SOLUTIONS MANUAL
Cost Accounting: A Data Analytics Approach (2024 Release)
By Margaret H. Christ, D. Kip Holderness
N
U
R
SE
D
O
C
S
,TABLE OF CONTENT
1. Strategic Management Questions and the Role of Management Accountants 2.
An Introduction to Cost Data
3. Cost Behavior and Cost-Volume-Profit Analysis
N
4. Job Costing
5. Two-Stage Cost Allocations and Activity-Based Costing
U
6. Cost Allocation: Support-Department Costs and Joint Product Costing
R
7. Process Costing
8. Performance Measurement and Control
SE
9. Master Budgeting and Flexible Budgets
10. Sales and Direct-Cost Variances
D
11. Indirect Cost Variances
12. Strategy and the Balanced Scorecard
O
13. Strategic Decision Making
C
14. Capital Budgeting
S
, Christ, Holderness and Richardson – Cost Accounting
Chapter 1 End-of-Chapter Assignment Solutions
(Level 1) Multiple-Choice Questions
1. (LO 1.3) Which component of the AMPS model addresses the question of the best way
for management accountants to communicate their analyses with decision-makers?
a. Ask the question
b. Master the data
c. Perform the analysis
d. Share the story
2. (LO 1.5) Which of the following is considered discretionary information for a
N
company’s accountants to provide?
a. The break-even level of a new product
b. The annual report submitted to shareholders detailing financial performance
U
c. The federal tax return
d. Sales information as part of the sales tax return
R
3. (LO 1.1) Which of the following value chain activities is considered to be a primary
activity?
a. Procurement
b. Inbound logistics
SE
c. Human resources management
d. Information technology
4. (LO 1.2) What requires context to create information?
a. Knowledge
b. Data
D
c. Facts
d. Data stores
5. (LO 1.4) The analysis of variances (e.g., actual performance is different from budgeted
O
performance) is most often associated with which type of analytics?
a. Descriptive analytics
b. Diagnostic analytics
C
c. Predictive analytics
d. Prescriptive analytics
6. (LO 1.4) Summary statistics are most often associated with which type of analytics?
S
a. Descriptive analytics
b. Diagnostic analytics
c. Predictive analytics
d. Prescriptive analytics
7. (LO 1.4) Time series analysis is most often associated with which type of analytics?
a. Descriptive analytics
b. Diagnostic analytics
c. Predictive analytics
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Christ, Holderness and Richardson – Cost Accounting
d. Prescriptive analytics
8. (LO 1.6) Which of the following is not one of the four overarching ethical principles mentioned in
the 2017 IMA Statement of Ethical Professional Practice?
a. Competence
b. Honesty
c. Confidentiality
d. Credibility
9. (LO 1.3) Which questions aim to more clearly understand why net income is
decreasing when revenues are increasing?
a. What happened? What is happening?
N
b. Why did it happen? What are the root causes of past results?
c. Will it happen in the future? What is the probability something will happen? Is
it forecastable?
U
d. What should we do based on what we expect will happen? How do we optimize
our performance based on potential constraints?
10. (LO 1.3) What type of visualization is used to track overtime labor on a continuous,
R
real-time basis?
a. Dashboard with static display
b. Dashboard with dynamic display
SE
c. Conditional formatting
d. Bar chart for the past 10 months
11. (LO 1.3) Which management accounting question will require predictive analytics?
a. Why did labor expenses increase over the past year as compared to prior years?
b. Should the company rent or lease its headquarters office building?
D
c. Can we forecast future sales for this company?
d. Why did our cost structure (fixed and variable costs) change over the past
year?
O
12. (LO 1.3) Which management accounting question will require prescriptive analytics?
a. Why did the company perform worse this year than last year?
b. Should the company manufacture its product, or should it outsource the
C
production of its products to an outside contractor?
c. Can we forecast future sales, earnings, and cash flows for this company?
d. What was the total revenue last quarter?
S
13. (LO 1.2) A ________ is a person who analyzes accounting-related data to help an
organization make effective business decisions.
a. management accountant
b. financial accountant
c. data scientist
d. computer programmer
14. (LO 1.2) A ________ is a person employed to acquire, maintain, curate, access,
manipulate, and statistically test data to address business questions.
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Cost Accounting: A Data Analytics Approach (2024 Release)
By Margaret H. Christ, D. Kip Holderness
N
U
R
SE
D
O
C
S
,TABLE OF CONTENT
1. Strategic Management Questions and the Role of Management Accountants 2.
An Introduction to Cost Data
3. Cost Behavior and Cost-Volume-Profit Analysis
N
4. Job Costing
5. Two-Stage Cost Allocations and Activity-Based Costing
U
6. Cost Allocation: Support-Department Costs and Joint Product Costing
R
7. Process Costing
8. Performance Measurement and Control
SE
9. Master Budgeting and Flexible Budgets
10. Sales and Direct-Cost Variances
D
11. Indirect Cost Variances
12. Strategy and the Balanced Scorecard
O
13. Strategic Decision Making
C
14. Capital Budgeting
S
, Christ, Holderness and Richardson – Cost Accounting
Chapter 1 End-of-Chapter Assignment Solutions
(Level 1) Multiple-Choice Questions
1. (LO 1.3) Which component of the AMPS model addresses the question of the best way
for management accountants to communicate their analyses with decision-makers?
a. Ask the question
b. Master the data
c. Perform the analysis
d. Share the story
2. (LO 1.5) Which of the following is considered discretionary information for a
N
company’s accountants to provide?
a. The break-even level of a new product
b. The annual report submitted to shareholders detailing financial performance
U
c. The federal tax return
d. Sales information as part of the sales tax return
R
3. (LO 1.1) Which of the following value chain activities is considered to be a primary
activity?
a. Procurement
b. Inbound logistics
SE
c. Human resources management
d. Information technology
4. (LO 1.2) What requires context to create information?
a. Knowledge
b. Data
D
c. Facts
d. Data stores
5. (LO 1.4) The analysis of variances (e.g., actual performance is different from budgeted
O
performance) is most often associated with which type of analytics?
a. Descriptive analytics
b. Diagnostic analytics
C
c. Predictive analytics
d. Prescriptive analytics
6. (LO 1.4) Summary statistics are most often associated with which type of analytics?
S
a. Descriptive analytics
b. Diagnostic analytics
c. Predictive analytics
d. Prescriptive analytics
7. (LO 1.4) Time series analysis is most often associated with which type of analytics?
a. Descriptive analytics
b. Diagnostic analytics
c. Predictive analytics
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Christ, Holderness and Richardson – Cost Accounting
d. Prescriptive analytics
8. (LO 1.6) Which of the following is not one of the four overarching ethical principles mentioned in
the 2017 IMA Statement of Ethical Professional Practice?
a. Competence
b. Honesty
c. Confidentiality
d. Credibility
9. (LO 1.3) Which questions aim to more clearly understand why net income is
decreasing when revenues are increasing?
a. What happened? What is happening?
N
b. Why did it happen? What are the root causes of past results?
c. Will it happen in the future? What is the probability something will happen? Is
it forecastable?
U
d. What should we do based on what we expect will happen? How do we optimize
our performance based on potential constraints?
10. (LO 1.3) What type of visualization is used to track overtime labor on a continuous,
R
real-time basis?
a. Dashboard with static display
b. Dashboard with dynamic display
SE
c. Conditional formatting
d. Bar chart for the past 10 months
11. (LO 1.3) Which management accounting question will require predictive analytics?
a. Why did labor expenses increase over the past year as compared to prior years?
b. Should the company rent or lease its headquarters office building?
D
c. Can we forecast future sales for this company?
d. Why did our cost structure (fixed and variable costs) change over the past
year?
O
12. (LO 1.3) Which management accounting question will require prescriptive analytics?
a. Why did the company perform worse this year than last year?
b. Should the company manufacture its product, or should it outsource the
C
production of its products to an outside contractor?
c. Can we forecast future sales, earnings, and cash flows for this company?
d. What was the total revenue last quarter?
S
13. (LO 1.2) A ________ is a person who analyzes accounting-related data to help an
organization make effective business decisions.
a. management accountant
b. financial accountant
c. data scientist
d. computer programmer
14. (LO 1.2) A ________ is a person employed to acquire, maintain, curate, access,
manipulate, and statistically test data to address business questions.
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
