SOLUTION MANUAL Horngren's Accounting, The Managerial Chapters, 14th Edition By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9 Complete Solutions

SOLUTION MANUAL
Horngren's Accounting, The Managerial Chapters, 14th
Edition
By Tracie Miller-Nobles Brenda Mattison,
All Chapters 1 - 9

, Table of contents jx jx




1. Introduction to Managerial Accounting jx jx jx




2. Job Order Costing
jx jx




3. Process Costing jx




4. Cost-Volume-Profit Analysis jx




5. Master Budgets
jx




6. Flexible Budgets and Standard Cost Systems
jx jx jx jx jx




7. Cost Allocation and Responsibility Accounting
jx jx jx jx




8. Short-Term Business Decisions jx jx




9. Capital Investment Decisions
jx jx

,Chapter M:1 jx




Introduction to Managerial Accounting jx jx jx




Review Questions jx




1. What is the primary purpose of managerial accounting?
jx jx jx jx jx jx jx




The primary purpose of managerial accounting is to provide information to help managers plan,di
jx jx jx jx jx jx jx jx jx jx jx jx jx jx



rect, control, and make decisions.
jx jx jx jx




2. List six differences between financial accounting and managerial accounting.
jx jx jx jx jx jx jx jx




Financial accounting and managerial accounting differ on the following 6 dimensions: (1) primaryus
jx jx jx jx jx jx jx jx jx jx jx jx jx




ers, (2) purpose of information, (3) focus and time dimension of the information, (4) rules and re-
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx




strictions, (5) scope of information, and (6) behavioral.
jx jx jx jx jx jx jx jx




3. Explain the difference between line positions and staff positions.
jx jx jx jx jx jx jx jx




Line positions are directly involved in providing goods or services to customers. Staff positionss
jx jx jx jx jx jx jx jx jx jx jx jx jx jx



upport line positions. jx jx




4. Explain the differences between planning, directing, and controlling.
jx jx jx jx jx jx jx




Planning means choosing goals and deciding how to achieve them. Directing involves running the day
jx jx jx jx jx jx jx jx jx jx jx jx jx jx



-to-
day operations of a business. Controlling is the process of monitoring operations and keepingthe com
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx



pany on track. jx jx




5. List the four IMA standards of ethical practice and briefly describe each.
jx jx jx jx jx jx jx jx jx jx jx




The four IMA standards of ethical practice and a description of each follow.
jx jx jx jx jx jx jx jx jx jx jx jx




I. Competence.
 Maintain an appropriate level of professional leadership and expertise by enhancingk jx jx jx jx jx jx jx jx jx jx jx




nowledge and skills. jx jx




 Perform professional duties in accordance with relevant laws, regulations, and technicalst
jx jx jx jx jx jx jx jx jx jx jx




andards.
 Provide decision support information and recommendations that are accurate, clear, concise,
jx jx jx jx jx jx jx jx jx jx

, and timely. jx




 Recognise and help mange risk. jx jx jx jx




II. Confidentiality.
 Keep information confidential except when disclosure is authorized or legally required.
jx jx jx jx jx jx jx jx jx jx




 Inform all relevant parties regarding appropriate use of confidential information. Monitor toe
jx jx jx jx jx jx jx jx jx j x jx jx




nsure compliance. jx




 Refrain from using confidential information for unethical or illegal advantage.
jx jx jx jx jx jx jx jx jx



III. Integrity.
 Mitigate actual conflicts of interest. Regularly communicate with business associates to avoida
jx jx jx jx jx jx jx jx jx jx jx jx




pparent conflicts of interest. Advise all parties of any potential conflicts.
jx jx jx jxjx jx jx jx jx jx jx




 Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
jx jx jx jx jx jx jx jx jx jx jx jx




 Abstain from engaging in or supporting any activity that might discredit the profession.
jx jx jx jx jx jx jx jx jx jx jx jx




 Contribute to a positive ethical culture and place integrity of the profession above personalin
jx jx jx jx jx jx jx jx jx jx jx jx jx jx




terest.

5, cont.
jx




IV. Credibility.
 Communicate information fairly and objectively. jx jx jx jx




 Provide all relevant information that could reasonably be expected to influence an intendedu
jx jx jx jx jx jx jx jx jx jx jx jx jx




ser’s understanding of the reports, analyses, or recommendations.
jx jx jx jx jx jx jx




 Report any delays or deficiencies in information, timeliness, processing, or internal controlsi
jx jx jx jx jx jx jx jx jx jx jx jx




n conformance with organization policy and/or applicable law.
jx jx jx jx jx jx jx




 Communicate any professional limitations or other constraints that would preclude responsi- jx jx jx jx jx jx jx jx jx jx




ble judgment or successful performance of an activity.
jx jx jx jx jx jx jx jx




6. Describe a service company and give an example.
jx jx jx jx jx jx jx




Service companies sell time, skills, and knowledge. Examples of service companies include phonese
jx jx jx jx jx jx jx jx jx jx jx jx jx




rvice companies, banks, cleaning service companies, accounting firms, law firms, medical physi-
jx jx jx jx jx jx jx jx jx jx jx




cians, and online auction services.
jx jx jx jx jx




7. Describe a merchandising company and give an example.
jx jx jx jx jx jx jx




Merchandising companies resell products they buy from suppliers. Merchandisers keep an inventoryo
jx jx jx jx jx jx jx jx jx jx jx jx




f products, and managers are accountable for the purchasing, storage, and sale of the products. Ex-
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx




amples of merchandising companies include toy stores, grocery stores, and clothing stores.
jx jx jx jx jx jx jx jx jx jx jx jx




8. How do manufacturing companies differ from merchandising companies?
jx jx jx jx jx jx jx




Merchandising companies resell products they previously bought from suppliers, whereas manufac-
jx jx jx jx jx jx jx jx jx jx




turing companies use labor, equipment, supplies, and facilities to convert raw materials into new fin-
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx




ished products. In contrast to merchandising companies, manufacturing companies have a broad range
jx jx jx jx jx jx jx jx jx jx jx jx jx j




of production activities that require tracking costs on three kinds of inventory.
x jx jx jx jx jx jx jx jx jx jx jx