SOLUTION MANUAL
A
Horngren's Accounting, 13th Edition Managerial
A A A A
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
A A A A A A A
,THE MANAGERIAL CHAPTERS
A A
1. Introduction to Managerial Accounting
A A A
2. Job Order Costing
A A
3. Process CostingA
4. Cost-Volume-Profit Analysis A
5. Master Budgets
A
6. Flexible Budgets and Standard Cost Systems
A A A A A
7. Cost Allocation and Responsibility Accounting
A A A A
8. Short-Term Business Decisions
A A
9. Capital Investment Decisions
A A
,Chapter 1 A
Introduction to Managerial Accounting
A A A
Review Questions
A
1. TheAprimaryApurposeAofAmanagerialAaccountingAisAtoAprovideAinformationAtoAhelpAmanagersApla
n,Adirect,Acontrol,AandAmakeAdecisions.
2. FinancialAaccountingAandAmanagerialAaccountingAdifferAonAtheAfollowingA6Adimensions:A(1)AprimaryA
users,A(2)ApurposeAofAinformation,A(3)AfocusAandAtimeAdimensionAofAtheAinformation,A(4)ArulesAandA
restrictions,A(5)AscopeAofAinformation,AandA(6)Abehavioral.
3. LineApositionsAareAdirectlyAinvolvedAinAprovidingAgoodsAorAservicesAtoAcustomers.AStaffAposition
sAsupportAlineApositions.
4. PlanningAmeansAchoosingAgoalsAandAdecidingAhowAtoAachieveAthem.ADirectingAinvolvesArunningAtheA
day-to-
dayAoperationsAofAaAbusiness.AControllingAisAtheAprocessAofAmonitoringAoperationsAandAkeepingAtheAc
ompanyAonAtrack.
5. TheAfourAIMAAstandardsAofAethicalApracticeAandAaAdescriptionAofAeachAfollow.
I. Competence.
MaintainAanAappropriateAlevelAofAprofessionalAleadershipAandAexpertiseAbyAenhanci
ngAknowledgeAandAskills.
PerformAprofessionalAdutiesAinAaccordanceAwithArelevantAlaws,Aregulations,AandAtechnic
alAstandards.
ProvideAdecisionAsupportAinformationAandArecommendationsAthatAareAaccurate,Aclear,Aconci
se,AandAtimely.
RecogniseAandAhelpAmangeArisk.
II. Confidentiality.
KeepAinformationAconfidentialAexceptAwhenAdisclosureAisAauthorizedAorAlegallyArequired.
InformAallArelevantApartiesAregardingAappropriateAuseAofAconfidentialAinformation.A MonitorA
toAensureAcompliance.
RefrainAfromAusingAconfidentialAinformationAforAunethicalAorAillegalAadvantage.
III. Integrity.
MitigateAactualAconflictsAofAinterest.ARegularlyAcommunicateAwithAbusinessAassociatesAtoAavoi
dAapparentAconflictsAofAinterest.AAAdviseAallApartiesAofAanyApotentialAconflicts.
RefrainAfromAengagingAinAanyAconductAthatAwouldAprejudiceAcarryingAoutAdutiesAethically.
, AbstainAfromAengagingAinAorAsupportingAanyAactivityAthatAmightAdiscreditAtheAprofession.
ContributeAtoAaApositiveAethicalAcultureAandAplaceAintegrityAofAtheAprofessionAaboveAperso
nalAinterest.
5,Acont.
IV. Credibility.
CommunicateAinformationAfairlyAandAobjectively.
ProvideAallArelevantAinformationAthatAcouldAreasonablyAbeAexpectedAtoAinfluenceAanAintend
edAuser’sAunderstandingAofAtheAreports,Aanalyses,AorArecommendations.
ReportAanyAdelaysAorAdeficienciesAinAinformation,Atimeliness,Aprocessing,AorAinternalAcontro
lsAinAconformanceAwithAorganizationApolicyAand/orAapplicableAlaw.
CommunicateAanyAprofessionalAlimitationsAorAotherAconstraintsAthatAwouldAprecludeArespon
si-AbleAjudgmentAorAsuccessfulAperformanceAofAanAactivity.
6. ServiceAcompaniesAsellAtime,Askills,AandAknowledge.A ExamplesAofAserviceAcompaniesAincludeAphon
eAserviceAcompanies,Abanks,AcleaningAserviceAcompanies,AaccountingAfirms,AlawAfirms,AmedicalAphy
sicians,AandAonlineAauctionAservices.
7. MerchandisingAcompaniesAresellAproductsAtheyAbuyAfromAsuppliers.AMerchandisersAkeepAanAinvento
ryAofAproducts,AandAmanagersAareAaccountableAforAtheApurchasing,Astorage,AandAsaleAofAtheAproducts.
AExamplesAofAmerchandisingAcompaniesAincludeAtoyAstores,AgroceryAstores,AandAclothingAstores.
8. MerchandisingAcompaniesAresellAproductsAtheyApreviouslyAboughtAfromAsuppliers,AwhereasAmanufa
cturingAcompaniesAuseAlabor,Aequipment,Asupplies,AandAfacilitiesAtoAconvertArawAmaterialsAintoAnewA
finishedAproducts.AInAcontrastAtoAmerchandisingAcompanies,AmanufacturingAcompaniesAhaveAaAbroa
dArangeAofAproductionAactivitiesAthatArequireAtrackingAcostsAonAthreeAkindsAofAinventory.
9. TheAthreeAinventoryAaccountsAusedAbyAmanufacturingAcompaniesAareARawAMaterialsAInventory,AWor
k-Ain-ProcessAInventory,AandAFinishedAGoodsAInventory.
RawAMaterialsAInventoryAincludesAmaterialsAusedAtoAmanufactureAaAproduct.AWork-in-
ProcessAInventoryAincludesAgoodsAthatAhaveAbeenAstartedAinAtheAmanufacturingAprocessAbutAareAnotA
yetAcomplete.A FinishedAGoodsAInventoryAincludesAcompletedAgoodsAthatAhaveAnotAyetAbeenAsold.
10. AAdirectAcostAisAaAcostAthatAcanAbeAeasilyAandAcost-
effectivelyAtracedAtoAaAcostAobjectA(whichAisAanythingAforAwhichAmanagersAwantAaAseparateAmeasu
rementAofAcost).AAnAindirectAcostAisAaAcostAthatAcannotAbeAeasilyAorAcost-
effectivelyAtracedAtoAaAcostAobject.
11. TheAthreeAmanufacturingAcostsAforAaAmanufacturingAcompanyAareAdirectAmaterials,AdirectAlabor,Aan
dAmanufacturingAoverhead.ADirectAmaterialsAareAmaterialsAthatAbecomeAaAphysicalApartAofAaAfinishe
dAproductAandAwhoseAcostsAareAeasilyAtraceableAtoAtheAfinishedAproduct.A DirectAlaborAisAtheAlaborAc
A
Horngren's Accounting, 13th Edition Managerial
A A A A
by Tracie Miller-Nobles, Brenda Mattison, All Chapter 1-9
A A A A A A A
,THE MANAGERIAL CHAPTERS
A A
1. Introduction to Managerial Accounting
A A A
2. Job Order Costing
A A
3. Process CostingA
4. Cost-Volume-Profit Analysis A
5. Master Budgets
A
6. Flexible Budgets and Standard Cost Systems
A A A A A
7. Cost Allocation and Responsibility Accounting
A A A A
8. Short-Term Business Decisions
A A
9. Capital Investment Decisions
A A
,Chapter 1 A
Introduction to Managerial Accounting
A A A
Review Questions
A
1. TheAprimaryApurposeAofAmanagerialAaccountingAisAtoAprovideAinformationAtoAhelpAmanagersApla
n,Adirect,Acontrol,AandAmakeAdecisions.
2. FinancialAaccountingAandAmanagerialAaccountingAdifferAonAtheAfollowingA6Adimensions:A(1)AprimaryA
users,A(2)ApurposeAofAinformation,A(3)AfocusAandAtimeAdimensionAofAtheAinformation,A(4)ArulesAandA
restrictions,A(5)AscopeAofAinformation,AandA(6)Abehavioral.
3. LineApositionsAareAdirectlyAinvolvedAinAprovidingAgoodsAorAservicesAtoAcustomers.AStaffAposition
sAsupportAlineApositions.
4. PlanningAmeansAchoosingAgoalsAandAdecidingAhowAtoAachieveAthem.ADirectingAinvolvesArunningAtheA
day-to-
dayAoperationsAofAaAbusiness.AControllingAisAtheAprocessAofAmonitoringAoperationsAandAkeepingAtheAc
ompanyAonAtrack.
5. TheAfourAIMAAstandardsAofAethicalApracticeAandAaAdescriptionAofAeachAfollow.
I. Competence.
MaintainAanAappropriateAlevelAofAprofessionalAleadershipAandAexpertiseAbyAenhanci
ngAknowledgeAandAskills.
PerformAprofessionalAdutiesAinAaccordanceAwithArelevantAlaws,Aregulations,AandAtechnic
alAstandards.
ProvideAdecisionAsupportAinformationAandArecommendationsAthatAareAaccurate,Aclear,Aconci
se,AandAtimely.
RecogniseAandAhelpAmangeArisk.
II. Confidentiality.
KeepAinformationAconfidentialAexceptAwhenAdisclosureAisAauthorizedAorAlegallyArequired.
InformAallArelevantApartiesAregardingAappropriateAuseAofAconfidentialAinformation.A MonitorA
toAensureAcompliance.
RefrainAfromAusingAconfidentialAinformationAforAunethicalAorAillegalAadvantage.
III. Integrity.
MitigateAactualAconflictsAofAinterest.ARegularlyAcommunicateAwithAbusinessAassociatesAtoAavoi
dAapparentAconflictsAofAinterest.AAAdviseAallApartiesAofAanyApotentialAconflicts.
RefrainAfromAengagingAinAanyAconductAthatAwouldAprejudiceAcarryingAoutAdutiesAethically.
, AbstainAfromAengagingAinAorAsupportingAanyAactivityAthatAmightAdiscreditAtheAprofession.
ContributeAtoAaApositiveAethicalAcultureAandAplaceAintegrityAofAtheAprofessionAaboveAperso
nalAinterest.
5,Acont.
IV. Credibility.
CommunicateAinformationAfairlyAandAobjectively.
ProvideAallArelevantAinformationAthatAcouldAreasonablyAbeAexpectedAtoAinfluenceAanAintend
edAuser’sAunderstandingAofAtheAreports,Aanalyses,AorArecommendations.
ReportAanyAdelaysAorAdeficienciesAinAinformation,Atimeliness,Aprocessing,AorAinternalAcontro
lsAinAconformanceAwithAorganizationApolicyAand/orAapplicableAlaw.
CommunicateAanyAprofessionalAlimitationsAorAotherAconstraintsAthatAwouldAprecludeArespon
si-AbleAjudgmentAorAsuccessfulAperformanceAofAanAactivity.
6. ServiceAcompaniesAsellAtime,Askills,AandAknowledge.A ExamplesAofAserviceAcompaniesAincludeAphon
eAserviceAcompanies,Abanks,AcleaningAserviceAcompanies,AaccountingAfirms,AlawAfirms,AmedicalAphy
sicians,AandAonlineAauctionAservices.
7. MerchandisingAcompaniesAresellAproductsAtheyAbuyAfromAsuppliers.AMerchandisersAkeepAanAinvento
ryAofAproducts,AandAmanagersAareAaccountableAforAtheApurchasing,Astorage,AandAsaleAofAtheAproducts.
AExamplesAofAmerchandisingAcompaniesAincludeAtoyAstores,AgroceryAstores,AandAclothingAstores.
8. MerchandisingAcompaniesAresellAproductsAtheyApreviouslyAboughtAfromAsuppliers,AwhereasAmanufa
cturingAcompaniesAuseAlabor,Aequipment,Asupplies,AandAfacilitiesAtoAconvertArawAmaterialsAintoAnewA
finishedAproducts.AInAcontrastAtoAmerchandisingAcompanies,AmanufacturingAcompaniesAhaveAaAbroa
dArangeAofAproductionAactivitiesAthatArequireAtrackingAcostsAonAthreeAkindsAofAinventory.
9. TheAthreeAinventoryAaccountsAusedAbyAmanufacturingAcompaniesAareARawAMaterialsAInventory,AWor
k-Ain-ProcessAInventory,AandAFinishedAGoodsAInventory.
RawAMaterialsAInventoryAincludesAmaterialsAusedAtoAmanufactureAaAproduct.AWork-in-
ProcessAInventoryAincludesAgoodsAthatAhaveAbeenAstartedAinAtheAmanufacturingAprocessAbutAareAnotA
yetAcomplete.A FinishedAGoodsAInventoryAincludesAcompletedAgoodsAthatAhaveAnotAyetAbeenAsold.
10. AAdirectAcostAisAaAcostAthatAcanAbeAeasilyAandAcost-
effectivelyAtracedAtoAaAcostAobjectA(whichAisAanythingAforAwhichAmanagersAwantAaAseparateAmeasu
rementAofAcost).AAnAindirectAcostAisAaAcostAthatAcannotAbeAeasilyAorAcost-
effectivelyAtracedAtoAaAcostAobject.
11. TheAthreeAmanufacturingAcostsAforAaAmanufacturingAcompanyAareAdirectAmaterials,AdirectAlabor,Aan
dAmanufacturingAoverhead.ADirectAmaterialsAareAmaterialsAthatAbecomeAaAphysicalApartAofAaAfinishe
dAproductAandAwhoseAcostsAareAeasilyAtraceableAtoAtheAfinishedAproduct.A DirectAlaborAisAtheAlaborAc
