Solution Manual for Management
l l l
l Accounting for Decision Makers:
l l l l
11th Edition By Peter Atrill, Eddie
l l l l l
l McLaney All Chapters 1 - 12
l l l l l l
,TABLE OF CONTENTS
l l
1. Introduction to management accounting l l l
2. Relevant costs and benefits for decision making
l l l l l l
3. Cost–volume–profit analysis l
4. Full costing
l
5. Costing and cost management in a competitive environment
l l l l l l l
6. Budgeting
7. Accounting for control l l
8. Making capital investment decisions
l l l
9. Managing risk l
10.Strategic management accounting: performance evaluation and
l l l l l
pricing in a competitive environment
l l l l l
11.Measuring divisional performancel l
12.Managing working capital l l
, SECTION A l
Authors’notetotutors l l l
Using the book l l
The book is designed to provide readers with a sound introduction to management accounting. It assumes
l l l l l l l l l l l l l l l
no previous knowledge of the subject and recognises that students using it may come from a wide variety
l l l l l l l l l l l l l l l l l l
of backgrounds. The book, therefore, tries to avoid technical jargon and does not assume a high level of
l l l l l l l l l l l l l l l l l l
numerical ability from students. It has been class tested by students on various courses and we have
l l l l l l l l l l l l l l l l l
modified and refined the material to take account of their comments. We have also taken account of the
l l l l l l l l l l l l l l l l l l
comments made by lecturers who used the first nine editions of the book and of specially commissioned
l l l l l l l l l l l l l l l l l
reviews.
l
The book aims to encourage an active approach to learning by providing activities and self-assessment
l l l l l l l l l l l l l l
questions at appropriate points. This approach is designed to stimulate thought concerning particular
l l l l l l l l l l l l l
issuesandto givethereadersthe opportunity to test their understanding of theprinciples covered.
l l l l l l l l l l l l l l l l
The book is supplemented by a password-controlled lecturers’ website and a student website available to
l l l l l l l l l l l l l l
all readers.
l l
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used as
l l l l l l l l l l l l l l l l l l l l l
recommended reading for a traditional course based on lectures and tutorials. There are critical review
l l l l l l l l l l l l l l l
questions and exercises at the end of each chapter that can be used as the basis for tutorials. It could also
l l l l l l l l l l l l l l l l l l l l l
provide the basis for a distance learning approach for part-time or off-campus students. For these students,
l l l l l l l l l l l l l l l l
the interactive nature of the book may be extremely useful where access to a tutor is restricted. The book
l l l l l l l l l l l l l l l l l l l
can also be used as the basis for an open learning approach for full-time campus-based students. We have
l l l l l l l l l l l l l l l l l l
successfully used it in this way at the University of Plymouth Business School. Accounting ‘surgeries’
l l l l l l l l l l l l l l l
have also been provided to give students the opportunity for one-to-one help with any problems they face.
l l l l l l l l l l l l l l l l l
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study. For full-
l l l l l l l l l l l l l l l l l l l l
time students, this will often be covered in one academic year.
l l l l l l l l l l
PowerPoint slides l
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint slides to
l l l l l l l l l l l l l l l l
help in delivering lectures and tutorials and these can be downloaded from the lecturers’ website.
l l l l l l l l l l l l l l l
Practice/assessmentmaterial l
The activities, whose solutions immediately follow them, and self-assessment questions, whose
l l l l l l l l l l
solutions are at the end of the book, form an integral part of it. In addition, there are various other
l l l l l l l l l l l l l l l l l l l l
, practice/assessment materials. At the end of each chapter there are four critical review questions. These l l l l l l l l l l l l l l
are short, narrative questions involving recall, explanation and brief discussion. The solutions to these are
l l l l l l l l l l l l l l l
given at the end of the book. At the end of all chapters, except Chapter 1 (where there are two), there are
l l l l l l l l l l l l l l l l l l l l l l
eight exercises. These are questions, many involving calculations, which are similar in nature to
l l l l l l l l l l l l l l
examination-style questions. The solutions to five of these are given at the end of the book and are,
l l l l l l l l l l l l l l l l l l
therefore, accessible to students. Solutions to the other three are in the following pages of this manual and
l l l l l l l l l l l l l l l l l l
are not accessible to students.
l l l l l
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of- chapter
l l l l l l l l l l l l l l l
exercises there are:
l l l
• Two progress tests with solutions. These tests comprise multiple-choice questions, missing- word
l l l l l l l l l l l
questions and questions that are similar to the end-of-chapter exercises. One test corresponds to
l l l l l l l l l l l l l l
Chapters 1 to 5, and the other to Chapters 6 to 12.
l l l l l l l l l l l l
• Supplementary questions(10 of them) with solutions. l l l l l l
• Tutorial/seminarquestionswithsolutions. l l l
None of this material, except the case study comments, is accessible to students. On the
l l l l l l l l l l l l l l
l student website, there are five types of material:
l l l l l l l
• Revisionexercises, similar in styleto the end-of-chapter exercises, with solutions.
l l l l l l l l l l
• Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled online, l l l l l l l l l l l l l
where they will be automatically graded.
l l l l l l
• Missing-word questions, typically 10 for each chapter. These too can be attempted and graded l l l l l l l l l l l l l
online.
l
The multiple-choice questions and missing-word questions are intended to provide students with a quick
l l l l l l l l l l l l l
assessment of their mastery of the material of each chapter.
l l l l l l l l l l
The solutions to all of this material, except to the multiple-choice and missing-word questions, are fully
l l l l l l l l l l l l l l l
annotated in order to give the necessary feedback to students.
l l l l l l l l l l
We intend to expand the number and scope of the practice/assessment materials on a continuing basis.
l l l l l l l l l l l l l l l
We hope that you and your students will find the book both accessible and interesting. We should much
l l l l l l l l l l l l l l l l l
appreciate any suggestions you may have on how the book and supplementary material may be improved.
l l l l l l l l l l l l l l l l
Peter Atrill l
EddieMcLaney
l l
l l l
l Accounting for Decision Makers:
l l l l
11th Edition By Peter Atrill, Eddie
l l l l l
l McLaney All Chapters 1 - 12
l l l l l l
,TABLE OF CONTENTS
l l
1. Introduction to management accounting l l l
2. Relevant costs and benefits for decision making
l l l l l l
3. Cost–volume–profit analysis l
4. Full costing
l
5. Costing and cost management in a competitive environment
l l l l l l l
6. Budgeting
7. Accounting for control l l
8. Making capital investment decisions
l l l
9. Managing risk l
10.Strategic management accounting: performance evaluation and
l l l l l
pricing in a competitive environment
l l l l l
11.Measuring divisional performancel l
12.Managing working capital l l
, SECTION A l
Authors’notetotutors l l l
Using the book l l
The book is designed to provide readers with a sound introduction to management accounting. It assumes
l l l l l l l l l l l l l l l
no previous knowledge of the subject and recognises that students using it may come from a wide variety
l l l l l l l l l l l l l l l l l l
of backgrounds. The book, therefore, tries to avoid technical jargon and does not assume a high level of
l l l l l l l l l l l l l l l l l l
numerical ability from students. It has been class tested by students on various courses and we have
l l l l l l l l l l l l l l l l l
modified and refined the material to take account of their comments. We have also taken account of the
l l l l l l l l l l l l l l l l l l
comments made by lecturers who used the first nine editions of the book and of specially commissioned
l l l l l l l l l l l l l l l l l
reviews.
l
The book aims to encourage an active approach to learning by providing activities and self-assessment
l l l l l l l l l l l l l l
questions at appropriate points. This approach is designed to stimulate thought concerning particular
l l l l l l l l l l l l l
issuesandto givethereadersthe opportunity to test their understanding of theprinciples covered.
l l l l l l l l l l l l l l l l
The book is supplemented by a password-controlled lecturers’ website and a student website available to
l l l l l l l l l l l l l l
all readers.
l l
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used as
l l l l l l l l l l l l l l l l l l l l l
recommended reading for a traditional course based on lectures and tutorials. There are critical review
l l l l l l l l l l l l l l l
questions and exercises at the end of each chapter that can be used as the basis for tutorials. It could also
l l l l l l l l l l l l l l l l l l l l l
provide the basis for a distance learning approach for part-time or off-campus students. For these students,
l l l l l l l l l l l l l l l l
the interactive nature of the book may be extremely useful where access to a tutor is restricted. The book
l l l l l l l l l l l l l l l l l l l
can also be used as the basis for an open learning approach for full-time campus-based students. We have
l l l l l l l l l l l l l l l l l l
successfully used it in this way at the University of Plymouth Business School. Accounting ‘surgeries’
l l l l l l l l l l l l l l l
have also been provided to give students the opportunity for one-to-one help with any problems they face.
l l l l l l l l l l l l l l l l l
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study. For full-
l l l l l l l l l l l l l l l l l l l l
time students, this will often be covered in one academic year.
l l l l l l l l l l
PowerPoint slides l
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint slides to
l l l l l l l l l l l l l l l l
help in delivering lectures and tutorials and these can be downloaded from the lecturers’ website.
l l l l l l l l l l l l l l l
Practice/assessmentmaterial l
The activities, whose solutions immediately follow them, and self-assessment questions, whose
l l l l l l l l l l
solutions are at the end of the book, form an integral part of it. In addition, there are various other
l l l l l l l l l l l l l l l l l l l l
, practice/assessment materials. At the end of each chapter there are four critical review questions. These l l l l l l l l l l l l l l
are short, narrative questions involving recall, explanation and brief discussion. The solutions to these are
l l l l l l l l l l l l l l l
given at the end of the book. At the end of all chapters, except Chapter 1 (where there are two), there are
l l l l l l l l l l l l l l l l l l l l l l
eight exercises. These are questions, many involving calculations, which are similar in nature to
l l l l l l l l l l l l l l
examination-style questions. The solutions to five of these are given at the end of the book and are,
l l l l l l l l l l l l l l l l l l
therefore, accessible to students. Solutions to the other three are in the following pages of this manual and
l l l l l l l l l l l l l l l l l l
are not accessible to students.
l l l l l
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of- chapter
l l l l l l l l l l l l l l l
exercises there are:
l l l
• Two progress tests with solutions. These tests comprise multiple-choice questions, missing- word
l l l l l l l l l l l
questions and questions that are similar to the end-of-chapter exercises. One test corresponds to
l l l l l l l l l l l l l l
Chapters 1 to 5, and the other to Chapters 6 to 12.
l l l l l l l l l l l l
• Supplementary questions(10 of them) with solutions. l l l l l l
• Tutorial/seminarquestionswithsolutions. l l l
None of this material, except the case study comments, is accessible to students. On the
l l l l l l l l l l l l l l
l student website, there are five types of material:
l l l l l l l
• Revisionexercises, similar in styleto the end-of-chapter exercises, with solutions.
l l l l l l l l l l
• Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled online, l l l l l l l l l l l l l
where they will be automatically graded.
l l l l l l
• Missing-word questions, typically 10 for each chapter. These too can be attempted and graded l l l l l l l l l l l l l
online.
l
The multiple-choice questions and missing-word questions are intended to provide students with a quick
l l l l l l l l l l l l l
assessment of their mastery of the material of each chapter.
l l l l l l l l l l
The solutions to all of this material, except to the multiple-choice and missing-word questions, are fully
l l l l l l l l l l l l l l l
annotated in order to give the necessary feedback to students.
l l l l l l l l l l
We intend to expand the number and scope of the practice/assessment materials on a continuing basis.
l l l l l l l l l l l l l l l
We hope that you and your students will find the book both accessible and interesting. We should much
l l l l l l l l l l l l l l l l l
appreciate any suggestions you may have on how the book and supplementary material may be improved.
l l l l l l l l l l l l l l l l
Peter Atrill l
EddieMcLaney
l l
