SOLUTION MANUAL FOR MANAGERIAL ACCOUNTING 13th EDITION BY GARRISON ALL CHAPTERS INCLUDED 2023/2024.

SOLUTION MANUAL FOR MANAGERIAL ACCOUNTING 13th EDITION BY GARRISON ALL CHAPTERS INCLUDED 2023/2024. © The McGraw-Hill Companies, Inc., 2010. All rights reserved. Solutions Manual, Chapter 1 1 Chapter 1 Managerial Accounting and the Business Environment Solutions to Questions 1-1 A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors. The focal point of a company‘s strategy should be its target customers. 1-2 Customer value propositions fall into three broad categories—customer intimacy, operational excellence, and product leadership. A company with a customer intimacy strategy attempts to better understand and respond to its customers‘ individual needs than its competitors. A company that adopts an operational excellence strategy attempts to deliver products faster, more conveniently, and at a lower price than its competitors. A company that has a product leadership strategy attempts to offer higher quality products than its competitors. 1-3 A person in a line position is directly involved in achieving the basic objectives of the organization. A person in a staff position provides services and assistance to other parts of the organization, but is not directly involved in achieving the basic objectives of the organization. 1-4 The Chief Financial Officer is responsible for providing timely and relevant data to support planning and control activities and for preparing financial statements for external users. 1-5 The three main categories of inventories in a manufacturing company are raw materials, work in process, and finished goods. 1-6 The five steps in the lean thinking model are: (1) identify value in specific products and services; (2) identify the business process that delivers value; (3) organize work arrangements around the flow of the business process; (4) create a pull system that responds to customer orders; and (5) continuously pursue perfection in the business process. 1-7 Successful implementation of the lean thinking model should result in lower inventories, fewer defects, less wasted effort, and quicker customer response times. 1-8 In a pull production system, production is not initiated until a customer order is received. Inventories are reduced to a minimum by purchasing raw materials and producing products only as needed to meet customer demand. 1-9 Some benefits from improvement efforts come from cost reductions, but the primary benefit is often an increase in capacity. At nonconstraints, increases in capacity just add to the already-existing excess capacity. Therefore, improvement efforts should ordinarily focus on the constraint. 1-10 Six Sigma is a process improvement method that relies on customer feedback and fact-based data gathering and analysis techniques to drive process improvement. The goal is to reduce defect rates below 3.4 defects per million. 1-11 The five stages in the Six Sigma DMAIC Framework are (1) Define; (2) Measure; (3) Analyze; (4) Improve; and (5) Control. The goals for the define stage are to establish the scope and purpose of the project, to diagram the flow of the current process, and to establish the customer‘s requirements for the process. The goals for the measure stage are to gather © The McGraw-Hill Companies, Inc., 2010. All rights reserved. 2 Managerial Accounting, 13th Edition baseline performance data related to the existing process and to narrow the scope of the project to the most important problems. The goal in the analyze stage is to identify the root causes of the problems identified in the measure stage. The goal in the improve stage is to develop, evaluate, and implement solutions to the problems. The goals in the control stage are to ensure the problems remain fixed and to seek to improve the new methods over time. 1-12 If people generally did not act ethically in business, no one would trust anyone else and people would be reluctant to enter into business transactions. The result would be less funds raised in capital markets, fewer goods and services available for sale, lower quality, and higher prices. 1-13 Corporate governance is the system by which a company is directed and controlled. If properly implemented, the corporate governance system should provide incentives for the board of directors and top management to pursue objectives that are in the best interests of the company‘s owners and it should provide for effective monitoring of performance. 1-14 Enterprise risk management is a process used by a company to proactively identify the risks that it faces and to manage those risks. 1-15 The stakeholder groups include customers, suppliers, stockholders, employees, communities, and environmental and human rights advocates.