Solution Manual for Introduction to Managerial Accounting,
7th Canadian Edition 2024, by Peter C. Brewer, Ray H.
Garrison, Verified Chapters 1 - 14, Complete Newest Version
Financial Accounting - ANSWER: Focuses on external reporting
Management Accounting - ANSWER: Generates data for internal use
Cost Accounting - ANSWER: Measures analyzes and reports both financial and non
financial information related tot he cost associated with the production of a product
or delivery of a service
a. info is used in both financial and management accounting to assist in the decision
making process of the company
Cost Management - ANSWER: Use of resources in a manner that maximizes value to
customers while still meeting organizational goals
Management Accountant - ANSWER: Responsibility to provide detailed information
to management to assist in decision making
- an integral part of senior management and a full participant in the decision-making
process
Strategy - ANSWER: operational plan for a company for the next fiscal period or
periods
Value Chain Analysis - ANSWER: The review of the sequence of business functions
where the company increases the value of the company's product or service.
1. Research and development
2. Design of products and processes
3. Production
4. Marketing (including sales)
5. Distribution
6. Customer service (post sales)
#s 3-5 are also the Supply Chain - deal specifically with production and delivery of a
product or service
Success Factors - ANSWER: a. cost and efficiency
b. quality
c.time
d. innovation
Decision Making - ANSWER: How management runs the day to day operations of the
company by choosing between alternative choices
, Five Step Decision making process - ANSWER: 1. Identify the problem or uncertainty
to be dealt with
2. Gather info
3. Calculate potential future results
4. Decide the course of action to be taken
5. Implement the decision, evaluate the ensuing results, and use this acquired
knowledge in preparations for the next budget cycle
Budget - ANSWER: a guide - prices change, things change and there are revisions
made to a budget
Guidelines for Management Accounting - ANSWER: 1. Cost/Benefit - The potential
benefit to the company of a new procedure worth the related cost in
implementation
2. Behavioral & Technical - Non-financial information which must be incorporated
into the decision-making process
COST - ANSWER: the value given to obtain a product or service
Actual Cost - ANSWER: amount actually paid
Budgeted Cost - ANSWER: amount expected to be paid before the actual purchase is
made
Cost Object - ANSWER: The item for which a measure of cost is required
Cost Accumulation - ANSWER: The collection of cost data by means of an accounting
system
Direct Costs - ANSWER: Costs related to the cost object that can be directly matched
to it
Cost Tracing - ANSWER: the assignment of direct costs to a particular cost object
Indirect Costs - ANSWER: Costs related to the cost object but that do not trace
directly to the cost object
Cost Allocation - ANSWER: the assignment of indirect costs to the cost object
Cost Assignment - ANSWER: the combination of cost tracing and cost allocation
Materiality - ANSWER: the amount of a cost related to total expenses or revenue
determines whether it is worth tracing as an individual item
Available Information-Gathering Technology - ANSWER: how easy or difficult it is to
actually trace a specific cost
7th Canadian Edition 2024, by Peter C. Brewer, Ray H.
Garrison, Verified Chapters 1 - 14, Complete Newest Version
Financial Accounting - ANSWER: Focuses on external reporting
Management Accounting - ANSWER: Generates data for internal use
Cost Accounting - ANSWER: Measures analyzes and reports both financial and non
financial information related tot he cost associated with the production of a product
or delivery of a service
a. info is used in both financial and management accounting to assist in the decision
making process of the company
Cost Management - ANSWER: Use of resources in a manner that maximizes value to
customers while still meeting organizational goals
Management Accountant - ANSWER: Responsibility to provide detailed information
to management to assist in decision making
- an integral part of senior management and a full participant in the decision-making
process
Strategy - ANSWER: operational plan for a company for the next fiscal period or
periods
Value Chain Analysis - ANSWER: The review of the sequence of business functions
where the company increases the value of the company's product or service.
1. Research and development
2. Design of products and processes
3. Production
4. Marketing (including sales)
5. Distribution
6. Customer service (post sales)
#s 3-5 are also the Supply Chain - deal specifically with production and delivery of a
product or service
Success Factors - ANSWER: a. cost and efficiency
b. quality
c.time
d. innovation
Decision Making - ANSWER: How management runs the day to day operations of the
company by choosing between alternative choices
, Five Step Decision making process - ANSWER: 1. Identify the problem or uncertainty
to be dealt with
2. Gather info
3. Calculate potential future results
4. Decide the course of action to be taken
5. Implement the decision, evaluate the ensuing results, and use this acquired
knowledge in preparations for the next budget cycle
Budget - ANSWER: a guide - prices change, things change and there are revisions
made to a budget
Guidelines for Management Accounting - ANSWER: 1. Cost/Benefit - The potential
benefit to the company of a new procedure worth the related cost in
implementation
2. Behavioral & Technical - Non-financial information which must be incorporated
into the decision-making process
COST - ANSWER: the value given to obtain a product or service
Actual Cost - ANSWER: amount actually paid
Budgeted Cost - ANSWER: amount expected to be paid before the actual purchase is
made
Cost Object - ANSWER: The item for which a measure of cost is required
Cost Accumulation - ANSWER: The collection of cost data by means of an accounting
system
Direct Costs - ANSWER: Costs related to the cost object that can be directly matched
to it
Cost Tracing - ANSWER: the assignment of direct costs to a particular cost object
Indirect Costs - ANSWER: Costs related to the cost object but that do not trace
directly to the cost object
Cost Allocation - ANSWER: the assignment of indirect costs to the cost object
Cost Assignment - ANSWER: the combination of cost tracing and cost allocation
Materiality - ANSWER: the amount of a cost related to total expenses or revenue
determines whether it is worth tracing as an individual item
Available Information-Gathering Technology - ANSWER: how easy or difficult it is to
actually trace a specific cost
