Test Bank for Fundamental Managerial Accounting Concepts 10th Edition Edmonds

,ACCESS Test Bank for Fundamental Managerial Accounting Concepts 10th
Edition Edmonds
ChapterA01A-AManagementAAccountingAandACorporateAGovernance




Teaching Notes for Chapter 1
A A A A




ManagerialAaccountingArequiresAteachingAmethodsAdifferentAfromAthoseAusedAinAfinancial
Aaccounting.AInAtheAintroductoryAfinancialAaccountingAcourse,AinstructorsAteachAstudentsA

aboutAaccountingAstandards.AAAprimaryAgoalAinAteachingAmanagerialAaccountingAisAtoAde
velopAstudents’AconditionalAassessmentAskillsA(critical-
thinkingAskills).AForAexample,AinAaAlaterAchapter,AstudentsAareAfrequentlyAconfusedAbyAth
eAfactAthat,AinAdifferentAsituations,AaAgivenAcostAcanAbeAclassifiedAasAfixedAorAvariable,Adir
ectAorAindirect,ArelevantAorAnotArelevant.ATheAsalaryAcostAofAstoreAmanagersAmayAbeAfixed
AwithArespectAtoAtheAnumberAofAcustomersAthatAenterAtheirAstores.AHowever,Amanagers’As

alaryAcostAisAvariableArelativeAtoAtheAnumberAofAstoresAaAcompanyAoperates.AAAmanager’s
AsalaryAcostAisAdirectlyAtraceableAtoAaAparticularAstoreAbutAnotAtraceableAtoAaAsaleAoccurrin

gAinAtheAstore.AStudentsAmustAlearnAtoAassessAtheAconditionsAthatAdetermineAcostAclassific
ation.AChapterA1AoffersAtheAfirstAopportunityAtoAdevelopAtheAstudents’AconditionalAassess
mentAskills.AHere,AstudentsAlearnAthatAdepreciationAcanAbeAclassifiedAasAanAassetAorAanAex
pense,AdependingAonAcertainAconditions.AIfAaAdepreciableAassetAisAusedAtoAproduceAinvent
ory,AtheAdepreciationAcostAwillAfirstAbeAclassifiedAasAanAassetA(inventory)AandAlaterAasAanA
expenseA(costAofAgoodsAsold).AIfAtheAdepreciableAassetAisAusedAtoAsupportAsellingAandAad
ministrativeAactivities,AdepreciationAwillAbeAreportedAdirectlyAonAtheAincomeAstatementAa
sAdepreciationAexpense.

StudentsAtypicallyAenterAmanagerialAaccountingAwithArigidAideasAaboutAexpenseAreco
gnition.AInAfinancialAaccountingAtheyAlearnedAthatAdepreciationAandAemployeeAcompensat
ionAcostsAareAexpensedAdirectlyAonAtheAincomeAstatement.ATheAideaAthatAdepreciationArel
atedAtoAmanufacturingAequipmentAandAwagesAofAproductionAworkersAwillApassAthroughAa
nAinventoryAaccountAbeforeAbeingAexpensedAasAcostAofAgoodsAsoldAisAcontraryAtoAtheirAex
istingAknowledgeAbase.AExpandingAthatAknowledgeAbaseArequiresAaAsignificantAcommitm
entAofAteachingAtime.AYourAstudentsAareAdevelopingAtheirAanalyticalAskills.ATheyAareAlear
ningAhowAtoAassessAtheAconditionsAthatAinfluenceAcostAclassification.AThisAtypeAofAlearnin
gArequiresAmoreAtimeAthanAmerelyAmemorizingAdefinitions.AIfAyouAsometimesAfeelAthatAp
rogressAisAtooAslow,ArememberAthatAyouAareAbuildingAaAfoundationAuponAwhichAsubseque
ntAlearningAwillArest.AThereAisAnoAmoreAimportantAteachingAtaskAthanAhelpingAstudentsAfo
rmAaAsoundAconceptualAframework.AWeArecommendAusingAapproximatelyAthreeAhoursAof
AclassAtimeAforAChapterA1.




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,ACCESS Test Bank for Fundamental Managerial Accounting Concepts 10th Edit
A A A A A A A A A

ion Edmonds A

ChapterA01A-AManagementAAccountingAandACorporateAGovernance



Detailed Outline of a Lesson Plan for Chapter 1
A A A A A A A A




AAcomprehensiveAlessonAplanAforAtheAfirstAdayAofAclassAbeginsAinAtheAIntroductionAtoAthisAmanual.APl
easeAreadAitAbeforeAimplementingAstepsAII–VIIIAofAtheAfollowingAlessonAplan.

I. DistinguishAbetweenAmanagerialAandAfinancialAaccounting.ATheAbestAwayAtoAd
ifferentiateAbetweenAmanagerialAandAfinancialAaccountingAisAtoAhighlightAdifferen
cesAwhereAtheyAoccurAinAtheAsubjectAmatterAthroughoutAtheAcourse.AForAexample,A
whenAusingAestimatedAdataAinAaAdecision-
makingAcontext,ApointAoutAthatAmanagerialAaccountingAisAfuture-
orientedAratherAthanAhistoricallyAbased.AAAlongAmonologueAaboutAtheAdifferencesA
betweenAfinancialAandAmanagerialAaccountingAwillAonlyAboreAyourAstudents.AInAaA
briefAintroductionAtoAthisAtopic,AyouAmightAdiscussAtheAinformationAneedsAforAinte
rnalAusersA(managers)AtoAplan,Adirect,AandAcontrol.ATheAinformationAneededAbyAaA
managerAdependsAonAhis/herApositionAinAtheAorganizationAandAtheAparticularAdecis
ionAfacingAtheAmanager.AIfAyouAwantAtoAspendAmoreAtimeAonAtheAtopic,AExerciseA
1-1AAfromAtheAend-of-chapterAmaterialsAinAtheAtextAmightAbeAanAappropriateAin-
classAactivityAatAthisApoint.

II. UseADemonstrationAProblemA1-1AasAaAproblem-
basedAlearningAexercise.A(SeeAtheAintroductionAtoAthisAmanualAforAdetailsAaboutAp
roblem-basedAlearning.)

III. AfterAgivingAtheAstudentsAaAfewAminutesAtoAdigestAtheAproblemAandAformulat
eAsolutions,AengageAthemAinAsomeAformAofAcollaborativeAlearningAexperience.

IV.
IntroduceAtheAconceptAofAproductAcostingAbyAprovidingAtheAsolutionAt
oArequirementAaAofADemonstrationAProblemA1-1.

V. ContinuingADemonstrationAProblemA1-
1,AdetermineAtheAcostAperAunitAandAtheAsalesApriceAusingAaAcost-
plusApricingAstrategy.

VI. ShowAhowAproductAcostsAareAexpensedAthroughAcostAofAgoodsAsold.

VII.
IntroduceAtheAcostAcategoryAofAselling,Ageneral,AandAadministrativeAco
stsA(SG&AAcosts).

VIII. UseAProblemA1-19AAasAanAin-classAreinforcementAexercise.

IX. CopyAandAdistributeADemonstrationAProblemA1-2.ADemonstrationAProblemA1-
2AexpandsAtheAclassificationAconceptsAintroducedAinADemonstrationAProblemA1-
1AtoAincludeAaccountingAforAtheAdepreciationAofAmanufacturingAequipment.AExplainAt
hatAdepreciationAonAmanufacturingAfacilitiesAandAequipmentAisAaAproductAcost.APoint
AoutAthatAtheAentryAtoArecordAdepreciationAonAmanufacturingAequipmentArepresentsAa

nAassetAexchangeAtransaction.ATheAbookAvalueAofAmanufacturingAequipmentAdecreas
es,AandAtheAbalanceAinAtheAInventoryAaccountAincreases.AStudentsAareAsoAaccustomed
AtoAtheAideaAthatAdepreciationAisAanAexpense,AtheyAareAnotAlikelyAtoAgraspAtheAproduct

AcostAconceptAuntilAtheyAworkAaAproblem.AAfterAyourAexplanation,Aassign

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