Solution Manual for Management
c c c
c Accounting for Decision Makers:
c c c c
11th Edition By Peter Atrill, Eddie
c c c c c
c McLaney All Chapters 1 - 12
c c c c c c
,TABLE OF CONTENTS
c c
1. Introduction to management accounting c c c
2. Relevant costs and benefits for decision making
c c c c c c
3. Cost–volume–profit analysis c
4. Full costing
c
5. Costing and cost management in a competitive environment
c c c c c c c
6. Budgeting
7. Accounting for control c c
8. Making capital investment decisions
c c c
9. Managing risk c
10.Strategic management accounting: performance evaluation and
c c c c c
c pricing in a competitive environment
c c c c
11.Measuring divisional performance
c c
12.Managing working capital c c
, SECTION A c
Authors’ note to tutors c c c
Using the book c c
The book is designed to provide readers with a sound introduction to management accounting. It
c c c c c c c c c c c c c c
assumes no previous knowledge of the subject and recognises that students using it may come from a
c c c c c c c c c c c c c c c c c
wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not assume a
c c c c c c c c c c c c c c c c c
high level of numerical ability from students. It has been class tested by students on various courses and
c c c c c c c c c c c c c c c c c c
we have modified and refined the material to take account of their comments. We have also taken
c c c c c c c c c c c c c c c c c
account of the comments made by lecturers who used the first nine editions of the book and of specially
c c c c c c c c c c c c c c c c c c c
commissioned reviews.
c c
The book aims to encourage an active approach to learning by providing activities and self-assessment
c c c c c c c c c c c c c c
questions at appropriate points. This approach is designed to stimulate thought concerning particular
c c c c c c c c c c c c c
issues and to give the readers the opportunity to test their understanding of the principles covered.
c c c c c c c c c c c c c c c c
The book is supplemented by a password-controlled lecturers’ website and a student website available to
c c c c c c c c c c c c c c
all readers.
c c
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used as
c c c c c c c c c c c c c c c c c c c c c
recommended reading for a traditional course based on lectures and tutorials. There are critical review
c c c c c c c c c c c c c c c
questions and exercises at the end of each chapter that can be used as the basis for tutorials. It could also
c c c c c c c c c c c c c c c c c c c c c
provide the basis for a distance learning approach for part-time or off-campus students. For these
c c c c c c c c c c c c c c c
students, the interactive nature of the book may be extremely useful where access to a tutor is restricted.
c c c c c c c c c c c c c c c c c c
The book can also be used as the basis for an open learning approach for full-time campus-based
c c c c c c c c c c c c c c c c c
students. We have successfully used it in this way at the University of Plymouth Business School.
c c c c c c c c c c c c c c c c
Accounting ‘surgeries’ have also been provided to give students the opportunity for one-to-one help
c c c c c c c c c c c c c c
with any problems they face.
c c c c c
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study. For full-
c c c c c c c c c c c c c c c c c c c c
time students, this will often be covered in one academic year.
c c c c c c c c c c
PowerPoint slides c
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint slides to
c c c c c c c c c c c c c c c c
help in delivering lectures and tutorials and these can be downloaded from the lecturers’ website.
c c c c c c c c c c c c c c c
Practice/assessment material c
The activities, whose solutions immediately follow them, and self-assessment questions, whose
c c c c c c c c c c
solutions are at the end of the book, form an integral part of it. In addition, there are various other
c c c c c c c c c c c c c c c c c c c c
, practice/assessment materials. At the end of each chapter there are four critical review questions. These c c c c c c c c c c c c c c
are short, narrative questions involving recall, explanation and brief discussion. The solutions to these
c c c c c c c c c c c c c c
are given at the end of the book. At the end of all chapters, except Chapter 1 (where there are two), there
c c c c c c c c c c c c c c c c c c c c c c
are eight exercises. These are questions, many involving calculations, which are similar in nature to
c c c c c c c c c c c c c c c
examination-style questions. The solutions to five of these are given at the end of the book and are,
c c c c c c c c c c c c c c c c c c
therefore, accessible to students. Solutions to the other three are in the following pages of this manual
c c c c c c c c c c c c c c c c c
and are not accessible to students.
c c c c c c
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of-
c c c c c c c c c c c c c c
chapter exercises there are:
c c c c
Two progress tests with solutions. These tests comprise multiple-choice questions, missing- word
c c c c c c c c c c c
questions and questions that are similar to the end-of-chapter exercises. One test corresponds to
c c c c c c c c c c c c c c
Chapters 1 to 5, and the other to Chapters 6 to 12.
c c c c c c c c c c c c
Supplementary questions (10 of them) with solutions. c c c c c c
Tutorial/seminar questions with solutions. c c c
None of this material, except the case study comments, is accessible to students. On the
c c c c c c c c c c c c c c
c student website, there are five types of material:
c c c c c c c
Revision exercises, similar in style to the end-of-chapter exercises, with solutions.
c c c c c c c c c c
Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled online, c c c c c c c c c c c c c
where they will be automatically graded.
c c c c c c
Missing-word questions, typically 10 for each chapter. These too can be attempted and graded c c c c c c c c c c c c c
online.
c
The multiple-choice questions and missing-word questions are intended to provide students with a quick
c c c c c c c c c c c c c
assessment of their mastery of the material of each chapter.
c c c c c c c c c c
The solutions to all of this material, except to the multiple-choice and missing-word questions, are fully
c c c c c c c c c c c c c c c
annotated in order to give the necessary feedback to students.
c c c c c c c c c c
We intend to expand the number and scope of the practice/assessment materials on a continuing basis.
c c c c c c c c c c c c c c c
We hope that you and your students will find the book both accessible and interesting. We should much
c c c c c c c c c c c c c c c c c
appreciate any suggestions you may have on how the book and supplementary material may be
c c c c c c c c c c c c c c c
improved.
c
Peter Atrill c
EddieMcLaney
c c
c c c
c Accounting for Decision Makers:
c c c c
11th Edition By Peter Atrill, Eddie
c c c c c
c McLaney All Chapters 1 - 12
c c c c c c
,TABLE OF CONTENTS
c c
1. Introduction to management accounting c c c
2. Relevant costs and benefits for decision making
c c c c c c
3. Cost–volume–profit analysis c
4. Full costing
c
5. Costing and cost management in a competitive environment
c c c c c c c
6. Budgeting
7. Accounting for control c c
8. Making capital investment decisions
c c c
9. Managing risk c
10.Strategic management accounting: performance evaluation and
c c c c c
c pricing in a competitive environment
c c c c
11.Measuring divisional performance
c c
12.Managing working capital c c
, SECTION A c
Authors’ note to tutors c c c
Using the book c c
The book is designed to provide readers with a sound introduction to management accounting. It
c c c c c c c c c c c c c c
assumes no previous knowledge of the subject and recognises that students using it may come from a
c c c c c c c c c c c c c c c c c
wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not assume a
c c c c c c c c c c c c c c c c c
high level of numerical ability from students. It has been class tested by students on various courses and
c c c c c c c c c c c c c c c c c c
we have modified and refined the material to take account of their comments. We have also taken
c c c c c c c c c c c c c c c c c
account of the comments made by lecturers who used the first nine editions of the book and of specially
c c c c c c c c c c c c c c c c c c c
commissioned reviews.
c c
The book aims to encourage an active approach to learning by providing activities and self-assessment
c c c c c c c c c c c c c c
questions at appropriate points. This approach is designed to stimulate thought concerning particular
c c c c c c c c c c c c c
issues and to give the readers the opportunity to test their understanding of the principles covered.
c c c c c c c c c c c c c c c c
The book is supplemented by a password-controlled lecturers’ website and a student website available to
c c c c c c c c c c c c c c
all readers.
c c
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used as
c c c c c c c c c c c c c c c c c c c c c
recommended reading for a traditional course based on lectures and tutorials. There are critical review
c c c c c c c c c c c c c c c
questions and exercises at the end of each chapter that can be used as the basis for tutorials. It could also
c c c c c c c c c c c c c c c c c c c c c
provide the basis for a distance learning approach for part-time or off-campus students. For these
c c c c c c c c c c c c c c c
students, the interactive nature of the book may be extremely useful where access to a tutor is restricted.
c c c c c c c c c c c c c c c c c c
The book can also be used as the basis for an open learning approach for full-time campus-based
c c c c c c c c c c c c c c c c c
students. We have successfully used it in this way at the University of Plymouth Business School.
c c c c c c c c c c c c c c c c
Accounting ‘surgeries’ have also been provided to give students the opportunity for one-to-one help
c c c c c c c c c c c c c c
with any problems they face.
c c c c c
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study. For full-
c c c c c c c c c c c c c c c c c c c c
time students, this will often be covered in one academic year.
c c c c c c c c c c
PowerPoint slides c
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint slides to
c c c c c c c c c c c c c c c c
help in delivering lectures and tutorials and these can be downloaded from the lecturers’ website.
c c c c c c c c c c c c c c c
Practice/assessment material c
The activities, whose solutions immediately follow them, and self-assessment questions, whose
c c c c c c c c c c
solutions are at the end of the book, form an integral part of it. In addition, there are various other
c c c c c c c c c c c c c c c c c c c c
, practice/assessment materials. At the end of each chapter there are four critical review questions. These c c c c c c c c c c c c c c
are short, narrative questions involving recall, explanation and brief discussion. The solutions to these
c c c c c c c c c c c c c c
are given at the end of the book. At the end of all chapters, except Chapter 1 (where there are two), there
c c c c c c c c c c c c c c c c c c c c c c
are eight exercises. These are questions, many involving calculations, which are similar in nature to
c c c c c c c c c c c c c c c
examination-style questions. The solutions to five of these are given at the end of the book and are,
c c c c c c c c c c c c c c c c c c
therefore, accessible to students. Solutions to the other three are in the following pages of this manual
c c c c c c c c c c c c c c c c c
and are not accessible to students.
c c c c c c
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of-
c c c c c c c c c c c c c c
chapter exercises there are:
c c c c
Two progress tests with solutions. These tests comprise multiple-choice questions, missing- word
c c c c c c c c c c c
questions and questions that are similar to the end-of-chapter exercises. One test corresponds to
c c c c c c c c c c c c c c
Chapters 1 to 5, and the other to Chapters 6 to 12.
c c c c c c c c c c c c
Supplementary questions (10 of them) with solutions. c c c c c c
Tutorial/seminar questions with solutions. c c c
None of this material, except the case study comments, is accessible to students. On the
c c c c c c c c c c c c c c
c student website, there are five types of material:
c c c c c c c
Revision exercises, similar in style to the end-of-chapter exercises, with solutions.
c c c c c c c c c c
Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled online, c c c c c c c c c c c c c
where they will be automatically graded.
c c c c c c
Missing-word questions, typically 10 for each chapter. These too can be attempted and graded c c c c c c c c c c c c c
online.
c
The multiple-choice questions and missing-word questions are intended to provide students with a quick
c c c c c c c c c c c c c
assessment of their mastery of the material of each chapter.
c c c c c c c c c c
The solutions to all of this material, except to the multiple-choice and missing-word questions, are fully
c c c c c c c c c c c c c c c
annotated in order to give the necessary feedback to students.
c c c c c c c c c c
We intend to expand the number and scope of the practice/assessment materials on a continuing basis.
c c c c c c c c c c c c c c c
We hope that you and your students will find the book both accessible and interesting. We should much
c c c c c c c c c c c c c c c c c
appreciate any suggestions you may have on how the book and supplementary material may be
c c c c c c c c c c c c c c c
improved.
c
Peter Atrill c
EddieMcLaney
c c
