SOLUTION MANUAL
|
Horngren's Accounting, The Managerial Chapters, 14th Edition
| | | | | |
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
| | | | | | | | |
,Table of contents
| |
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 M:1 |
Introduction to Managerial Accounting
| | |
Review Questions
|
1. What |is |the |primary |purpose |of |managerial |accounting?
The |primary |purpose |of |managerial |accounting |is |to |provide |information |to |help |managers
|plan,|direct, |control, |and |make |decisions.
2. List |six |differences |between |financial |accounting |and |managerial |accounting.
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 |re-|strictions, |(5) |scope |of |information, |and |(6) |behavioral.
3. Explain |the |difference |between |line |positions |and |staff |positions.
Line |positions |are |directly |involved |in |providing |goods |or |services |to |customers. |Staff
|positions|support |line |positions.
4. Explain |the |differences |between |planning, |directing, |and |controlling.
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
|keeping|the |company |on |track.
5. List |the |four |IMA |standards |of |ethical |practice |and |briefly |describe |each.
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
|controls|in |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. Describe |a |service |company |and |give |an |example.
Service |companies |sell |time, |skills, |and |knowledge. |Examples |of |service |companies |include
|phone |service |companies, |banks, |cleaning |service |companies, |accounting |firms, |law |firms,
|medical |physi-|cians, |and |online |auction |services.
7. Describe |a |merchandising |company |and |give |an |example.
Merchandising |companies |resell |products |they |buy |from |suppliers. |Merchandisers |keep |an
|inventory|of |products, |and |managers |are |accountable |for |the |purchasing, |storage, |and |sale |of |the
|products. |Ex- |amples |of |merchandising |companies |include |toy |stores, |grocery |stores, |and |clothing
|stores.
8. How |do |manufacturing |companies |differ |from |merchandising |companies?
Merchandising |companies |resell |products |they |previously |bought |from |suppliers, |whereas
|
Horngren's Accounting, The Managerial Chapters, 14th Edition
| | | | | |
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
| | | | | | | | |
,Table of contents
| |
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 M:1 |
Introduction to Managerial Accounting
| | |
Review Questions
|
1. What |is |the |primary |purpose |of |managerial |accounting?
The |primary |purpose |of |managerial |accounting |is |to |provide |information |to |help |managers
|plan,|direct, |control, |and |make |decisions.
2. List |six |differences |between |financial |accounting |and |managerial |accounting.
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 |re-|strictions, |(5) |scope |of |information, |and |(6) |behavioral.
3. Explain |the |difference |between |line |positions |and |staff |positions.
Line |positions |are |directly |involved |in |providing |goods |or |services |to |customers. |Staff
|positions|support |line |positions.
4. Explain |the |differences |between |planning, |directing, |and |controlling.
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
|keeping|the |company |on |track.
5. List |the |four |IMA |standards |of |ethical |practice |and |briefly |describe |each.
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
|controls|in |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. Describe |a |service |company |and |give |an |example.
Service |companies |sell |time, |skills, |and |knowledge. |Examples |of |service |companies |include
|phone |service |companies, |banks, |cleaning |service |companies, |accounting |firms, |law |firms,
|medical |physi-|cians, |and |online |auction |services.
7. Describe |a |merchandising |company |and |give |an |example.
Merchandising |companies |resell |products |they |buy |from |suppliers. |Merchandisers |keep |an
|inventory|of |products, |and |managers |are |accountable |for |the |purchasing, |storage, |and |sale |of |the
|products. |Ex- |amples |of |merchandising |companies |include |toy |stores, |grocery |stores, |and |clothing
|stores.
8. How |do |manufacturing |companies |differ |from |merchandising |companies?
Merchandising |companies |resell |products |they |previously |bought |from |suppliers, |whereas
