Solutions Manual
For
COST ACCOUNTING
Creating Value for Management
. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares
students
and fundamental concepts.Long Answer Questions: These questions may require students to elaborate on a particular legal principle or case, exploring various perspectives or
discussing its implications in practice.2.3. Skills
Fifth Edition
by
MICHAEL MAHER
University of California, Davis
Chapter 1-26
, Table of Contents
Chapter 1 Chapter 15
Cost Accounting: How Managers User Using Differential Analysis for
Cost Accounting Information Production Decisions
Chapter 2 Chapter 16
Cost Concepts and Behaviour Managing Quality and Time
Chapter 3 Chapter 17
Cost System Design: An Overview Planning and Budgeting
Chapter 4 Chapter 18
Job Costing Flexible Budgeting and Performance
Evaluation
Chapter 5
Process Costing Chapter 19
Performance Evaluation: Cost
Chapter 6 Variances
Spoilage and Quality Management
Chapter 20
Chapter 7 Performance Evaluation in
Allocating Costs to Departments Decentralized Organizations
Chapter 8 Chapter 21
Activity-Based Costing Transfer Pricing
Chapter 9 Chapter 22
Activity-Based Management Nonfinancial Performance Measures
Chapter 10 Chapter 23
Allocating Joint Costs Capital Investmenet Decisions
Chapter 11 Chapter 24
Variable Costing Inventory Management
Chapter 12 Chapter 25
Cost Estimation Management Ethics and Financial
Fraud
Chapter 13
Cost-Volume-Profit Analysis Chapter 26
Revenue, Mix and ield Variances
Chapter 14 . Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal
Differential Cost and Revenue Analysis principles, case law, le and fundamental concepts.Long Answer Questions: These questions may require
students to elaborate on a particular legal principle or case, exploring various perspectives or discussing its
implications in practice.2.3. Skills gal frameworks, and ethical issues. It prepares students
, How to Use this File
This file contains an entire manual for your use. Within this file, there have been hypertext links created to
allow you to quickly access various subjects. The following chart is to be used as a guide as to how to move
about this document easily. Please print out a copy for future reference.
The magnifying glass with the ―+‖ enlarges your page. The magnifying glass
containing ―–‖ reduces your page. (Click on the icon, then click on your page.)
These four icons are used to access pages one at a time. The first icon, ,
allows you to move quickly to the first page of the book. The last icon, , allows
you to move quickly to the last page. The two icons, , allow you to view
pages one at a time, forwards and backwards.
The Go Back and Go Forward buttons allow you to retrace your steps in a
document, moving to each view in the order visited.
The Actual Size button displays the page at 100 percent.
The Fit Page button scales the entire page down to fit within the window.
The Fit Width button scales the page width to fill the window.
Click the Page Only button (first on the left side of toolbox) to close the overview
area of the window. Only the page you want to view will be showing.
Click the Bookmarks and Page button (second from the left on toolbox) to open
the overview area and display bookmarks created for the document. (See next
entry for bookmark explanation.)
This is a sample of the bookmarks that will display when the Bookmarks and
Page button is used.
The arrow to the left of the list indicates that it is a folder containing subentries
associated with its main entry. All other icons are indicators of hypertext links. To
use the hypertext links, simply click on the icon and it will automatically transport
you to that location.
and fundamental concepts.Long Answer Questions: These questions may require students to elaborate on a particular legal principle or case, exploring various perspectives or discussing its implications
in practice.2.3. Skills
. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares students
, Chapter 1
Cost Accounting: How Managers
Use Cost Accounting Information
and fundamental concepts.Long Answer Questions: These questions may require students to elaborate on a particular legal principle or case, exploring various perspectives or discussing its implications
in practice.2.3. Skills
. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares students
Solutions to Review Questions
1–1.
C Analysis of divisional performance
A Costing for income tax purposes
B Determining how many units to produce in the coming week
1–2.
Descriptions of the six business functions in the value chain are as follows:
1. Research and development: the creation and development of ideas related to new products, services,
or processes.
2. Design: the detailed development and engineering of products, services, or processes.
3. Production: the collection and assembly of resources to produce a product or deliver a service.
4. Marketing: the process that informs potential customers about the attributes of products or services, and
leads to the sale of those products or services.
5. Distribution: the process established to deliver products or services to customers.
6. Customer Service: product or service support activities provided to customers.
1–3.
Value-added activities are activities that customers perceive as adding utility to the goods or services they
purchase. Nonvalue-added activities do not add value to the goods or services.
1–4.
Differential costs are important for managerial decision making, but other cost data can provide
management with additional important information. For example, inventory values and costs of goods sold
are important for income tax and financial reporting purposes as well as for most bonus and cost-plus
contracting purposes. Costs for performance evaluation are not necessarily differential costs. Companies try
to recover all costs, hence some estimate of total costs is needed. (This could be an opportunity to discuss
short-run and long-run costs with students, noting that in the long run, all costs must be covered.)
© The McGraw-Hill Companies, Inc., 1997
Solutions Manual, Chapter 1 1
For
COST ACCOUNTING
Creating Value for Management
. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares
students
and fundamental concepts.Long Answer Questions: These questions may require students to elaborate on a particular legal principle or case, exploring various perspectives or
discussing its implications in practice.2.3. Skills
Fifth Edition
by
MICHAEL MAHER
University of California, Davis
Chapter 1-26
, Table of Contents
Chapter 1 Chapter 15
Cost Accounting: How Managers User Using Differential Analysis for
Cost Accounting Information Production Decisions
Chapter 2 Chapter 16
Cost Concepts and Behaviour Managing Quality and Time
Chapter 3 Chapter 17
Cost System Design: An Overview Planning and Budgeting
Chapter 4 Chapter 18
Job Costing Flexible Budgeting and Performance
Evaluation
Chapter 5
Process Costing Chapter 19
Performance Evaluation: Cost
Chapter 6 Variances
Spoilage and Quality Management
Chapter 20
Chapter 7 Performance Evaluation in
Allocating Costs to Departments Decentralized Organizations
Chapter 8 Chapter 21
Activity-Based Costing Transfer Pricing
Chapter 9 Chapter 22
Activity-Based Management Nonfinancial Performance Measures
Chapter 10 Chapter 23
Allocating Joint Costs Capital Investmenet Decisions
Chapter 11 Chapter 24
Variable Costing Inventory Management
Chapter 12 Chapter 25
Cost Estimation Management Ethics and Financial
Fraud
Chapter 13
Cost-Volume-Profit Analysis Chapter 26
Revenue, Mix and ield Variances
Chapter 14 . Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal
Differential Cost and Revenue Analysis principles, case law, le and fundamental concepts.Long Answer Questions: These questions may require
students to elaborate on a particular legal principle or case, exploring various perspectives or discussing its
implications in practice.2.3. Skills gal frameworks, and ethical issues. It prepares students
, How to Use this File
This file contains an entire manual for your use. Within this file, there have been hypertext links created to
allow you to quickly access various subjects. The following chart is to be used as a guide as to how to move
about this document easily. Please print out a copy for future reference.
The magnifying glass with the ―+‖ enlarges your page. The magnifying glass
containing ―–‖ reduces your page. (Click on the icon, then click on your page.)
These four icons are used to access pages one at a time. The first icon, ,
allows you to move quickly to the first page of the book. The last icon, , allows
you to move quickly to the last page. The two icons, , allow you to view
pages one at a time, forwards and backwards.
The Go Back and Go Forward buttons allow you to retrace your steps in a
document, moving to each view in the order visited.
The Actual Size button displays the page at 100 percent.
The Fit Page button scales the entire page down to fit within the window.
The Fit Width button scales the page width to fill the window.
Click the Page Only button (first on the left side of toolbox) to close the overview
area of the window. Only the page you want to view will be showing.
Click the Bookmarks and Page button (second from the left on toolbox) to open
the overview area and display bookmarks created for the document. (See next
entry for bookmark explanation.)
This is a sample of the bookmarks that will display when the Bookmarks and
Page button is used.
The arrow to the left of the list indicates that it is a folder containing subentries
associated with its main entry. All other icons are indicators of hypertext links. To
use the hypertext links, simply click on the icon and it will automatically transport
you to that location.
and fundamental concepts.Long Answer Questions: These questions may require students to elaborate on a particular legal principle or case, exploring various perspectives or discussing its implications
in practice.2.3. Skills
. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares students
, Chapter 1
Cost Accounting: How Managers
Use Cost Accounting Information
and fundamental concepts.Long Answer Questions: These questions may require students to elaborate on a particular legal principle or case, exploring various perspectives or discussing its implications
in practice.2.3. Skills
. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares students
Solutions to Review Questions
1–1.
C Analysis of divisional performance
A Costing for income tax purposes
B Determining how many units to produce in the coming week
1–2.
Descriptions of the six business functions in the value chain are as follows:
1. Research and development: the creation and development of ideas related to new products, services,
or processes.
2. Design: the detailed development and engineering of products, services, or processes.
3. Production: the collection and assembly of resources to produce a product or deliver a service.
4. Marketing: the process that informs potential customers about the attributes of products or services, and
leads to the sale of those products or services.
5. Distribution: the process established to deliver products or services to customers.
6. Customer Service: product or service support activities provided to customers.
1–3.
Value-added activities are activities that customers perceive as adding utility to the goods or services they
purchase. Nonvalue-added activities do not add value to the goods or services.
1–4.
Differential costs are important for managerial decision making, but other cost data can provide
management with additional important information. For example, inventory values and costs of goods sold
are important for income tax and financial reporting purposes as well as for most bonus and cost-plus
contracting purposes. Costs for performance evaluation are not necessarily differential costs. Companies try
to recover all costs, hence some estimate of total costs is needed. (This could be an opportunity to discuss
short-run and long-run costs with students, noting that in the long run, all costs must be covered.)
© The McGraw-Hill Companies, Inc., 1997
Solutions Manual, Chapter 1 1
