SOLUTION MANUAL
Horngren's Accounting, The Managerial Chapters, 14th Edition
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
,Table of contents
1. Introduction to Managerial Accounting
2. Job Order Costing
3. Process Costing
4. Cost-Volume-Profit Analysis
5. Master Budgets
6. Flexible Budgets and Standard Cost Systems
7. Cost fAllocation fand fResponsibility fAccounting
8. Short-Term fBusiness fDecisions
9. Capital fInvestment fDecisions
, Chapter fM:1
Introduction fto fManagerial fAccounting
Review f Questions f
1. What fis fthe fprimary fpurpose fof fmanagerial faccounting?
The fprimary fpurpose fof fmanagerial faccounting fis fto fprovide finformation fto fhelp fmanagers
fplan, f direct, fcontrol, fand fmake fdecisions.
2. List fsix fdifferences fbetween ffinancial faccounting fand fmanagerial faccounting.
Financial f accounting f and f managerial f accounting f differ f on f the f following f 6 f dimensions: f (1)
f primary f users, f (2) f purpose f of f information, f (3) f focus f and f time f dimension f of f the
f information, f (4) f rules f and f re- f strictions, f(5) fscope fof finformation, fand f(6) fbehavioral.
3. Explain fthe fdifference fbetween fline fpositions fand fstaff fpositions.
Line fpositions fare fdirectly finvolved fin fproviding fgoods for fservices fto fcustomers. fStaff fpositions
f support fline fpositions.
4. Explain fthe fdifferences fbetween fplanning, fdirecting, fand fcontrolling.
Planning fmeans fchoosing fgoals fand fdeciding fhow fto fachieve fthem. fDirecting finvolves frunning fthe
fday- f to-day foperations fof fa fbusiness. fControlling fis fthe fprocess fof fmonitoring foperations fand
fkeepingthe f company fon ftrack.
5. List fthe ffour fIMA fstandards fof fethical fpractice fand fbriefly fdescribe feach.
The ffour fIMA fstandards fof fethical fpractice fand fa fdescription fof feach ffollow.
I. Competence.
Maintain fan fappropriate flevel fof fprofessional fleadership fand fexpertise fby fenhancing
f knowledge fand fskills.
Perform fprofessional fduties fin faccordance fwith frelevant flaws, fregulations, fand ftechnical
f standards.
Provide fdecision fsupport finformation fand frecommendations fthat fare faccurate, fclear, fconcise,
Horngren's Accounting, The Managerial Chapters, 14th Edition
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
,Table of contents
1. Introduction to Managerial Accounting
2. Job Order Costing
3. Process Costing
4. Cost-Volume-Profit Analysis
5. Master Budgets
6. Flexible Budgets and Standard Cost Systems
7. Cost fAllocation fand fResponsibility fAccounting
8. Short-Term fBusiness fDecisions
9. Capital fInvestment fDecisions
, Chapter fM:1
Introduction fto fManagerial fAccounting
Review f Questions f
1. What fis fthe fprimary fpurpose fof fmanagerial faccounting?
The fprimary fpurpose fof fmanagerial faccounting fis fto fprovide finformation fto fhelp fmanagers
fplan, f direct, fcontrol, fand fmake fdecisions.
2. List fsix fdifferences fbetween ffinancial faccounting fand fmanagerial faccounting.
Financial f accounting f and f managerial f accounting f differ f on f the f following f 6 f dimensions: f (1)
f primary f users, f (2) f purpose f of f information, f (3) f focus f and f time f dimension f of f the
f information, f (4) f rules f and f re- f strictions, f(5) fscope fof finformation, fand f(6) fbehavioral.
3. Explain fthe fdifference fbetween fline fpositions fand fstaff fpositions.
Line fpositions fare fdirectly finvolved fin fproviding fgoods for fservices fto fcustomers. fStaff fpositions
f support fline fpositions.
4. Explain fthe fdifferences fbetween fplanning, fdirecting, fand fcontrolling.
Planning fmeans fchoosing fgoals fand fdeciding fhow fto fachieve fthem. fDirecting finvolves frunning fthe
fday- f to-day foperations fof fa fbusiness. fControlling fis fthe fprocess fof fmonitoring foperations fand
fkeepingthe f company fon ftrack.
5. List fthe ffour fIMA fstandards fof fethical fpractice fand fbriefly fdescribe feach.
The ffour fIMA fstandards fof fethical fpractice fand fa fdescription fof feach ffollow.
I. Competence.
Maintain fan fappropriate flevel fof fprofessional fleadership fand fexpertise fby fenhancing
f knowledge fand fskills.
Perform fprofessional fduties fin faccordance fwith frelevant flaws, fregulations, fand ftechnical
f standards.
Provide fdecision fsupport finformation fand frecommendations fthat fare faccurate, fclear, fconcise,
