SOLUTION MANUAL
Horngren's Accounting, 13th Edition Managerial
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
,THE MANAGERIAL CHAPTERS
2wr 2wr
1. Introduction to Managerial Accounting
2wr 2wr 2wr
2. Job Order Costing
2wr 2wr
3. Process Costing
2wr
4. Cost-Volume-Profit Analysis 2wr
5. Master Budgets
2wr
6. Flexible Budgets and Standard Cost Systems
2wr 2wr 2wr 2wr 2wr
7. Cost Allocation and Responsibility Accounting
2wr 2wr 2wr 2wr
8. Short-Term Business Decisions
2wr 2wr
9. Capital Investment Decisions
2wr 2wr
,Chapter 1 2wr
Introduction to Managerial Accounting
2wr 2wr 2wr
Review Questions
2wr 2wr
1. The 2wrprimary 2wrpurpose 2wrof 2wrmanagerial 2wraccounting 2wris 2wrto 2wrprovide 2wrinformation 2wrto
2wrhelp 2wrmanagers 2 w r plan,direct, 2wrcontrol, 2wrand 2wrmake 2wrdecisions.
2. Financial 2wraccounting 2wrand 2wrmanagerial 2wraccounting 2wrdiffer 2wron 2wrthe 2wrfollowing 2wr6
2wrdimensions: 2wr (1) 2wrprimary 2 w r users, 2wr(2) 2wrpurpose 2wrof 2wrinformation, 2wr(3) 2wrfocus 2wrand
2wrtime 2wrdimension 2wrof 2wrthe 2wrinformation, 2wr(4) 2wrrules 2wrand 2 w r restrictions, 2wr(5) 2wrscope 2wrof
2wrinformation, 2wrand 2wr(6) 2wrbehavioral.
3. Line 2wrpositions 2wrare 2wrdirectly 2wrinvolved 2wrin 2wrproviding 2wrgoods 2wror 2wrservices 2wrto
2wrcustomers. 2wrStaff 2wr positions 2 w r support 2wrline 2wrpositions.
4. Planning 2wrmeans 2wrchoosing 2wrgoals 2wrand 2wrdeciding 2wrhow 2wrto 2wrachieve 2wrthem. 2wrDirecting
2wrinvolves 2wrrunning 2wrthe 2 w r day-to-day 2wroperations 2wrof 2wra 2wrbusiness. 2wrControlling 2wris 2wrthe
2wrprocess 2wrof 2wrmonitoring 2wroperations 2wrand 2 w r keepingthe 2wrcompany 2wron 2wrtrack.
5. The 2wrfour 2wrIMA 2wrstandards 2wrof 2wrethical 2wrpractice 2wrand 2wra 2wrdescription 2wrof 2wreach 2wrfollow.
I. Competence.
2wr 2wrMaintain 2wran 2wrappropriate 2wrlevel 2wrof 2wrprofessional 2wrleadership 2wrand
2wrexpertise 2wrby 2 w r enhancingknowledge 2wrand 2wrskills.
2wr 2wrPerform 2wrprofessional 2wrduties 2wrin 2wraccordance 2wrwith 2wrrelevant 2wrlaws,
2wrregulations, 2wrand 2 w r technicalstandards.
2wr 2wrProvide 2wrdecision 2wrsupport 2wrinformation 2wrand 2wrrecommendations 2wrthat 2wrare
2wraccurate, 2wrclear, 2 w r concise,and 2wrtimely.
2wr 2wrRecognise 2wrand 2wrhelp 2wrmange 2wrrisk.
II. Confidentiality.
Keep 2wrinformation 2wrconfidential 2wrexcept 2wrwhen 2wrdisclosure 2wris 2wrauthorized 2wror 2wrlegally
2wrrequired. 2 w r Inform 2wrall 2wrrelevant 2wrparties 2wrregarding 2wrappropriate 2wruse 2wrof
2wrconfidential 2wrinformation. 2 w r Monitor 2 w r toensure 2wrcompliance.
2wr 2wr 2wrRefrain 2wrfrom 2wrusing 2wrconfidential 2wrinformation 2wrfor 2wrunethical 2wror 2wrillegal
2wradvantage.
III. Integrity.
2wr 2wrMitigate 2wractual 2wrconflicts 2wrof 2wrinterest. 2wrRegularly 2wrcommunicate 2wrwith 2wrbusiness
2wrassociates 2wrto 2 w r avoidapparent 2wrconflicts 2wrof 2wrinterest. 2 w r Advise 2wrall 2wrparties 2wrof
2wrany 2wrpotential 2wrconflicts.
Refrain 2wrfrom 2wrengaging 2wrin 2wrany 2wrconduct 2wrthat 2wrwould 2wrprejudice 2wrcarrying 2wrout 2wrduties
2wrethically.
, Abstain 2wrfrom 2wrengaging 2wrin 2wror 2wrsupporting 2wrany 2wractivity 2wrthat 2wrmight 2wrdiscredit
2wrthe 2wrprofession. 2 w r Contribute 2wrto 2wra 2wrpositive 2wrethical 2wrculture 2wrand 2wrplace
2wrintegrity 2wrof 2wrthe 2wrprofession 2wrabove 2 w r personalinterest.
5,
2wrcont.
IV. Credibility.
Communicate 2wrinformation 2wrfairly 2wrand 2wrobjectively.
Provide 2wrall 2wrrelevant 2wrinformation 2wrthat 2wrcould 2wrreasonably 2wrbe 2wrexpected 2wrto
2wrinfluence 2wran 2 w r intendeduser’s 2wrunderstanding 2wrof 2wrthe 2wrreports, 2wranalyses,
2wror 2wrrecommendations.
2wr 2wrReport 2wrany 2wrdelays 2wror 2wrdeficiencies 2wrin 2wrinformation, 2wrtimeliness,
2wrprocessing, 2wror 2wrinternal 2 w r controlsin 2wrconformance 2wrwith 2wrorganization
2wrpolicy 2wrand/or 2wrapplicable 2wrlaw.
2wr 2wrCommunicate 2wrany 2wrprofessional 2wrlimitations 2wror 2wrother 2wrconstraints 2wrthat
2wrwould 2wrpreclude 2 w r responsi-ble 2wrjudgment 2wror 2wrsuccessful 2wrperformance 2wrof
2wran 2wractivity.
6. Service 2wrcompanies 2wrsell 2wrtime, 2wrskills, 2wrand 2wrknowledge. 2 w r Examples 2wrof 2wrservice
2wrcompanies 2wrinclude 2wrphone 2 w r service 2wrcompanies, 2wrbanks, 2wrcleaning 2wrservice
2wrcompanies, 2wraccounting 2wrfirms, 2wrlaw 2wrfirms, 2wrmedical 2 w r physicians, 2wrand 2wronline 2wrauction
2wrservices.
7. Merchandising 2wrcompanies 2wrresell 2wrproducts 2wrthey 2wrbuy 2wrfrom 2wrsuppliers. 2wrMerchandisers
2wrkeep 2wran 2 w r inventoryof 2wrproducts, 2wrand 2wrmanagers 2wrare 2wraccountable 2wrfor 2wrthe
2wrpurchasing, 2wrstorage, 2wrand 2wrsale 2wrof 2wrthe 2 w r products. 2wrExamples 2wrof 2wrmerchandising
2wrcompanies 2wrinclude 2wrtoy 2wrstores, 2wrgrocery 2wrstores, 2wrand 2wrclothing 2 w r stores.
8. Merchandising 2wrcompanies 2wrresell 2wrproducts 2wrthey 2wrpreviously 2wrbought 2wrfrom 2wrsuppliers,
2wrwhereas 2 w r manufacturing 2wrcompanies 2wruse 2wrlabor, 2wrequipment, 2wrsupplies, 2wrand 2wrfacilities
2wrto 2wrconvert 2wrraw 2wrmaterials 2 w r intonew 2wrfinished 2wrproducts. 2wrIn 2wrcontrast 2wrto
2wrmerchandising 2wrcompanies, 2wrmanufacturing 2wrcompanies 2 w r have 2wra 2wrbroad 2wrrange 2wrof
2wrproduction 2wractivities 2wrthat 2wrrequire 2wrtracking 2wrcosts 2wron 2wrthree 2wrkinds 2wrof 2wrinventory.
9. The 2wrthree 2wrinventory 2wraccounts 2wrused 2wrby 2wrmanufacturing 2wrcompanies 2wrare 2wrRaw
2wrMaterials 2wrInventory, 2 w r Work-in-Process 2wrInventory, 2wrand 2wrFinished 2wrGoods 2wrInventory.
Raw 2wrMaterials 2wrInventory 2wrincludes 2wrmaterials 2wrused 2wrto 2wrmanufacture 2wra 2wrproduct. 2wrWork-
in-Process 2 w r Inventory 2wrincludes 2wrgoods 2wrthat 2wrhave 2wrbeen 2wrstarted 2wrin 2wrthe
2wrmanufacturing 2wrprocess 2wrbut 2wrare 2wrnot 2wryet 2 w r complete. 2 w r Finished 2wrGoods 2wrInventory
2wrincludes 2wrcompleted 2wrgoods 2wrthat 2wrhave 2wrnot 2wryet 2wrbeen 2wrsold.
10. A 2wrdirect 2wrcost 2wris 2wra 2wrcost 2wrthat 2wrcan 2wrbe 2wreasily 2wrand 2wrcost-effectively 2wrtraced 2wrto 2wra
2wrcost 2wrobject 2wr(which 2wris 2 w r anything 2wrfor 2wrwhich 2wrmanagers 2wrwant 2wra 2wrseparate
Horngren's Accounting, 13th Edition Managerial
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
,THE MANAGERIAL CHAPTERS
2wr 2wr
1. Introduction to Managerial Accounting
2wr 2wr 2wr
2. Job Order Costing
2wr 2wr
3. Process Costing
2wr
4. Cost-Volume-Profit Analysis 2wr
5. Master Budgets
2wr
6. Flexible Budgets and Standard Cost Systems
2wr 2wr 2wr 2wr 2wr
7. Cost Allocation and Responsibility Accounting
2wr 2wr 2wr 2wr
8. Short-Term Business Decisions
2wr 2wr
9. Capital Investment Decisions
2wr 2wr
,Chapter 1 2wr
Introduction to Managerial Accounting
2wr 2wr 2wr
Review Questions
2wr 2wr
1. The 2wrprimary 2wrpurpose 2wrof 2wrmanagerial 2wraccounting 2wris 2wrto 2wrprovide 2wrinformation 2wrto
2wrhelp 2wrmanagers 2 w r plan,direct, 2wrcontrol, 2wrand 2wrmake 2wrdecisions.
2. Financial 2wraccounting 2wrand 2wrmanagerial 2wraccounting 2wrdiffer 2wron 2wrthe 2wrfollowing 2wr6
2wrdimensions: 2wr (1) 2wrprimary 2 w r users, 2wr(2) 2wrpurpose 2wrof 2wrinformation, 2wr(3) 2wrfocus 2wrand
2wrtime 2wrdimension 2wrof 2wrthe 2wrinformation, 2wr(4) 2wrrules 2wrand 2 w r restrictions, 2wr(5) 2wrscope 2wrof
2wrinformation, 2wrand 2wr(6) 2wrbehavioral.
3. Line 2wrpositions 2wrare 2wrdirectly 2wrinvolved 2wrin 2wrproviding 2wrgoods 2wror 2wrservices 2wrto
2wrcustomers. 2wrStaff 2wr positions 2 w r support 2wrline 2wrpositions.
4. Planning 2wrmeans 2wrchoosing 2wrgoals 2wrand 2wrdeciding 2wrhow 2wrto 2wrachieve 2wrthem. 2wrDirecting
2wrinvolves 2wrrunning 2wrthe 2 w r day-to-day 2wroperations 2wrof 2wra 2wrbusiness. 2wrControlling 2wris 2wrthe
2wrprocess 2wrof 2wrmonitoring 2wroperations 2wrand 2 w r keepingthe 2wrcompany 2wron 2wrtrack.
5. The 2wrfour 2wrIMA 2wrstandards 2wrof 2wrethical 2wrpractice 2wrand 2wra 2wrdescription 2wrof 2wreach 2wrfollow.
I. Competence.
2wr 2wrMaintain 2wran 2wrappropriate 2wrlevel 2wrof 2wrprofessional 2wrleadership 2wrand
2wrexpertise 2wrby 2 w r enhancingknowledge 2wrand 2wrskills.
2wr 2wrPerform 2wrprofessional 2wrduties 2wrin 2wraccordance 2wrwith 2wrrelevant 2wrlaws,
2wrregulations, 2wrand 2 w r technicalstandards.
2wr 2wrProvide 2wrdecision 2wrsupport 2wrinformation 2wrand 2wrrecommendations 2wrthat 2wrare
2wraccurate, 2wrclear, 2 w r concise,and 2wrtimely.
2wr 2wrRecognise 2wrand 2wrhelp 2wrmange 2wrrisk.
II. Confidentiality.
Keep 2wrinformation 2wrconfidential 2wrexcept 2wrwhen 2wrdisclosure 2wris 2wrauthorized 2wror 2wrlegally
2wrrequired. 2 w r Inform 2wrall 2wrrelevant 2wrparties 2wrregarding 2wrappropriate 2wruse 2wrof
2wrconfidential 2wrinformation. 2 w r Monitor 2 w r toensure 2wrcompliance.
2wr 2wr 2wrRefrain 2wrfrom 2wrusing 2wrconfidential 2wrinformation 2wrfor 2wrunethical 2wror 2wrillegal
2wradvantage.
III. Integrity.
2wr 2wrMitigate 2wractual 2wrconflicts 2wrof 2wrinterest. 2wrRegularly 2wrcommunicate 2wrwith 2wrbusiness
2wrassociates 2wrto 2 w r avoidapparent 2wrconflicts 2wrof 2wrinterest. 2 w r Advise 2wrall 2wrparties 2wrof
2wrany 2wrpotential 2wrconflicts.
Refrain 2wrfrom 2wrengaging 2wrin 2wrany 2wrconduct 2wrthat 2wrwould 2wrprejudice 2wrcarrying 2wrout 2wrduties
2wrethically.
, Abstain 2wrfrom 2wrengaging 2wrin 2wror 2wrsupporting 2wrany 2wractivity 2wrthat 2wrmight 2wrdiscredit
2wrthe 2wrprofession. 2 w r Contribute 2wrto 2wra 2wrpositive 2wrethical 2wrculture 2wrand 2wrplace
2wrintegrity 2wrof 2wrthe 2wrprofession 2wrabove 2 w r personalinterest.
5,
2wrcont.
IV. Credibility.
Communicate 2wrinformation 2wrfairly 2wrand 2wrobjectively.
Provide 2wrall 2wrrelevant 2wrinformation 2wrthat 2wrcould 2wrreasonably 2wrbe 2wrexpected 2wrto
2wrinfluence 2wran 2 w r intendeduser’s 2wrunderstanding 2wrof 2wrthe 2wrreports, 2wranalyses,
2wror 2wrrecommendations.
2wr 2wrReport 2wrany 2wrdelays 2wror 2wrdeficiencies 2wrin 2wrinformation, 2wrtimeliness,
2wrprocessing, 2wror 2wrinternal 2 w r controlsin 2wrconformance 2wrwith 2wrorganization
2wrpolicy 2wrand/or 2wrapplicable 2wrlaw.
2wr 2wrCommunicate 2wrany 2wrprofessional 2wrlimitations 2wror 2wrother 2wrconstraints 2wrthat
2wrwould 2wrpreclude 2 w r responsi-ble 2wrjudgment 2wror 2wrsuccessful 2wrperformance 2wrof
2wran 2wractivity.
6. Service 2wrcompanies 2wrsell 2wrtime, 2wrskills, 2wrand 2wrknowledge. 2 w r Examples 2wrof 2wrservice
2wrcompanies 2wrinclude 2wrphone 2 w r service 2wrcompanies, 2wrbanks, 2wrcleaning 2wrservice
2wrcompanies, 2wraccounting 2wrfirms, 2wrlaw 2wrfirms, 2wrmedical 2 w r physicians, 2wrand 2wronline 2wrauction
2wrservices.
7. Merchandising 2wrcompanies 2wrresell 2wrproducts 2wrthey 2wrbuy 2wrfrom 2wrsuppliers. 2wrMerchandisers
2wrkeep 2wran 2 w r inventoryof 2wrproducts, 2wrand 2wrmanagers 2wrare 2wraccountable 2wrfor 2wrthe
2wrpurchasing, 2wrstorage, 2wrand 2wrsale 2wrof 2wrthe 2 w r products. 2wrExamples 2wrof 2wrmerchandising
2wrcompanies 2wrinclude 2wrtoy 2wrstores, 2wrgrocery 2wrstores, 2wrand 2wrclothing 2 w r stores.
8. Merchandising 2wrcompanies 2wrresell 2wrproducts 2wrthey 2wrpreviously 2wrbought 2wrfrom 2wrsuppliers,
2wrwhereas 2 w r manufacturing 2wrcompanies 2wruse 2wrlabor, 2wrequipment, 2wrsupplies, 2wrand 2wrfacilities
2wrto 2wrconvert 2wrraw 2wrmaterials 2 w r intonew 2wrfinished 2wrproducts. 2wrIn 2wrcontrast 2wrto
2wrmerchandising 2wrcompanies, 2wrmanufacturing 2wrcompanies 2 w r have 2wra 2wrbroad 2wrrange 2wrof
2wrproduction 2wractivities 2wrthat 2wrrequire 2wrtracking 2wrcosts 2wron 2wrthree 2wrkinds 2wrof 2wrinventory.
9. The 2wrthree 2wrinventory 2wraccounts 2wrused 2wrby 2wrmanufacturing 2wrcompanies 2wrare 2wrRaw
2wrMaterials 2wrInventory, 2 w r Work-in-Process 2wrInventory, 2wrand 2wrFinished 2wrGoods 2wrInventory.
Raw 2wrMaterials 2wrInventory 2wrincludes 2wrmaterials 2wrused 2wrto 2wrmanufacture 2wra 2wrproduct. 2wrWork-
in-Process 2 w r Inventory 2wrincludes 2wrgoods 2wrthat 2wrhave 2wrbeen 2wrstarted 2wrin 2wrthe
2wrmanufacturing 2wrprocess 2wrbut 2wrare 2wrnot 2wryet 2 w r complete. 2 w r Finished 2wrGoods 2wrInventory
2wrincludes 2wrcompleted 2wrgoods 2wrthat 2wrhave 2wrnot 2wryet 2wrbeen 2wrsold.
10. A 2wrdirect 2wrcost 2wris 2wra 2wrcost 2wrthat 2wrcan 2wrbe 2wreasily 2wrand 2wrcost-effectively 2wrtraced 2wrto 2wra
2wrcost 2wrobject 2wr(which 2wris 2 w r anything 2wrfor 2wrwhich 2wrmanagers 2wrwant 2wra 2wrseparate
