Horngren's Accounting, The Managerial Chapters, 14th Edition | Tracie Miller-Nobles & Brenda Mattison | Complete Solution Manual (Chapters 1–9)

SOLUTION MANUAL
Horngren's Accounting, The Managerial Chapters, 14th Edition
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9

,Tableofcontents
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1. Introduction to Managerial Accounting si si si




2. Job Order Costing
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3. Process Costing si




4. Cost-Volume-Profit Analysis si




5. Master Budgets si




6. Flexible Budgets and Standard Cost Systems
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7. Cost Allocation and Responsibility Accounting
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8. Short-Term Business Decisions si si




9. Capital Investment Decisions
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,Chapter M:1 si




Introductionto ManagerialAccounting si si si




ReviewQuestions si




1. What is the primarypurpose of managerial accounting?
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The primary purpose of managerial accounting is to provide information to help managers plan,dire
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ct, control, and make decisions.
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2. List six differences between financial accounting and managerial accounting.
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Financial accounting and managerial accounting differ on the following 6 dimensions: (1) primaryusers,
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(2)purpose of information, (3) focus and time dimension of the information, (4)rules and re-
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strictions, (5) scope of information, and (6) behavioral.
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3. Explain the difference between line positions and staff positions.
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Line positions are directly involved in providing goods or services to customers. Staff positionssupp
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ort line positions.
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4. Explain the differences between planning, directing, and controlling.
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Planning means choosing goals and deciding how to achieve them. Directing involves running the day-to-
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day operations of a business. Controlling is the process of monitoring operations and keepingthe compa
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nyon track.
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5. List the four IMA standards of ethical practice and brieflydescribe each.
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Thefour IMA standards ofethical practice and a description of each follow.
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I. Competence.
Maintain an appropriate level of professional leadership and expertise by enhancingkn si si si si si si si si si si si




owledge and skills. si si




Perform professional duties in accordance with relevant laws, regulations, and technicalsta si si si si si si si si si si si




ndards.
Providedecision support information and recommendations that are accurate, clear, concise, si si si si si si si si si si

, and timely. si




Recognise and help mange risk. si si si si




II. Confidentiality.
Keep information confidential except when disclosure is authorized or legallyrequired.
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Inform all relevant parties regardingappropriate use of confidential information. Monitor toen
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sure compliance. si




Refrain from usingconfidential information for unethical or illegal advantage. si si si si si si si si si




III. Integrity.
Mitigate actual conflicts of interest. Regularlycommunicate with business associates to avoidapp si si si si si si si si si si si si




arent conflicts of interest. Advise all parties of anypotential conflicts. si si si sisi si si si si si si




Refrain from engagingin anyconduct that would prejudice carryingout duties ethically. si si si si si si si si si si si si




Abstain from engagingin or supporting anyactivitythat might discredit the profession. si si si si si si si si si si si si




Contribute to a positive ethical culture and place integrityof the profession above personalinte si si si si si si si si si si si si si si




rest.

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IV. Credibility.
Communicate information fairlyand objectively. si si si si




Provide all relevant information that could reasonablybe expected to influence an intendedus si si si si si si si si si si si si si




er’s understanding of the reports, analyses, or recommendations.
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Report anydelays or deficiencies in information, timeliness, processing, or internal controlsin c
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onformance with organization policyand/or applicable law. si si si si si si




Communicate any professional limitations or other constraints that would preclude responsi- si si si si si si si si si si




ble judgment or successful performance of an activity.
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6. Describe a service companyand give an example.
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Service companies sell time, skills, and knowledge. Examples of service companies include phoneservic
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e companies, banks, cleaning service companies, accounting firms, law firms, medical physi-
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cians, and online auction services.
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7. Describe a merchandising companyand give an example.
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Merchandising companies resell products they buy from suppliers. Merchandisers keep an inventoryof p si si si si si si si si si si si si si




roducts, and managers are accountable for the purchasing, storage, and sale of the products. Ex-
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amples of merchandising companies include toystores, grocerystores, and clothing stores.
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8. How do manufacturingcompanies differ from merchandising companies?
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Merchandising companies resell products they previously bought from suppliers, whereas manufac- si si si si si si si si si si




turing companies use labor, equipment, supplies, and facilities to convert raw materials into new fin-
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