SOLUTION MANUAL
M
Horngren's Accounting, 13th Edition Managerial
M M M M
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
M M M M M M M
,THE MANAGERIAL CHAPTERS
M M
1. Introduction to Managerial Accounting
M M M
2. Job Order Costing
M M
3. Process Costing
M
4. Cost-Volume-Profit Analysis M
5. Master Budgets
M
6. Flexible Budgets and Standard Cost Systems
M M M M M
7. Cost Allocation and Responsibility Accounting
M M M M
8. Short-Term Business Decisions
M M
9. Capital Investment Decisions
M M
,ChapterM1
IntroductionMtoMManagerialMAccounting
ReviewMQuestions
1. TheMprimaryMpurposeMofMmanagerialMaccountingMisMtoMprovideMinformationMtoMhelpMmana
gersMplan,Mdirect,Mcontrol,MandMmakeMdecisions.
2. FinancialMaccountingMandMmanagerialMaccountingMdifferMonMtheMfollowingM6Mdimensions:M(1)M
primaryMusers,M(2)MpurposeMofMinformation,M(3)MfocusMandMtimeMdimensionMofMtheMinformatio
n,M(4)MrulesMandMrestrictions,M(5)MscopeMofMinformation,MandM(6)Mbehavioral.
3. LineMpositionsMareMdirectlyMinvolvedMinMprovidingMgoodsMorMservicesMtoMcustomers.MStaffM
positionsMsupportMlineMpositions.
4. PlanningMmeansMchoosingMgoalsMandMdecidingMhowMtoMachieveMthem.MDirectingMinvolvesMrunni
ngMtheMday-to-
dayMoperationsMofMaMbusiness.MControllingMisMtheMprocessMofMmonitoringMoperationsMandMkeep
ingMtheMcompanyMonMtrack.
5. TheMfourMIMAMstandardsMofMethicalMpracticeMandMaMdescriptionMofMeachMfollow.
I. Competence.
MaintainManMappropriateMlevelMofMprofessionalMleadershipMandMexpertiseMbyMe
nhancingMknowledgeMandMskills.
PerformMprofessionalMdutiesMinMaccordanceMwithMrelevantMlaws,Mregulations,MandMt
echnicalMstandards.
ProvideMdecisionMsupportMinformationMandMrecommendationsMthatMareMaccurate,Mclear,
Mconcise,MandMtimely.
RecogniseMandMhelpMmangeMrisk.
II. Confidentiality.
KeepMinformationMconfidentialMexceptMwhenMdisclosureMisMauthorizedMorMlegallyMrequired.
InformMallMrelevantMpartiesMregardingMappropriateMuseMofMconfidentialMinformation.M M
onitorMtoMensureMcompliance.
RefrainMfromMusingMconfidentialMinformationMforMunethicalMorMillegalMadvantage.
III. Integrity.
MitigateMactualMconflictsMofMinterest.MRegularlyMcommunicateMwithMbusinessMassociatesM
toMavoidMapparentMconflictsMofMinterest.MMAdviseMallMpartiesMofManyMpotentialMconflicts.
RefrainMfromMengagingMinManyMconductMthatMwouldMprejudiceMcarryingMoutMdutiesMethical
ly.
, AbstainMfromMengagingMinMorMsupportingManyMactivityMthatMmightMdiscreditMtheMprofessio
n.
ContributeMtoMaMpositiveMethicalMcultureMandMplaceMintegrityMofMtheMprofessionMabov
eMpersonalMinterest.
5,Mcont.
IV. Credibility.
CommunicateMinformationMfairlyMandMobjectively.
ProvideMallMrelevantMinformationMthatMcouldMreasonablyMbeMexpectedMtoMinfluenceMan
MintendedMuser’sMunderstandingMofMtheMreports,Manalyses,MorMrecommendations.
ReportManyMdelaysMorMdeficienciesMinMinformation,Mtimeliness,Mprocessing,MorMinternalM
controlsMinMconformanceMwithMorganizationMpolicyMand/orMapplicableMlaw.
CommunicateManyMprofessionalMlimitationsMorMotherMconstraintsMthatMwouldMprecludeM
responsi-MbleMjudgmentMorMsuccessfulMperformanceMofManMactivity.
6. ServiceMcompaniesMsellMtime,Mskills,MandMknowledge.M ExamplesMofMserviceMcompaniesMinclud
eMphoneMserviceMcompanies,Mbanks,McleaningMserviceMcompanies,MaccountingMfirms,MlawMfirms
,MmedicalMphysicians,MandMonlineMauctionMservices.
7. MerchandisingMcompaniesMresellMproductsMtheyMbuyMfromMsuppliers.MMerchandisersMkeepManMi
nventoryMofMproducts,MandMmanagersMareMaccountableMforMtheMpurchasing,Mstorage,MandMsaleM
ofMtheMproducts.MExamplesMofMmerchandisingMcompaniesMincludeMtoyMstores,MgroceryMstores,Ma
ndMclothingMstores.
8. MerchandisingMcompaniesMresellMproductsMtheyMpreviouslyMboughtMfromMsuppliers,MwhereasM
manufacturingMcompaniesMuseMlabor,Mequipment,Msupplies,MandMfacilitiesMtoMconvertMrawMmat
erialsMintoMnewMfinishedMproducts.MInMcontrastMtoMmerchandisingMcompanies,MmanufacturingMc
ompaniesMhaveMaMbroadMrangeMofMproductionMactivitiesMthatMrequireMtrackingMcostsMonMthree
MkindsMofMinventory.
9. TheMthreeMinventoryMaccountsMusedMbyMmanufacturingMcompaniesMareMRawMMaterialsMInventor
y,MWork-Min-ProcessMInventory,MandMFinishedMGoodsMInventory.
RawMMaterialsMInventoryMincludesMmaterialsMusedMtoMmanufactureMaMproduct.MWork-in-
ProcessMInventoryMincludesMgoodsMthatMhaveMbeenMstartedMinMtheMmanufacturingMprocessMbut
MareMnotMyetMcomplete.M FinishedMGoodsMInventoryMincludesMcompletedMgoodsMthatMhaveMnot
MyetMbeenMsold.
10. AMdirectMcostMisMaMcostMthatMcanMbeMeasilyMandMcost-
effectivelyMtracedMtoMaMcostMobjectM(whichMisManythingMforMwhichMmanagersMwantMaMsepara
teMmeasurementMofMcost).MAnMindirectMcostMisMaMcostMthatMcannotMbeMeasilyMorMcost-
effectivelyMtracedMtoMaMcostMobject.
M
Horngren's Accounting, 13th Edition Managerial
M M M M
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
M M M M M M M
,THE MANAGERIAL CHAPTERS
M M
1. Introduction to Managerial Accounting
M M M
2. Job Order Costing
M M
3. Process Costing
M
4. Cost-Volume-Profit Analysis M
5. Master Budgets
M
6. Flexible Budgets and Standard Cost Systems
M M M M M
7. Cost Allocation and Responsibility Accounting
M M M M
8. Short-Term Business Decisions
M M
9. Capital Investment Decisions
M M
,ChapterM1
IntroductionMtoMManagerialMAccounting
ReviewMQuestions
1. TheMprimaryMpurposeMofMmanagerialMaccountingMisMtoMprovideMinformationMtoMhelpMmana
gersMplan,Mdirect,Mcontrol,MandMmakeMdecisions.
2. FinancialMaccountingMandMmanagerialMaccountingMdifferMonMtheMfollowingM6Mdimensions:M(1)M
primaryMusers,M(2)MpurposeMofMinformation,M(3)MfocusMandMtimeMdimensionMofMtheMinformatio
n,M(4)MrulesMandMrestrictions,M(5)MscopeMofMinformation,MandM(6)Mbehavioral.
3. LineMpositionsMareMdirectlyMinvolvedMinMprovidingMgoodsMorMservicesMtoMcustomers.MStaffM
positionsMsupportMlineMpositions.
4. PlanningMmeansMchoosingMgoalsMandMdecidingMhowMtoMachieveMthem.MDirectingMinvolvesMrunni
ngMtheMday-to-
dayMoperationsMofMaMbusiness.MControllingMisMtheMprocessMofMmonitoringMoperationsMandMkeep
ingMtheMcompanyMonMtrack.
5. TheMfourMIMAMstandardsMofMethicalMpracticeMandMaMdescriptionMofMeachMfollow.
I. Competence.
MaintainManMappropriateMlevelMofMprofessionalMleadershipMandMexpertiseMbyMe
nhancingMknowledgeMandMskills.
PerformMprofessionalMdutiesMinMaccordanceMwithMrelevantMlaws,Mregulations,MandMt
echnicalMstandards.
ProvideMdecisionMsupportMinformationMandMrecommendationsMthatMareMaccurate,Mclear,
Mconcise,MandMtimely.
RecogniseMandMhelpMmangeMrisk.
II. Confidentiality.
KeepMinformationMconfidentialMexceptMwhenMdisclosureMisMauthorizedMorMlegallyMrequired.
InformMallMrelevantMpartiesMregardingMappropriateMuseMofMconfidentialMinformation.M M
onitorMtoMensureMcompliance.
RefrainMfromMusingMconfidentialMinformationMforMunethicalMorMillegalMadvantage.
III. Integrity.
MitigateMactualMconflictsMofMinterest.MRegularlyMcommunicateMwithMbusinessMassociatesM
toMavoidMapparentMconflictsMofMinterest.MMAdviseMallMpartiesMofManyMpotentialMconflicts.
RefrainMfromMengagingMinManyMconductMthatMwouldMprejudiceMcarryingMoutMdutiesMethical
ly.
, AbstainMfromMengagingMinMorMsupportingManyMactivityMthatMmightMdiscreditMtheMprofessio
n.
ContributeMtoMaMpositiveMethicalMcultureMandMplaceMintegrityMofMtheMprofessionMabov
eMpersonalMinterest.
5,Mcont.
IV. Credibility.
CommunicateMinformationMfairlyMandMobjectively.
ProvideMallMrelevantMinformationMthatMcouldMreasonablyMbeMexpectedMtoMinfluenceMan
MintendedMuser’sMunderstandingMofMtheMreports,Manalyses,MorMrecommendations.
ReportManyMdelaysMorMdeficienciesMinMinformation,Mtimeliness,Mprocessing,MorMinternalM
controlsMinMconformanceMwithMorganizationMpolicyMand/orMapplicableMlaw.
CommunicateManyMprofessionalMlimitationsMorMotherMconstraintsMthatMwouldMprecludeM
responsi-MbleMjudgmentMorMsuccessfulMperformanceMofManMactivity.
6. ServiceMcompaniesMsellMtime,Mskills,MandMknowledge.M ExamplesMofMserviceMcompaniesMinclud
eMphoneMserviceMcompanies,Mbanks,McleaningMserviceMcompanies,MaccountingMfirms,MlawMfirms
,MmedicalMphysicians,MandMonlineMauctionMservices.
7. MerchandisingMcompaniesMresellMproductsMtheyMbuyMfromMsuppliers.MMerchandisersMkeepManMi
nventoryMofMproducts,MandMmanagersMareMaccountableMforMtheMpurchasing,Mstorage,MandMsaleM
ofMtheMproducts.MExamplesMofMmerchandisingMcompaniesMincludeMtoyMstores,MgroceryMstores,Ma
ndMclothingMstores.
8. MerchandisingMcompaniesMresellMproductsMtheyMpreviouslyMboughtMfromMsuppliers,MwhereasM
manufacturingMcompaniesMuseMlabor,Mequipment,Msupplies,MandMfacilitiesMtoMconvertMrawMmat
erialsMintoMnewMfinishedMproducts.MInMcontrastMtoMmerchandisingMcompanies,MmanufacturingMc
ompaniesMhaveMaMbroadMrangeMofMproductionMactivitiesMthatMrequireMtrackingMcostsMonMthree
MkindsMofMinventory.
9. TheMthreeMinventoryMaccountsMusedMbyMmanufacturingMcompaniesMareMRawMMaterialsMInventor
y,MWork-Min-ProcessMInventory,MandMFinishedMGoodsMInventory.
RawMMaterialsMInventoryMincludesMmaterialsMusedMtoMmanufactureMaMproduct.MWork-in-
ProcessMInventoryMincludesMgoodsMthatMhaveMbeenMstartedMinMtheMmanufacturingMprocessMbut
MareMnotMyetMcomplete.M FinishedMGoodsMInventoryMincludesMcompletedMgoodsMthatMhaveMnot
MyetMbeenMsold.
10. AMdirectMcostMisMaMcostMthatMcanMbeMeasilyMandMcost-
effectivelyMtracedMtoMaMcostMobjectM(whichMisManythingMforMwhichMmanagersMwantMaMsepara
teMmeasurementMofMcost).MAnMindirectMcostMisMaMcostMthatMcannotMbeMeasilyMorMcost-
effectivelyMtracedMtoMaMcostMobject.
