Solutions Manual
,
, INTRODUCTION TO MANAGERIAL
1 ACCOUNTING
MULTIPLE-CHOICE QUESTIONS
1-1. c
1-2. b
1-3. a
1-4. b
1-5. e
1-6. e
1-7. d
1-8. d
1-9. b
1-10. e
1-11. d
, CHAPTER 1 Introduction to Managerial Accounting
EXERCISES
E 1-12
a. Decision-making
b. Controlling
c. Planning
d. Decision-making
e. Planning
f. Decision-making
E 1-13
a. Managerial accounting oriented
b. Financial accounting oriented
c. Managerial accounting oriented
d. Financial accounting oriented
e. Managerial accounting oriented
E 1-14
1. The total product is the product and its features (processing speed, disk drives,
software packages, and so on), the service, the operating and maintenance
requirements, and the delivery speed.
2. One company is emphasizing low costs, and the other is attempting to differentiate
its PC by offering faster delivery and higher-quality service.
3. The Confiar’s service component and its delivery time appear to be better than
Drantex’s. Thus, the realization of these features appears to outweigh the additional
sacrifice (the additional operating and maintenance cost) associated with the
Confiar PC. The implications for management accounting are straightforward. The
management accounting information system should collect and report information
about customer realization and sacrifice. Much of this information is external to the
firm but clearly needed by management.
4. Better quality and shorter delivery time increase the value of what the customer
receives, while lowering the price decreases the amount paid. In total, customer
value has increased, and presumably, this should make the Drantex PC much more
competitive. This example illustrates how quality, time, and costs are essential
competitive weapons. It also illustrates how critical it is for the management
accounting system to collect and report data concerning these three dimensions.
,
, INTRODUCTION TO MANAGERIAL
1 ACCOUNTING
MULTIPLE-CHOICE QUESTIONS
1-1. c
1-2. b
1-3. a
1-4. b
1-5. e
1-6. e
1-7. d
1-8. d
1-9. b
1-10. e
1-11. d
, CHAPTER 1 Introduction to Managerial Accounting
EXERCISES
E 1-12
a. Decision-making
b. Controlling
c. Planning
d. Decision-making
e. Planning
f. Decision-making
E 1-13
a. Managerial accounting oriented
b. Financial accounting oriented
c. Managerial accounting oriented
d. Financial accounting oriented
e. Managerial accounting oriented
E 1-14
1. The total product is the product and its features (processing speed, disk drives,
software packages, and so on), the service, the operating and maintenance
requirements, and the delivery speed.
2. One company is emphasizing low costs, and the other is attempting to differentiate
its PC by offering faster delivery and higher-quality service.
3. The Confiar’s service component and its delivery time appear to be better than
Drantex’s. Thus, the realization of these features appears to outweigh the additional
sacrifice (the additional operating and maintenance cost) associated with the
Confiar PC. The implications for management accounting are straightforward. The
management accounting information system should collect and report information
about customer realization and sacrifice. Much of this information is external to the
firm but clearly needed by management.
4. Better quality and shorter delivery time increase the value of what the customer
receives, while lowering the price decreases the amount paid. In total, customer
value has increased, and presumably, this should make the Drantex PC much more
competitive. This example illustrates how quality, time, and costs are essential
competitive weapons. It also illustrates how critical it is for the management
accounting system to collect and report data concerning these three dimensions.
