SOLUTION MANUAL
Horngren's Accounting, 13th Edition Managerial
By Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
,THE MANAGERIAL CHAPTERS
g g
1. Introduction to Managerial Accounting
g g g
2. Job Order Costing
g g
3. Process Costing
g
4. Cost-Volume-Profit Analysis g
5. Master Budgets
g
6. Flexible Budgets and Standard Cost Systems
g g g g g
7. Cost Allocation and Responsibility Accounting
g g g g
8. Short-Term Business Decisions
g g
9. Capital Investment Decisions
g g
,Chapter 1 g
Introduction to Managerial Accounting
g g g
Review Questions
g
1. Thegprimarygpurposegofgmanagerialgaccountinggisgtogprovideginformationgtoghelpgmanager
sgplan,gdirect,gcontrol,gandgmakegdecisions.
2. Financialgaccountinggandgmanagerialgaccountinggdiffergongthegfollowingg6gdimensions:g(1)gpri
marygusers,g(2)gpurposegofginformation,g(3)gfocusgandgtimegdimensiongofgtheginformation,g(4)gr
ulesgandgrestrictions,g(5)gscopegofginformation,gandg(6)gbehavioral.
3. Linegpositionsgaregdirectlyginvolvedgingprovidingggoodsgorgservicesgtogcustomers.gStaffgposit
ionsgsupportglinegpositions.
4. Planninggmeansgchoosingggoalsgandgdecidingghowgtogachievegthem.gDirectingginvolvesgrunningg
thegday-to-
daygoperationsgofgagbusiness.gControllinggisgthegprocessgofgmonitoringgoperationsgandgkeepinggt
hegcompanygongtrack.
5. ThegfourgIMAgstandardsgofgethicalgpracticegandgagdescriptiongofgeachgfollow.
I. Competence.
Maintaingangappropriateglevelgofgprofessionalgleadershipgandgexpertisegbygenha
ncinggknowledgegandgskills.
Performgprofessionalgdutiesgingaccordancegwithgrelevantglaws,gregulations,gandgtech
nicalgstandards.
Providegdecisiongsupportginformationgandgrecommendationsgthatgaregaccurate,gclear,gc
oncise,gandgtimely.
Recognisegandghelpgmangegrisk.
II. Confidentiality.
Keepginformationgconfidentialgexceptgwhengdisclosuregisgauthorizedgorglegallygrequired.
Informgallgrelevantgpartiesgregardinggappropriategusegofgconfidentialginformation.g Mon
itorgtogensuregcompliance.
Refraingfromgusinggconfidentialginformationgforgunethicalgorgillegalgadvantage.
III. Integrity.
Mitigategactualgconflictsgofginterest.gRegularlygcommunicategwithgbusinessgassociatesgtoga
voidgapparentgconflictsgofginterest.ggAdvisegallgpartiesgofganygpotentialgconflicts.
Refraingfromgengagingginganygconductgthatgwouldgprejudicegcarryinggoutgdutiesgethically.
, Abstaingfromgengaginggingorgsupportingganygactivitygthatgmightgdiscreditgthegprofession.
Contributegtogagpositivegethicalgculturegandgplacegintegritygofgthegprofessiongabovegper
sonalginterest.
5,gcont.
IV. Credibility.
Communicateginformationgfairlygandgobjectively.
Providegallgrelevantginformationgthatgcouldgreasonablygbegexpectedgtoginfluencegangint
endedguser’sgunderstandinggofgthegreports,ganalyses,gorgrecommendations.
Reportganygdelaysgorgdeficienciesginginformation,gtimeliness,gprocessing,gorginternalgcon
trolsgingconformancegwithgorganizationgpolicygand/orgapplicableglaw.
Communicateganygprofessionalglimitationsgorgothergconstraintsgthatgwouldgprecludegres
ponsi-gblegjudgmentgorgsuccessfulgperformancegofgangactivity.
6. Servicegcompaniesgsellgtime,gskills,gandgknowledge.g Examplesgofgservicegcompaniesgincludegph
onegservicegcompanies,gbanks,gcleaninggservicegcompanies,gaccountinggfirms,glawgfirms,gmedic
algphysicians,gandgonlinegauctiongservices.
7. Merchandisinggcompaniesgresellgproductsgtheygbuygfromgsuppliers.gMerchandisersgkeepganginve
ntorygofgproducts,gandgmanagersgaregaccountablegforgthegpurchasing,gstorage,gandgsalegofgthegpr
oducts.gExamplesgofgmerchandisinggcompaniesgincludegtoygstores,ggrocerygstores,gandgclothinggst
ores.
8. Merchandisinggcompaniesgresellgproductsgtheygpreviouslygboughtgfromgsuppliers,gwhereasgman
ufacturinggcompaniesguseglabor,gequipment,gsupplies,gandgfacilitiesgtogconvertgrawgmaterialsgint
ognewgfinishedgproducts.gIngcontrastgtogmerchandisinggcompanies,gmanufacturinggcompaniesgh
avegagbroadgrangegofgproductiongactivitiesgthatgrequiregtrackinggcostsgongthreegkindsgofginventor
y.
9. ThegthreeginventorygaccountsgusedgbygmanufacturinggcompaniesgaregRawgMaterialsgInventory,g
Work-gin-ProcessgInventory,gandgFinishedgGoodsgInventory.
RawgMaterialsgInventorygincludesgmaterialsgusedgtogmanufacturegagproduct.gWork-in-
ProcessgInventorygincludesggoodsgthatghavegbeengstartedgingthegmanufacturinggprocessgbutgaregn
otgyetgcomplete.g FinishedgGoodsgInventorygincludesgcompletedggoodsgthatghavegnotgyetgbeeng
sold.
10. Agdirectgcostgisgagcostgthatgcangbegeasilygandgcost-
effectivelygtracedgtogagcostgobjectg(whichgisganythinggforgwhichgmanagersgwantgagseparategme
asurementgofgcost).gAngindirectgcostgisgagcostgthatgcannotgbegeasilygorgcost-
effectivelygtracedgtogagcostgobject.
11. Thegthreegmanufacturinggcostsgforgagmanufacturinggcompanygaregdirectgmaterials,gdirectglabor,g
Horngren's Accounting, 13th Edition Managerial
By Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
,THE MANAGERIAL CHAPTERS
g g
1. Introduction to Managerial Accounting
g g g
2. Job Order Costing
g g
3. Process Costing
g
4. Cost-Volume-Profit Analysis g
5. Master Budgets
g
6. Flexible Budgets and Standard Cost Systems
g g g g g
7. Cost Allocation and Responsibility Accounting
g g g g
8. Short-Term Business Decisions
g g
9. Capital Investment Decisions
g g
,Chapter 1 g
Introduction to Managerial Accounting
g g g
Review Questions
g
1. Thegprimarygpurposegofgmanagerialgaccountinggisgtogprovideginformationgtoghelpgmanager
sgplan,gdirect,gcontrol,gandgmakegdecisions.
2. Financialgaccountinggandgmanagerialgaccountinggdiffergongthegfollowingg6gdimensions:g(1)gpri
marygusers,g(2)gpurposegofginformation,g(3)gfocusgandgtimegdimensiongofgtheginformation,g(4)gr
ulesgandgrestrictions,g(5)gscopegofginformation,gandg(6)gbehavioral.
3. Linegpositionsgaregdirectlyginvolvedgingprovidingggoodsgorgservicesgtogcustomers.gStaffgposit
ionsgsupportglinegpositions.
4. Planninggmeansgchoosingggoalsgandgdecidingghowgtogachievegthem.gDirectingginvolvesgrunningg
thegday-to-
daygoperationsgofgagbusiness.gControllinggisgthegprocessgofgmonitoringgoperationsgandgkeepinggt
hegcompanygongtrack.
5. ThegfourgIMAgstandardsgofgethicalgpracticegandgagdescriptiongofgeachgfollow.
I. Competence.
Maintaingangappropriateglevelgofgprofessionalgleadershipgandgexpertisegbygenha
ncinggknowledgegandgskills.
Performgprofessionalgdutiesgingaccordancegwithgrelevantglaws,gregulations,gandgtech
nicalgstandards.
Providegdecisiongsupportginformationgandgrecommendationsgthatgaregaccurate,gclear,gc
oncise,gandgtimely.
Recognisegandghelpgmangegrisk.
II. Confidentiality.
Keepginformationgconfidentialgexceptgwhengdisclosuregisgauthorizedgorglegallygrequired.
Informgallgrelevantgpartiesgregardinggappropriategusegofgconfidentialginformation.g Mon
itorgtogensuregcompliance.
Refraingfromgusinggconfidentialginformationgforgunethicalgorgillegalgadvantage.
III. Integrity.
Mitigategactualgconflictsgofginterest.gRegularlygcommunicategwithgbusinessgassociatesgtoga
voidgapparentgconflictsgofginterest.ggAdvisegallgpartiesgofganygpotentialgconflicts.
Refraingfromgengagingginganygconductgthatgwouldgprejudicegcarryinggoutgdutiesgethically.
, Abstaingfromgengaginggingorgsupportingganygactivitygthatgmightgdiscreditgthegprofession.
Contributegtogagpositivegethicalgculturegandgplacegintegritygofgthegprofessiongabovegper
sonalginterest.
5,gcont.
IV. Credibility.
Communicateginformationgfairlygandgobjectively.
Providegallgrelevantginformationgthatgcouldgreasonablygbegexpectedgtoginfluencegangint
endedguser’sgunderstandinggofgthegreports,ganalyses,gorgrecommendations.
Reportganygdelaysgorgdeficienciesginginformation,gtimeliness,gprocessing,gorginternalgcon
trolsgingconformancegwithgorganizationgpolicygand/orgapplicableglaw.
Communicateganygprofessionalglimitationsgorgothergconstraintsgthatgwouldgprecludegres
ponsi-gblegjudgmentgorgsuccessfulgperformancegofgangactivity.
6. Servicegcompaniesgsellgtime,gskills,gandgknowledge.g Examplesgofgservicegcompaniesgincludegph
onegservicegcompanies,gbanks,gcleaninggservicegcompanies,gaccountinggfirms,glawgfirms,gmedic
algphysicians,gandgonlinegauctiongservices.
7. Merchandisinggcompaniesgresellgproductsgtheygbuygfromgsuppliers.gMerchandisersgkeepganginve
ntorygofgproducts,gandgmanagersgaregaccountablegforgthegpurchasing,gstorage,gandgsalegofgthegpr
oducts.gExamplesgofgmerchandisinggcompaniesgincludegtoygstores,ggrocerygstores,gandgclothinggst
ores.
8. Merchandisinggcompaniesgresellgproductsgtheygpreviouslygboughtgfromgsuppliers,gwhereasgman
ufacturinggcompaniesguseglabor,gequipment,gsupplies,gandgfacilitiesgtogconvertgrawgmaterialsgint
ognewgfinishedgproducts.gIngcontrastgtogmerchandisinggcompanies,gmanufacturinggcompaniesgh
avegagbroadgrangegofgproductiongactivitiesgthatgrequiregtrackinggcostsgongthreegkindsgofginventor
y.
9. ThegthreeginventorygaccountsgusedgbygmanufacturinggcompaniesgaregRawgMaterialsgInventory,g
Work-gin-ProcessgInventory,gandgFinishedgGoodsgInventory.
RawgMaterialsgInventorygincludesgmaterialsgusedgtogmanufacturegagproduct.gWork-in-
ProcessgInventorygincludesggoodsgthatghavegbeengstartedgingthegmanufacturinggprocessgbutgaregn
otgyetgcomplete.g FinishedgGoodsgInventorygincludesgcompletedggoodsgthatghavegnotgyetgbeeng
sold.
10. Agdirectgcostgisgagcostgthatgcangbegeasilygandgcost-
effectivelygtracedgtogagcostgobjectg(whichgisganythinggforgwhichgmanagersgwantgagseparategme
asurementgofgcost).gAngindirectgcostgisgagcostgthatgcannotgbegeasilygorgcost-
effectivelygtracedgtogagcostgobject.
11. Thegthreegmanufacturinggcostsgforgagmanufacturinggcompanygaregdirectgmaterials,gdirectglabor,g
