Managerial Accounting (18th Ed.) Garrison – Complete Solution Manual

Solutions Manual
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Managerial Accounting: Creating Value in a Dynamic
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Business Environment, 13th Edition by Hilton Chapter
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s 1 - 17 Complete
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,TABLE OF CONTENTS
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Chapterm1:mThemChangingmRolemofmManagerialmAccountingminmamDynamicmBusinessm

EnvironmentmChapterm2:mBasicmCostmManagementmConcepts

Chapterm3:mProductmCostingmandmCostmAccumulationminmamBatchmProductionmEnviro

nmentmChapterm4:mProcessmCostingmandmHybridmProduct-CostingmSystems

Chapterm5:mActivity-BasedmCostingmandmManagement

Chapterm6:mActivitymAnalysis,mCostmBehavior,mandmCostmE

stimationmChapterm7:mCost-Volume-ProfitmAnalysis

Chapterm8:mVariablemCostingmandmthemMeasurementmofmESGmandmQuality

CostsmChapterm9:mFinancialmPlanningmandmAnalysis:mThemMastermBudget
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Chapterm10:mStandardmCostingmandmAnalysismofmDirectmCosts

Chapterm11:mFlexiblemBudgetingmandmthemManagementmofmOverheadmandmSupportmA

ctivitymCostsmChapterm12:mResponsibilitymAccountingmandmthemBalancedmScorecard

Chapterm13:mInvestmentmCentersmandmTransfermPricin

gmChapterm14:mDecisionmMaking:mRelevantmCostsmandm

Benefits

Chapterm15:mTargetmCostingmandmCostmAnalysismformPricingm

DecisionsmChapterm16:mCapitalmExpendituremDecisions

Chapterm17:mAllocationmofmSupportmActivitymCostsmandmJointmCosts




AppendixmI:mThemSarbanes-

OxleymAct,mInternalmControls,mandmManagementmAccountingmAppendixmII:mCompoun

dmInterestmandmthemConceptmofmPresentmValue

AppendixmIII:mInventorymManagement

,CHAPTER 1 m



The Crucial Role of Managerial Accounting in
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a Dynamic Business Environment
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FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
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The focus-on-
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ethics inset for Chapter 1 is the IMA Statement of Ethical Professional Practice. Instructo
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rs can use this list of ethical principles and standards to lead a class discussion. Th
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e discussion can also range to consideration of how these standards may have
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been violated by accountants and managers involved in the various ethical scandals
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muncovered over the past several years. It is also useful to discuss the pros and cons
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of the procedures that IMA suggests for its members when they believe they know a
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bout ethical lapses in their organizations.
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ANSWERS TO REVIEW QUESTIONS m m m



1-1 The explosion in e-
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commerce will affect managers in significant ways. One effect will be a drastic
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mreduction in paper work. Millions of transactions between businesses are now
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being conducted electronically with no hard-
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copy documentation. Along with this method of communicating for business
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mtransactions comes the very significant issue of information security. Busines
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ses need to find ways to protect confidential information in their own comp
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uters, in cloud computing data centers, and while moving across the inter
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net, while at the same time sharing the information necessary to complete tra
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nsactions. Another effect of e- m m m m

commerce is the dramatically increased speed with which business transaction
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s can be conducted. In addition, there will be dramatic changes in the way ma
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nagerial accounting procedures are carried out, one example being cloud-
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based budgeting, which is the enterprise-
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wide and electronic completion of a company’s budgeting process using cloud
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-based software and data storage.
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, 1-2 Plausible goals for the organizations listed are as follows:
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(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to gro
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w on- m

line sales of their many products. Amazon is also famous (infamous) for
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wanting to have every product in the world on its site.
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(b) American Red Cross: (1) To raise funds from the general public sufficient t
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o have resources available to meet any disaster that may occur, and (2
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) to provide assistance to people who are victims of a disaster anywhere in th
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e world on short notice.
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(c) General Motors: (1) To earn income sufficient to provide a good retur
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n on the investment of the company's stockholders, and (2) to provide the
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m highest-quality product possible. m m



(d) Wal-
Mart: (1) To penetrate the retail market in virtually every location in the Unite
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d States, and (2) to grow over time in terms of number of retail locations, tot
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al assets, and earnings. Also, to be competitive with Amazon in the e-
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retail space. m



(e) City of Seattle: (1) To maintain an urban environment as free of pollut
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ion as possible, and (2) to provide public safety, police, and fire protectio
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n to the city's citizens.
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(f) Hertz: (1) To be a recognizable household name associated with rental
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m car services, and (2) to provide reliable and economical transportation service
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s to the company's customers.
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1-3 The four basic management activities are listed and defined as follows:
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(a) Decision making: Choosing among the available alternatives.
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(b) Planning: Developing a detailed financial and operational descri
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ption of anticipated operations.
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(c) Directing operations: Running the organization on a day-to-day basis.
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(d) Controlling: Ensuring that the organization operates in the intended ma
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nner and achieves its goals.
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