Solution Manual for Managerial Accounting, 18th Edition By Ray Garrison, Eric Noreen and Peter Brewer Verified Chapter's 1 - 16 Complete

Solution Manual for Managerial Accounting,
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18th Edition mj




By Ray Garrison, Eric Noreen and Peter Brewer
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Verified Chapter's 1 - 16 | Complete
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,Table of Contentsmj mj




Chapter One: Managerial Accounting and Cost Concepts
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Chapter Two: Job-Order Costing: Calculating Unit Product Costs
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Chapter Three: Job-Order Costing: Cost Flows and External Reporting
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Chapter Four: Process Costing
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Chapter Five: Cost-Volume-Profit Relationships
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Chapter Six: Variable Costing and Segment Reporting: Tools for Management
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Chapter Seven: Activity-Based Costing: A Tool to Aid Decision Making
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Chapter Eight: Master Budgeting
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Chapter Nine: Flexible Budgets and Performance Analysis
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Chapter Ten: Standard Costs and Variances
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Chapter Eleven: Responsibility Accounting Systems
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Chapter Twelve: Strategic Performance Measurement
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Chapter Thirteen: Differential Analysis: The Key to Decision Making
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Chapter Fourteen: Capital Budgeting Decisions
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Chapter Fifteen: Statement of Cash Flows
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Chapter Sixteen: Financial Statement Analysis
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,Chapter 1 mj




Managerial Accounting and Cost Concepts mj mj mj mj




Questions


1-1 The three major types of product mj mj mj mj mj 1-4
costs in a manufacturing company are direct
mj mj mj mj mj mj mj a. Variable cost: The variable cost per unit mj mj mj mj mj mj



materials, direct labor, and manufacturing
mj mj mj mj mj is constant, but total variable cost
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overhead.
mj changes in direct proportion to changes
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in volume.
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1-2 b. Fixed cost: The total fixed cost is constant
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a. Direct materials are an integral part of mj mj mj mj mj mj within the relevant range. The average
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a finished product and their costs can be
mj mj mj mj mj mj mj mj fixed cost per unit varies inversely with
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conveniently traced to it.
mj mj mj mj changes in volume.
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b. Indirect materials are generally small mj mj mj mj c. Mixed cost: A mixed cost containsmj mj mj mj mj



items of material such as glue and nails.
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They may be an integral part of a finished
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product but their costs can be traced to the
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product only at great cost or inconvenience.
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c. Direct labor consists of labor costs mj mj mj mj mj a. Unit fixed costs decrease as the activity
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that can be easily traced to particular
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products.
mj b. Unit variable costs remain constant as
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Direct labor is also called ―touch labor.‖
mj mj mj mj mj mj the activity level increases.
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d. Indirect labor consists of the labor mj mj mj mj mj c. Total fixed costs remain constant as
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costs of janitors, supervisors, materials
mj mj mj mj mj the activity level increases.
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handlers, and other factory workers that
mj mj mj mj mj mj d. Total variable costs increase as the
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cannot be conveniently traced to particular
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products. These labor costs are incurred to
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support production, but the workers involved
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do not directly work on the product.
mj mj mj mj mj mj mj a. Cost behavior: Cost behavior refers to
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e. Manufacturing overhead includes all mj mj mj the way in which costs change in
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manufacturing costs except direct materials
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and direct labor. Consequently, manufacturing
mj mj mj mj mj activity such as sales volume, production
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overhead includes indirect materials and
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indirect labor as well as other manufacturing
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costs.
mj the range of activity within which
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assumptions about variable and fixed
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1-3 A product cost is any cost involved in
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purchasing or manufacturing goods. In the
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case of manufactured goods, these costs
mj mj mj mj mj mj 1-7 An activity base is a measure of mj mj mj mj mj mj



consist of direct materials, direct labor, and
mj mj mj mj mj mj mj whatever causes the incurrence of a
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manufacturing overhead. A period cost is a
mj mj mj mj mj mj mj variable cost. Examples of activity bases
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cost that is taken directly to the income
mj mj mj mj mj mj mj mj include units produced, units sold, letters
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statement as an expense in the period in
mj mj mj mj mj mj mj mj typed, beds in a hospital, meals served in
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which it is incurred.
mj mj mj mj a cafe, service calls made, etc.
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, 1-8 The linear assumption is reasonably
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valid providing that the cost formula is used
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only within the relevant range.
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