Solutions Manual
Managerial Accounting: Creating Value in a Dynamic
Business Environment, 13th Edition by Hilton
Chapters 1 - 17 Complete
,TABLE OF CONTENTS
P P
ChapterP1:PThePChangingPRolePofPManagerialPAccountingPinPaPDynamicPBusinessPE
nvironmentPChapterP2:PBasicPCostPManagementPConcepts
ChapterP3:PProductPCostingPandPCostPAccumulationPinPaPBatchPProductionPEnviron
mentPChapterP4:PProcessPCostingPandPHybridPProduct-CostingPSystems
ChapterP5:PActivity-BasedPCostingPandPManagement
ChapterP6:PActivityPAnalysis,PCostPBehavior,PandPCostPEs
timationPChapterP7:PCost-Volume-ProfitPAnalysis
ChapterP8:PVariablePCostingPandPthePMeasurementPofPESGPandPQualityP
CostsPChapterP9:PFinancialPPlanningPandPAnalysis:PThePMasterPBudget
ChapterP10:PStandardPCostingPandPAnalysisPofPDirectPCosts
ChapterP11:PFlexiblePBudgetingPandPthePManagementPofPOverheadPandPSupportPAct
ivityPCostsPChapterP12:PResponsibilityPAccountingPandPthePBalancedPScorecard
ChapterP13:PInvestmentPCentersPandPTransferPPricing
ChapterP14:PDecisionPMaking:PRelevantPCostsPandPBe
P
nefits
ChapterP15:PTargetPCostingPandPCostPAnalysisPforPPricingPD
ecisionsPChapterP16:PCapitalPExpenditurePDecisions
ChapterP17:PAllocationPofPSupportPActivityPCostsPandPJointPCosts
AppendixPI:PThePSarbanes-
OxleyPAct,PInternalPControls,PandPManagementPAccountingPAppendixPII:PCompound
InterestPandPthePConceptPofPPresentPValue
P
AppendixPIII:PInventoryPManagement
,CHAPTER 1 P
The Crucial Role of Managerial Accounting in
P P P P P P P
a Dynamic Business Environment
P P P
FOCUSPONPETHICSP(LocatedPbeforePthePChapterPSummaryPinPthePtext.)
ThePfocus-on-
ethicsPinsetPforPChapterP1PisPthePIMAPStatementPofPEthicalPProfessionalPPractice.PInstructors
PcanPusePthisPlistPofPethicalP principlesP andPstandardsPtoPleadPaPclassPdiscussion.PTheP di
scussionPcanPalsoPrangePtoPconsiderationPofPhowPthesePstandardsPmayPhavePbeenPv
iolatedPbyPaccountantsPandPmanagersPinvolvedPinPthePvariousP ethicalPscandalsPuncover
edPoverPthePpastPseveralPyears.PItPisPalsoPusefulPtoPdiscussPthePprosPandPconsPofPthePproc
eduresPthatPIMAPsuggestsPforPitsPmembersPwhenPtheyPbelievePtheyPknowPaboutPethicalPl
apsesPinPtheirPorganizations.
ANSWERSPTOPREVIEWPQUESTIONS
1-1 ThePexplosionP inP e-
commerceP willP affectP managersPinP significantP ways.P OneP effectP willPbePaPdrasticPr
eductionPinPpaperP work.P MillionsPofP transactionsPbetweenP businessesP arePnowPbei
ngPconductedPelectronicallyPwithPnoPhard-
copyPdocumentation.PAlongPwithPthisPmethodPofPcommunicatingPforPbusinessPt
ransactionsPcomesPthePveryPsignificantPissuePofPinformationPsecurity.PBusinesses
PneedPtoPfindPwaysPtoPprotectPconfidential Pinformation PinPtheirPownPcomputer
s,PinPcloudPcomputingPdataPcenters,PandPwhilePmovingP acrossP theP internet,P w
hileP atPtheP sameP timeP sharingP theP informationP necessaryPtoPcompletePtransaction
s.PAnotherPeffectPofPe-
commercePisP theP dramaticallyP increasedPspeedPwithPwhichPbusinessPtransactionsP
canPbePconducted.PInPaddition,PtherePwillPbePdramaticPchangesPinPthePwayPmana
gerialPaccountingPproceduresParePcarriedPout,PonePexamplePbeingPcloud-
basedPbudgeting,PwhichPisPthePenterprise-
widePandPelectronicPcompletionPofPaPcompany’sPbudgetingPprocessPusingPcloud-
basedPsoftwarePandPdataPstorage.
, 1-2 PlausibleP goalsP forP theP organizationsP listedP areP asP follows:
(a) Amazon.com:P(1)PToPachievePandPmaintainPprofitability,PandP(2)PtoPgrow
Pon-
linePsalesPofPtheirPmanyPproducts.PAmazonPisPalsoPfamousP(infamous)PforPwa
ntingPtoPhavePeveryP productPinPthePworldPonPitsPsite.
(b) AmericanPRedPCross:P(1)PToPraisePfundsPfromPthePgeneralPpublicPsufficientPto
PhavePresourcesPavailablePtoP meetPanyPdisasterPthatPmayPoccur,PandP(2)Pt
oPprovidePassistancePtoPpeoplePwhoParePvictimsPofPaPdisasterPanywherePinPthePwo
rldPonPshortPnotice.
(c) GeneralPMotors:P(1)PToPearnPincomePsufficientPtoPprovidePaPgoodPreturnP
onPthePinvestmentPofPthePcompany'sPstockholders,PandP(2)PtoPprovidePthePhig
hest-qualityPproductPpossible.
(d) Wal-
Mart:P(1)PToPpenetratePthePretailPmarketPinP virtuallyPeveryPlocationPinPthePUnitedP
States,PandP(2)PtoPgrowPoverPtimePinPtermsP ofPnumberPofPretailPlocations,P totalP a
ssets,PandP earnings.P Also,P toP bePcompetitiveP withP AmazonPinPthePe-
retailP space.
(e) CityPofPSeattle:P(1)PToPmaintainPanPurbanPenvironmentPasPfreePofPpolluti
onPasPpossible,PandP(2)PtoPprovidePpublicPsafety,Ppolice,PandPfirePprotectionPt
oPthePcity'sPcitizens.
(f) Hertz:P(1)PToPbePaPrecognizablePhouseholdPnamePassociatedPwithPrentalP
carPservices,PandP(2)PtoPprovidePreliablePandPeconomicalPtransportationPservicesPt
oPthePcompany'sPcustomers.
1-3 TheP fourP basicP managementP activitiesP areP listedP andP definedP asP follows:
(a) DecisionP making:P ChoosingP amongP theP availableP alternatives.
(b) Planning:P DevelopingP aP detailedP financialP andP operationalP descrip
tionP ofPanticipatedPoperations.
(c) DirectingP operations:P RunningP theP organizationP onP aP day-to-dayP basis.
(d) Controlling:P EnsuringP thatP theP organizationP operatesP inP theP intendedP man
nerP andPachievesPitsPgoals.
Managerial Accounting: Creating Value in a Dynamic
Business Environment, 13th Edition by Hilton
Chapters 1 - 17 Complete
,TABLE OF CONTENTS
P P
ChapterP1:PThePChangingPRolePofPManagerialPAccountingPinPaPDynamicPBusinessPE
nvironmentPChapterP2:PBasicPCostPManagementPConcepts
ChapterP3:PProductPCostingPandPCostPAccumulationPinPaPBatchPProductionPEnviron
mentPChapterP4:PProcessPCostingPandPHybridPProduct-CostingPSystems
ChapterP5:PActivity-BasedPCostingPandPManagement
ChapterP6:PActivityPAnalysis,PCostPBehavior,PandPCostPEs
timationPChapterP7:PCost-Volume-ProfitPAnalysis
ChapterP8:PVariablePCostingPandPthePMeasurementPofPESGPandPQualityP
CostsPChapterP9:PFinancialPPlanningPandPAnalysis:PThePMasterPBudget
ChapterP10:PStandardPCostingPandPAnalysisPofPDirectPCosts
ChapterP11:PFlexiblePBudgetingPandPthePManagementPofPOverheadPandPSupportPAct
ivityPCostsPChapterP12:PResponsibilityPAccountingPandPthePBalancedPScorecard
ChapterP13:PInvestmentPCentersPandPTransferPPricing
ChapterP14:PDecisionPMaking:PRelevantPCostsPandPBe
P
nefits
ChapterP15:PTargetPCostingPandPCostPAnalysisPforPPricingPD
ecisionsPChapterP16:PCapitalPExpenditurePDecisions
ChapterP17:PAllocationPofPSupportPActivityPCostsPandPJointPCosts
AppendixPI:PThePSarbanes-
OxleyPAct,PInternalPControls,PandPManagementPAccountingPAppendixPII:PCompound
InterestPandPthePConceptPofPPresentPValue
P
AppendixPIII:PInventoryPManagement
,CHAPTER 1 P
The Crucial Role of Managerial Accounting in
P P P P P P P
a Dynamic Business Environment
P P P
FOCUSPONPETHICSP(LocatedPbeforePthePChapterPSummaryPinPthePtext.)
ThePfocus-on-
ethicsPinsetPforPChapterP1PisPthePIMAPStatementPofPEthicalPProfessionalPPractice.PInstructors
PcanPusePthisPlistPofPethicalP principlesP andPstandardsPtoPleadPaPclassPdiscussion.PTheP di
scussionPcanPalsoPrangePtoPconsiderationPofPhowPthesePstandardsPmayPhavePbeenPv
iolatedPbyPaccountantsPandPmanagersPinvolvedPinPthePvariousP ethicalPscandalsPuncover
edPoverPthePpastPseveralPyears.PItPisPalsoPusefulPtoPdiscussPthePprosPandPconsPofPthePproc
eduresPthatPIMAPsuggestsPforPitsPmembersPwhenPtheyPbelievePtheyPknowPaboutPethicalPl
apsesPinPtheirPorganizations.
ANSWERSPTOPREVIEWPQUESTIONS
1-1 ThePexplosionP inP e-
commerceP willP affectP managersPinP significantP ways.P OneP effectP willPbePaPdrasticPr
eductionPinPpaperP work.P MillionsPofP transactionsPbetweenP businessesP arePnowPbei
ngPconductedPelectronicallyPwithPnoPhard-
copyPdocumentation.PAlongPwithPthisPmethodPofPcommunicatingPforPbusinessPt
ransactionsPcomesPthePveryPsignificantPissuePofPinformationPsecurity.PBusinesses
PneedPtoPfindPwaysPtoPprotectPconfidential Pinformation PinPtheirPownPcomputer
s,PinPcloudPcomputingPdataPcenters,PandPwhilePmovingP acrossP theP internet,P w
hileP atPtheP sameP timeP sharingP theP informationP necessaryPtoPcompletePtransaction
s.PAnotherPeffectPofPe-
commercePisP theP dramaticallyP increasedPspeedPwithPwhichPbusinessPtransactionsP
canPbePconducted.PInPaddition,PtherePwillPbePdramaticPchangesPinPthePwayPmana
gerialPaccountingPproceduresParePcarriedPout,PonePexamplePbeingPcloud-
basedPbudgeting,PwhichPisPthePenterprise-
widePandPelectronicPcompletionPofPaPcompany’sPbudgetingPprocessPusingPcloud-
basedPsoftwarePandPdataPstorage.
, 1-2 PlausibleP goalsP forP theP organizationsP listedP areP asP follows:
(a) Amazon.com:P(1)PToPachievePandPmaintainPprofitability,PandP(2)PtoPgrow
Pon-
linePsalesPofPtheirPmanyPproducts.PAmazonPisPalsoPfamousP(infamous)PforPwa
ntingPtoPhavePeveryP productPinPthePworldPonPitsPsite.
(b) AmericanPRedPCross:P(1)PToPraisePfundsPfromPthePgeneralPpublicPsufficientPto
PhavePresourcesPavailablePtoP meetPanyPdisasterPthatPmayPoccur,PandP(2)Pt
oPprovidePassistancePtoPpeoplePwhoParePvictimsPofPaPdisasterPanywherePinPthePwo
rldPonPshortPnotice.
(c) GeneralPMotors:P(1)PToPearnPincomePsufficientPtoPprovidePaPgoodPreturnP
onPthePinvestmentPofPthePcompany'sPstockholders,PandP(2)PtoPprovidePthePhig
hest-qualityPproductPpossible.
(d) Wal-
Mart:P(1)PToPpenetratePthePretailPmarketPinP virtuallyPeveryPlocationPinPthePUnitedP
States,PandP(2)PtoPgrowPoverPtimePinPtermsP ofPnumberPofPretailPlocations,P totalP a
ssets,PandP earnings.P Also,P toP bePcompetitiveP withP AmazonPinPthePe-
retailP space.
(e) CityPofPSeattle:P(1)PToPmaintainPanPurbanPenvironmentPasPfreePofPpolluti
onPasPpossible,PandP(2)PtoPprovidePpublicPsafety,Ppolice,PandPfirePprotectionPt
oPthePcity'sPcitizens.
(f) Hertz:P(1)PToPbePaPrecognizablePhouseholdPnamePassociatedPwithPrentalP
carPservices,PandP(2)PtoPprovidePreliablePandPeconomicalPtransportationPservicesPt
oPthePcompany'sPcustomers.
1-3 TheP fourP basicP managementP activitiesP areP listedP andP definedP asP follows:
(a) DecisionP making:P ChoosingP amongP theP availableP alternatives.
(b) Planning:P DevelopingP aP detailedP financialP andP operationalP descrip
tionP ofPanticipatedPoperations.
(c) DirectingP operations:P RunningP theP organizationP onP aP day-to-dayP basis.
(d) Controlling:P EnsuringP thatP theP organizationP operatesP inP theP intendedP man
nerP andPachievesPitsPgoals.
