Solution manual
Introduction to managerial accounting
7th edition by peter c brewer and ray h garrison
All Chapters 1-14 Covered
,TABLE OF CONTENT
Y Y
1.YYManagerialYAccountingYandYCostYConcepts
2.YYJob-OrderYCosting:YCalculatingYUnitYProductYCosts
3.YYJob-OrderYCosting:YCostYFlowsYandYExternalYReporting
4.YYActivity-BasedYCosting
5.YYProcessYCosting
6.YYCost-Volume-ProfitYRelationships
7.YYVariableYCostingYandYSegmentYReporting:YToolsYforYManagement
8.YYMasterYBudgeting
9.YYFlexibleYBudgets,YStandardYCosts,YandYVarianceYAnalysis
10.YPerformanceYMeasurementYinYDecentralizedYOrganizations
11.YDifferentialYAnalysis:YTheYKeyYtoYDecisionYMaking
12.YCapitalYBudgetingYDecisions
13.YStatementYofYCashYFlows
14.YFinancialYStatementYAnalysis
©YTheYMcGraw-HillYCompanies,YInc.,Y2002.YAllYrightsYreserved.
2 IntroductionYtoYManage
,Introduction to Managerial Accounting 7CE Peter C. Brewer, Ray H. Garrison, Eric N
Y Y Y Y Y Y Y Y Y Y Y Y
oreen, Suresh Kalagnanam, Ganesh Vaidyanathan
Y Y Y Y
Chapter 1 Y
An Introduction to Managerial Accounting
Y Y Y Y
SolutionsYtoYQuestions
1-1 ManagerialYaccountingYisYconcernedYwithYprovidingYinformationYprimarilyYtoYmanagersYforY
theirYuseYinternallyYinYtheYorganizationYforYtheYpurposesYofYstrategy,Yplanning,Yimplementat
ionYandYcontrol.YFinancialYaccountingYisYconcernedYwithYprovidingYinformationYprimarilyYto
Yinvestors,Ycreditors,YandYothersYoutsideYofYtheYorganization.
1-2 Essentially,YtheYmanagerYcarriesYoutYthreeYmajorYactivitiesYinYanYorganization:Yplanning,Yim
plementation,YandYcontrol.Y AllYthreeYactivitiesYinvolveYdecision-
YmakingYandYuseYmanagerialYaccountingYinformation.Y ThisYisYdepictedYinYExhibitY1-Y1.
1-3 TheYPlanning,YImplementationYandYControlYCycleYinvolvesYtheYfollowingYsteps:Y(1)Yformula
tingYplansYwhichYoftenYincludesYpreparingYbudgets,Y(2)YoverseeingYday-to-
YdayYactivitiesYwhichYincludesYorganizing,YdirectingYandYmotivatingYpeople,YresourceYalloc
ationYandYdecisionYmaking,YandY(3)YcontrollingYwhichYincludesYprovidingYfeedbackYviaYperf
ormanceYreports.
1-4 InYcontrastYtoYfinancialYaccounting,YmanagerialYaccounting:Y(1)YfocusesYonYtheYneedsYofYth
eYmanager;Y(2)YplacesYmoreYemphasisYonYtheYfuture;Y(3)YemphasizesYrelevanceYandYtimeli
ness,YratherYthanYverifiabilityYandYprecision;Y(4)YemphasizesYtheYsegmentsYofYanYorganizati
on;Y(5)YisYnotYgovernedYbyYIFRSYorYASPE;YandY(6)YisYnotYmandatory.
1-5 TheYleanYbusinessYmodelYfocusesYonYcontinuousYimprovementYbyYeliminatingYwasteY
inYtheYorganization.Y CompaniesYthatYadoptYtheYleanYbusinessYmodelYusuallyYimplem
entYoneYorYmoreYofYtheYfollowingYmanagementYpractices.
, • Just-in-
timeY(JIT):YAYproductionYandYinventoryYcontrolYsystemYinYwhichYmaterialsYareYpur
chasedYandYunitsYareYproducedYonlyYasYneededYtoYmeetYactualYcustomerYdeman
d.
©YTheYMcGraw-HillYCompanies,YInc.,Y2002.YAllYrightsYreserved.
4 IntroductionYtoYManage
Introduction to managerial accounting
7th edition by peter c brewer and ray h garrison
All Chapters 1-14 Covered
,TABLE OF CONTENT
Y Y
1.YYManagerialYAccountingYandYCostYConcepts
2.YYJob-OrderYCosting:YCalculatingYUnitYProductYCosts
3.YYJob-OrderYCosting:YCostYFlowsYandYExternalYReporting
4.YYActivity-BasedYCosting
5.YYProcessYCosting
6.YYCost-Volume-ProfitYRelationships
7.YYVariableYCostingYandYSegmentYReporting:YToolsYforYManagement
8.YYMasterYBudgeting
9.YYFlexibleYBudgets,YStandardYCosts,YandYVarianceYAnalysis
10.YPerformanceYMeasurementYinYDecentralizedYOrganizations
11.YDifferentialYAnalysis:YTheYKeyYtoYDecisionYMaking
12.YCapitalYBudgetingYDecisions
13.YStatementYofYCashYFlows
14.YFinancialYStatementYAnalysis
©YTheYMcGraw-HillYCompanies,YInc.,Y2002.YAllYrightsYreserved.
2 IntroductionYtoYManage
,Introduction to Managerial Accounting 7CE Peter C. Brewer, Ray H. Garrison, Eric N
Y Y Y Y Y Y Y Y Y Y Y Y
oreen, Suresh Kalagnanam, Ganesh Vaidyanathan
Y Y Y Y
Chapter 1 Y
An Introduction to Managerial Accounting
Y Y Y Y
SolutionsYtoYQuestions
1-1 ManagerialYaccountingYisYconcernedYwithYprovidingYinformationYprimarilyYtoYmanagersYforY
theirYuseYinternallyYinYtheYorganizationYforYtheYpurposesYofYstrategy,Yplanning,Yimplementat
ionYandYcontrol.YFinancialYaccountingYisYconcernedYwithYprovidingYinformationYprimarilyYto
Yinvestors,Ycreditors,YandYothersYoutsideYofYtheYorganization.
1-2 Essentially,YtheYmanagerYcarriesYoutYthreeYmajorYactivitiesYinYanYorganization:Yplanning,Yim
plementation,YandYcontrol.Y AllYthreeYactivitiesYinvolveYdecision-
YmakingYandYuseYmanagerialYaccountingYinformation.Y ThisYisYdepictedYinYExhibitY1-Y1.
1-3 TheYPlanning,YImplementationYandYControlYCycleYinvolvesYtheYfollowingYsteps:Y(1)Yformula
tingYplansYwhichYoftenYincludesYpreparingYbudgets,Y(2)YoverseeingYday-to-
YdayYactivitiesYwhichYincludesYorganizing,YdirectingYandYmotivatingYpeople,YresourceYalloc
ationYandYdecisionYmaking,YandY(3)YcontrollingYwhichYincludesYprovidingYfeedbackYviaYperf
ormanceYreports.
1-4 InYcontrastYtoYfinancialYaccounting,YmanagerialYaccounting:Y(1)YfocusesYonYtheYneedsYofYth
eYmanager;Y(2)YplacesYmoreYemphasisYonYtheYfuture;Y(3)YemphasizesYrelevanceYandYtimeli
ness,YratherYthanYverifiabilityYandYprecision;Y(4)YemphasizesYtheYsegmentsYofYanYorganizati
on;Y(5)YisYnotYgovernedYbyYIFRSYorYASPE;YandY(6)YisYnotYmandatory.
1-5 TheYleanYbusinessYmodelYfocusesYonYcontinuousYimprovementYbyYeliminatingYwasteY
inYtheYorganization.Y CompaniesYthatYadoptYtheYleanYbusinessYmodelYusuallyYimplem
entYoneYorYmoreYofYtheYfollowingYmanagementYpractices.
, • Just-in-
timeY(JIT):YAYproductionYandYinventoryYcontrolYsystemYinYwhichYmaterialsYareYpur
chasedYandYunitsYareYproducedYonlyYasYneededYtoYmeetYactualYcustomerYdeman
d.
©YTheYMcGraw-HillYCompanies,YInc.,Y2002.YAllYrightsYreserved.
4 IntroductionYtoYManage
