SOLUTION MANUAL FOR
Cost Accounting
by William K. Carter
14th Edition
, Chapter 1
Discussion Questions
Q1-1. Planning Is The Development Of A To By The Individual.
Consistent Set Of Actions, Resources, And
Measurements By Which The Achievement
Of Objectives Can Be Assessed. Planning
Takes Into Account The Interactions Between
The Organization And Its Environment In
Whatever Is To Be Done.
Control Is The Process By Which
Managers Assure That Resources Are
Obtained And Used In An Efficient And
Effective Manner To Carry Out The Plan And
Accomplish The Organiza- Tion ’ s
Objectives. Control Implies That Perform-
Ance Measurements Are Reviewed To
Determine If Corrective Action Is Required.
Planning And Control Are Interrelated.
Control Is Carried Out Within The
Established Planning Framework And Serves
To Evaluate Conformance To The Plan So
That Organiza- Tional Objectives Are
Achieved.
Q1-2. Short-Range Plans Usually Deal With A
Period Of A Quarter Or A Year, While Long-
Range Plans Usually Cover Three To Five
Years. Short-Range Plans Are Detailed
Enough To Permit Prepara- Tion Of A
Complete Set Of Financial Statements As Of
A Future Date, While Long-Range Plans
Culminate In A Very Summarized Set Of
Expected Results Or A Few Quantified
Objec- Tives, Such As Financial Ratios.
Q1-3. Long-Range Plans Contain Quantitative
Results, While Strategic Plans Are The Least
Quantifiable Of All Plans. Long-Range Plans
Usually Extend Three To Five Years Into The
Future, While Strate- Gic Plans May
Contemplate Shorter Or Much Longer
Periods. Long-Range Plans Covering A
Three-To-Five-Year Period Would Be
Prepared Every Three To Five Years, Or
Might Be System- Atically Updated Each
Year To Maintain A Com- Plete Plan, While
Strategic Plans Are Formulated At Irregular
Intervals By An Essen- Tially Unsystematic
Process.
Q1-4. Accountability Is Identical With Responsibility
Accounting. Accountability Deals With The
Dis- Charge Of An Individual ’ s
Responsibility To Achieve Assigned
Objectives Within The Costs And Expenses
Allowed For The Performance And Agreed
,Q1-5. The Controller Does Not Control, But Aids The Inform The Public. The Legal Department
Control Task Of The Managerial Levels By Issu- Ing Needs Cost Infor- Mation For Keeping Many
Reports Pointing Out Deviations From The Affairs Of The Com- Pany In Conformity With
Predetermined Course Of Action. The Law.
Q1-6. The Cost Department Keeps Detailed Records Of Q1-8. Modern Techniques In Communications Give
Materials, Labor, Factory Overhead, And Marketing The Controller And Staff The Means To
And Administrative Expenses; Ana- Lyzes These Transmit Information In The Form Of
Costs; Issues Control Reports; Pre- Pares Cost Results, Analyses, And Forecasts In A Way
Studies For Planning And Decision Making; And Never Before Possible. Profit Opportunities
Coordinates Cost And Budget Data With Other Or Control Actions Have Been Delayed Or
Departments. Missed Entirely Because Timely Information
Q1-7. For Product Research And Design, The Manu- That Might Have Improved The Cost And
Facturing Departments Need Estimates Of Profit Position Of The Company Was Poorly
Materials, Labor, And Machine Process Costs; For Communicated.
Measuring And Efficiency Of Scheduling, Producing, Q1-9. The Budget Is An Essential Cost Planning
And Inspecting Products, The Departments Need To Tool Because It (A) Supplies Information And
Know The Costs Incurred. The Personnel Serves As A Standard Of Performance For
Cost Control By The Supervisors Responsible
Department Supplies Employ- Ees’ Wage Rates.
For Cost; (B) Pro- Vides An Easy Method For
The Treasury Department Needs Accounting,
Anticipating Profits At An Anticipated Sales
Budgeting, And Related Reports In Scheduling Cash
Level; (C) Helps In Forecast- Ing Sales,
Requirements. The Marketing Department Needs
Costs, Expenses, And Profits For A Period
Cost Information In Setting Prices. The Public
Of One Year Or More In Advance.
Relations Depart- Ment Needs Information On
Prices, Wages, Profits, And Dividends In Order To
1-1
, 1-2 Chapter 1
Q1-10. These Standards Will Not Necessarily Be Tices To Be Applied; (C) Specify Criteria To
Able To Prevent Management Fraud, But Be Employed In Selecting From Alternative
They Do Give Internal Accountants Some Princi- Ples And Practices In Estimating,
Guidance On How To Proceed If They Accumulat- Ing, And Reporting Contract
Encounter A Question- Able Practice. Costs. The Standards Are Backed By The
Q1-11. Casb Standards: (A) Enunciate A Principle Full Force And Effect Of The Law.
Or Principles To Be Followed; (B) Establish
Prac-
Cost Accounting
by William K. Carter
14th Edition
, Chapter 1
Discussion Questions
Q1-1. Planning Is The Development Of A To By The Individual.
Consistent Set Of Actions, Resources, And
Measurements By Which The Achievement
Of Objectives Can Be Assessed. Planning
Takes Into Account The Interactions Between
The Organization And Its Environment In
Whatever Is To Be Done.
Control Is The Process By Which
Managers Assure That Resources Are
Obtained And Used In An Efficient And
Effective Manner To Carry Out The Plan And
Accomplish The Organiza- Tion ’ s
Objectives. Control Implies That Perform-
Ance Measurements Are Reviewed To
Determine If Corrective Action Is Required.
Planning And Control Are Interrelated.
Control Is Carried Out Within The
Established Planning Framework And Serves
To Evaluate Conformance To The Plan So
That Organiza- Tional Objectives Are
Achieved.
Q1-2. Short-Range Plans Usually Deal With A
Period Of A Quarter Or A Year, While Long-
Range Plans Usually Cover Three To Five
Years. Short-Range Plans Are Detailed
Enough To Permit Prepara- Tion Of A
Complete Set Of Financial Statements As Of
A Future Date, While Long-Range Plans
Culminate In A Very Summarized Set Of
Expected Results Or A Few Quantified
Objec- Tives, Such As Financial Ratios.
Q1-3. Long-Range Plans Contain Quantitative
Results, While Strategic Plans Are The Least
Quantifiable Of All Plans. Long-Range Plans
Usually Extend Three To Five Years Into The
Future, While Strate- Gic Plans May
Contemplate Shorter Or Much Longer
Periods. Long-Range Plans Covering A
Three-To-Five-Year Period Would Be
Prepared Every Three To Five Years, Or
Might Be System- Atically Updated Each
Year To Maintain A Com- Plete Plan, While
Strategic Plans Are Formulated At Irregular
Intervals By An Essen- Tially Unsystematic
Process.
Q1-4. Accountability Is Identical With Responsibility
Accounting. Accountability Deals With The
Dis- Charge Of An Individual ’ s
Responsibility To Achieve Assigned
Objectives Within The Costs And Expenses
Allowed For The Performance And Agreed
,Q1-5. The Controller Does Not Control, But Aids The Inform The Public. The Legal Department
Control Task Of The Managerial Levels By Issu- Ing Needs Cost Infor- Mation For Keeping Many
Reports Pointing Out Deviations From The Affairs Of The Com- Pany In Conformity With
Predetermined Course Of Action. The Law.
Q1-6. The Cost Department Keeps Detailed Records Of Q1-8. Modern Techniques In Communications Give
Materials, Labor, Factory Overhead, And Marketing The Controller And Staff The Means To
And Administrative Expenses; Ana- Lyzes These Transmit Information In The Form Of
Costs; Issues Control Reports; Pre- Pares Cost Results, Analyses, And Forecasts In A Way
Studies For Planning And Decision Making; And Never Before Possible. Profit Opportunities
Coordinates Cost And Budget Data With Other Or Control Actions Have Been Delayed Or
Departments. Missed Entirely Because Timely Information
Q1-7. For Product Research And Design, The Manu- That Might Have Improved The Cost And
Facturing Departments Need Estimates Of Profit Position Of The Company Was Poorly
Materials, Labor, And Machine Process Costs; For Communicated.
Measuring And Efficiency Of Scheduling, Producing, Q1-9. The Budget Is An Essential Cost Planning
And Inspecting Products, The Departments Need To Tool Because It (A) Supplies Information And
Know The Costs Incurred. The Personnel Serves As A Standard Of Performance For
Cost Control By The Supervisors Responsible
Department Supplies Employ- Ees’ Wage Rates.
For Cost; (B) Pro- Vides An Easy Method For
The Treasury Department Needs Accounting,
Anticipating Profits At An Anticipated Sales
Budgeting, And Related Reports In Scheduling Cash
Level; (C) Helps In Forecast- Ing Sales,
Requirements. The Marketing Department Needs
Costs, Expenses, And Profits For A Period
Cost Information In Setting Prices. The Public
Of One Year Or More In Advance.
Relations Depart- Ment Needs Information On
Prices, Wages, Profits, And Dividends In Order To
1-1
, 1-2 Chapter 1
Q1-10. These Standards Will Not Necessarily Be Tices To Be Applied; (C) Specify Criteria To
Able To Prevent Management Fraud, But Be Employed In Selecting From Alternative
They Do Give Internal Accountants Some Princi- Ples And Practices In Estimating,
Guidance On How To Proceed If They Accumulat- Ing, And Reporting Contract
Encounter A Question- Able Practice. Costs. The Standards Are Backed By The
Q1-11. Casb Standards: (A) Enunciate A Principle Full Force And Effect Of The Law.
Or Principles To Be Followed; (B) Establish
Prac-
