Instructor’s Manual
Management Accounting
for Decision Makers
Tenth edition
Peter Atrill
Eddie McLaney
For further instructor material
please visit:
go.pearson.com/uk/he/resources
ISBN: 978-1-292-34949-7
© Pearson Education Limited 2021
Lecturers adopting the main text are permitted to download and photocopy the manual as
required.
,PEARSON EDUCATION LIMITED
KAO Two
KAO Park
Harlow CM17 9SR
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
------------------------------------------
Eighth edition published 2015
Ninth edition published 2019
This edition published 2021
© Pearson Education Limited 2021
The rights of Peter Atrill and Eddie McLaney to be identified as authors of this work have been
asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
ISBN-978-1-292-34949-7
Pearson Education is not responsible for the content of third-party Internet sites.
All rights reserved. Permission is hereby given for the material in this publication to be reproduced
for student handouts, without express permission of the Publishers, for educational purposes only.
In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise without either the prior written permission of the Publishers or a licence permitting
restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd.,
Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN. This book may not be lent, resold, hired out or
otherwise disposed of by way of trade in any form of binding or cover other than that in which it is
published, without the prior consent of the Publishers.
All trademarks used herein are the property of their respective owners. The use of any trademark in
this text does not vest in the author or publisher any trademark ownership rights in such trademarks,
nor does the use of such trademarks imply any affiliation with or endorsement of this book by such
owners.
The Financial Times. With a worldwide network of highly respected journalists, The Financial
Times provides global business news, insightful opinion and expert analysis of business, finance
and politics. With over 500 journalists reporting from 50 countries worldwide, our in-depth
coverage of international news is objectively reported and analysed from an independent, global
perspective. To find out more, visit www.ft.com/pearsonoffer.
, Contents
Chapters Pages
Section A: Authors’ note to tutors 4
Section B: Solutions to exercises 6
Supplementary questions 58
Progress Test 1 81
Progress Test 2 93
Tutorial/seminar questions 108
Revision questions 127
3
© Pearson Education Limited 2021
, SECTION A
Authors’ note to tutors
Using the book
The book is designed to provide readers with a sound introduction to management accounting. It
assumes no previous knowledge of the subject and recognises that students using it may come from
a wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not
assume a high level of numerical ability from students. It has been class tested by students on
various courses and we have modified and refined the material to take account of their comments.
We have also taken account of the comments made by lecturers who used the first nine editions of
the book and of specially commissioned reviews.
The book aims to encourage an active approach to learning by providing activities and self-assessment
questions at appropriate points. This approach is designed to stimulate thought concerning particular
issues and to give the readers the opportunity to test their understanding of the principles covered.
The book is supplemented by a password-controlled lecturers’ website and a student website
available to all readers.
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used
as recommended reading for a traditional course based on lectures and tutorials. There are critical
review questions and exercises at the end of each chapter that can be used as the basis for tutorials.
It could also provide the basis for a distance learning approach for part-time or off-campus students.
For these students, the interactive nature of the book may be extremely useful where access to a
tutor is restricted. The book can also be used as the basis for an open learning approach for full-time
campus-based students. We have successfully used it in this way at the University of Plymouth
Business School. Accounting ‘surgeries’ have also been provided to give students the opportunity
for one-to-one help with any problems they face.
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study.
For full-time students, this will often be covered in one academic year.
PowerPoint slides
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint
slides to help in delivering lectures and tutorials and these can be downloaded from the lecturers’
website.
Practice/assessment material
The activities, whose solutions immediately follow them, and self-assessment questions, whose
solutions are at the end of the book, form an integral part of it. In addition, there are various other
4
© Pearson Education Limited 2021
Management Accounting
for Decision Makers
Tenth edition
Peter Atrill
Eddie McLaney
For further instructor material
please visit:
go.pearson.com/uk/he/resources
ISBN: 978-1-292-34949-7
© Pearson Education Limited 2021
Lecturers adopting the main text are permitted to download and photocopy the manual as
required.
,PEARSON EDUCATION LIMITED
KAO Two
KAO Park
Harlow CM17 9SR
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
------------------------------------------
Eighth edition published 2015
Ninth edition published 2019
This edition published 2021
© Pearson Education Limited 2021
The rights of Peter Atrill and Eddie McLaney to be identified as authors of this work have been
asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
ISBN-978-1-292-34949-7
Pearson Education is not responsible for the content of third-party Internet sites.
All rights reserved. Permission is hereby given for the material in this publication to be reproduced
for student handouts, without express permission of the Publishers, for educational purposes only.
In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise without either the prior written permission of the Publishers or a licence permitting
restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd.,
Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN. This book may not be lent, resold, hired out or
otherwise disposed of by way of trade in any form of binding or cover other than that in which it is
published, without the prior consent of the Publishers.
All trademarks used herein are the property of their respective owners. The use of any trademark in
this text does not vest in the author or publisher any trademark ownership rights in such trademarks,
nor does the use of such trademarks imply any affiliation with or endorsement of this book by such
owners.
The Financial Times. With a worldwide network of highly respected journalists, The Financial
Times provides global business news, insightful opinion and expert analysis of business, finance
and politics. With over 500 journalists reporting from 50 countries worldwide, our in-depth
coverage of international news is objectively reported and analysed from an independent, global
perspective. To find out more, visit www.ft.com/pearsonoffer.
, Contents
Chapters Pages
Section A: Authors’ note to tutors 4
Section B: Solutions to exercises 6
Supplementary questions 58
Progress Test 1 81
Progress Test 2 93
Tutorial/seminar questions 108
Revision questions 127
3
© Pearson Education Limited 2021
, SECTION A
Authors’ note to tutors
Using the book
The book is designed to provide readers with a sound introduction to management accounting. It
assumes no previous knowledge of the subject and recognises that students using it may come from
a wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not
assume a high level of numerical ability from students. It has been class tested by students on
various courses and we have modified and refined the material to take account of their comments.
We have also taken account of the comments made by lecturers who used the first nine editions of
the book and of specially commissioned reviews.
The book aims to encourage an active approach to learning by providing activities and self-assessment
questions at appropriate points. This approach is designed to stimulate thought concerning particular
issues and to give the readers the opportunity to test their understanding of the principles covered.
The book is supplemented by a password-controlled lecturers’ website and a student website
available to all readers.
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used
as recommended reading for a traditional course based on lectures and tutorials. There are critical
review questions and exercises at the end of each chapter that can be used as the basis for tutorials.
It could also provide the basis for a distance learning approach for part-time or off-campus students.
For these students, the interactive nature of the book may be extremely useful where access to a
tutor is restricted. The book can also be used as the basis for an open learning approach for full-time
campus-based students. We have successfully used it in this way at the University of Plymouth
Business School. Accounting ‘surgeries’ have also been provided to give students the opportunity
for one-to-one help with any problems they face.
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study.
For full-time students, this will often be covered in one academic year.
PowerPoint slides
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint
slides to help in delivering lectures and tutorials and these can be downloaded from the lecturers’
website.
Practice/assessment material
The activities, whose solutions immediately follow them, and self-assessment questions, whose
solutions are at the end of the book, form an integral part of it. In addition, there are various other
4
© Pearson Education Limited 2021
