Solution Manual for Managerial
Accounting,
18th Edition
By Ray Garrison, Eric Noreen and Peter
Brewer Verified Chapter's 1 - 16 |
Complete
Table of Contents
8f 8f
Chapter8fOne:8fManagerial8fAccounting8fand8fCost8fC
oncepts8 f Chapter8fTwo:8fJob-
Order8fCosting:8fCalculating8fUnit8fProduct8fCosts
Chapter8fThree:8fJob-
Order8fCosting:8fCost8fFlows8fand8fExternal8fReporting8 f Chapter8fFou
r:8fProcess8fCosting
Chapter8fFive:8fCost-Volume-Profit8fRelationships
Chapter8fSix:8fVariable8fCosting8fand8fSegment8fReporting:8fTools8ffo
r8fManagement8 f Chapter8fSeven:8fActivity-
Based8fCosting:8fA8fTool8fto8fAid8fDecision8fMaking8 f Chapter8fEight:8f
Master8fBudgeting
Chapter8fNine:8fFlexible8fBudgets8fand8fPerformanc
e8fAnalysis8 f Chapter8fTen:8fStandard8fCosts8fand8fVa
riances
Chapter8fEleven:8fResponsibility8fAccounting8fSyste
ms8 f Chapter8fTwelve:8fStrategic8fPerformance8fMea
,surement
Chapter8fThirteen:8fDifferential8fAnalysis:8fThe8fKey8fto8fDecision
Making8 f Chapter8fFourteen:8fCapital8fBudgeting8fDecisions8fCh
8f
apter8fFifteen:8fStatement8fof8fCash
Flows8fChapter8fSixteen:8fFinancial8fStateme
nt8fAnalysis
, Chapter 1 8f
Managerial Accounting and Cost Concept
8f 8f 8f 8f8f
s
Questions
1-1 The8fthree8fmajor8ftypes8fof8fprodu 1-4
ct8fcosts8 f in8fa8fmanufacturing8fcompany8 a. Variable8fcost:8fThe8fvariable8fcost8fpe
fare8fdirect8fmaterials,8fdirect8flabor,8fan r8funit8fis8fconstant,8fbut8ftotal8fvariabl
d8fmanufacturing8 f overhead. e8fcost8fchanges8fin8fdirect8fproportion
8fto8fchanges8fin8fvolume.
1-2 b. Fixed8fcost:8fThe8ftotal8ffixed8fcost8fis8fc
a. Direct8fmaterials8fare8fan8fintegra onstant8 f within8fthe8frelevant8frange.8f
l8fpart8fof8fa8 f finished8fproduct8fand8fth The8faverage8ffixed8 f cost8fper8funit8fva
eir8fcosts8fcan8fbe8 f conveniently8ftraced ries8finversely8fwith8fchanges8fin8fvolum
8fto8fit. e.
b. Indirect8fmaterials8fare8fgenerally8fs c. Mixed8fcost:8fA8fmixed8fcost8fcontai
mall8 f items8fof8fmaterial8fsuch8fas8fglue8fan ns8fboth8 f variable8fand8ffixed8fcost
d8fnails.8fThey8 f may8fbe8fan8fintegral8fpart8f 8felements.
of8fa8ffinished8fproduct8fbut8ftheir8fcosts8fca
n8fbe8ftraced8fto8fthe8fproduct8fonly8fat8 f gre 1-5
at8fcost8for8finconvenience. a. Unit8ffixed8fcosts8fdecrease8fas8ft
c. Direct8flabor8fconsists8fof8flab he8factivity8flevel8fincreases.
or8fcosts8fthat8 f can8fbe8feasily8ftrac b. Unit8fvariable8fcosts8fremain8fconsta
ed8fto8fparticular8fproducts. nt8fas8fthe8 f activity8flevel8fincreases
Direct8flabor8fis8falso8fcalled8f―touch8flabor.‖ .
d. Indirect8flabor8fconsists8fof8fthe8flab c. Total8ffixed8fcosts8fremain8fconsta
or8fcosts8 f of8fjanitors,8fsupervisors,8fmate nt8fas8fthe8 f activity8flevel8fincrea
rials8fhandlers,8fand8 f other8ffactory8fwork ses.
ers8fthat8fcannot8fbe8fconveniently8ftraced d. Total8fvariable8fcosts8fincrease8fas8ft
8fto8fparticular8fproducts.8fThese8flabor8fc
he8factivity8flevel8fincreases.
osts8 f are8fincurred8fto8fsupport8 f producti
on,8fbut8fthe8fworkers8finvolved8fdo8fnot8 f 1-6
directly8fwork8fon8fthe8fproduct. a. Cost8fbehavior:8fCost8fbehavior8frefers
e. Manufacturing8 f overhead8 f includes8 8 f to8fthe8fway8fin8fwhich8fcosts8fchang
fall8 f manufacturing8fcosts8fexcept8fdirect8f
e8fin8fresponse8fto8fchanges8fin8fa8fmea
materials8fand8 f direct8flabor.8fConsequent sure8fof8factivity8fsuch8fas8 f sales8fvolu
ly,8fmanufacturing8foverhead8fincludes8find me,8fproduction8fvolume,8for8forders8f
irect8fmaterials8fand8findirect8 f labor8fas8fw processed.
ell8fas8fother8fmanufacturing8fcosts. b. Relevant8frange:8fThe8frelevant8frang
e8 f is8fthe8 f range8fof8factivity8fwithin8f
1-3 which8fassumptions8 f about8fvariable8f
A8fproduct8fcost8fis8fany8fcost8finvolv and8 f fixed8fcost8fbehavior8fare8 f valid
ed8fin8fpurchasing8for8fmanufacturing8fgood .
s.8fIn8fthe8fcase8 f of8fmanufactured8fgoods,8
fthese8fcosts8fconsist8fof8 f direct8fmaterials,
1-7 An8 f activity8 f base8 f is8 f a8 f mea
8fdirect8flabor,8fand8fmanufacturing8 f overh
sure8fof8 f whatever8fcauses8fthe8fincurre
ead.8fA8fperiod8fcost8fis8fa8fcost8fthat8fis8ftak nce8fof8fa8fvariable8 f cost.8fExamples8fof8
en8 f directly8fto8 f the8 f income8 f statement factivity8fbases8finclude8funits8 f produce
8 f as8 f an8 f expense8fin8fthe8fperiod8fin8fwhic
d,8funits8fsold,8fletters8ftyped,8fbeds8fin8f
h8fit8fis8fincurred. a8 f hospital,8fmeals8fserved8fin8fa8fcafe,8f
, service8fcalls8fmade,8fetc.
1-8 The8f linear8f assumption8 f is8f reasonab
ly
Accounting,
18th Edition
By Ray Garrison, Eric Noreen and Peter
Brewer Verified Chapter's 1 - 16 |
Complete
Table of Contents
8f 8f
Chapter8fOne:8fManagerial8fAccounting8fand8fCost8fC
oncepts8 f Chapter8fTwo:8fJob-
Order8fCosting:8fCalculating8fUnit8fProduct8fCosts
Chapter8fThree:8fJob-
Order8fCosting:8fCost8fFlows8fand8fExternal8fReporting8 f Chapter8fFou
r:8fProcess8fCosting
Chapter8fFive:8fCost-Volume-Profit8fRelationships
Chapter8fSix:8fVariable8fCosting8fand8fSegment8fReporting:8fTools8ffo
r8fManagement8 f Chapter8fSeven:8fActivity-
Based8fCosting:8fA8fTool8fto8fAid8fDecision8fMaking8 f Chapter8fEight:8f
Master8fBudgeting
Chapter8fNine:8fFlexible8fBudgets8fand8fPerformanc
e8fAnalysis8 f Chapter8fTen:8fStandard8fCosts8fand8fVa
riances
Chapter8fEleven:8fResponsibility8fAccounting8fSyste
ms8 f Chapter8fTwelve:8fStrategic8fPerformance8fMea
,surement
Chapter8fThirteen:8fDifferential8fAnalysis:8fThe8fKey8fto8fDecision
Making8 f Chapter8fFourteen:8fCapital8fBudgeting8fDecisions8fCh
8f
apter8fFifteen:8fStatement8fof8fCash
Flows8fChapter8fSixteen:8fFinancial8fStateme
nt8fAnalysis
, Chapter 1 8f
Managerial Accounting and Cost Concept
8f 8f 8f 8f8f
s
Questions
1-1 The8fthree8fmajor8ftypes8fof8fprodu 1-4
ct8fcosts8 f in8fa8fmanufacturing8fcompany8 a. Variable8fcost:8fThe8fvariable8fcost8fpe
fare8fdirect8fmaterials,8fdirect8flabor,8fan r8funit8fis8fconstant,8fbut8ftotal8fvariabl
d8fmanufacturing8 f overhead. e8fcost8fchanges8fin8fdirect8fproportion
8fto8fchanges8fin8fvolume.
1-2 b. Fixed8fcost:8fThe8ftotal8ffixed8fcost8fis8fc
a. Direct8fmaterials8fare8fan8fintegra onstant8 f within8fthe8frelevant8frange.8f
l8fpart8fof8fa8 f finished8fproduct8fand8fth The8faverage8ffixed8 f cost8fper8funit8fva
eir8fcosts8fcan8fbe8 f conveniently8ftraced ries8finversely8fwith8fchanges8fin8fvolum
8fto8fit. e.
b. Indirect8fmaterials8fare8fgenerally8fs c. Mixed8fcost:8fA8fmixed8fcost8fcontai
mall8 f items8fof8fmaterial8fsuch8fas8fglue8fan ns8fboth8 f variable8fand8ffixed8fcost
d8fnails.8fThey8 f may8fbe8fan8fintegral8fpart8f 8felements.
of8fa8ffinished8fproduct8fbut8ftheir8fcosts8fca
n8fbe8ftraced8fto8fthe8fproduct8fonly8fat8 f gre 1-5
at8fcost8for8finconvenience. a. Unit8ffixed8fcosts8fdecrease8fas8ft
c. Direct8flabor8fconsists8fof8flab he8factivity8flevel8fincreases.
or8fcosts8fthat8 f can8fbe8feasily8ftrac b. Unit8fvariable8fcosts8fremain8fconsta
ed8fto8fparticular8fproducts. nt8fas8fthe8 f activity8flevel8fincreases
Direct8flabor8fis8falso8fcalled8f―touch8flabor.‖ .
d. Indirect8flabor8fconsists8fof8fthe8flab c. Total8ffixed8fcosts8fremain8fconsta
or8fcosts8 f of8fjanitors,8fsupervisors,8fmate nt8fas8fthe8 f activity8flevel8fincrea
rials8fhandlers,8fand8 f other8ffactory8fwork ses.
ers8fthat8fcannot8fbe8fconveniently8ftraced d. Total8fvariable8fcosts8fincrease8fas8ft
8fto8fparticular8fproducts.8fThese8flabor8fc
he8factivity8flevel8fincreases.
osts8 f are8fincurred8fto8fsupport8 f producti
on,8fbut8fthe8fworkers8finvolved8fdo8fnot8 f 1-6
directly8fwork8fon8fthe8fproduct. a. Cost8fbehavior:8fCost8fbehavior8frefers
e. Manufacturing8 f overhead8 f includes8 8 f to8fthe8fway8fin8fwhich8fcosts8fchang
fall8 f manufacturing8fcosts8fexcept8fdirect8f
e8fin8fresponse8fto8fchanges8fin8fa8fmea
materials8fand8 f direct8flabor.8fConsequent sure8fof8factivity8fsuch8fas8 f sales8fvolu
ly,8fmanufacturing8foverhead8fincludes8find me,8fproduction8fvolume,8for8forders8f
irect8fmaterials8fand8findirect8 f labor8fas8fw processed.
ell8fas8fother8fmanufacturing8fcosts. b. Relevant8frange:8fThe8frelevant8frang
e8 f is8fthe8 f range8fof8factivity8fwithin8f
1-3 which8fassumptions8 f about8fvariable8f
A8fproduct8fcost8fis8fany8fcost8finvolv and8 f fixed8fcost8fbehavior8fare8 f valid
ed8fin8fpurchasing8for8fmanufacturing8fgood .
s.8fIn8fthe8fcase8 f of8fmanufactured8fgoods,8
fthese8fcosts8fconsist8fof8 f direct8fmaterials,
1-7 An8 f activity8 f base8 f is8 f a8 f mea
8fdirect8flabor,8fand8fmanufacturing8 f overh
sure8fof8 f whatever8fcauses8fthe8fincurre
ead.8fA8fperiod8fcost8fis8fa8fcost8fthat8fis8ftak nce8fof8fa8fvariable8 f cost.8fExamples8fof8
en8 f directly8fto8 f the8 f income8 f statement factivity8fbases8finclude8funits8 f produce
8 f as8 f an8 f expense8fin8fthe8fperiod8fin8fwhic
d,8funits8fsold,8fletters8ftyped,8fbeds8fin8f
h8fit8fis8fincurred. a8 f hospital,8fmeals8fserved8fin8fa8fcafe,8f
, service8fcalls8fmade,8fetc.
1-8 The8f linear8f assumption8 f is8f reasonab
ly
