SOLUTION MANUAL
SOLUTION MANUAL FOR MANAGERIAL ACCOUNTING TOOLS FOR BUSINESS DECISION MAKING 9TH EDITION
BY JERRY J. WEYGANDT, PAUL D. KIMMEL ALL CHAPTERS 1 - 14
https://www.stuvia.com/en-us/user/MBoffin
,https://www.stuvia.com/en-us/user/MBoffin
,CHAPTER 1
MANAGERIAL ACCOUNTING
CHAPTER LEARNING OBJECTIVES
1. Identify the features of managerial accounting and the functions of management. The
primary users of managerial accounting reports, issued as frequently as needed, are internal
users, who are officers, department heads, managers, and supervisors in the company. The
purpose of these reports is to provide special-purpose information for a particular user for a
specific decision. The content of managerial accounting reports pertains to subunits of the
business. It may be very detailed, and may extend beyond the accrual accounting system. The
reporting standard is relevance to the decision being made. No independent audits are
required in managerial accounting.
The functions of management are planning, directing, and controlling. Planning requires
management to look ahead and to establish objectives. Directing involves coordinating the
diverse activities and human resources of a company to produce a smooth-running operation.
Controlling is the process of keeping the activities on track.
2. Describe the classes of manufacturing costs and the differences between product and period
costs. Manufacturing costs are typically classified as either (1) direct materials, (2) direct labor,
or (3) manufacturing overhead. Raw materials that can be physically and directly associated
with the finished product during the manufacturing process are called direct materials. The
work of factory employees that can be physically and directly associated with converting raw
materials into finished goods is considered direct labor. Manufacturing overhead consists of
costs that are indirectly associated with the manufacture of the finished product.
Manufacturing costs are typically incurred at the manufacturing facility.
Product costs are costs that are a necessary and integral part of producing the finished
product. Product costs are also called inventoriable costs. These costs do not become expenses
until the company sells the finished goods inventory.
Period costs are costs that are identified with a specific time period rather than with a salable
product. These costs relate to nonmanufacturing costs and therefore are not inventoriable
costs. They are expensed as incurred.
3. Demonstrate how to compute cost of goods manufactured and prepare financial statements
for a manufacturer. Companies add the cost of the beginning work in process inventory to the
total manufacturing costs for the current year to arrive at the total cost of work in process for
the year. They then subtract the ending work in process inventory from the total cost of work
in process to arrive at the cost of goods manufactured.
The difference between a merchandising and a manufacturing balance sheet is in the current
assets section. The current assets section of a manufacturing company's balance sheet
https://www.stuvia.com/en-us/user/MBoffin
, 12-2 Test Bank for Managerial Accounting, Ninth Edition
presents three inventory accounts: finished goods inventory, work in process inventory, and
raw materials inventory.
The difference between a merchandising and a manufacturing income statement is in the cost
of goods sold section. A manufacturing cost of goods sold section shows beginning and ending
finished goods inventories and the cost of goods manufactured.
4 Discuss trends in managerial accounting. Managerial accounting has experienced many changes
in recent years, including a shift toward service companies as well as emphasis on ethical
behavior. Improved practices include a focus on managing the value chain through techniques
such as just-in-time inventory, total quality management, activity-based costing, and theory
of constraints. The balanced scorecard is now used by many companies in order to attain a
more comprehensive view of the company's operations, and companies are now evaluating
their performance with regard to their corporate social responsibility. Finally, data analytics
and data visualizations are important tools that help businesses identify problems and
opportunities, and then make informed decisions
TRUE-FALSE STATEMENTS
1. Reports prepared in financial accounting are general-purpose reports while
reports prepared in managerial accounting are usually special-purpose reports.
Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting
2. Managerial accounting information generally pertains to an entity as a whole and is
highly aggregated.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting
3. All forms of business organizations need managerial accounting information.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting
4. Determining the unit cost of manufacturing a product is an output of financial accounting.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Measurement Analysis and Interpretation, AICPA PC:
None, IMA: FSA
5. Managerial accounting internal reports are prepared more frequently than
financial statements that are distributed externally.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting
6. The management function of organizing and directing is mainly concerned with
setting goals and objectives for the entity.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Process and Resource Management Perspectives, AICPA FC: None, AICPA PC:
Leadership, IMA: Decision Analysis
7. The controller of a company is responsible for all of the accounting and finance issues a
company faces.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Ethics, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
8. Controlling is the process of determining whether planned goals are being met.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Process and Resource Management Perspectives, AICPA FC: None, AICPA PC:
Leadership, IMA: Internal Controls
9. Decision-making is an integral part of the planning, directing, and controlling functions.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic Perspective, AICPA FC: None, AICPA PC: Leadership, IMA: Decision
Analysis
https://www.stuvia.com/en-us/user/MBoffin
SOLUTION MANUAL FOR MANAGERIAL ACCOUNTING TOOLS FOR BUSINESS DECISION MAKING 9TH EDITION
BY JERRY J. WEYGANDT, PAUL D. KIMMEL ALL CHAPTERS 1 - 14
https://www.stuvia.com/en-us/user/MBoffin
,https://www.stuvia.com/en-us/user/MBoffin
,CHAPTER 1
MANAGERIAL ACCOUNTING
CHAPTER LEARNING OBJECTIVES
1. Identify the features of managerial accounting and the functions of management. The
primary users of managerial accounting reports, issued as frequently as needed, are internal
users, who are officers, department heads, managers, and supervisors in the company. The
purpose of these reports is to provide special-purpose information for a particular user for a
specific decision. The content of managerial accounting reports pertains to subunits of the
business. It may be very detailed, and may extend beyond the accrual accounting system. The
reporting standard is relevance to the decision being made. No independent audits are
required in managerial accounting.
The functions of management are planning, directing, and controlling. Planning requires
management to look ahead and to establish objectives. Directing involves coordinating the
diverse activities and human resources of a company to produce a smooth-running operation.
Controlling is the process of keeping the activities on track.
2. Describe the classes of manufacturing costs and the differences between product and period
costs. Manufacturing costs are typically classified as either (1) direct materials, (2) direct labor,
or (3) manufacturing overhead. Raw materials that can be physically and directly associated
with the finished product during the manufacturing process are called direct materials. The
work of factory employees that can be physically and directly associated with converting raw
materials into finished goods is considered direct labor. Manufacturing overhead consists of
costs that are indirectly associated with the manufacture of the finished product.
Manufacturing costs are typically incurred at the manufacturing facility.
Product costs are costs that are a necessary and integral part of producing the finished
product. Product costs are also called inventoriable costs. These costs do not become expenses
until the company sells the finished goods inventory.
Period costs are costs that are identified with a specific time period rather than with a salable
product. These costs relate to nonmanufacturing costs and therefore are not inventoriable
costs. They are expensed as incurred.
3. Demonstrate how to compute cost of goods manufactured and prepare financial statements
for a manufacturer. Companies add the cost of the beginning work in process inventory to the
total manufacturing costs for the current year to arrive at the total cost of work in process for
the year. They then subtract the ending work in process inventory from the total cost of work
in process to arrive at the cost of goods manufactured.
The difference between a merchandising and a manufacturing balance sheet is in the current
assets section. The current assets section of a manufacturing company's balance sheet
https://www.stuvia.com/en-us/user/MBoffin
, 12-2 Test Bank for Managerial Accounting, Ninth Edition
presents three inventory accounts: finished goods inventory, work in process inventory, and
raw materials inventory.
The difference between a merchandising and a manufacturing income statement is in the cost
of goods sold section. A manufacturing cost of goods sold section shows beginning and ending
finished goods inventories and the cost of goods manufactured.
4 Discuss trends in managerial accounting. Managerial accounting has experienced many changes
in recent years, including a shift toward service companies as well as emphasis on ethical
behavior. Improved practices include a focus on managing the value chain through techniques
such as just-in-time inventory, total quality management, activity-based costing, and theory
of constraints. The balanced scorecard is now used by many companies in order to attain a
more comprehensive view of the company's operations, and companies are now evaluating
their performance with regard to their corporate social responsibility. Finally, data analytics
and data visualizations are important tools that help businesses identify problems and
opportunities, and then make informed decisions
TRUE-FALSE STATEMENTS
1. Reports prepared in financial accounting are general-purpose reports while
reports prepared in managerial accounting are usually special-purpose reports.
Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting
2. Managerial accounting information generally pertains to an entity as a whole and is
highly aggregated.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting
3. All forms of business organizations need managerial accounting information.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting
4. Determining the unit cost of manufacturing a product is an output of financial accounting.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Measurement Analysis and Interpretation, AICPA PC:
None, IMA: FSA
5. Managerial accounting internal reports are prepared more frequently than
financial statements that are distributed externally.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting
6. The management function of organizing and directing is mainly concerned with
setting goals and objectives for the entity.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Process and Resource Management Perspectives, AICPA FC: None, AICPA PC:
Leadership, IMA: Decision Analysis
7. The controller of a company is responsible for all of the accounting and finance issues a
company faces.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Ethics, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
8. Controlling is the process of determining whether planned goals are being met.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Process and Resource Management Perspectives, AICPA FC: None, AICPA PC:
Leadership, IMA: Internal Controls
9. Decision-making is an integral part of the planning, directing, and controlling functions.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic Perspective, AICPA FC: None, AICPA PC: Leadership, IMA: Decision
Analysis
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