Solution Manual for Introduction to Managerial Accounting, 7th Canadian Edition 2024, by Brewer, Ray H. Garrison. All Chapters 1 to 14 Complete, Verified Edition

www.jntuworld.com




Chapter 1 n




Managerial Accounting and the Business
n n n n n



Environment


SolutionsntonQuestions


1-1 Managerialnaccountingnisnconcernednwithnp fromnmakingnonenproductntonmakingnanothernal-
rovidingninformationntonmanagersnfornusenwithinnth nlowsnthe ncompanyntonrespondnmorenquicklyntoncus-

enorganization.nFinancialnaccountingnisncon- tomers.nFinally,nsmallernbatchesnmakenitneasierntons
n

ncerned nwithnprovidingninformationntonstockholders potnmanufacturingnproblemsnbeforentheynresultninnanl
,ncreditors,nandnothersnoutsidenofnthenorganization. argennumbernofndefectivenunits.

1-2 Essentially,nmanagersncarrynoutnthreenma- 1-7 ThenmainnbenefitsnofnansuccessfulnJITnsys-
njornactivities ninnannorganization:nplanning,ndirectin temnarenreductionsnin:n(1)nfundsntiednupninninven-
n

gnandnmotivating,nandncontrolling.nAllnthreenactivitie ntories;n(2)nspacenrequirements;n(3)nthroughputnti

sninvolvendecisionnmaking. me;nandn(4)ndefects.

1-3 ThenPlanningnandnControlnCycleninvolvesnf 1-8 TQMngenerallynapproachesnimprovementni
ormulatingnplans,nimplementingnplans,nmeasuringn nnanseriesnofnsmallnstepsnthatnarenplannednandnim-
performance,nandnevaluatingndifferencesnbetweenn plementednbynteamsnofnfront-
n

plannednandnactualnperformance. linenworkers.nProcessnReengineeringninvolvesncompl
etelynredesigningnbusinessnprocessesnfromnthengro
1-4 Anlinenpositionnisndirectlynrelatedntonthenach undnup—oftennwithnthenusenofnoutsidenconsultants.
ievementnofnthenbasicnobjectivesnofnthenorgani-
nzation.nAnstaffnpositionnisnnotndirectlynrelatedntonthen 1-9 IfnProcessnReengineeringnisnsuccessful,nf
achievementnofnthosenobjectives;nrather,nitnisnsup- ewernworkersnarenneeded.nIfnmanagementnre-
nportive,nprovidingnservicesnandnassistance ntonothern nspondsnbynlayingnoffnworkers,nmoralenwillnalmos

partsnofnthenorganization. tncertainnsuffer.

1-5 Inncontrastntonfinancialnaccounting,nmana- 1-10 Somenbenefitsnfromnimprovementneffortsn
ngerialnaccounting:n(1)nfocusesnonnthenneeds nofnthen comenfromncostnreductions,nbutnthenprimarynbene-
manager;n(2)nplacesnmorenemphasisnonnthenfuture; fitnisnoftennannincreaseninncapacity.nAtnnon-con-
n

(3)nemphasizesnrelevancenandnflexibility,nratherntha nstraints,nincreasesninncapacitynjustnaddntonthenal-

nnprecision;n(4)nemphasizesnthensegmentsnofnannorg nready-existingnexcessncapacity.nTherefore,nim-

anization;n(5)nisnnotngovernednbynGAAP;nand nprovementneffortsnshouldnordinarilynfocusnonnthen

(6) isnnotnmandatory. constraint.

1-6 Annumbernofnbenefitsnaccruenfromnreducedn 1-11 Ifnpeoplengenerallyndidnnotnactnethicallyninn
setupntime.nFirst,nreducednsetupntimenallowsnancom business,nnononenwouldntrustnanyonenelsenandnpeo
panyntonproduceninnsmallernbatches,nwhichninnturnnr plenwouldnbenreluctantntonenternintonbusinessntrans
educesnthenlevelnofninventories.nSecond,nre- actions.nThenresultnwouldnbenlessnfundsnraisedninnca
nducednsetup ntimenallowsnancompanyntonspendnmoren pitalnmarkets,nfewerngoodsnandnservicesnavail-
timenproducingngoodsnandnlessntimengettingnreadynt ablenfornsale,nlowernquality,nandnhighernprices.
n

onproduce.nThird,nthenabilityntonrapidlynchange



©nThenMcGraw-HillnCompanies,nInc.,n2006.
SolutionsnManual,nChaptern1 1


www.jntuworld.com

,www.jntuworld.com




Exercise 1-1 (10 minutes)
n n n




1. Line
2. Directing and motivating
n n



3. Budgets
4. Planning
5. Staff
6. Decentralization
7. Precision; Nonmonetary data
n n



8. Managerial accounting; Financial accounting
n n n



9. Feedback
10. Controller
11. Performance report n



12. Chief Financial Officer
n n




©nThenMcGraw-HillnCompanies,nInc.,n2006.nAllnrightsnreserved.
2 ManagerialnAccounting,n11thnEdition


www.jntuworld.com

,www.jntuworld.com




Exercise 1-2 (10 minutes)
n n n




1. Total quality management; Process reengineering
n n n n



2. Just-In-Time
3. Nonconstraint
4. Benchmarking
5. Setup
6. Constraint
7. Non-value-added activities n



8. Business process
n




©nThenMcGraw-HillnCompanies,nInc.,n2006.nAllnrightsnreserved.
SolutionsnManual,nChaptern1 3


www.jntuworld.com

,www.jntuworld.com




Exercise 1-3 (15 minutes) n n n




If cashiers routinely shortchanged customers whenever the opportunity pres
n n n n n n n n


ented itself, most of us would be careful to count our change before leaving t
n n n n n n n n n n n n n n


he counter. Imagine what effect this would have on the line at your favorite fa
n n n n n n n n n n n n n n


st-
food restaurant. How would you like to wait in line whileeach and every custo
n n n n n n n n n n n n n n


mer laboriously counts out his or her change? Addi-
n n n n n n n n


ntionally, if you can’t trust the cashiers to give honest change, can you trustth
n n n n n n n n n n n n n n


e cooks to take the time to follow health precautions such as washing their ha
n n n n n n n n n n n n n n


nds? If you can’t trust anyone at the restaurant would you even want to eat o
n n n n n n n n n n n n n n n


ut?
Generally, when we buy goods and services in the free market, we assumewe
n n n n n n n n n n n n n n


are buying from people who have a certain level of ethical standards. Ifwe cou
n n n n n n n n n n n n n n


ld not trust people to maintain those standards, we would be reluc-
n n n n n n n n n n n


ntant to buy. The net result of widespread dishonesty would be a shrunken eco
n n n n n n n n n n n n n


nomy with a lower growth rate and fewer goods and services for sale ata lowe
n n n n n n n n n n n n n n n


r overall level of quality.
n n n n




©nThenMcGraw-HillnCompanies,nInc.,n2006.nAllnrightsnreserved.


www.jntuworld.com