Summary Managerial Accounting Solution Manual, 18th Edition by Ray Garrison, Eric Noreen, and Peter Brewer

Solution Manual for Managerial Accounting,
18th Edition
By Ray Garrison, Eric Noreen and Peter Brewer
Verified Chapter's 1 - 16 | Complete

,Table of Contents
D D




ChapterDOne:DManagerialDAccountingDandDCostDConcepts

ChapterDTwo:DJob-OrderDCosting:DCalculatingDUnitDProductDCosts

ChapterDThree:DJob-OrderDCosting:DCostDFlowsDandDExternalDReporting

ChapterDFour:DProcessDCosting

ChapterDFive:DCost-Volume-ProfitDRelationships

ChapterDSix:DVariableDCostingDandDSegmentDReporting:DToolsDforDManagement

ChapterDSeven:DActivity-BasedDCosting:DADToolDtoDAidDDecisionDMaking

ChapterDEight:DMasterDBudgeting

ChapterDNine:DFlexibleDBudgetsDandDPerformanceDAnalysis

ChapterDTen:DStandardDCostsDandDVariances

ChapterDEleven:DResponsibilityDAccountingDSystems

ChapterDTwelve:DStrategicDPerformanceDMeasurement

ChapterDThirteen:DDifferentialDAnalysis:DTheDKeyDtoDDecisionDMaking

ChapterDFourteen:DCapitalDBudgetingDDecisions

ChapterDFifteen:DStatementDofDCashDFlows

ChapterDSixteen:DFinancialDStatementDAnalysis

,Chapter 1 D



Managerial Accounting and Cost Concepts
D D D D




Questions


1-1 TheDthreeDmajorDtypesDofDproductDcost 1-4
sDinDaDmanufacturingDcompanyDareDdirectDmat a. VariableDcost:DTheDvariableDcostDperDunitDi
erials,DdirectDlabor,DandDmanufacturingDoverhe sDconstant,DbutDtotalDvariableDcostDchange
ad. sDinDdirectDproportionDtoDchangesDinDvolu
me.
1-2 b. FixedDcost:DTheDtotalDfixedDcostDisDconstant
a. DirectDmaterialsDareDanDintegralDpartDofD DwithinDtheDrelevantDrange.DTheDaverageDfix
aDfinishedDproductDandDtheirDcostsDcanDbeDcon edDcostDperDunitDvariesDinverselyDwithDchan
venientlyDtracedDtoDit. gesD inDvolume.
b. IndirectDmaterialsDareDgenerallyDsmallDite c. MixedDcost:DADmixedDcostDcontainsDbot
msDofDmaterialDsuchDasDglueDandDnails.DTheyDm hDvariableDandDfixedDcostDelements.
ayDbeDanDintegralDpartDofDaDfinishedDproductDbut
DtheirDcostsDcanDbeDtracedDtoDtheDproductDonlyD 1-5
atDgreatDcostDorDinconvenience. a. UnitDfixedDcostsDdecreaseDasDtheDactivityDlev
c. DirectDlaborDconsistsDofDlaborDcostsDth elDincreases.
atDcanDbeDeasilyDtracedDtoDparticularDproduct b. UnitDvariableDcostsDremainDconstantDasDth
s. eDactivityDlevelDincreases.
DirectDlaborDisDalsoDcalledD―touchDlabor.‖ c. TotalDfixedDcostsDremainDconstantDasDth
d. IndirectDlaborDconsistsDofDtheDlaborDcost eDactivityDlevelDincreases.
sDofDjanitors,Dsupervisors,DmaterialsDhandlers,Da d. TotalDvariableDcostsDincreaseDasDtheDactivit
ndDotherDfactoryDworkersDthatDcannotDbeDconv yDlevelDincreases.
enientlyDtracedDtoDparticularDproducts.DTheseDl
aborDcostsDareDincurredDtoDsupportDproduction, 1-6
DbutDtheDworkersDinvolvedDdoDnotDdirectlyDwor a. CostDbehavior:DCostDbehaviorDrefersDtoDthe
kDonDtheDproduct. DwayDinDwhichDcostsDchangeDinDresponseDt

e. ManufacturingDoverheadDincludesDallDma oDchangesDinDaDmeasureDofDactivityDsuchDa
nufacturingDcostsDexceptDdirectDmaterialsDandDd sDsalesDvolume,DproductionDvolume,DorDord
irectDlabor.DConsequently,DmanufacturingDoverh ersDprocessed.
eadDincludesDindirectDmaterialsDandDindirectDlab b. RelevantDrange:DTheDrelevantDrangeDisDth
orDasDwellDasDotherDmanufacturingDcosts. eDrangeDofDactivityDwithinDwhichDassumpti
onsDaboutDvariableDandDfixedDcostDbehavi
1-3 orDareDvalid.
ADproductDcostDisDanyDcostDinvolvedDinD
purchasingDorDmanufacturingDgoods.DInDtheDcas 1-7 AnDactivityDbaseDisDaDmeasureDofDw
eDofDmanufacturedDgoods,DtheseDcostsDconsistD hateverDcausesDtheDincurrenceDofDaDvariable
ofDdirectDmaterials,DdirectDlabor,DandDmanufactu Dcost.DExamplesDofDactivityDbasesDincludeDuni

ringDoverhead.DADperiodDcostDisDaDcostDthatDisDt tsDproduced,DunitsDsold,DlettersDtyped,DbedsD
akenDdirectlyDtoDtheDincomeDstatementDasDanDe inDaDhospital,DmealsDservedDinDaDcafe,Dservic
xpenseDinDtheDperiodDinDwhichDitDisDincurred. eDcallsDmade,Detc.

, 1-8 TheDlinearDassumptionDisDreasonablyDv
alidDprovidingDthatDtheDcostDformulaDisDusedDon
lyDwithinDtheDrelevantDrange.