Solution Manual for Managerial Accounting 18th Edition By Ray Garrison, Eric Noreen and Peter Brewer 2024

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

,TableofContents X
i Xi




Chapter One: Managerial Accounting and Cost Concepts Ch
X i X i X i X i X i X i Xi




apter Two: Job-Order Costing: Calculating Unit Product Costs
Xi Xi Xi Xi Xi Xi Xi




Chapter Three: Job- Xi Xi




Order Costing: Cost Flows and External Reporting Chapter Four: Process Co
Xi Xi Xi Xi Xi Xi Xi Xi Xi Xi




sting

Chapter Five: Cost-Volume-Profit Relationships
Xi Xi Xi




Chapter Six: Variable Costing and Segment Reporting: Tools for Manageme
Xi Xi Xi Xi Xi Xi Xi Xi Xi




nt Chapter Seven: Activity-
Xi X i X i




Based Costing: A Tool to Aid Decision Making Chapter Eight: Master B
X i X i X i X i X i X i X i Xi Xi Xi Xi




udgeting

Chapter Nine: Flexible Budgets and Performance Analysis Chapt
Xi Xi Xi Xi Xi Xi Xi




er Ten: Standard Costs and Variances
Xi Xi Xi Xi Xi




Chapter Eleven: Responsibility Accounting Systems Cha
Xi Xi Xi Xi Xi




pter Twelve: Strategic Performance Measurement
Xi Xi Xi Xi




Chapter Thirteen: Differential Analysis: The Key to Decision Making Cha
Xi Xi Xi Xi Xi Xi Xi Xi Xi




pter Fourteen: Capital Budgeting Decisions
Xi Xi Xi Xi




Chapter Fifteen: Statement ofDCash Flows Ch
Xi Xi Xi Xi Xi




apter Sixteen: Financial Statement Analysis
Xi Xi Xi Xi

,Chapter1 X
i




Managerial Accounting and Cost Concepts Xi Xi Xi Xi




Questions


1-1 The three major types of product cost Xi Xi Xi Xi Xi Xi X 1-4
s in a manufacturing company are direct mat
i Xi Xi Xi Xi Xi Xi Xi Xi a. Variable cost: The variable costDper unit i Xi Xi Xi Xi Xi Xi X


erials, direct labor, and manufacturing overhe
Xi Xi Xi Xi Xi Xi s constant, but total variable cost change
i Xi Xi Xi Xi Xi Xi


ad. s in direct proportion to changes in volu
X i Xi Xi Xi Xi Xi Xi Xi Xi


me.
1-2 b. Fixed cost: The total fixed cost is constant
Xi Xi Xi Xi Xi Xi Xi Xi


a. Direct materials are an integral part ofD Xi Xi Xi Xi Xi Xi within the relevant range. The average fix Xi Xi Xi Xi Xi Xi Xi

X ia finished productDand their costs can be co
Xi Xi Xi Xi Xi Xi Xi ed cost per unitDvaries inversely with chan
Xi Xi Xi Xi Xi Xi Xi

n veniently traced to it.
Xi Xi Xi Xi ges in volume. X i Xi

b. Indirect materials are generally small ite Xi Xi Xi Xi Xi Xi c. Mixed cost: A mixed cost contains bot Xi Xi Xi Xi Xi Xi X


ms of material such as glue and nails. They m a
Xi Xi Xi Xi Xi Xi Xi Xi Xi Xi h variable and fixed cost elements.
i Xi Xi Xi Xi Xi


y be an integral part ofDa finished product but t
Xi Xi Xi Xi Xi Xi Xi Xi Xi

heir costs can be traced to the product o
X i X i X i X i X i X i X i X i 1-5
nly at great cost or inconvenience.
Xi Xi Xi Xi Xi a. Unit fixed costs decrease as the activity lev
Xi Xi Xi Xi Xi Xi Xi Xi

c. Direct labor consists of labor costs th Xi Xi Xi Xi Xi Xi Xi el increases. Xi


at can be easily traced to particular product
Xi Xi Xi Xi Xi Xi Xi Xi b. Unit variable costs remain constantDas th
Xi Xi Xi Xi Xi


s. e activity level increases.
Xi Xi Xi Xi

Direct labor is also called ―touch labor.‖
Xi Xi Xi Xi Xi Xi c. Total fixed costs remain constant as th
Xi Xi Xi Xi Xi Xi X


d. Indirect labor consists of the labor cost Xi Xi Xi Xi Xi Xi X e activity level increases.
i Xi Xi Xi


i s ofDjanitors, supervisors, materials handlers,
Xi Xi Xi Xi Xi d. Total variable costs increase as the activit
Xi Xi Xi Xi Xi Xi X


a nd other factory workers that cannotDbe con
Xi Xi Xi Xi Xi Xi Xi y level increases.
i Xi Xi


v eniently traced to particular products. These
Xi Xi Xi Xi Xi Xi Xi


l abor costs are incurred to support production,
Xi Xi Xi Xi Xi Xi Xi 1-6
but the workers involved do not directly wor k
Xi Xi Xi Xi Xi Xi Xi Xi Xi a. Cost behavior: CostDbehavior refers to the
Xi Xi Xi Xi Xi Xi


Don the product. Xi Xi way in which costs change in response
Xi Xi Xi Xi Xi Xi


e. Manufacturing overhead includes all ma Xi Xi Xi Xi Xi t o changes in a measure of activity such
Xi Xi Xi Xi Xi Xi Xi Xi Xi X


nufacturing costs except direct materials and d Xi Xi Xi Xi Xi Xi Xi a s sales volume, production volume, or
i X i Xi Xi Xi Xi Xi Xi

irectDlabor. Consequently, manufacturing overh Xi Xi Xi Xi ord ers processed. Xi Xi

ead includes indirect materials and indirect lab
Xi Xi Xi Xi Xi Xi Xi b. Relevant range: The relevant range is th Xi Xi Xi Xi Xi Xi Xi

or as well as other manufacturing costs.
Xi Xi Xi Xi Xi Xi e range of activity within which assumpti
Xi Xi Xi Xi Xi Xi Xi

ons about variable and fixed cost behavi
Xi Xi Xi Xi Xi Xi Xi

1-3 or are valid. Xi Xi

A product cost is any costDinvolved inXi Xi Xi Xi Xi Xi Xi


purchasing or manufacturing goods. In the cas Xi Xi Xi Xi Xi Xi 1-7 An activity base is a measure ofDw h Xi Xi Xi Xi Xi Xi Xi


e of manufactured goods, these costs consist
Xi Xi Xi Xi Xi Xi Xi atever causes the incurrence of a variable c
Xi Xi Xi Xi Xi Xi Xi


X iof direct materials, direct labor, and manufa
Xi Xi Xi Xi Xi Xi ost. Examples of activity bases include uni ts
Xi Xi Xi Xi Xi Xi Xi


ctu ring overhead. A period cost is a cost that i
Xi Xi Xi Xi Xi Xi Xi Xi Xi Xi produced, units sold, letters typed, beds in
Xi Xi Xi Xi Xi Xi X i


s t aken directly to the income statement as an
Xi Xi Xi Xi Xi Xi Xi Xi Xi a hospital, meals served in a cafe, servic e
Xi Xi Xi Xi Xi Xi Xi Xi X i X


e xpense in the period in which it is incurred.
Xi Xi Xi Xi Xi Xi Xi Xi Xi Xi calls made, etc.
i Xi Xi

, 1-8 The linear assumption is reasonably v
Xi Xi Xi Xi Xi Xi


alid providing that the cost formula is used on
Xi Xi Xi Xi Xi Xi Xi Xi Xi


ly within the relevant range.
Xi Xi Xi Xi