SOLUTIONMANUAL |
Horngren's Accounting, 13th Edition Managerial
| | | |
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
| | | | | | |
,THE MANAGERIAL CHAPTERS
| |
1. Introduction to Managerial Accounting
| | |
2. Job Order Costing
| |
3. Process Costing
|
4. Cost-Volume-Profit Analysis |
5. Master Budgets
|
6. Flexible Budgets and Standard Cost Systems
| | | | |
7. Cost Allocation and Responsibility Accounting
| | | |
8. Short-Term Business Decisions
| |
9. Capital Investment Decisions
| |
,Chapter 1 |
Introduction to Managerial Accounting
| | |
Review Questions
| |
1. The |primary |purpose |of |managerial |accounting |is |to |provide |information |to |help |managers
|plan, | direct, |control, |and |make |decisions.
2. Financial |accounting |and |managerial |accounting |differ |on |the |following |6 |dimensions: |(1)
|primary | users, |(2) |purpose |of |information, |(3) |focus |and |time |dimension |of |the |information,
|(4) |rules |and | restrictions, |(5) |scope |of |information, |and |(6) |behavioral.
3. Line |positions |are |directly |involved |in |providing |goods |or |services |to |customers. |Staff
|positions | support |line |positions.
4. Planning |means |choosing |goals |and |deciding |how |to |achieve |them. |Directing |involves |running |the
|day- | to-day |operations |of |a |business. |Controlling |is |the |process |of |monitoring |operations |and
|keepingthe | company |on |track.
5. The |four |IMA |standards |of |ethical |practice |and |a |description |of |each |follow.
I. Competence.
Maintain |an |appropriate |level |of |professional |leadership |and |expertise |by
|enhancing | knowledge |and |skills.
Perform |professional |duties |in |accordance |with |relevant |laws, |regulations, |and
|technical | standards.
Provide |decision |support |information |and |recommendations |that |are |accurate, |clear,
|concise, | and |timely.
Recognise |and |help |mange |risk.
II. Confidentiality.
Keep |information |confidential |except |when |disclosure |is |authorized |or |legally |required.
| Inform |all |relevant |parties |regarding |appropriate |use |of |confidential |information.
| Monitor |to | ensure |compliance.
|Refrain |from |using |confidential |information |for |unethical |or |illegal |advantage.
III. Integrity.
Mitigate |actual |conflicts |of |interest. |Regularly |communicate |with |business |associates |to |avoid
| apparent |conflicts |of |interest. | Advise |all |parties |of |any |potential |conflicts.
Refrain |from |engaging |in |any |conduct |that |would |prejudice |carrying |out |duties |ethically.
, Abstain |from |engaging |in |or |supporting |any |activity |that |might |discredit |the |profession.
| Contribute |to |a |positive |ethical |culture |and |place |integrity |of |the |profession |above
|personal | interest.
5, |cont.
IV. Credibility.
Communicate |information |fairly |and |objectively.
Provide |all |relevant |information |that |could |reasonably |be |expected |to |influence |an
|intended | user’s |understanding |of |the |reports, |analyses, |or |recommendations.
Report |any |delays |or |deficiencies |in |information, |timeliness, |processing, |or |internal |controlsin
| conformance |with |organization |policy |and/or |applicable |law.
Communicate |any |professional |limitations |or |other |constraints |that |would |preclude |responsi-
| ble |judgment |or |successful |performance |of |an |activity.
6. Service |companies |sell |time, |skills, |and |knowledge. | Examples |of |service |companies |include |phone
| service |companies, |banks, |cleaning |service |companies, |accounting |firms, |law |firms, |medical
|physicians, | and |online |auction |services.
7. Merchandising |companies |resell |products |they |buy |from |suppliers. |Merchandisers |keep |an
|inventoryof | products, |and |managers |are |accountable |for |the |purchasing, |storage, |and |sale |of |the
|products. |Examples | of |merchandising |companies |include |toy |stores, |grocery |stores, |and |clothing
|stores.
8. Merchandising |companies |resell |products |they |previously |bought |from |suppliers, |whereas
| manufacturing |companies |use |labor, |equipment, |supplies, |and |facilities |to |convert |raw |materials
|into | new |finished |products. |In |contrast |to |merchandising |companies, |manufacturing |companies
|have |a | broad |range |of |production |activities |that |require |tracking |costs |on |three |kinds |of
|inventory.
9. The |three |inventory |accounts |used |by |manufacturing |companies |are |Raw |Materials |Inventory, |Work-
in- | Process |Inventory, |and |Finished |Goods |Inventory.
Raw |Materials |Inventory |includes |materials |used |to |manufacture |a |product. |Work-in-
ProcessInventory | includes |goods |that |have |been |started |in |the |manufacturing |process |but |are |not
|yet |complete. | Finished | Goods |Inventory |includes |completed |goods |that |have |not |yet |been |sold.
10. A |direct |cost |is |a |cost |that |can |be |easily |and |cost-effectively |traced |to |a |cost |object |(which |is
|anything | for |which |managers |want |a |separate |measurement |of |cost). |An |indirect |cost |is |a |cost
|thatcannot |be | easily |or |cost-effectively |traced |to |a |cost |object.
11. The |three |manufacturing |costs |for |a |manufacturing |company |are |direct |materials, |direct |labor,
|and | manufacturing |overhead. |Direct |materials |are |materials |that |become |a |physical |part |of |a
|finished | product |and |whose |costs |are |easily |traceable |to |the |finished |product. | Direct |labor |is
|the |labor |cost |of | the |employees |who |convert |materials |into |finished |products. |Manufacturing
|overhead |includes |all | manufacturing |costs |except |direct |materials |and |direct |labor, |such |as
|indirect |materials, |indirect |labor, | factory |depreciation, |factory |rent, |and |factory |property |taxes.
Horngren's Accounting, 13th Edition Managerial
| | | |
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
| | | | | | |
,THE MANAGERIAL CHAPTERS
| |
1. Introduction to Managerial Accounting
| | |
2. Job Order Costing
| |
3. Process Costing
|
4. Cost-Volume-Profit Analysis |
5. Master Budgets
|
6. Flexible Budgets and Standard Cost Systems
| | | | |
7. Cost Allocation and Responsibility Accounting
| | | |
8. Short-Term Business Decisions
| |
9. Capital Investment Decisions
| |
,Chapter 1 |
Introduction to Managerial Accounting
| | |
Review Questions
| |
1. The |primary |purpose |of |managerial |accounting |is |to |provide |information |to |help |managers
|plan, | direct, |control, |and |make |decisions.
2. Financial |accounting |and |managerial |accounting |differ |on |the |following |6 |dimensions: |(1)
|primary | users, |(2) |purpose |of |information, |(3) |focus |and |time |dimension |of |the |information,
|(4) |rules |and | restrictions, |(5) |scope |of |information, |and |(6) |behavioral.
3. Line |positions |are |directly |involved |in |providing |goods |or |services |to |customers. |Staff
|positions | support |line |positions.
4. Planning |means |choosing |goals |and |deciding |how |to |achieve |them. |Directing |involves |running |the
|day- | to-day |operations |of |a |business. |Controlling |is |the |process |of |monitoring |operations |and
|keepingthe | company |on |track.
5. The |four |IMA |standards |of |ethical |practice |and |a |description |of |each |follow.
I. Competence.
Maintain |an |appropriate |level |of |professional |leadership |and |expertise |by
|enhancing | knowledge |and |skills.
Perform |professional |duties |in |accordance |with |relevant |laws, |regulations, |and
|technical | standards.
Provide |decision |support |information |and |recommendations |that |are |accurate, |clear,
|concise, | and |timely.
Recognise |and |help |mange |risk.
II. Confidentiality.
Keep |information |confidential |except |when |disclosure |is |authorized |or |legally |required.
| Inform |all |relevant |parties |regarding |appropriate |use |of |confidential |information.
| Monitor |to | ensure |compliance.
|Refrain |from |using |confidential |information |for |unethical |or |illegal |advantage.
III. Integrity.
Mitigate |actual |conflicts |of |interest. |Regularly |communicate |with |business |associates |to |avoid
| apparent |conflicts |of |interest. | Advise |all |parties |of |any |potential |conflicts.
Refrain |from |engaging |in |any |conduct |that |would |prejudice |carrying |out |duties |ethically.
, Abstain |from |engaging |in |or |supporting |any |activity |that |might |discredit |the |profession.
| Contribute |to |a |positive |ethical |culture |and |place |integrity |of |the |profession |above
|personal | interest.
5, |cont.
IV. Credibility.
Communicate |information |fairly |and |objectively.
Provide |all |relevant |information |that |could |reasonably |be |expected |to |influence |an
|intended | user’s |understanding |of |the |reports, |analyses, |or |recommendations.
Report |any |delays |or |deficiencies |in |information, |timeliness, |processing, |or |internal |controlsin
| conformance |with |organization |policy |and/or |applicable |law.
Communicate |any |professional |limitations |or |other |constraints |that |would |preclude |responsi-
| ble |judgment |or |successful |performance |of |an |activity.
6. Service |companies |sell |time, |skills, |and |knowledge. | Examples |of |service |companies |include |phone
| service |companies, |banks, |cleaning |service |companies, |accounting |firms, |law |firms, |medical
|physicians, | and |online |auction |services.
7. Merchandising |companies |resell |products |they |buy |from |suppliers. |Merchandisers |keep |an
|inventoryof | products, |and |managers |are |accountable |for |the |purchasing, |storage, |and |sale |of |the
|products. |Examples | of |merchandising |companies |include |toy |stores, |grocery |stores, |and |clothing
|stores.
8. Merchandising |companies |resell |products |they |previously |bought |from |suppliers, |whereas
| manufacturing |companies |use |labor, |equipment, |supplies, |and |facilities |to |convert |raw |materials
|into | new |finished |products. |In |contrast |to |merchandising |companies, |manufacturing |companies
|have |a | broad |range |of |production |activities |that |require |tracking |costs |on |three |kinds |of
|inventory.
9. The |three |inventory |accounts |used |by |manufacturing |companies |are |Raw |Materials |Inventory, |Work-
in- | Process |Inventory, |and |Finished |Goods |Inventory.
Raw |Materials |Inventory |includes |materials |used |to |manufacture |a |product. |Work-in-
ProcessInventory | includes |goods |that |have |been |started |in |the |manufacturing |process |but |are |not
|yet |complete. | Finished | Goods |Inventory |includes |completed |goods |that |have |not |yet |been |sold.
10. A |direct |cost |is |a |cost |that |can |be |easily |and |cost-effectively |traced |to |a |cost |object |(which |is
|anything | for |which |managers |want |a |separate |measurement |of |cost). |An |indirect |cost |is |a |cost
|thatcannot |be | easily |or |cost-effectively |traced |to |a |cost |object.
11. The |three |manufacturing |costs |for |a |manufacturing |company |are |direct |materials, |direct |labor,
|and | manufacturing |overhead. |Direct |materials |are |materials |that |become |a |physical |part |of |a
|finished | product |and |whose |costs |are |easily |traceable |to |the |finished |product. | Direct |labor |is
|the |labor |cost |of | the |employees |who |convert |materials |into |finished |products. |Manufacturing
|overhead |includes |all | manufacturing |costs |except |direct |materials |and |direct |labor, |such |as
|indirect |materials, |indirect |labor, | factory |depreciation, |factory |rent, |and |factory |property |taxes.
