SOLUTIONS MANUAL
TU
Principles of Accounting: Volume 2 —
VI
Managerial Accounting
A2
Mitchell Franklin, Patty Graybeal, and Dixon Cooper
──────────────────────────────────────────────────
1st Edition
6_
AP
PR
OV
ED
??
,ST
TABLE OF CONTENTS
UV
Solutions Manual: Principles of Accounting, Volume 2: Managerial Accounting, 1st Edition
By Mitchell Franklin, Patty Graybeal, and Dixon Cooper
Chapter 1 Accounting as a Tool for Managers
IA
Chapter 2 Building Blocks of Managerial Accounting
Chapter 3 Cost-Volume-Profit Analysis
26
Chapter 4 Job Order Costing
Chapter 5 Process Costing
_A
Chapter 6 Activity-Based, Variable, and Absorption Costing
Chapter 7 Budgeting
Chapter 8 Standard Costs and Variances
PP
Chapter 9 Responsibility Accounting and Decentralization
Chapter 10 Short-Term Decision Making
Chapter 11 Capital Budgeting Decisions
RO
Chapter 12 Balanced Scorecard and Other Performance Measures
Chapter 13 Sustainability Reporting
VE
D?
?
1
, Solutions Manual for Principles Of Accounting (Volume 2) Managerial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 2: Managerial Accounting
Chapter 1: Accounting as a Tool for Managers
ST
Principles of Accounting, Volume 2: Managerial Accounting
Chapter 1: Accounting as a Tool for Managers
UV
Multiple Choice
1. LO 1.1 The managers of an organization are responsible for performing several broad
functions. They are .
A. planning, controlling, and selling
IA
B. directing, controlling, and evaluating
C. planning, evaluating, and manufacturing
D. planning, controlling, and evaluating
Solution
26
D
2. LO 1.1 Management accountants help the management of an organization in their planning
function through .
A. monitoring anti-theft systems
_A
B. strategic planning
C. evaluating costs
D. analyzing profits
Solution
PP
B
3. LO 1.1 Which of the following is a primary aspect of the evaluating function within an
organization?
A. comparing actual results against expected results for products, departments, divisions, or
the company as a whole
RO
B. reviewing only the quantitative or financial results of the company
C. setting goals
D. putting controls in place for the upcoming year
Solution
A
VE
4. LO 1.1 During the control function, the measurements taken of the performance must be
accurate enough to see .
A. only positive results
B. deviations and variances
D?
C. the primary focus
D. only the negative results
Solution
B
5. LO 1.1 Which of the following is false regarding strategic planning?
?
A. It is the sole responsibility of supervisors.
B. It will span many years.
C. It should include both short-term and long-term goals.
D. Strategic objectives will be diverse and vary from company to company.
Solution
A
6. LO 1.2 Managerial accounting produces information:
Page 1 of 21
, Solutions Manual for Principles Of Accounting (Volume 2) Managerial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 2: Managerial Accounting
Chapter 1: Accounting as a Tool for Managers
ST
A. to meet the needs of external users
B. that is often focused on the future
C. to meet the needs of investors
UV
D. that follows the rules of GAAP
Solution
B
7. LO 1.2 Management accounting:
A. emphasizes special-purpose information
IA
B. relates to the company as a whole
C. is limited to strictly cost figures
D. is controlled by GAAP
Solution
26
A
8. LO 1.2 Internal users of accounting information would not include .
A. managers
B. employees
_A
C. creditors
D. officers
Solution
C
9. LO 1.2 External users of accounting information would include .
PP
A. employees
B. managers
C. investors
D. supervisors
RO
Solution
C
10. LO 1.2 Which of the following statements is incorrect?
A. The practice of management accounting is fairly flexible.
B. The information gathered from management accounting is not required by law.
VE
C. Management accounting focuses mainly on the internal user.
D. Reports produced using management accounting must follow GAAP.
Solution
D
D?
11. LO 1.3 The stockholders of a company are:
A. the owners
B. policy setters
C. responsible and liable for the financial well-being of the company
D. operating within the company as independent shareholders
?
Solution
A
12. LO 1.3 The controller of a corporation:
A. reports to the CFO and is in charge of the finance side of the business
B. reports to the CFO and is in charge of the accounting side of the business
C. reports to the CEO and implements all cash policies
D. reports to the board of directors
Page 2 of 21
TU
Principles of Accounting: Volume 2 —
VI
Managerial Accounting
A2
Mitchell Franklin, Patty Graybeal, and Dixon Cooper
──────────────────────────────────────────────────
1st Edition
6_
AP
PR
OV
ED
??
,ST
TABLE OF CONTENTS
UV
Solutions Manual: Principles of Accounting, Volume 2: Managerial Accounting, 1st Edition
By Mitchell Franklin, Patty Graybeal, and Dixon Cooper
Chapter 1 Accounting as a Tool for Managers
IA
Chapter 2 Building Blocks of Managerial Accounting
Chapter 3 Cost-Volume-Profit Analysis
26
Chapter 4 Job Order Costing
Chapter 5 Process Costing
_A
Chapter 6 Activity-Based, Variable, and Absorption Costing
Chapter 7 Budgeting
Chapter 8 Standard Costs and Variances
PP
Chapter 9 Responsibility Accounting and Decentralization
Chapter 10 Short-Term Decision Making
Chapter 11 Capital Budgeting Decisions
RO
Chapter 12 Balanced Scorecard and Other Performance Measures
Chapter 13 Sustainability Reporting
VE
D?
?
1
, Solutions Manual for Principles Of Accounting (Volume 2) Managerial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 2: Managerial Accounting
Chapter 1: Accounting as a Tool for Managers
ST
Principles of Accounting, Volume 2: Managerial Accounting
Chapter 1: Accounting as a Tool for Managers
UV
Multiple Choice
1. LO 1.1 The managers of an organization are responsible for performing several broad
functions. They are .
A. planning, controlling, and selling
IA
B. directing, controlling, and evaluating
C. planning, evaluating, and manufacturing
D. planning, controlling, and evaluating
Solution
26
D
2. LO 1.1 Management accountants help the management of an organization in their planning
function through .
A. monitoring anti-theft systems
_A
B. strategic planning
C. evaluating costs
D. analyzing profits
Solution
PP
B
3. LO 1.1 Which of the following is a primary aspect of the evaluating function within an
organization?
A. comparing actual results against expected results for products, departments, divisions, or
the company as a whole
RO
B. reviewing only the quantitative or financial results of the company
C. setting goals
D. putting controls in place for the upcoming year
Solution
A
VE
4. LO 1.1 During the control function, the measurements taken of the performance must be
accurate enough to see .
A. only positive results
B. deviations and variances
D?
C. the primary focus
D. only the negative results
Solution
B
5. LO 1.1 Which of the following is false regarding strategic planning?
?
A. It is the sole responsibility of supervisors.
B. It will span many years.
C. It should include both short-term and long-term goals.
D. Strategic objectives will be diverse and vary from company to company.
Solution
A
6. LO 1.2 Managerial accounting produces information:
Page 1 of 21
, Solutions Manual for Principles Of Accounting (Volume 2) Managerial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 2: Managerial Accounting
Chapter 1: Accounting as a Tool for Managers
ST
A. to meet the needs of external users
B. that is often focused on the future
C. to meet the needs of investors
UV
D. that follows the rules of GAAP
Solution
B
7. LO 1.2 Management accounting:
A. emphasizes special-purpose information
IA
B. relates to the company as a whole
C. is limited to strictly cost figures
D. is controlled by GAAP
Solution
26
A
8. LO 1.2 Internal users of accounting information would not include .
A. managers
B. employees
_A
C. creditors
D. officers
Solution
C
9. LO 1.2 External users of accounting information would include .
PP
A. employees
B. managers
C. investors
D. supervisors
RO
Solution
C
10. LO 1.2 Which of the following statements is incorrect?
A. The practice of management accounting is fairly flexible.
B. The information gathered from management accounting is not required by law.
VE
C. Management accounting focuses mainly on the internal user.
D. Reports produced using management accounting must follow GAAP.
Solution
D
D?
11. LO 1.3 The stockholders of a company are:
A. the owners
B. policy setters
C. responsible and liable for the financial well-being of the company
D. operating within the company as independent shareholders
?
Solution
A
12. LO 1.3 The controller of a corporation:
A. reports to the CFO and is in charge of the finance side of the business
B. reports to the CFO and is in charge of the accounting side of the business
C. reports to the CEO and implements all cash policies
D. reports to the board of directors
Page 2 of 21
