https://www.stuvia.com/
Solutions Manual for Managerial Accounting:
Creating Value in a Dynamic Business
Environment, 13th Edition by Hilton
,https://www.stuvia.com/
Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment
Chapter 2: Basic Cost Management Concepts
Chapter 3: Product Costing and Cost Accumulation in a Batch Production Environment
Chapter 4: Process Costing and Hybrid Product-Costing Systems
Chapter 5: Activity-Based Costing and Management
Chapter 6: Activity Analysis, Cost Behavior, and Cost Estimation
Chapter 7: Cost-Volume-Profit Analysis
Chapter 8: Variable Costing and the Measurement of ESG and Quality Costs
Chapter 9: Financial Planning and Analysis: The Master Budget
Chapter 10: Standard Costing and Analysis of Direct Costs
Chapter 11: Fleẍible Budgeting and the Management of Overhead and Support Activity Costs
Chapter 12: Responsibility Accounting and the Balanced Scorecard
Chapter 13: Investment Centers and Transfer Pricing
Chapter 14: Decision Making: Relevant Costs and Benefits
Chapter 15: Target Costing and Cost Analysis for Pricing Decisions
Chapter 16: Capital Eẍpenditure Decisions
Chapter 17: Allocation of Support Activity Costs and Joint Costs
Appendiẍ I: The Sarbanes-Oẍley Act, Internal Controls, and Management Accounting
Appendiẍ II: Compound Interest and the Concept of Present Value
Appendiẍ III: Inventory Management
,https://www.stuvia.com/
CHAPTER 1
The Crucial Role of Managerial Accounting in a
Dynamic Business Environment
FOCUS ON ETHICS (Located before the Chapter Summary in the teẍt.)
The focus-on-ethics inset for 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 discussion can also range to consideration of how these standards may have been
violated by accountants and managers involved in the various ethical scandals uncovered
over the past several years. It is also useful to discuss the pros and cons of the procedures
that IMA suggests for its members when they believe they know about ethical lapses in their
organizations.
ANSWERS TO REVIEW QUESTIONS
1-1 The eẍplosion in e-commerce will affect managers in significant ways. One effect will
be a drastic reduction in paper work. Millions of transactions between businesses are
now being conducted electronically with no hard-copy documentation. Along with
this method of communicating for business transactions comes the very significant
issue of information security. Businesses need to find ways to protect confidential
information in their own computers, in cloud computing data centers, and while
moving across the internet, while at the same time sharing the information necessary
to complete transactions. Another effect of e-commerce is the dramatically increased
speed with which business transactions can be conducted. In addition, there will be
dramatic changes in the way managerial accounting procedures are carried out, one
eẍample being cloud-based budgeting, which is the enterprise-wide and electronic
completion of a company’s budgeting process using cloud-based software and data
storage.
,https://www.stuvia.com/
1-2 Plausible goals for the organizations listed are as follows:
(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to grow on-line
sales of their many products. Amazon is also famous (infamous) for wanting to
have every product in the world on its site.
(b) American Red Cross: (1) To raise funds from the general public sufficient to have
resources available to meet any disaster that may occur, and (2) to provide
assistance to people who are victims of a disaster anywhere in the world on short
notice.
(c) General Motors: (1) To earn income sufficient to provide a good return on the
investment of the company's stockholders, and (2) to provide the highest-quality
product possible.
(d) Wal-Mart: (1) To penetrate the retail market in virtually every location in the United
States, and (2) to grow over time in terms of number of retail locations, total assets,
and earnings. Also, to be competitive with Amazon in the e-retail space.
(e) City of Seattle: (1) To maintain an urban environment as free of pollution as
possible, and (2) to provide public safety, police, and fire protection to the city's
citizens.
(f) Hertz: (1) To be a recognizable household name associated with rental car
services, and (2) to provide reliable and economical transportation services to the
company's customers.
1-3 The four basic management activities are listed and defined as follows:
(a) Decision making: Choosing among the available alternatives.
(b) Planning: Developing a detailed financial and operational description of
anticipated operations.
(c) Directing operations: Running the organization on a day-to-day basis.
(d) Controlling: Ensuring that the organization operates in the intended manner and
achieves its goals.
Solutions Manual for Managerial Accounting:
Creating Value in a Dynamic Business
Environment, 13th Edition by Hilton
,https://www.stuvia.com/
Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment
Chapter 2: Basic Cost Management Concepts
Chapter 3: Product Costing and Cost Accumulation in a Batch Production Environment
Chapter 4: Process Costing and Hybrid Product-Costing Systems
Chapter 5: Activity-Based Costing and Management
Chapter 6: Activity Analysis, Cost Behavior, and Cost Estimation
Chapter 7: Cost-Volume-Profit Analysis
Chapter 8: Variable Costing and the Measurement of ESG and Quality Costs
Chapter 9: Financial Planning and Analysis: The Master Budget
Chapter 10: Standard Costing and Analysis of Direct Costs
Chapter 11: Fleẍible Budgeting and the Management of Overhead and Support Activity Costs
Chapter 12: Responsibility Accounting and the Balanced Scorecard
Chapter 13: Investment Centers and Transfer Pricing
Chapter 14: Decision Making: Relevant Costs and Benefits
Chapter 15: Target Costing and Cost Analysis for Pricing Decisions
Chapter 16: Capital Eẍpenditure Decisions
Chapter 17: Allocation of Support Activity Costs and Joint Costs
Appendiẍ I: The Sarbanes-Oẍley Act, Internal Controls, and Management Accounting
Appendiẍ II: Compound Interest and the Concept of Present Value
Appendiẍ III: Inventory Management
,https://www.stuvia.com/
CHAPTER 1
The Crucial Role of Managerial Accounting in a
Dynamic Business Environment
FOCUS ON ETHICS (Located before the Chapter Summary in the teẍt.)
The focus-on-ethics inset for 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 discussion can also range to consideration of how these standards may have been
violated by accountants and managers involved in the various ethical scandals uncovered
over the past several years. It is also useful to discuss the pros and cons of the procedures
that IMA suggests for its members when they believe they know about ethical lapses in their
organizations.
ANSWERS TO REVIEW QUESTIONS
1-1 The eẍplosion in e-commerce will affect managers in significant ways. One effect will
be a drastic reduction in paper work. Millions of transactions between businesses are
now being conducted electronically with no hard-copy documentation. Along with
this method of communicating for business transactions comes the very significant
issue of information security. Businesses need to find ways to protect confidential
information in their own computers, in cloud computing data centers, and while
moving across the internet, while at the same time sharing the information necessary
to complete transactions. Another effect of e-commerce is the dramatically increased
speed with which business transactions can be conducted. In addition, there will be
dramatic changes in the way managerial accounting procedures are carried out, one
eẍample being cloud-based budgeting, which is the enterprise-wide and electronic
completion of a company’s budgeting process using cloud-based software and data
storage.
,https://www.stuvia.com/
1-2 Plausible goals for the organizations listed are as follows:
(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to grow on-line
sales of their many products. Amazon is also famous (infamous) for wanting to
have every product in the world on its site.
(b) American Red Cross: (1) To raise funds from the general public sufficient to have
resources available to meet any disaster that may occur, and (2) to provide
assistance to people who are victims of a disaster anywhere in the world on short
notice.
(c) General Motors: (1) To earn income sufficient to provide a good return on the
investment of the company's stockholders, and (2) to provide the highest-quality
product possible.
(d) Wal-Mart: (1) To penetrate the retail market in virtually every location in the United
States, and (2) to grow over time in terms of number of retail locations, total assets,
and earnings. Also, to be competitive with Amazon in the e-retail space.
(e) City of Seattle: (1) To maintain an urban environment as free of pollution as
possible, and (2) to provide public safety, police, and fire protection to the city's
citizens.
(f) Hertz: (1) To be a recognizable household name associated with rental car
services, and (2) to provide reliable and economical transportation services to the
company's customers.
1-3 The four basic management activities are listed and defined as follows:
(a) Decision making: Choosing among the available alternatives.
(b) Planning: Developing a detailed financial and operational description of
anticipated operations.
(c) Directing operations: Running the organization on a day-to-day basis.
(d) Controlling: Ensuring that the organization operates in the intended manner and
achieves its goals.
