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