SOLUTION MANUAL w
Horngren's Accounting, The Managerial Chapters, 14th Edition
w w w w w w
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
w w w w w w w w w
,Table wof wcontents
1. Introduction to Managerial Accounting
w w w
2. Job Order Costing
w w
3. Process Costing
w
4. Cost-Volume-Profit Analysis w
5. Master Budgets
w
6. Flexible Budgets and Standard Cost Systems
w w w w w
7. Cost Allocation and Responsibility Accounting
w w w w
8. Short-Term Business Decisions
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9. Capital Investment Decisions
w w
, Chapter wM:1
Introduction wto wManagerial wAccounting
Review w Questions w
1. What wis wthe wprimary wpurpose wof wmanagerial waccounting?
The wprimary wpurpose wof wmanagerial waccounting wis wto wprovide winformation wto whelp wmanagers
wplan, w direct, wcontrol, wand wmake wdecisions.
2. List wsix wdifferences wbetween wfinancial waccounting wand wmanagerial waccounting.
Financial w accounting w and w managerial w accounting w differ w on w the w following w 6 w dimensions:
w (1) w primary w users, w (2) w purpose w of w information, w (3) w focus w and w time w dimension w of w the
w information, w (4) w rules w and w re- w strictions, w(5) wscope wof winformation, wand w(6) wbehavioral.
3. Explain wthe wdifference wbetween wline wpositions wand wstaff wpositions.
Line wpositions ware wdirectly winvolved win wproviding wgoods wor wservices wto wcustomers. wStaff
wpositions w support wline wpositions.
4. Explain wthe wdifferences wbetween wplanning, wdirecting, wand wcontrolling.
Planning wmeans wchoosing wgoals wand wdeciding whow wto wachieve wthem. wDirecting winvolves wrunning
wthe wday- w to-day woperations wof wa wbusiness. wControlling wis wthe wprocess wof wmonitoring woperations
wand wkeepingthe w company won wtrack.
5. List wthe wfour wIMA wstandards wof wethical wpractice wand wbriefly wdescribe weach.
The wfour wIMA wstandards wof wethical wpractice wand wa wdescription wof weach wfollow.
I. Competence.
Maintain wan wappropriate wlevel wof wprofessional wleadership wand wexpertise wby wenhancing
w knowledge wand wskills.
Perform wprofessional wduties win waccordance wwith wrelevant wlaws, wregulations, wand
wtechnical w standards.
Provide wdecision wsupport winformation wand wrecommendations wthat ware waccurate, wclear, wconcise,
Horngren's Accounting, The Managerial Chapters, 14th Edition
w w w w w w
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
w w w w w w w w w
,Table wof wcontents
1. Introduction to Managerial Accounting
w w w
2. Job Order Costing
w w
3. Process Costing
w
4. Cost-Volume-Profit Analysis w
5. Master Budgets
w
6. Flexible Budgets and Standard Cost Systems
w w w w w
7. Cost Allocation and Responsibility Accounting
w w w w
8. Short-Term Business Decisions
w w
9. Capital Investment Decisions
w w
, Chapter wM:1
Introduction wto wManagerial wAccounting
Review w Questions w
1. What wis wthe wprimary wpurpose wof wmanagerial waccounting?
The wprimary wpurpose wof wmanagerial waccounting wis wto wprovide winformation wto whelp wmanagers
wplan, w direct, wcontrol, wand wmake wdecisions.
2. List wsix wdifferences wbetween wfinancial waccounting wand wmanagerial waccounting.
Financial w accounting w and w managerial w accounting w differ w on w the w following w 6 w dimensions:
w (1) w primary w users, w (2) w purpose w of w information, w (3) w focus w and w time w dimension w of w the
w information, w (4) w rules w and w re- w strictions, w(5) wscope wof winformation, wand w(6) wbehavioral.
3. Explain wthe wdifference wbetween wline wpositions wand wstaff wpositions.
Line wpositions ware wdirectly winvolved win wproviding wgoods wor wservices wto wcustomers. wStaff
wpositions w support wline wpositions.
4. Explain wthe wdifferences wbetween wplanning, wdirecting, wand wcontrolling.
Planning wmeans wchoosing wgoals wand wdeciding whow wto wachieve wthem. wDirecting winvolves wrunning
wthe wday- w to-day woperations wof wa wbusiness. wControlling wis wthe wprocess wof wmonitoring woperations
wand wkeepingthe w company won wtrack.
5. List wthe wfour wIMA wstandards wof wethical wpractice wand wbriefly wdescribe weach.
The wfour wIMA wstandards wof wethical wpractice wand wa wdescription wof weach wfollow.
I. Competence.
Maintain wan wappropriate wlevel wof wprofessional wleadership wand wexpertise wby wenhancing
w knowledge wand wskills.
Perform wprofessional wduties win waccordance wwith wrelevant wlaws, wregulations, wand
wtechnical w standards.
Provide wdecision wsupport winformation wand wrecommendations wthat ware waccurate, wclear, wconcise,
