Table r3of r3contents
Introduction r3to r3
SOLUTION MANUAL
Horngren's Accounting, The Managerial Chapters, 14th Edition
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
,1. Managerial Accounting r3
2. Job Order Costing
r3 r3
3. Process Costing
r3
4. Cost-Volume-Profit Analysis 3
r
5. Master Budgets
r3
6. Flexible Budgets and Standard Cost Systems
r3 r3 r3 r3 r3
7. Cost Allocation and Responsibility Accounting
r3 r3 r3 r3
8. Short-Term Business Decisions
r3 r3
9. Capital Investment Decisions
r3 r3
, Chapter r3M:1
Introduction r3to r3Managerial r3Accounting
Review r 3 Questions r3
1. What r3is r3the r3primary r3purpose r3of r3managerial r3accounting?
The r3primary r3purpose r3of r3managerial r3accounting r3is r3to r3provide r3information r3to r3help
r3managers r3plan, r 3 direct, r3control, r3and r3make r3decisions.
2. List r3six r3differences r3between r3financial r3accounting r3and r3managerial r3accounting.
Financial r 3 accounting r 3 and r 3 managerial r 3 accounting r 3 differ r 3 on r 3 the r 3 following r 3 6
r 3 dimensions: r 3 (1) r 3 primary r 3 users, r 3 (2) r 3 purpose r 3 of r 3 information, r 3 (3) r 3 focus r 3 and r 3 time
r 3 dimension r 3 of r 3 the r 3 information, r 3 (4) r 3 rules r 3 and r 3 re- r 3 strictions, r3(5) r3scope r3of r3information,
r3and r3(6) r3behavioral.
3. Explain r3the r3difference r3between r3line r3positions r3and r3staff r3positions.
Line r3positions r3are r3directly r3involved r3in r3providing r3goods r3or r3services r3to r3customers. r3Staff
r3positions r 3 support r3line r3positions.
4. Explain r3the r3differences r3between r3planning, r3directing, r3and r3controlling.
Planning r3means r3choosing r3goals r3and r3deciding r3how r3to r3achieve r3them. r3Directing r3involves r3running
r3the r3day- r 3 to-day r3operations r3of r3a r3business. r3Controlling r3is r3the r3process r3of r3monitoring
r3operations r3and r3keepingthe r 3 company r3on r3track.
5. List r3the r3four r3IMA r3standards r3of r3ethical r3practice r3and r3briefly r3describe r3each.
The r3four r3IMA r3standards r3of r3ethical r3practice r3and r3a r3description r3of r3each r3follow.
I. Competence.
Maintain r3an r3appropriate r3level r3of r3professional r3leadership r3and r3expertise r3by
r3enhancing r 3 knowledge r3and r3skills.
Perform r3professional r3duties r3in r3accordance r3with r3relevant r3laws, r3regulations, r3and
r3technical r 3 standards.
Provide r3decision r3support r3information r3and r3recommendations r3that r3are r3accurate, r3clear,
r3concise,
Introduction r3to r3
SOLUTION MANUAL
Horngren's Accounting, The Managerial Chapters, 14th Edition
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
,1. Managerial Accounting r3
2. Job Order Costing
r3 r3
3. Process Costing
r3
4. Cost-Volume-Profit Analysis 3
r
5. Master Budgets
r3
6. Flexible Budgets and Standard Cost Systems
r3 r3 r3 r3 r3
7. Cost Allocation and Responsibility Accounting
r3 r3 r3 r3
8. Short-Term Business Decisions
r3 r3
9. Capital Investment Decisions
r3 r3
, Chapter r3M:1
Introduction r3to r3Managerial r3Accounting
Review r 3 Questions r3
1. What r3is r3the r3primary r3purpose r3of r3managerial r3accounting?
The r3primary r3purpose r3of r3managerial r3accounting r3is r3to r3provide r3information r3to r3help
r3managers r3plan, r 3 direct, r3control, r3and r3make r3decisions.
2. List r3six r3differences r3between r3financial r3accounting r3and r3managerial r3accounting.
Financial r 3 accounting r 3 and r 3 managerial r 3 accounting r 3 differ r 3 on r 3 the r 3 following r 3 6
r 3 dimensions: r 3 (1) r 3 primary r 3 users, r 3 (2) r 3 purpose r 3 of r 3 information, r 3 (3) r 3 focus r 3 and r 3 time
r 3 dimension r 3 of r 3 the r 3 information, r 3 (4) r 3 rules r 3 and r 3 re- r 3 strictions, r3(5) r3scope r3of r3information,
r3and r3(6) r3behavioral.
3. Explain r3the r3difference r3between r3line r3positions r3and r3staff r3positions.
Line r3positions r3are r3directly r3involved r3in r3providing r3goods r3or r3services r3to r3customers. r3Staff
r3positions r 3 support r3line r3positions.
4. Explain r3the r3differences r3between r3planning, r3directing, r3and r3controlling.
Planning r3means r3choosing r3goals r3and r3deciding r3how r3to r3achieve r3them. r3Directing r3involves r3running
r3the r3day- r 3 to-day r3operations r3of r3a r3business. r3Controlling r3is r3the r3process r3of r3monitoring
r3operations r3and r3keepingthe r 3 company r3on r3track.
5. List r3the r3four r3IMA r3standards r3of r3ethical r3practice r3and r3briefly r3describe r3each.
The r3four r3IMA r3standards r3of r3ethical r3practice r3and r3a r3description r3of r3each r3follow.
I. Competence.
Maintain r3an r3appropriate r3level r3of r3professional r3leadership r3and r3expertise r3by
r3enhancing r 3 knowledge r3and r3skills.
Perform r3professional r3duties r3in r3accordance r3with r3relevant r3laws, r3regulations, r3and
r3technical r 3 standards.
Provide r3decision r3support r3information r3and r3recommendations r3that r3are r3accurate, r3clear,
r3concise,
