Solution Manual for Managerial Accounting,
18th Edition
By Ray Garrison, Eric Noreen and Peter Brewer
Verified Chapter's 1 - 16 | Complete
,Table of Contents cx cx
Chapter cxOne: cxManagerial cxAccounting cxand cxCost cxConcepts
cx Chapter cxTwo: cxJob-Order cxCosting: cxCalculating cxUnit cxProduct
Costs
cx
Chapter cxThree: cxJob-Order cxCosting: cxCost cxFlows cxand cxExternal cxReporting
cx Chapter cxFour: cxProcess cxCosting
Chapter cxFive: cxCost-Volume-Profit cxRelationships
Chapter cxSix: cxVariable cxCosting cxand cxSegment cxReporting: cxTools cxfor
Management cxChapter cxSeven: cxActivity-Based cxCosting: cxA cxTool cxto cxAid
cx
cx Decision cxMaking cxChapter cxEight: cxMaster cxBudgeting
Chapter cxNine: cxFlexible cxBudgets cxand cxPerformance cxAnalysis
cx Chapter cxTen: cxStandard cxCosts cxand cxVariances
Chapter cxEleven: cxResponsibility cxAccounting cxSystems
cx Chapter cxTwelve: cxStrategic cxPerformance cxMeasurement
Chapter cxThirteen: cxDifferential cxAnalysis: cxThe cxKey cxto cxDecision cxMaking
cx Chapter cxFourteen: cxCapital cxBudgeting cxDecisions
Chapter cxFifteen: cxStatement cxof cxCash cxFlows
cx Chapter cxSixteen: cxFinancial cxStatement
Analysis
cx
,Chapter 1 cx
Managerial Accounting and Cost Concepts
cx cx cx cx
Questions
1-1 The cxthree cxmajor cxtypes cxof cxproduct 1-4
cxcosts cxin cxa cxmanufacturing cxcompany cxare a. Variable cxcost: cxThe cxvariable cxcost cxper
cxdirect cxmaterials, cxdirect cxlabor, cxand cxunit cxis cxconstant, cxbut cxtotal cxvariable
cxmanufacturing cxoverhead. cxcost cxchanges cxin cxdirect cxproportion cxto
cxchanges cxin cxvolume.
1-2 b. Fixed cxcost: cxThe cxtotal cxfixed cxcost cxis
a. Direct cxmaterials cxare cxan cxintegral cxpart cxconstant cxwithin cxthe cxrelevant cxrange. cxThe
cxof cxa cxfinished cxproduct cxand cxtheir cxcosts cxaverage cxfixed cxcost cxper cxunit cxvaries
cxcan cxbe cxconveniently cxtraced cxto cxit. cxinversely cxwith cxchanges cxin cxvolume.
b. Indirect cxmaterials cxare cxgenerally cxsmall c. Mixed cxcost: cxA cxmixed cxcost cxcontains
cxitems cxof cxmaterial cxsuch cxas cxglue cxand cxboth cxvariable cxand cxfixed cxcost
cxnails. cxThey cxmay cxbe cxan cxintegral cxpart cxof cxa cxelements.
cxfinished cxproduct cxbut cxtheir cxcosts cxcan cxbe
cxtraced cxto cxthe cxproduct cxonly cxat cxgreat cxcost 1-5
cxor cxinconvenience. a. Unit cxfixed cxcosts cxdecrease cxas cxthe cxactivity
c. Direct cxlabor cxconsists cxof cxlabor cxcosts cxlevel cxincreases.
cxthat cxcan cxbe cxeasily cxtraced cxto cxparticular b. Unit cxvariable cxcosts cxremain cxconstant cxas
cxproducts. cxthe cxactivity cxlevel cxincreases.
Direct cxlabor cxis cxalso cxcalled cx―touch cxlabor.‖ c. Total cxfixed cxcosts cxremain cxconstant cxas
d. Indirect cxlabor cxconsists cxof cxthe cxlabor cxthe cxactivity cxlevel cxincreases.
cxcosts cxof cxjanitors, cxsupervisors, cxmaterials d. Total cxvariable cxcosts cxincrease cxas cxthe
cxhandlers, cxand cxother cxfactory cxworkers cxthat cxactivity cxlevel cxincreases.
cxcannot cxbe cxconveniently cxtraced cxto
cxparticular cxproducts. cxThese cxlabor cxcosts 1-6
cxare cxincurred cxto cxsupport cxproduction, cxbut a. Cost cxbehavior: cxCost cxbehavior cxrefers
cxthe cxworkers cxinvolved cxdo cxnot cxdirectly cxto cxthe cxway cxin cxwhich cxcosts cxchange
cxwork cxon cxthe cxproduct. cxin cxresponse cxto cxchanges cxin cxa
e. Manufacturing cxoverhead cxincludes cxall cxmeasure cxof cxactivity cxsuch cxas cxsales
cxmanufacturing cxcosts cxexcept cxdirect cxmaterials cxvolume, cxproduction cxvolume, cxor cxorders
cxand cxdirect cxlabor. cxConsequently, cxprocessed.
cxmanufacturing cxoverhead cxincludes cxindirect b. Relevant cxrange: cxThe cxrelevant cxrange
cxmaterials cxand cxindirect cxlabor cxas cxwell cxas cxis cxthe cxrange cxof cxactivity cxwithin cxwhich
cxother cxmanufacturing cxcosts. cxassumptions cxabout cxvariable cxand cxfixed
cxcost cxbehavior cxare cxvalid.
1-3 A cxproduct cxcost cxis cxany cxcost
cxinvolved cxin cxpurchasing cxor cxmanufacturing 1-7 An cxactivity cxbase cxis cxa cxmeasure
cxgoods. cxIn cxthe cxcase cxof cxmanufactured cxof cxwhatever cxcauses cxthe cxincurrence cxof cxa
cxgoods, cxthese cxcosts cxconsist cxof cxdirect cxvariable cxcost. cxExamples cxof cxactivity cxbases
cxmaterials, cxdirect cxlabor, cxand cxmanufacturing cxinclude cxunits cxproduced, cxunits cxsold,
cxoverhead. cxA cxperiod cxcost cxis cxa cxcost cxthat cxletters cxtyped, cxbeds cxin cxa cxhospital, cxmeals
cxis cxtaken cxdirectly cxto cxthe cxincome cxserved cxin cxa cxcafe, cxservice cxcalls cxmade,
cxstatement cxas cxan cxexpense cxin cxthe cxperiod cxetc.
cxin cxwhich cxit cxis cxincurred.
1-8 The cxlinear cxassumption cxis cxreasonably
, valid cxproviding cxthat cxthe cxcost cxformula cxis
cxused cxonly cxwithin cxthe cxrelevant cxrange.
18th Edition
By Ray Garrison, Eric Noreen and Peter Brewer
Verified Chapter's 1 - 16 | Complete
,Table of Contents cx cx
Chapter cxOne: cxManagerial cxAccounting cxand cxCost cxConcepts
cx Chapter cxTwo: cxJob-Order cxCosting: cxCalculating cxUnit cxProduct
Costs
cx
Chapter cxThree: cxJob-Order cxCosting: cxCost cxFlows cxand cxExternal cxReporting
cx Chapter cxFour: cxProcess cxCosting
Chapter cxFive: cxCost-Volume-Profit cxRelationships
Chapter cxSix: cxVariable cxCosting cxand cxSegment cxReporting: cxTools cxfor
Management cxChapter cxSeven: cxActivity-Based cxCosting: cxA cxTool cxto cxAid
cx
cx Decision cxMaking cxChapter cxEight: cxMaster cxBudgeting
Chapter cxNine: cxFlexible cxBudgets cxand cxPerformance cxAnalysis
cx Chapter cxTen: cxStandard cxCosts cxand cxVariances
Chapter cxEleven: cxResponsibility cxAccounting cxSystems
cx Chapter cxTwelve: cxStrategic cxPerformance cxMeasurement
Chapter cxThirteen: cxDifferential cxAnalysis: cxThe cxKey cxto cxDecision cxMaking
cx Chapter cxFourteen: cxCapital cxBudgeting cxDecisions
Chapter cxFifteen: cxStatement cxof cxCash cxFlows
cx Chapter cxSixteen: cxFinancial cxStatement
Analysis
cx
,Chapter 1 cx
Managerial Accounting and Cost Concepts
cx cx cx cx
Questions
1-1 The cxthree cxmajor cxtypes cxof cxproduct 1-4
cxcosts cxin cxa cxmanufacturing cxcompany cxare a. Variable cxcost: cxThe cxvariable cxcost cxper
cxdirect cxmaterials, cxdirect cxlabor, cxand cxunit cxis cxconstant, cxbut cxtotal cxvariable
cxmanufacturing cxoverhead. cxcost cxchanges cxin cxdirect cxproportion cxto
cxchanges cxin cxvolume.
1-2 b. Fixed cxcost: cxThe cxtotal cxfixed cxcost cxis
a. Direct cxmaterials cxare cxan cxintegral cxpart cxconstant cxwithin cxthe cxrelevant cxrange. cxThe
cxof cxa cxfinished cxproduct cxand cxtheir cxcosts cxaverage cxfixed cxcost cxper cxunit cxvaries
cxcan cxbe cxconveniently cxtraced cxto cxit. cxinversely cxwith cxchanges cxin cxvolume.
b. Indirect cxmaterials cxare cxgenerally cxsmall c. Mixed cxcost: cxA cxmixed cxcost cxcontains
cxitems cxof cxmaterial cxsuch cxas cxglue cxand cxboth cxvariable cxand cxfixed cxcost
cxnails. cxThey cxmay cxbe cxan cxintegral cxpart cxof cxa cxelements.
cxfinished cxproduct cxbut cxtheir cxcosts cxcan cxbe
cxtraced cxto cxthe cxproduct cxonly cxat cxgreat cxcost 1-5
cxor cxinconvenience. a. Unit cxfixed cxcosts cxdecrease cxas cxthe cxactivity
c. Direct cxlabor cxconsists cxof cxlabor cxcosts cxlevel cxincreases.
cxthat cxcan cxbe cxeasily cxtraced cxto cxparticular b. Unit cxvariable cxcosts cxremain cxconstant cxas
cxproducts. cxthe cxactivity cxlevel cxincreases.
Direct cxlabor cxis cxalso cxcalled cx―touch cxlabor.‖ c. Total cxfixed cxcosts cxremain cxconstant cxas
d. Indirect cxlabor cxconsists cxof cxthe cxlabor cxthe cxactivity cxlevel cxincreases.
cxcosts cxof cxjanitors, cxsupervisors, cxmaterials d. Total cxvariable cxcosts cxincrease cxas cxthe
cxhandlers, cxand cxother cxfactory cxworkers cxthat cxactivity cxlevel cxincreases.
cxcannot cxbe cxconveniently cxtraced cxto
cxparticular cxproducts. cxThese cxlabor cxcosts 1-6
cxare cxincurred cxto cxsupport cxproduction, cxbut a. Cost cxbehavior: cxCost cxbehavior cxrefers
cxthe cxworkers cxinvolved cxdo cxnot cxdirectly cxto cxthe cxway cxin cxwhich cxcosts cxchange
cxwork cxon cxthe cxproduct. cxin cxresponse cxto cxchanges cxin cxa
e. Manufacturing cxoverhead cxincludes cxall cxmeasure cxof cxactivity cxsuch cxas cxsales
cxmanufacturing cxcosts cxexcept cxdirect cxmaterials cxvolume, cxproduction cxvolume, cxor cxorders
cxand cxdirect cxlabor. cxConsequently, cxprocessed.
cxmanufacturing cxoverhead cxincludes cxindirect b. Relevant cxrange: cxThe cxrelevant cxrange
cxmaterials cxand cxindirect cxlabor cxas cxwell cxas cxis cxthe cxrange cxof cxactivity cxwithin cxwhich
cxother cxmanufacturing cxcosts. cxassumptions cxabout cxvariable cxand cxfixed
cxcost cxbehavior cxare cxvalid.
1-3 A cxproduct cxcost cxis cxany cxcost
cxinvolved cxin cxpurchasing cxor cxmanufacturing 1-7 An cxactivity cxbase cxis cxa cxmeasure
cxgoods. cxIn cxthe cxcase cxof cxmanufactured cxof cxwhatever cxcauses cxthe cxincurrence cxof cxa
cxgoods, cxthese cxcosts cxconsist cxof cxdirect cxvariable cxcost. cxExamples cxof cxactivity cxbases
cxmaterials, cxdirect cxlabor, cxand cxmanufacturing cxinclude cxunits cxproduced, cxunits cxsold,
cxoverhead. cxA cxperiod cxcost cxis cxa cxcost cxthat cxletters cxtyped, cxbeds cxin cxa cxhospital, cxmeals
cxis cxtaken cxdirectly cxto cxthe cxincome cxserved cxin cxa cxcafe, cxservice cxcalls cxmade,
cxstatement cxas cxan cxexpense cxin cxthe cxperiod cxetc.
cxin cxwhich cxit cxis cxincurred.
1-8 The cxlinear cxassumption cxis cxreasonably
, valid cxproviding cxthat cxthe cxcost cxformula cxis
cxused cxonly cxwithin cxthe cxrelevant cxrange.
