Solution Manual for Managerial Accounting,
18th Edition
By Ray Garrison, Eric Noreen and Peter Brewer
Verified Chapter's 1 - 16 | Complete
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,Table of Contents
D D
ChapterDOne:DManagerialDAccountingDandDCostDConcepts
ChapterDTwo:DJob-OrderDCosting:DCalculatingDUnitDProductDCosts
ChapterDThree:DJob-OrderDCosting:DCostDFlowsDandDExternalDReporting
ChapterDFour:DProcessDCosting
ChapterDFive:DCost-Volume-ProfitDRelationships
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ChapterDSix:DVariableDCostingDandDSegmentDReporting:DToolsDforDManagement
ChapterDSeven:DActivity-BasedDCosting:DADToolDtoDAidDDecisionDMaking
ChapterDEight:DMasterDBudgeting
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ChapterDNine:DFlexibleDBudgetsDandDPerformanceDAnalysis
ChapterDTen:DStandardDCostsDandDVariances
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ChapterDEleven:DResponsibilityDAccountingDSystems
ChapterDTwelve:DStrategicDPerformanceDMeasurement
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ChapterDThirteen:DDifferentialDAnalysis:DTheDKeyDtoDDecisionDMaking
ChapterDFourteen:DCapitalDBudgetingDDecisions
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ChapterDFifteen:DStatementDofDCashDFlows
ChapterDSixteen:DFinancialDStatementDAnalysis
,Chapter 1 D
Managerial Accounting and Cost Concepts
D D D D
Questions
1-1 TheDthreeDmajorDtypesDofDproductDcost 1-4
sDinDaDmanufacturingDcompanyDareDdirectDmat a. VariableDcost:DTheDvariableDcostDperDunitDi
erials,DdirectDlabor,DandDmanufacturingDoverhe sDconstant,DbutDtotalDvariableDcostDchange
ad. sDinDdirectDproportionDtoDchangesDinDvolu
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1-2 b. FixedDcost:DTheDtotalDfixedDcostDisDconstant
a. DirectDmaterialsDareDanDintegralDpartDofD DwithinDtheDrelevantDrange.DTheDaverageDfix
aDfinishedDproductDandDtheirDcostsDcanDbeDcon edDcostDperDunitDvariesDinverselyDwithDchan
venientlyDtracedDtoDit. gesD inDvolume.
b. IndirectDmaterialsDareDgenerallyDsmallDite c. MixedDcost:DADmixedDcostDcontainsDbot
msDofDmaterialDsuchDasDglueDandDnails.DTheyDm hDvariableDandDfixedDcostDelements.
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ayDbeDanDintegralDpartDofDaDfinishedDproductDbut
DtheirDcostsDcanDbeDtracedDtoDtheDproductDonlyD 1-5
atDgreatDcostDorDinconvenience. a. UnitDfixedDcostsDdecreaseDasDtheDactivityDlev
c. DirectDlaborDconsistsDofDlaborDcostsDth elDincreases.
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atDcanDbeDeasilyDtracedDtoDparticularDproduct b. UnitDvariableDcostsDremainDconstantDasDth
s. eDactivityDlevelDincreases.
DirectDlaborDisDalsoDcalledD―touchDlabor.‖ c. TotalDfixedDcostsDremainDconstantDasDth
d. IndirectDlaborDconsistsDofDtheDlaborDcost eDactivityDlevelDincreases.
sDofDjanitors,Dsupervisors,DmaterialsDhandlers,Da d. TotalDvariableDcostsDincreaseDasDtheDactivit
ndDotherDfactoryDworkersDthatDcannotDbeDconv yDlevelDincreases.
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enientlyDtracedDtoDparticularDproducts.DTheseDl
aborDcostsDareDincurredDtoDsupportDproduction, 1-6
DbutDtheDworkersDinvolvedDdoDnotDdirectlyDwor a. CostDbehavior:DCostDbehaviorDrefersDtoDthe
kDonDtheDproduct. DwayDinDwhichDcostsDchangeDinDresponseDt
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e. ManufacturingDoverheadDincludesDallDma oDchangesDinDaDmeasureDofDactivityDsuchDa
nufacturingDcostsDexceptDdirectDmaterialsDandDd sDsalesDvolume,DproductionDvolume,DorDord
irectDlabor.DConsequently,DmanufacturingDoverh ersDprocessed.
eadDincludesDindirectDmaterialsDandDindirectDlab b. RelevantDrange:DTheDrelevantDrangeDisDth
orDasDwellDasDotherDmanufacturingDcosts. eDrangeDofDactivityDwithinDwhichDassumpti
onsDaboutDvariableDandDfixedDcostDbehavi
1-3 orDareDvalid.
ADproductDcostDisDanyDcostDinvolvedDinD
purchasingDorDmanufacturingDgoods.DInDtheDcas 1-7 AnDactivityDbaseDisDaDmeasureDofDw
eDofDmanufacturedDgoods,DtheseDcostsDconsistD hateverDcausesDtheDincurrenceDofDaDvariable
ofDdirectDmaterials,DdirectDlabor,DandDmanufactu Dcost.DExamplesDofDactivityDbasesDincludeDuni
ringDoverhead.DADperiodDcostDisDaDcostDthatDisDt tsDproduced,DunitsDsold,DlettersDtyped,DbedsD
akenDdirectlyDtoDtheDincomeDstatementDasDanDe inDaDhospital,DmealsDservedDinDaDcafe,Dservic
xpenseDinDtheDperiodDinDwhichDitDisDincurred. eDcallsDmade,Detc.
, 1-8 TheDlinearDassumptionDisDreasonablyDv
alidDprovidingDthatDtheDcostDformulaDisDusedDon
lyDwithinDtheDrelevantDrange.
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18th Edition
By Ray Garrison, Eric Noreen and Peter Brewer
Verified Chapter's 1 - 16 | Complete
PR
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FD
O
C
,Table of Contents
D D
ChapterDOne:DManagerialDAccountingDandDCostDConcepts
ChapterDTwo:DJob-OrderDCosting:DCalculatingDUnitDProductDCosts
ChapterDThree:DJob-OrderDCosting:DCostDFlowsDandDExternalDReporting
ChapterDFour:DProcessDCosting
ChapterDFive:DCost-Volume-ProfitDRelationships
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ChapterDSix:DVariableDCostingDandDSegmentDReporting:DToolsDforDManagement
ChapterDSeven:DActivity-BasedDCosting:DADToolDtoDAidDDecisionDMaking
ChapterDEight:DMasterDBudgeting
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ChapterDNine:DFlexibleDBudgetsDandDPerformanceDAnalysis
ChapterDTen:DStandardDCostsDandDVariances
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ChapterDEleven:DResponsibilityDAccountingDSystems
ChapterDTwelve:DStrategicDPerformanceDMeasurement
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ChapterDThirteen:DDifferentialDAnalysis:DTheDKeyDtoDDecisionDMaking
ChapterDFourteen:DCapitalDBudgetingDDecisions
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ChapterDFifteen:DStatementDofDCashDFlows
ChapterDSixteen:DFinancialDStatementDAnalysis
,Chapter 1 D
Managerial Accounting and Cost Concepts
D D D D
Questions
1-1 TheDthreeDmajorDtypesDofDproductDcost 1-4
sDinDaDmanufacturingDcompanyDareDdirectDmat a. VariableDcost:DTheDvariableDcostDperDunitDi
erials,DdirectDlabor,DandDmanufacturingDoverhe sDconstant,DbutDtotalDvariableDcostDchange
ad. sDinDdirectDproportionDtoDchangesDinDvolu
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me.
1-2 b. FixedDcost:DTheDtotalDfixedDcostDisDconstant
a. DirectDmaterialsDareDanDintegralDpartDofD DwithinDtheDrelevantDrange.DTheDaverageDfix
aDfinishedDproductDandDtheirDcostsDcanDbeDcon edDcostDperDunitDvariesDinverselyDwithDchan
venientlyDtracedDtoDit. gesD inDvolume.
b. IndirectDmaterialsDareDgenerallyDsmallDite c. MixedDcost:DADmixedDcostDcontainsDbot
msDofDmaterialDsuchDasDglueDandDnails.DTheyDm hDvariableDandDfixedDcostDelements.
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ayDbeDanDintegralDpartDofDaDfinishedDproductDbut
DtheirDcostsDcanDbeDtracedDtoDtheDproductDonlyD 1-5
atDgreatDcostDorDinconvenience. a. UnitDfixedDcostsDdecreaseDasDtheDactivityDlev
c. DirectDlaborDconsistsDofDlaborDcostsDth elDincreases.
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atDcanDbeDeasilyDtracedDtoDparticularDproduct b. UnitDvariableDcostsDremainDconstantDasDth
s. eDactivityDlevelDincreases.
DirectDlaborDisDalsoDcalledD―touchDlabor.‖ c. TotalDfixedDcostsDremainDconstantDasDth
d. IndirectDlaborDconsistsDofDtheDlaborDcost eDactivityDlevelDincreases.
sDofDjanitors,Dsupervisors,DmaterialsDhandlers,Da d. TotalDvariableDcostsDincreaseDasDtheDactivit
ndDotherDfactoryDworkersDthatDcannotDbeDconv yDlevelDincreases.
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enientlyDtracedDtoDparticularDproducts.DTheseDl
aborDcostsDareDincurredDtoDsupportDproduction, 1-6
DbutDtheDworkersDinvolvedDdoDnotDdirectlyDwor a. CostDbehavior:DCostDbehaviorDrefersDtoDthe
kDonDtheDproduct. DwayDinDwhichDcostsDchangeDinDresponseDt
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e. ManufacturingDoverheadDincludesDallDma oDchangesDinDaDmeasureDofDactivityDsuchDa
nufacturingDcostsDexceptDdirectDmaterialsDandDd sDsalesDvolume,DproductionDvolume,DorDord
irectDlabor.DConsequently,DmanufacturingDoverh ersDprocessed.
eadDincludesDindirectDmaterialsDandDindirectDlab b. RelevantDrange:DTheDrelevantDrangeDisDth
orDasDwellDasDotherDmanufacturingDcosts. eDrangeDofDactivityDwithinDwhichDassumpti
onsDaboutDvariableDandDfixedDcostDbehavi
1-3 orDareDvalid.
ADproductDcostDisDanyDcostDinvolvedDinD
purchasingDorDmanufacturingDgoods.DInDtheDcas 1-7 AnDactivityDbaseDisDaDmeasureDofDw
eDofDmanufacturedDgoods,DtheseDcostsDconsistD hateverDcausesDtheDincurrenceDofDaDvariable
ofDdirectDmaterials,DdirectDlabor,DandDmanufactu Dcost.DExamplesDofDactivityDbasesDincludeDuni
ringDoverhead.DADperiodDcostDisDaDcostDthatDisDt tsDproduced,DunitsDsold,DlettersDtyped,DbedsD
akenDdirectlyDtoDtheDincomeDstatementDasDanDe inDaDhospital,DmealsDservedDinDaDcafe,Dservic
xpenseDinDtheDperiodDinDwhichDitDisDincurred. eDcallsDmade,Detc.
, 1-8 TheDlinearDassumptionDisDreasonablyDv
alidDprovidingDthatDtheDcostDformulaDisDusedDon
lyDwithinDtheDrelevantDrange.
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