SOLUTION MANUAL FOR MANAGERIAL ACCOUNTING 18TH EDITION BY RAY GARRISON

Solution Manual for Managerial Accounting,
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18th Edition yu




By Ray Garrison, Eric Noreen and Peter Brewer
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Verified Chapter's 1 - 16 | Complete
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,Table of Contentsyu yu




Chapter One: Managerial Accounting and Cost Concepts
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Chapter Two: Job-Order Costing: Calculating Unit Product Costs
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Chapter Three: Job-Order Costing: Cost Flows and External Reporting
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Chapter Four: Process Costing
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Chapter Five: Cost-Volume-Profit Relationships
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Chapter Six: Variable Costing and Segment Reporting: Tools for Management
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Chapter Seven: Activity-Based Costing: A Tool to Aid Decision Making
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Chapter Eight: Master Budgeting
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Chapter Nine: Flexible Budgets and Performance Analysis
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Chapter Ten: Standard Costs and Variances
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Chapter Eleven: Responsibility Accounting Systems
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Chapter Twelve: Strategic Performance Measurement
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Chapter Thirteen: Differential Analysis: The Key to Decision Making
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Chapter Fourteen: Capital Budgeting Decisions
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Chapter Fifteen: Statement of Cash Flows
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Chapter Sixteen: Financial Statement Analysis
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,Chapter 1 yu




Managerial Accounting and Cost Concepts yu yu yu yu




Questions


1-1 The three major types of product costs yu yu yu yu yu yu yu 1-4
in a manufacturing company are direct materia
yu yu yu yu yu yu a. Variable cost: The variable cost per unit is yu yu yu yu yu yu yu yu



ls, direct labor, and manufacturing overhead.
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direct proportion to changes in volume.
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1-2 b. Fixed cost: The total fixed cost is constant
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a. Direct materials are an integral part of a yu yu yu yu yu yu yu yu within the relevant range. The average fixed
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finished product and their costs can be convenyu yu yu yu yu yu yu cost per unit varies inversely with changes
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iently traced to it. yu yu yu in volume. yu



b. Indirect materials are generally small ite yu yu yu yu yu c. Mixed cost: A mixed cost contains both
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ms of material such as glue and nails. They may
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ube an integral part of a finished product but their
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costs can be traced to the product only at great
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cost or inconvenience.
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c. Direct labor consists of labor costs that yu yu yu yu yu yu yu increases.
can be easily traced to particular products.
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Direct labor is also called ―touch labor.‖
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d. Indirect labor consists of the labor costs yu yu yu yu yu yu y c. Total fixed costs remain constant as the
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uof janitors, supervisors, materials handlers, and
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uother factory workers that cannot be convenie
yu yu yu yu yu yu d. Total variable costs increase as the activity
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ntly traced to particular products. These labor
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costs are incurred to support production, but t
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he workers involved do not directly work on th
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e product.
yu a. Cost behavior: Cost behavior refers to the
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e. Manufacturing overhead includes all man yu yu yu yu way in which costs change in response to
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ufacturing costs except direct materials and dire yu yu yu yu yu yu changes in a measure of activity such as s yu yu yu yu yu yu yu yu



ct labor. Consequently, manufacturing overhead
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includes indirect materials and indirect labor as
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well as other manufacturing costs.
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range of activity within which assumptions
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1-3 about variable and fixed cost behavior are
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A product cost is any cost involved in p yu yu yu yu yu yu yu yu valid.
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urchasing or manufacturing goods. In the case yu yu yu yu yu yu yu



of manufactured goods, these costs consist of d
yu yu yu yu yu yu yu 1-7 An activity base is a measure of wha
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irect materials, direct labor, and manufacturing o
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verhead. A period cost is a cost that is taken dir yu yu yu yu yu yu yu yu yu yu . Examples of activity bases include units pro
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ectly to the income statement as an expense in
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the period in which it is incurred.
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ade, etc.
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1-8 The linear assumption is reasonably vali
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, d providing that the cost formula is used only w
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ithin the relevant range.
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