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