducted electronically with no hard-
copy documentation. Along withthis method of communicating forPbusiness t
ransactions comes the very significant issue of informationPsecurity. Businesses
needPto find ways to protect confidential information in their own computer
s, inPcloud computing data centers, and while moving across the internet, w
hile at the same time sharing the information necessary to complete transaction
s. Another effect of e-
commerce is the dramatically increased speed with which business transactions
can be conducted. In addition, there will be dramatic changes inPthe way mana
gerial accountingPprocedures are carried out, one example being cloud-
based budgeting, which is the enterprise-
wide and electroniccompletionPof a company’s budgeting process using cloud-
based software and data storage.
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