Solution Manual for Managerial Accounting 11th Edition
by Hilton
Complete downloadable file at:
https://testbanku.eu/Solution-Manual-for- Managerial-
Accounting-11th-Edition-By-Hilton
The Changing Role of Managerial Accounting in a
Dynamic Business Environment
FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
The focus-on-ethics inset for Chapter 1 is the IMA Statement of Ethical Professional Practice.
Instructors can use this list of ethical standards to lead a class discussion. The discussion can also
range to consideration of how these standards were violated by managerial accountants
involved in the various accounting scandals uncovered over the past several years. It is also useful to
discuss the procedures that managerial accountants can follow when they believe they know about ethical
lapses in their organization.
ANSWERS TO REVIEW QUESTIONS
1-1 The explosion in e-commerce will affect managerial accounting in significant ways. One effect
will be a drastic reduction in paper work. Millions of transactions between businesses will be
conducted electronically with no hard-copy documentation. Along with this method of
communicating for business transactions comes the very significant issue of information
security. Businesses need to find ways to protect confidential information in their own
computers, while at the same time sharing the information necessary to complete
transactions. Another effect of e-commerce is the dramatically increased speed with
which business transactions can be conducted. In addition to these business-to-business
transactional issues, there will be dramatic changes in the way managerial accounting
procedures are carried out, one example being e-budgeting, which is the enterprise-wide
and electronic completion of a company’s budgeting process.
,
, 1-2 Plausible goals for the organizations listed are as follows:
(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to grow on-line sales of
books, music, and other goods.
(b) American Red Cross: (1) To raise funds from the general public sufficient to have resources
available to meet any disaster that may occur, and (2) to provide assistance to people
who are victims of a disaster anywhere in the country on short notice.
(c) General Motors: (1) To earn income sufficient to provide a good return on the
investment of the company's stockholders, and (2) to provide the highest-quality product
possible.
(d) Walmart: (1) To penetrate the retail market in virtually every location in the United States,
and (2) to grow over time in terms of number of retail locations, total assets, and
earnings.
(e) City of Seattle: (1) To maintain an urban environment as free of pollution as possible,
and (2) to provide public safety, police, and fire protection to the city's citizens.
(f) Hertz: (1) To be a recognizable household name associated with rental car services,
and (2) to provide reliable and economical transportation services to the company's
customers.
1-3 The four basic management activities are listed and defined as follows:
(a) Decision making: Choosing among the available alternatives.
(b) Planning: Developing a detailed financial and operational description of
anticipated operations.
(c) Directing operations: Running the organization on a day-to-day basis.
(d) Controlling: Ensuring that the organization operates in the intended manner and achieves
its goals.
1-4 Examples of the four primary management activities in the context of a national fast- food chain
are as follows:
(a) Decision making: Choosing among several possible locations for a new fast-food outlet.
(b) Planning: Developing a cost budget for the food and paper products to be used during
the next quarter in a particular fast-food restaurant.
(c) Directing operations: Developing detailed schedules for personnel for the next month to
provide counter service in a particular fast-food restaurant.
(d) Controlling: Comparing the actual cost of paper products used during a particular
month in a restaurant with the anticipated cost of paper products for that same time
period.
1-5 Examples of the objectives of managerial accounting activity in an airline company are
described below:
by Hilton
Complete downloadable file at:
https://testbanku.eu/Solution-Manual-for- Managerial-
Accounting-11th-Edition-By-Hilton
The Changing Role of Managerial Accounting in a
Dynamic Business Environment
FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
The focus-on-ethics inset for Chapter 1 is the IMA Statement of Ethical Professional Practice.
Instructors can use this list of ethical standards to lead a class discussion. The discussion can also
range to consideration of how these standards were violated by managerial accountants
involved in the various accounting scandals uncovered over the past several years. It is also useful to
discuss the procedures that managerial accountants can follow when they believe they know about ethical
lapses in their organization.
ANSWERS TO REVIEW QUESTIONS
1-1 The explosion in e-commerce will affect managerial accounting in significant ways. One effect
will be a drastic reduction in paper work. Millions of transactions between businesses will be
conducted electronically with no hard-copy documentation. Along with this method of
communicating for business transactions comes the very significant issue of information
security. Businesses need to find ways to protect confidential information in their own
computers, while at the same time sharing the information necessary to complete
transactions. Another effect of e-commerce is the dramatically increased speed with
which business transactions can be conducted. In addition to these business-to-business
transactional issues, there will be dramatic changes in the way managerial accounting
procedures are carried out, one example being e-budgeting, which is the enterprise-wide
and electronic completion of a company’s budgeting process.
,
, 1-2 Plausible goals for the organizations listed are as follows:
(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to grow on-line sales of
books, music, and other goods.
(b) American Red Cross: (1) To raise funds from the general public sufficient to have resources
available to meet any disaster that may occur, and (2) to provide assistance to people
who are victims of a disaster anywhere in the country on short notice.
(c) General Motors: (1) To earn income sufficient to provide a good return on the
investment of the company's stockholders, and (2) to provide the highest-quality product
possible.
(d) Walmart: (1) To penetrate the retail market in virtually every location in the United States,
and (2) to grow over time in terms of number of retail locations, total assets, and
earnings.
(e) City of Seattle: (1) To maintain an urban environment as free of pollution as possible,
and (2) to provide public safety, police, and fire protection to the city's citizens.
(f) Hertz: (1) To be a recognizable household name associated with rental car services,
and (2) to provide reliable and economical transportation services to the company's
customers.
1-3 The four basic management activities are listed and defined as follows:
(a) Decision making: Choosing among the available alternatives.
(b) Planning: Developing a detailed financial and operational description of
anticipated operations.
(c) Directing operations: Running the organization on a day-to-day basis.
(d) Controlling: Ensuring that the organization operates in the intended manner and achieves
its goals.
1-4 Examples of the four primary management activities in the context of a national fast- food chain
are as follows:
(a) Decision making: Choosing among several possible locations for a new fast-food outlet.
(b) Planning: Developing a cost budget for the food and paper products to be used during
the next quarter in a particular fast-food restaurant.
(c) Directing operations: Developing detailed schedules for personnel for the next month to
provide counter service in a particular fast-food restaurant.
(d) Controlling: Comparing the actual cost of paper products used during a particular
month in a restaurant with the anticipated cost of paper products for that same time
period.
1-5 Examples of the objectives of managerial accounting activity in an airline company are
described below:
