Instructor’s Solution Manual: Horngren’s Accounting, The Managerial Chapters (13th Edition) by Tracie Miller-Nobles and Brenda Mattison

SOLUTION MANUAL
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. TheAprimaryApurposeAofAmanagerialAaccountingAisAtoAprovideAinformationAtoAhelpAmanagersAplan,Adi
rect,Acontrol,AandAmakeAdecisions.

2. FinancialAaccountingAandAmanagerialAaccountingAdifferAonAtheAfollowingA6Adimensions:A(1)AprimaryAuse
rs,A(2)ApurposeAofAinformation,A(3)AfocusAandAtimeAdimensionAofAtheAinformation,A(4)ArulesAandArestrict
ions,A(5)AscopeAofAinformation,AandA(6)Abehavioral.

3. LineApositionsAareAdirectlyAinvolvedAinAprovidingAgoodsAorAservicesAtoAcustomers.AStaffApositionsAsu
pportAlineApositions.

4. PlanningAmeansAchoosingAgoalsAandAdecidingAhowAtoAachieveAthem.ADirectingAinvolvesArunningAtheAday
-to-
dayAoperationsAofAaAbusiness.AControllingAisAtheAprocessAofAmonitoringAoperationsAandAkeepingAtheAcom
panyAonAtrack.

5. TheAfourAIMAAstandardsAofAethicalApracticeAandAaAdescriptionAofAeachAfollow.
I. Competence.
 MaintainAanAappropriateAlevelAofAprofessionalAleadershipAandAexpertiseAbyAenhancingAk
nowledgeAandAskills.
 PerformAprofessionalAdutiesAinAaccordanceAwithArelevantAlaws,Aregulations,AandAtechnicalAsta
ndards.
 ProvideAdecisionAsupportAinformationAandArecommendationsAthatAareAaccurate,Aclear,Aconcise,Aa
ndAtimely.
 RecogniseAandAhelpAmangeArisk.
II. Confidentiality.
 KeepAinformationAconfidentialAexceptAwhenAdisclosureAisAauthorizedAorAlegallyArequired.
 InformAallArelevantApartiesAregardingAappropriateAuseAofAconfidentialAinformation.A MonitorAtoAe
nsureAcompliance.
 RefrainAfromAusingAconfidentialAinformationAforAunethicalAorAillegalAadvantage.
III. Integrity.
 MitigateAactualAconflictsAofAinterest.ARegularlyAcommunicateAwithAbusinessAassociatesAtoAavoidAap
parentAconflictsAofAinterest.AAAdviseAallApartiesAofAanyApotentialAconflicts.
 RefrainAfromAengagingAinAanyAconductAthatAwouldAprejudiceAcarryingAoutAdutiesAethically.

,  AbstainAfromAengagingAinAorAsupportingAanyAactivityAthatAmightAdiscreditAtheAprofession.
 ContributeAtoAaApositiveAethicalAcultureAandAplaceAintegrityAofAtheAprofessionAaboveApersonalAin
terest.
5,Acont.
IV. Credibility.
 CommunicateAinformationAfairlyAandAobjectively.
 ProvideAallArelevantAinformationAthatAcouldAreasonablyAbeAexpectedAtoAinfluenceAanAintendedAu
ser’sAunderstandingAofAtheAreports,Aanalyses,AorArecommendations.
 ReportAanyAdelaysAorAdeficienciesAinAinformation,Atimeliness,Aprocessing,AorAinternalAcontrolsAinA
conformanceAwithAorganizationApolicyAand/orAapplicableAlaw.
 CommunicateAanyAprofessionalAlimitationsAorAotherAconstraintsAthatAwouldAprecludeAresponsi-
bleAjudgmentAorAsuccessfulAperformanceAofAanAactivity.
A




6. ServiceAcompaniesAsellAtime,Askills,AandAknowledge.A ExamplesAofAserviceAcompaniesAincludeAphoneAser
viceAcompanies,Abanks,AcleaningAserviceAcompanies,AaccountingAfirms,AlawAfirms,AmedicalAphysicians,Aa
ndAonlineAauctionAservices.

7. MerchandisingAcompaniesAresellAproductsAtheyAbuyAfromAsuppliers.AMerchandisersAkeepAanAinventoryAofA
products,AandAmanagersAareAaccountableAforAtheApurchasing,Astorage,AandAsaleAofAtheAproducts.AExample
sAofAmerchandisingAcompaniesAincludeAtoyAstores,AgroceryAstores,AandAclothingAstores.

8. MerchandisingAcompaniesAresellAproductsAtheyApreviouslyAboughtAfromAsuppliers,AwhereasAmanufacturi
ngAcompaniesAuseAlabor,Aequipment,Asupplies,AandAfacilitiesAtoAconvertArawAmaterialsAintoAnewAfinishedAp
roducts.AInAcontrastAtoAmerchandisingAcompanies,AmanufacturingAcompaniesAhaveAaAbroadArangeAofApro
ductionAactivitiesAthatArequireAtrackingAcostsAonAthreeAkindsAofAinventory.

9. TheAthreeAinventoryAaccountsAusedAbyAmanufacturingAcompaniesAareARawAMaterialsAInventory,AWork-
in-ProcessAInventory,AandAFinishedAGoodsAInventory.
A




RawAMaterialsAInventoryAincludesAmaterialsAusedAtoAmanufactureAaAproduct.AWork-in-
ProcessAInventoryAincludesAgoodsAthatAhaveAbeenAstartedAinAtheAmanufacturingAprocessAbutAareAnotAyetAc
omplete.A FinishedAGoodsAInventoryAincludesAcompletedAgoodsAthatAhaveAnotAyetAbeenAsold.

10. AAdirectAcostAisAaAcostAthatAcanAbeAeasilyAandAcost-
effectivelyAtracedAtoAaAcostAobjectA(whichAisAanythingAforAwhichAmanagersAwantAaAseparateAmeasureme
ntAofAcost).AAnAindirectAcostAisAaAcostAthatAcannotAbeAeasilyAorAcost-effectivelyAtracedAtoAaAcostAobject.

11. TheAthreeAmanufacturingAcostsAforAaAmanufacturingAcompanyAareAdirectAmaterials,AdirectAlabor,AandAma
nufacturingAoverhead.ADirectAmaterialsAareAmaterialsAthatAbecomeAaAphysicalApartAofAaAfinishedAproductA
andAwhoseAcostsAareAeasilyAtraceableAtoAtheAfinishedAproduct.A DirectAlaborAisAtheAlaborAcostAofAtheAempl
oyeesAwhoAconvertAmaterialsAintoAfinishedAproducts.AManufacturingAoverheadAincludesAallAmanufacturin
gAcostsAexceptAdirectAmaterialsAandAdirectAlabor,AsuchAasAindirectAmaterials,AindirectAlabor,AfactoryAdeprec
iation,AfactoryArent,AandAfactoryApropertyAtaxes.