Solution Manual for Managerial Accounting By Ray H. Garrison, Eric Noreen, and Peter C. Brewer

Solution Manual for Managerial Accounting,
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18th Edition Ws




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




Managerial Accounting and Cost Concepts Ws Ws Ws Ws




Questions


1-1 The three major types of product cost Ws Ws Ws Ws Ws Ws 1-4
s in a manufacturing company are direct mat
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erials, direct labor, and manufacturing overhe
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ad. in direct proportion to changes in volum
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e.
1-2 b. Fixed cost: The total fixed cost is constant
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a. Direct materials are an integral part of Ws Ws Ws Ws Ws Ws Ws within the relevant range. The average fixe
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a finished product and their costs can be con
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veniently traced to it. Ws Ws Ws es in volume. W s Ws



b. Indirect materials are generally small ite Ws Ws Ws Ws Ws c. Mixed cost: A mixed cost contains bot
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ms of material such as glue and nails. They m
Ws Ws Ws Ws Ws Ws Ws Ws Ws h variable and fixed cost elements.
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ay be an integral part of a finished product but
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their costs can be traced to the product only a
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t great cost or inconvenience.
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c. Direct labor consists of labor costs tha Ws Ws Ws Ws Ws Ws l increases.
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t can be easily traced to particular products.
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Direct labor is also called ―touch labor.‖
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d. Indirect labor consists of the labor cost Ws Ws Ws Ws Ws Ws c. Total fixed costs remain constant as th
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s of janitors, supervisors, materials handlers, a
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nd other factory workers that cannot be conv
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eniently traced to particular products. These l
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abor costs are incurred to support production,
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Wsbut the workers involved do not directly wor
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k on the product.
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e. Manufacturing overhead includes all ma Ws Ws Ws Ws way in which costs change in response t
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nufacturing costs except direct materials and dWs Ws Ws Ws Ws Ws o changes in a measure of activity such a
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irect labor. Consequently, manufacturing overh
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ead includes indirect materials and indirect labo
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r as well as other manufacturing costs.
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e range of activity within which assumptio
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1-3 ns about variable and fixed cost behavior
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A product cost is any cost involved in
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purchasing or manufacturing goods. In the cas Ws Ws Ws Ws Ws Ws



e of manufactured goods, these costs consist
Ws Ws Ws Ws Ws Ws Ws 1-7 An activity base is a measure of w
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of direct materials, direct labor, and manufactur
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ing overhead. A period cost is a cost that is ta
Ws Ws Ws Ws Ws Ws Ws Ws Ws Ws cost. Examples of activity bases include unit
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ken directly to the income statement as an ex
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pense in the period in which it is incurred.
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calls made, etc.
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, 1-8 The linear assumption is reasonably v
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alid providing that the cost formula is used onl
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y within the relevant range.
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