SOLUTION MANUAL
Managerial Accounting Tools for Business Decision
Making
9th Edition by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 14, Complete
,TABLE OF CONTENTS
Chapter 1: Managerial Accounting
Chapter 2: Job Order Costing
Chapter 2A: Job Order Costing: Non-Debit and Credit Approach
Chapter 3: Process Costing
Chapter 3A: Process Costing: Non-Debit and Credit Approach
Chapter 4: Activity-Based Costing
Chapter 5: Cost-Volume-Profit
Chapter 6: Cost-Volume-Profit Analysis: Additional Issues
Chapter 7: Incremental Analysis
Chapter 8: Pricing
Chapter 9: Budgetary Planning
Chapter 10: Budgetary Control and Responsibility Accounting
Chapter 11: Standard Costs and Balanced Scorecard
Chapter 12: Planning for Capital Investments
Chapter 13: Statement of Cash Flows
Chapter 14: Financial Analysis
, CHAPTER 1
Managerial Accounting
Learning Objectives
1. Identify the features of managerial accounting and the functions of management.
2. Describe the classes of manufacturing costs and the differences between product
and period costs.
3. Demonstrate how to compute cost of goods manufactured and prepare financial
statements for a manufacturer.
4. Discuss trends in managerial accounting.
ANSWERS TO QUESTIONS
1. (a) Not true. Managerial accounting is a field of accounting that provides economic and
financial information for managers and other internal users.
(b) Joe is incorrect. Managerial accounting applies to all types of businesses—service,
merchandising, and manufacturing.
LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost
Management
2. (a) Financial accounting is concerned primarily with external users such as stockholders,
creditors, and regulators. In contrast, managerial accounting is concerned primarily
with internal users such as officers and managers.
(b) Financial statements are the end product of financial accounting. These statements
are prepared quarterly and annually. In managerial accounting, internal reports may
be prepared as frequently as needed.
(c) The purpose of financial accounting is to provide general-purpose information for
external users. The purpose of managerial accounting is to provide special-purpose
information for specific internal decisions.
LO1 BT: C Difficulty: Easy TOT: 5 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost
Management
3. Differences in the content of the reports are as follows:
, Financial Managerial
• Pertains to business as a whole and is • Pertains to subunits of the business
highly aggregated. and may be very detailed.
• Limited to accrual accounting and cost • Extends beyond accrual
data. accounting
• Generally accepted accounting principles. system to any relevant data.
Copyright © 2021 John Wiley & Sons, Inc. Weygandt, Managerial Accounting
9e, Solutions Manual (For Instructor Use Only) 1-1Standard is relevance
to decisions.
In financial accounting, financial statements are verified annually through an
independent audit by certified public accountants. There are no independent audits of
internal reports prepared by managerial accountants.
LO1 BT: C Difficulty: Easy TOT: 5 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
4. Linda should know that the management of an organization performs three broad functions:
(1) Planning requires management to look ahead and to establish objectives.
(2) Directing involves coordinating the diverse activities and human resources of a
company to produce a smooth-running operation.
(3) Controlling is the process of keeping the company’s activities on track.
LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
5. Not true. Decision-making is not a separate management function. Rather, decision-
making involves the exercise of good judgment in performing the three management
functions explained in the answer to question four above.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
6. Employees with line positions are directly involved in the company’s primary revenue
generating operating activities. Examples would include factory managers and
supervisors, and the vice president of operations. In contrast, employees with staff
positions are not directly involved in revenue-generating operating activities, but rather
serve in a support capacity to line employees. Examples include employees in finance,
legal, and human resources.
LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
Questions Chapter 1 (Continued)
7. The sdifference sin sbalance ssheets spertains sto sthe spresentation sof sinventories sin sthe
scurrent sasset ssection. sIn sa smerchandising scompany, sonly sinventory s is sshown. sIn sa
smanufacturing scompany, sthree sinventory saccounts sare sshown: sfinished sgoods, swork
sin sprocess, sand sraw smaterials.
LO3 s BT: sC s Difficulty: sEasy s TOT: s2 smin. s sAACSB: sNone s AICPA s FC: s Measurement, sAnalysis sand sInterpretation s IMA: sCost
smanagement
8. Manufacturing scosts sare sclassified sas seither sdirect smaterials, sdirect slabor, sor
smanufacturing soverhead.
LO2 s BT: sC s Difficulty: sEasy s TOT: s1 smin. s sAACSB: sNone s AICPA s FC: s Measurement, sAnalysis sand sInterpretation s IMA: sCost
smanagement
9. No, sMel sis snot scorrect. sThe sdistinction sbetween sdirect sand sindirect smaterials sis sbased son stwo scriteria:
(1) physical s association s and s (2) s the s convenience s of s making s the s physical
s association. s Materialsswhich scannot sbe seasily sassociated swith sthe sfinished sproduct sare
Managerial Accounting Tools for Business Decision
Making
9th Edition by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 14, Complete
,TABLE OF CONTENTS
Chapter 1: Managerial Accounting
Chapter 2: Job Order Costing
Chapter 2A: Job Order Costing: Non-Debit and Credit Approach
Chapter 3: Process Costing
Chapter 3A: Process Costing: Non-Debit and Credit Approach
Chapter 4: Activity-Based Costing
Chapter 5: Cost-Volume-Profit
Chapter 6: Cost-Volume-Profit Analysis: Additional Issues
Chapter 7: Incremental Analysis
Chapter 8: Pricing
Chapter 9: Budgetary Planning
Chapter 10: Budgetary Control and Responsibility Accounting
Chapter 11: Standard Costs and Balanced Scorecard
Chapter 12: Planning for Capital Investments
Chapter 13: Statement of Cash Flows
Chapter 14: Financial Analysis
, CHAPTER 1
Managerial Accounting
Learning Objectives
1. Identify the features of managerial accounting and the functions of management.
2. Describe the classes of manufacturing costs and the differences between product
and period costs.
3. Demonstrate how to compute cost of goods manufactured and prepare financial
statements for a manufacturer.
4. Discuss trends in managerial accounting.
ANSWERS TO QUESTIONS
1. (a) Not true. Managerial accounting is a field of accounting that provides economic and
financial information for managers and other internal users.
(b) Joe is incorrect. Managerial accounting applies to all types of businesses—service,
merchandising, and manufacturing.
LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost
Management
2. (a) Financial accounting is concerned primarily with external users such as stockholders,
creditors, and regulators. In contrast, managerial accounting is concerned primarily
with internal users such as officers and managers.
(b) Financial statements are the end product of financial accounting. These statements
are prepared quarterly and annually. In managerial accounting, internal reports may
be prepared as frequently as needed.
(c) The purpose of financial accounting is to provide general-purpose information for
external users. The purpose of managerial accounting is to provide special-purpose
information for specific internal decisions.
LO1 BT: C Difficulty: Easy TOT: 5 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost
Management
3. Differences in the content of the reports are as follows:
, Financial Managerial
• Pertains to business as a whole and is • Pertains to subunits of the business
highly aggregated. and may be very detailed.
• Limited to accrual accounting and cost • Extends beyond accrual
data. accounting
• Generally accepted accounting principles. system to any relevant data.
Copyright © 2021 John Wiley & Sons, Inc. Weygandt, Managerial Accounting
9e, Solutions Manual (For Instructor Use Only) 1-1Standard is relevance
to decisions.
In financial accounting, financial statements are verified annually through an
independent audit by certified public accountants. There are no independent audits of
internal reports prepared by managerial accountants.
LO1 BT: C Difficulty: Easy TOT: 5 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
4. Linda should know that the management of an organization performs three broad functions:
(1) Planning requires management to look ahead and to establish objectives.
(2) Directing involves coordinating the diverse activities and human resources of a
company to produce a smooth-running operation.
(3) Controlling is the process of keeping the company’s activities on track.
LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
5. Not true. Decision-making is not a separate management function. Rather, decision-
making involves the exercise of good judgment in performing the three management
functions explained in the answer to question four above.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
6. Employees with line positions are directly involved in the company’s primary revenue
generating operating activities. Examples would include factory managers and
supervisors, and the vice president of operations. In contrast, employees with staff
positions are not directly involved in revenue-generating operating activities, but rather
serve in a support capacity to line employees. Examples include employees in finance,
legal, and human resources.
LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
Questions Chapter 1 (Continued)
7. The sdifference sin sbalance ssheets spertains sto sthe spresentation sof sinventories sin sthe
scurrent sasset ssection. sIn sa smerchandising scompany, sonly sinventory s is sshown. sIn sa
smanufacturing scompany, sthree sinventory saccounts sare sshown: sfinished sgoods, swork
sin sprocess, sand sraw smaterials.
LO3 s BT: sC s Difficulty: sEasy s TOT: s2 smin. s sAACSB: sNone s AICPA s FC: s Measurement, sAnalysis sand sInterpretation s IMA: sCost
smanagement
8. Manufacturing scosts sare sclassified sas seither sdirect smaterials, sdirect slabor, sor
smanufacturing soverhead.
LO2 s BT: sC s Difficulty: sEasy s TOT: s1 smin. s sAACSB: sNone s AICPA s FC: s Measurement, sAnalysis sand sInterpretation s IMA: sCost
smanagement
9. No, sMel sis snot scorrect. sThe sdistinction sbetween sdirect sand sindirect smaterials sis sbased son stwo scriteria:
(1) physical s association s and s (2) s the s convenience s of s making s the s physical
s association. s Materialsswhich scannot sbe seasily sassociated swith sthe sfinished sproduct sare
