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Solutions Manua
Managerial Accounting: Creating Value in a Dynamic
Business Environment, 13th Edition by Hilton
Chapters 1 - 17 Complete

,TABLE OF CONTENTSr r




Chapterr1:rTherChangingrRolerofrManagerialrAccountingrinrarDynamicrBusinessrEnvi

ronmentrChapterr2:rBasicrCostrManagementrConcepts

Chapterr3:rProductrCostingrandrCostrAccumulationrinrarBatchrProductionrEnvironme

ntrChapterr4:rProcessrCostingrandrHybridrProduct-CostingrSystems

Chapterr5:rActivity-BasedrCostingrandrManagement

Chapterr6:rActivityrAnalysis,rCostrBehavior,randrCostrEsti

mationrChapterr7:rCost-Volume-ProfitrAnalysis

Chapterr8:rVariablerCostingrandrtherMeasurementrofrESGrandrQualityrCost

srChapterr9:rFinancialrPlanningrandrAnalysis:rTherMasterrBudget

Chapterr10:rStandardrCostingrandrAnalysisrofrDirectrCosts

Chapterr11:rFlexiblerBudgetingrandrtherManagementrofrOverheadrandrSupportrActivit

yrCostsrChapterr12:rResponsibilityrAccountingrandrtherBalancedrScorecard

Chapterr13:rInvestmentrCentersrandrTransferrPricingrC

hapterr14:rDecisionrMaking:rRelevantrCostsrandrBenefi

ts

Chapterr15:rTargetrCostingrandrCostrAnalysisrforrPricingrDeci

sionsrChapterr16:rCapitalrExpenditurerDecisions

Chapterr17:rAllocationrofrSupportrActivityrCostsrandrJointrCosts




AppendixrI:rTherSarbanes-

OxleyrAct,rInternalrControls,randrManagementrAccountingrAppendixrII:rCompoundrIn

terestrandrther ConceptrofrPresentrValue

AppendixrIII:rInventoryrManagement

,CHAPTER 1 r



The Crucial Role of Managerial Accounting in a
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Dynamic Business Environment r r




FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
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The focus-on-
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ethics inset for Chapter 1 is the IMA Statement of Ethical Professional Practice. Instructors ca
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n use this list of ethical principles and standards to lead a class discussion. The discussi
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on can also range to consideration of how these standards may have been violated by
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accountants and managers involved in the various ethical scandals uncovered over the p
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ast several years. It is also useful to discuss the pros and cons of the procedures that IMA
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suggests for its members when they believe they know about ethical lapses in their organ
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izations.

ANSWERS TO REVIEW QUESTIONS r r r



1-1 The explosion in e-
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commerce will affect managers in significant ways. One effect will be a drastic redu
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ction in paper work. Millions of transactions between businesses are now being co
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nducted electronically with no hard- r r r r

copy documentation. Along withthis method of communicating for business tra
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nsactions comes the very significant issue of information security. Businesses nee
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d to find ways to protect confidential information in their own computers, in cl
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oud computing data centers, and while moving across the internet, while at the
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same time sharing the information necessary to complete transactions. Another effe
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ct of e-r r

commerce is the dramatically increased speed with which business transactions ca
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n be conducted. In addition, there will be dramatic changes in the way managerial
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accounting procedures are carried out, one example being cloud-
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based budgeting, which is the enterprise-
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wide and electroniccompletion of a company’s budgeting process using cloud-
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based software and data storage.
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, 1-2 Plausible goals for the organizations listed are as follows:
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(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to grow on r r r r r r r r r r r

-
line sales of their many products. Amazon is also famous (infamous) for wanti
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ng to have every product in the world on its site.
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(b) American Red Cross: (1) To raise funds from the general public sufficient to ha
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ve resources available to meet any disaster that may occur, and (2) to prov
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ide assistance to people who are victims of a disaster anywhere in the world on shor
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t notice.
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(c) General Motors: (1) To earn income sufficient to provide a good return on
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the investment of the company's stockholders, and (2) to provide the highest-
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quality product possible. r r



(d) Wal-
Mart: (1) To penetrate the retail market in virtually every location in the United Sta
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tes, and (2) to grow over time in terms of number of retail locations, total assets, a
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nd earnings. Also, to be competitive with Amazon in the e-retail space.
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(e) City of Seattle: (1) To maintain an urban environment as free of pollution
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as possible, and (2) to provide public safety, police, and fire protection to the ci
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ty's citizens. r



(f) Hertz: (1) To be a recognizable household name associated with rental car
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rservices, and (2) to provide reliable and economical transportation services to the
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company's customers. r



1-3 The four basic management activities are listed and defined as follows:
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(a) Decision making: Choosing among the available alternatives.
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(b) Planning: Developing a detailed financial and operational descripti
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on ofanticipated operations.
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(c) Directing operations: Running the organization on a day-to-day basis.
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(d) Controlling: Ensuring that the organization operates in the intended manne
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r andachieves its goals.
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