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 Allocation and Responsibility
Accounting
8.Short-Term Business Decisions
9.Capital Investment Decisions
, Chapter M:1
Introduction to Managerial Accounting
Review Questions
1. What is the primary purpose of managerial accounting?
The primary purpose of managerial accounting is to provide information to help
managers plan, direct, control, and make decisions.
2. List six differences between financial accounting and managerial accounting.
Financial accounting and managerial accounting differ on the following 6
dimensions: (1) primary users, (2) purpose of information, (3) focus and time
dimension of the information, (4) rules and re- strictions, (5) scope of information,
and (6) behavioral.
3. Explain the difference between line positions and staff positions.
Line positions are directly involved in providing goods or services to customers.
Staff positions support line positions.
4. Explain the differences between planning, directing, and controlling.
Planning means choosing goals and deciding how to achieve them. Directing
involves running the day- to-day operations of a business. Controlling is the
process of monitoring operations and keepingthe company on track.
5. List the four IMA standards of ethical practice and briefly
describe each. The four IMA standards of ethical practice and a
description of each follow.
I. Competence.
Maintain an appropriate level of professional leadership and expertise
by enhancing knowledge and skills.
Perform professional duties in accordance with relevant laws, regulations,
and technical standards.
Provide decision support information and recommendations that are
accurate, clear, concise,
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 Allocation and Responsibility
Accounting
8.Short-Term Business Decisions
9.Capital Investment Decisions
, Chapter M:1
Introduction to Managerial Accounting
Review Questions
1. What is the primary purpose of managerial accounting?
The primary purpose of managerial accounting is to provide information to help
managers plan, direct, control, and make decisions.
2. List six differences between financial accounting and managerial accounting.
Financial accounting and managerial accounting differ on the following 6
dimensions: (1) primary users, (2) purpose of information, (3) focus and time
dimension of the information, (4) rules and re- strictions, (5) scope of information,
and (6) behavioral.
3. Explain the difference between line positions and staff positions.
Line positions are directly involved in providing goods or services to customers.
Staff positions support line positions.
4. Explain the differences between planning, directing, and controlling.
Planning means choosing goals and deciding how to achieve them. Directing
involves running the day- to-day operations of a business. Controlling is the
process of monitoring operations and keepingthe company on track.
5. List the four IMA standards of ethical practice and briefly
describe each. The four IMA standards of ethical practice and a
description of each follow.
I. Competence.
Maintain an appropriate level of professional leadership and expertise
by enhancing knowledge and skills.
Perform professional duties in accordance with relevant laws, regulations,
and technical standards.
Provide decision support information and recommendations that are
accurate, clear, concise,
