TEST BANK For Managerial Accounting: Creating Value in a Dynamic Business Environment, 13th Edition by Hilton | Verified Chapter's 1 - 17 | Complete

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Managerial Accounting: Creating Value in a Dynamic
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Business Environment, 13th Edition by Hilton
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Chapters 1 - 17 Complete
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,TABLE OF CONTENTS vii ii




Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business
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EnvironmentiiChapter 2: Basic Cost Management Concepts
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Chapter 3: Product Costing and Cost Accumulation in a Batch Production Environment
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Chapter 4: Process Costing and
v v v v v v Hybrid Product-Costing v v Systems

Chapter 5: Activity-Based Costing and Management
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Chapter 6: Activity Analysis, Cost Behavior, and Cost
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EstimationiiChapter 7: Cost-Volume-Profit Analysis
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Chapter 8: Variable Costing and the Measurement of ESG and Quality
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v Costs Chapter 9: Financial
v v v v Planning and v v Analysis: v The Master Budget
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Chapter 10: Standard Costing and Analysis of Direct Costs
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Chapter 11: Flexible Budgeting and the Management of Overhead
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v CostsiiChapter 12: Responsibility Accounting and the Balanced Scorecard
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Chapter 13: Investment Centers and Transfer Pricing
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v Chapter 14: Decision Making: Relevant Costs and
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v Benefits Chapter 15: Target Costing and Cost Analysis
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v for Pricing DecisionsiiChapter 16: Capital Expenditure
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v Decisions

Chapter 17: Allocation of Support Activity Costs and Joint Costs
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Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management
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v AccountingiiAppendix II: v v Compound Interest and v v v the v Concept of Present Value v v v




Appendix III: Inventory Management
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,CHAPTER 1 v




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




FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
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The focus-on-ethics inset for Chapter 1 is the IMA Statement of Ethical Professional Practice.
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vInstructors can use this list of ethical principles and standards to lead a class discussion.
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vThe discussion can also range to consideration of how these standards may have been
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vviolated by accountants and managers involved in the various ethical scandals uncovered
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vover the past several years. It is also useful to discuss the pros and cons of the procedures
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vthat IMA suggests for its members when they believe they know about ethical lapses in
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vtheir organizations.
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ANSWERS TO REVIEW QUESTIONS v v v




1-1 The explosion in e-commerce will affect managers in significant ways. One
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veffect will be a drastic reduction in paper work. Millions of transactions between
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businesses are now being conducted electronically with no hard-copy
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documentation. Along withthis method of communicating for business transactions
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comes the very significant issue of information security. Businesses need to find
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ways to protect confidential information in their own computers, in cloud
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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.
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Another effect of e-commerce is the dramatically increased speed with which
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business transactions can be conducted. In addition, there will be dramatic
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changes in the way managerial accounting procedures are carried out, one
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example being cloud- based budgeting, which is the enterprise-wide and
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electronic completion of a company’s budgeting process using cloud-based
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software and data storage.
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, 1-2 Plausible v v goals v v for v v the v v organizations v v listed v v are v v as v v follows:
(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to grow on- v v v v v v v v v v v


vline sales of their many products. Amazon is also famous (infamous) for wanting
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vto 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 have
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resources available to meet any disaster that may occur, and (2) to provide
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assistance to people who are victims of a disaster anywhere in the world on short
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notice.
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(c) General Motors: (1) To earn income sufficient to provide a good return on
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v the investment of the company's stockholders, and (2) to provide the
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vhighest- quality product possible. v v v




(d) Wal-Mart: (1) To penetrate the retail market in virtually every location in the United
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States, and (2) to grow over time in terms of number of retail locations, total
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assets, and earnings. Also, to be competitive with Amazon in the e-retail
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space.
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(e) City of Seattle: (1) To maintain an urban environment as free of pollution as
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possible, and (2) to provide public safety, police, and fire protection to the city's
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citizens.
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(f) Hertz: (1) To be a recognizable household name associated with rental car
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services, and (2) to provide reliable and economical transportation services to the
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company's customers.
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1-3 The v v four v v basic v v management v v activities v v are v v listed v v and v v defined v v as v v follows:
(a) Decision making: Choosing among the available alternatives.
(b) Planning: Developing a detailed financial and v


operational description
v ofanticipated operations. v v




(c) Directing operations: Running the organization on a day-to-day basis.
(d) Controlling: Ensuring that the organization operates v v


in v the intended manner and achieves its goals. v v ii v v