SOLUTIONS MANUAL
FOR CORNERSTONES OF MANAGERIAL ACCOUNTING 4TH EDITION BY CANADIAN
EDITION BY MARYANNE MOWEN, DON HANSEN, DAVID MCCONOMY, BRADLEY WITT
GRADED A+
,Instructor’s Solutions Manual
To Accompany
Cornerstones Of Managerial
Accounting, Fourth Canadian
Edition
By
Maryanne M. Mowen, Don R.
Hansen, Dan L. Heitger, David
J. Mcconomy, Bradley D. Witt
, Chapter 1
Introduction To Managerial Accounting
Discussion Questions
1. Managerial Accounting Is The Provision Of Past 50 Years Have Changed The World
Accounting Information For Internal Users In Significantly. Managerial Accountants Have
A Firm. Had To Broaden Their Focus Beyond
Simple Financial Reporting To Include The
2. The Three Broad Objectives Of Managerial
Gathering Of Information On All Types Of
Accounting Are Planning, Controlling, And
Costs And Of The Value Of The Product Or
Decision Making.
Service To Customers. These Broader
3. The Users Of Managerial Accounting Costs Are Used In Planning And Decision
Information Are Generally Managers And Making.
Other Employees Of A Firm. Managerial 9. Customer Value Is The Difference Between
Accounting Information Is Typically Not What A Customer Pays For A Product Or
Provided To Outsiders But May Be In Service And What The Customer Receives
Selected Cases. For Example, A Bank May In Return. The Focus On Customer Value
Require Budgeting Information For The Next Forces Management Accounting To Look At
Few Years Before Agreeing To Grant A Many Types Of Costs, Not Simply
Loan. Manufacturing Cost. These May Include The
4. A Managerial Accounting Information Price Of The Good Or Service, Maintenance
System Typically Provides Both Financial Costs, Search Costs, Learning Costs, And
And Nonfinancial Information. For Example, Disposal Costs.
Financial Information On Cost Of Production
10. Today’s Managerial Accountant Must
Is Tracked. Other Information, Such As The
Understand Many Functions Of The
Number Of Warranty Returns, May Also Be
Tracked By The Management Information Business, From Manufacturing To Marketing
System. To Distribution To Customer Service, In
Order To Provide Appropriate Information
5. Controlling Is Sometimes Called For Managing The Value Chain. Increased
Performance Evaluation. It Involves International Trade Means That The
Comparing The Actual Outcome With The Managerial Accountant Must Be Familiar
Expected Outcome To See What Not Only With Business Practices And Laws
Differences, If Any, Exist. In Their Own Country But Also In The
6. Planning Occurs First. It Requires Setting Countries With Which Their Company
Objectives And Identifying The Means Of Trades.
Achieving Those Objectives. Then, The
11. Enterprise Risk Management (Erm) Refers
Results Of The Plan Are Compared With The
Plan, Which Is Called Controlling. Clearly, It To The Formal Process Of Identifying The
Is Also Feedback, In That Any Impediments Factors Or Threats, Both Internal And
Or Unexpected Occurrences Are Noted. External To The Organization, That Might
This Feedback Is Then Used To Develop Prevent The Organization From Achieving
The Plan For The Next Period. Its Strategic Objectives. The Managerial
Accountant Plays An Increasingly Important
7. Managerial Accounting Is Internally Role In Erm By Providing Financial And
Focused, Does Not Follow Mandatory Rules, Nonfinancial Measures Of These Threats
Keeps Track Of Both Financial And And Communicating Them To High-Level
Nonfinancial Information, Emphasizes The
Executives (E.G., Chief Risk Officer, Chief
Future, And Relies On A Broad Range Of
Financial Officer, Board Of Directors) In The
Disciplines. Financial Accounting Is
Organization Who Manage These Factors.
Externally Focused, Follows Externally
Imposed Rules (Such As Gaap), Has An 12. The Value Chain Is The Set Of Activities
Historical Orientation, And Provides Required To Design, Develop, Produce,
Information About The Company As A Market, And Deliver Products And Services
Whole. To Customers. It Is Important Because It
8. Huge Improvements In Technology, Helps The Company To Understand Its Role
Transportation, And Communication Over In Serving
The
, Customers And To Develop Wrongly Decided To Increase Current
Strategic Competence. Period Net Income By Inappropriately
Decreasing Current Period Expenses (By
13. Line Positions Are Those That Have Direct
Recording More Of The Expenditures As An
Responsibility For The Basic Objectives Of
Asset That Would Be Expensed In Small
An Organization. These Typically Include
Amounts Each Period Rather Than All At
Producing And Selling A Product. Staff
Once In The Current Period). Oftentimes,
Positions Are Supportive In Nature (E.G.,
The High-Level Executives That Perpetrate
Human Resources, Maintenance) And Have
Such Financial Fraud Are Rewarded By
Only Indirect Responsibility For An
Incentives That Overweight Current-Period
Organization’s Basic Objectives.
Net Income Performance Relative To Long-
14. Yes, The Controller Should Be A Member Of Term Net Income Performance. Another
Senior Management. This Is Because The Major Theme Common To Many Of The
Controller, As The Chief Accountant For The Accounting And Banking Frauds Is A Lack
Firm, Has A Wealth Of Information Needed Of Sufficient Transparency, Or Clarification,
By Senior Management In Determining The In The Types And Timing Of The Information
Strategic Direction Of The Firm. That Is Reported To Parties Outside Of The
Organization. Some Business Experts Also
15. Ethical Behaviour Involves Choosing Actions
Would Argue That A Third Common Theme
That Are Right, Proper, And Just. It Is
Underlying Many Of These Scandals Was
Possible To Teach Aspects Of Ethical
The Lack Of Sufficient Oversight (I.E.,
Behaviour In A Managerial Accounting
Watchdog Mentality) By The Perpetrating
Classroom. Students Need To See Organization’s Auditors, Board Of Directors,
Examples Of Right And Wrong In Business. Or Both.
These Examples Help Them To Recognize
Ethical Dilemmas They Will Face Later On 17. The Chartered Professional Accountant
The Job. (Cpa) Is The Canadian Professional
Accounting Designation. The Three
16. One Major Theme Or Executive Pressure Previous Forms Of Designation Discussed
Common To Many Of The Accounting Are Certified Management Accountant,
Scandals Is A Focus On The Short-Term
Chartered Accountant, And Certified
Future, Rather Than The Long-Term. For General Accountant.
Example, Worldcom
FOR CORNERSTONES OF MANAGERIAL ACCOUNTING 4TH EDITION BY CANADIAN
EDITION BY MARYANNE MOWEN, DON HANSEN, DAVID MCCONOMY, BRADLEY WITT
GRADED A+
,Instructor’s Solutions Manual
To Accompany
Cornerstones Of Managerial
Accounting, Fourth Canadian
Edition
By
Maryanne M. Mowen, Don R.
Hansen, Dan L. Heitger, David
J. Mcconomy, Bradley D. Witt
, Chapter 1
Introduction To Managerial Accounting
Discussion Questions
1. Managerial Accounting Is The Provision Of Past 50 Years Have Changed The World
Accounting Information For Internal Users In Significantly. Managerial Accountants Have
A Firm. Had To Broaden Their Focus Beyond
Simple Financial Reporting To Include The
2. The Three Broad Objectives Of Managerial
Gathering Of Information On All Types Of
Accounting Are Planning, Controlling, And
Costs And Of The Value Of The Product Or
Decision Making.
Service To Customers. These Broader
3. The Users Of Managerial Accounting Costs Are Used In Planning And Decision
Information Are Generally Managers And Making.
Other Employees Of A Firm. Managerial 9. Customer Value Is The Difference Between
Accounting Information Is Typically Not What A Customer Pays For A Product Or
Provided To Outsiders But May Be In Service And What The Customer Receives
Selected Cases. For Example, A Bank May In Return. The Focus On Customer Value
Require Budgeting Information For The Next Forces Management Accounting To Look At
Few Years Before Agreeing To Grant A Many Types Of Costs, Not Simply
Loan. Manufacturing Cost. These May Include The
4. A Managerial Accounting Information Price Of The Good Or Service, Maintenance
System Typically Provides Both Financial Costs, Search Costs, Learning Costs, And
And Nonfinancial Information. For Example, Disposal Costs.
Financial Information On Cost Of Production
10. Today’s Managerial Accountant Must
Is Tracked. Other Information, Such As The
Understand Many Functions Of The
Number Of Warranty Returns, May Also Be
Tracked By The Management Information Business, From Manufacturing To Marketing
System. To Distribution To Customer Service, In
Order To Provide Appropriate Information
5. Controlling Is Sometimes Called For Managing The Value Chain. Increased
Performance Evaluation. It Involves International Trade Means That The
Comparing The Actual Outcome With The Managerial Accountant Must Be Familiar
Expected Outcome To See What Not Only With Business Practices And Laws
Differences, If Any, Exist. In Their Own Country But Also In The
6. Planning Occurs First. It Requires Setting Countries With Which Their Company
Objectives And Identifying The Means Of Trades.
Achieving Those Objectives. Then, The
11. Enterprise Risk Management (Erm) Refers
Results Of The Plan Are Compared With The
Plan, Which Is Called Controlling. Clearly, It To The Formal Process Of Identifying The
Is Also Feedback, In That Any Impediments Factors Or Threats, Both Internal And
Or Unexpected Occurrences Are Noted. External To The Organization, That Might
This Feedback Is Then Used To Develop Prevent The Organization From Achieving
The Plan For The Next Period. Its Strategic Objectives. The Managerial
Accountant Plays An Increasingly Important
7. Managerial Accounting Is Internally Role In Erm By Providing Financial And
Focused, Does Not Follow Mandatory Rules, Nonfinancial Measures Of These Threats
Keeps Track Of Both Financial And And Communicating Them To High-Level
Nonfinancial Information, Emphasizes The
Executives (E.G., Chief Risk Officer, Chief
Future, And Relies On A Broad Range Of
Financial Officer, Board Of Directors) In The
Disciplines. Financial Accounting Is
Organization Who Manage These Factors.
Externally Focused, Follows Externally
Imposed Rules (Such As Gaap), Has An 12. The Value Chain Is The Set Of Activities
Historical Orientation, And Provides Required To Design, Develop, Produce,
Information About The Company As A Market, And Deliver Products And Services
Whole. To Customers. It Is Important Because It
8. Huge Improvements In Technology, Helps The Company To Understand Its Role
Transportation, And Communication Over In Serving
The
, Customers And To Develop Wrongly Decided To Increase Current
Strategic Competence. Period Net Income By Inappropriately
Decreasing Current Period Expenses (By
13. Line Positions Are Those That Have Direct
Recording More Of The Expenditures As An
Responsibility For The Basic Objectives Of
Asset That Would Be Expensed In Small
An Organization. These Typically Include
Amounts Each Period Rather Than All At
Producing And Selling A Product. Staff
Once In The Current Period). Oftentimes,
Positions Are Supportive In Nature (E.G.,
The High-Level Executives That Perpetrate
Human Resources, Maintenance) And Have
Such Financial Fraud Are Rewarded By
Only Indirect Responsibility For An
Incentives That Overweight Current-Period
Organization’s Basic Objectives.
Net Income Performance Relative To Long-
14. Yes, The Controller Should Be A Member Of Term Net Income Performance. Another
Senior Management. This Is Because The Major Theme Common To Many Of The
Controller, As The Chief Accountant For The Accounting And Banking Frauds Is A Lack
Firm, Has A Wealth Of Information Needed Of Sufficient Transparency, Or Clarification,
By Senior Management In Determining The In The Types And Timing Of The Information
Strategic Direction Of The Firm. That Is Reported To Parties Outside Of The
Organization. Some Business Experts Also
15. Ethical Behaviour Involves Choosing Actions
Would Argue That A Third Common Theme
That Are Right, Proper, And Just. It Is
Underlying Many Of These Scandals Was
Possible To Teach Aspects Of Ethical
The Lack Of Sufficient Oversight (I.E.,
Behaviour In A Managerial Accounting
Watchdog Mentality) By The Perpetrating
Classroom. Students Need To See Organization’s Auditors, Board Of Directors,
Examples Of Right And Wrong In Business. Or Both.
These Examples Help Them To Recognize
Ethical Dilemmas They Will Face Later On 17. The Chartered Professional Accountant
The Job. (Cpa) Is The Canadian Professional
Accounting Designation. The Three
16. One Major Theme Or Executive Pressure Previous Forms Of Designation Discussed
Common To Many Of The Accounting Are Certified Management Accountant,
Scandals Is A Focus On The Short-Term
Chartered Accountant, And Certified
Future, Rather Than The Long-Term. For General Accountant.
Example, Worldcom
