SOLUTIONMANUAL x
Fundamentals of Cost x x
Accounting
7th
x
Edition by Lanen all
x x x x
x chapters
Solutions xManual, xChapter x4 1
© xMcGraw xHill xLLC. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe
xprior x written xconsent x of xMcGraw xHill xLLC.
,TABLE xOF
xCONTENT
INTRODUCTION xAND xOVERVIEW
Chapter xOne: xCost xAccounting: xInformation xfor xDecision
xMaking x Chapter xTwo: xCost xConcepts xand xBehavior
COST xANALYSIS xAND xESTIMATION
Chapter xThree: xFundamentals xof xCost-Volume-Profit xAnalysis
x Chapter xFour: xFundamentals xof xCost xAnalysis xfor xDecision
xMaking x Chapter xFive: xCost xEstimation
COST xMANAGEMENT xSYSTEMS
Chapter xSix: xFundamentals xof xProduct xand xService xCosting
x Chapter xSeven: xJob xCosting
Chapter xEight: xProcess xCosting
x Chapter xNine: xActivity-Based
xCosting
Chapter xTen: xFundamentals xof xCost xManagement
Chapter xEleven: xService xDepartment xand xJoint xCost xAllocation
MANAGEMENT xCONTROL xSYSTEMS
Chapter xTwelve: xFundamentals xof xManagement xControl
xSystems x Chapter xThirteen: xPlanning xand xBudgeting
Chapter xFourteen: xBusiness xUnit xPerformance xMeasurement
x Chapter xFifteen: xTransfer xPricing
Chapter xSixteen: xFundamentals xof xVariance xAnalysis
x Chapter xSeventeen: xAdditional xTopics xin xVariance
xAnalysis
Chapter xEighteen: xPerformance xMeasurement xto xSupport xBusiness xStrategy
2 Fundamentals xof xCost xAccounting,
x7e
© xMcGraw xHill xLLC. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe
xprior x written xconsent x of xMcGraw xHill xLLC.
,1
Cost Accounting: Information for Decision
x x x x
Making
x
Solutions to Review Questions
x x x
1-1.
Among xthe xgoals xof xan xorganization, xa xcentral xone xis xto xcreate xand xincrease x value.
xCost x accounting xsystems xare xdesigned xto xprovide xinformation xto xdecision xmakers xin
xthe x organization xwith xthe xinformation xthey xneed xto xaccomplish xthis xgoal. xTherefore,
xthe x designers xof xthe xcost xaccounting xsystem xneed xto xunderstand xhow xvalue xis
xcreated xin xthe x organization xto xdesign xsystems xfor xtheir xorganization.
Solutions xManual, xChapter x4 3
© xMcGraw xHill xLLC. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe
xprior x written xconsent x of xMcGraw xHill xLLC.
, 1-2.
Financial xaccounting xis xdesigned xto xprovide xinformation xabout xthe xfirm xto xexternal
xusers. x External xusers xinclude xinvestors, xcreditors, xgovernment xauthorities,
xregulators, x customers, xcompetitors, xsuppliers, xlabor xunions, xand xso xon. xCost
xaccounting xsystems x x are xdesigned xto xprovide xinformation xto xinternal xusers
x(managers).
This xdifference xis ximportant, xbecause xit xaffects xthe xdesign xof xthe xsystems. xFinancial
x accounting xsystems xare xbased xon xstandards xor xrules. xThis xallows xthe xuser xto
xcompare x the xresults xof xdifferent xfirms. xManagerial xaccounting xsystems xdo xnot
xrequire xrules. xEach x firm xis xfree xto xdevelop xmanagerial xaccounting xsystems xthat
xbest xserve xthe xneeds xof xthe x decision xmakers x(managers).
1-3.
B Providing xcost xinformation xfor xfinancial
x reporting x A xIdentifying xthe xbest xstore xin xa
chain
x
4 Fundamentals xof xCost xAccounting,
x7e
© xMcGraw xHill xLLC. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe
xprior x written xconsent x of xMcGraw xHill xLLC.
Fundamentals of Cost x x
Accounting
7th
x
Edition by Lanen all
x x x x
x chapters
Solutions xManual, xChapter x4 1
© xMcGraw xHill xLLC. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe
xprior x written xconsent x of xMcGraw xHill xLLC.
,TABLE xOF
xCONTENT
INTRODUCTION xAND xOVERVIEW
Chapter xOne: xCost xAccounting: xInformation xfor xDecision
xMaking x Chapter xTwo: xCost xConcepts xand xBehavior
COST xANALYSIS xAND xESTIMATION
Chapter xThree: xFundamentals xof xCost-Volume-Profit xAnalysis
x Chapter xFour: xFundamentals xof xCost xAnalysis xfor xDecision
xMaking x Chapter xFive: xCost xEstimation
COST xMANAGEMENT xSYSTEMS
Chapter xSix: xFundamentals xof xProduct xand xService xCosting
x Chapter xSeven: xJob xCosting
Chapter xEight: xProcess xCosting
x Chapter xNine: xActivity-Based
xCosting
Chapter xTen: xFundamentals xof xCost xManagement
Chapter xEleven: xService xDepartment xand xJoint xCost xAllocation
MANAGEMENT xCONTROL xSYSTEMS
Chapter xTwelve: xFundamentals xof xManagement xControl
xSystems x Chapter xThirteen: xPlanning xand xBudgeting
Chapter xFourteen: xBusiness xUnit xPerformance xMeasurement
x Chapter xFifteen: xTransfer xPricing
Chapter xSixteen: xFundamentals xof xVariance xAnalysis
x Chapter xSeventeen: xAdditional xTopics xin xVariance
xAnalysis
Chapter xEighteen: xPerformance xMeasurement xto xSupport xBusiness xStrategy
2 Fundamentals xof xCost xAccounting,
x7e
© xMcGraw xHill xLLC. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe
xprior x written xconsent x of xMcGraw xHill xLLC.
,1
Cost Accounting: Information for Decision
x x x x
Making
x
Solutions to Review Questions
x x x
1-1.
Among xthe xgoals xof xan xorganization, xa xcentral xone xis xto xcreate xand xincrease x value.
xCost x accounting xsystems xare xdesigned xto xprovide xinformation xto xdecision xmakers xin
xthe x organization xwith xthe xinformation xthey xneed xto xaccomplish xthis xgoal. xTherefore,
xthe x designers xof xthe xcost xaccounting xsystem xneed xto xunderstand xhow xvalue xis
xcreated xin xthe x organization xto xdesign xsystems xfor xtheir xorganization.
Solutions xManual, xChapter x4 3
© xMcGraw xHill xLLC. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe
xprior x written xconsent x of xMcGraw xHill xLLC.
, 1-2.
Financial xaccounting xis xdesigned xto xprovide xinformation xabout xthe xfirm xto xexternal
xusers. x External xusers xinclude xinvestors, xcreditors, xgovernment xauthorities,
xregulators, x customers, xcompetitors, xsuppliers, xlabor xunions, xand xso xon. xCost
xaccounting xsystems x x are xdesigned xto xprovide xinformation xto xinternal xusers
x(managers).
This xdifference xis ximportant, xbecause xit xaffects xthe xdesign xof xthe xsystems. xFinancial
x accounting xsystems xare xbased xon xstandards xor xrules. xThis xallows xthe xuser xto
xcompare x the xresults xof xdifferent xfirms. xManagerial xaccounting xsystems xdo xnot
xrequire xrules. xEach x firm xis xfree xto xdevelop xmanagerial xaccounting xsystems xthat
xbest xserve xthe xneeds xof xthe x decision xmakers x(managers).
1-3.
B Providing xcost xinformation xfor xfinancial
x reporting x A xIdentifying xthe xbest xstore xin xa
chain
x
4 Fundamentals xof xCost xAccounting,
x7e
© xMcGraw xHill xLLC. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe
xprior x written xconsent x of xMcGraw xHill xLLC.
