Solution Manual for Management
Accounting for Decision Makers:
11th Edition By Peter Atrill, Eddie
McLaney All Chapters 1 - 12
,TABLE OF CONTENTS
1. Introduction to management accounting
2. Relevant costs and benefits for decision making
3. Cost–volume–profit analysis
4. Full costing
5. Costing and cost management in a competitive environment
6. Budgeting
7. Accounting for control
8. Making capital investment decisions
9. Managing risk
10.Strategic management accounting: performance evaluation and
pricing in a competitive environment
11.Measuring divisional performance
12.Managing working capital
, SECTION A
Authors’ note to tutors
Using the book
The book is designed to provide readers with a sound introduction to management accounting. It
assumes no previous knowledge of the subject and recognises that students using it may come from
a wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not
assume a high level of numerical ability from students. It has been class tested by students on
various courses and we have modified and refined the material to take account of their comments.
We have also taken account of the comments made by lecturers who used the first nine editions of
the book and of specially commissioned reviews.
The book aims to encourage an active approach to learning by providing activities and self-assessment
questions at appropriate points. This approach is designed to stimulate thought concerning particular
issues and to give the readers the opportunity to test their understanding of the principles covered.
The book is supplemented by a password-controlled lecturers’ website and a student website
available to all readers.
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used
as recommended reading for a traditional course based on lectures and tutorials. There are critical
review questions and exercises at the end of each chapter that can be used as the basis for tutorials.
It could also provide the basis for a distance learning approach for part-time or off-campus students.
For these students, the interactive nature of the book may be extremely useful where access to a
tutor is restricted. The book can also be used as the basis for an open learning approach for full-time
campus-based students. We have successfully used it in this way at the University of Plymouth
Business School. Accounting ‘surgeries’ have also been provided to give students the opportunity
for one-to-one help with any problems they face.
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study.
For full-time students, this will often be covered in one academic year.
PowerPoint slides
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint
slides to help in delivering lectures and tutorials and these can be downloaded from the lecturers’
website.
Practice/assessment material
The activities, whose solutions immediately follow them, and self-assessment questions, whose
solutions are at the end of the book, form an integral part of it. In addition, there are various other
, practice/assessment materials. At the end of each chapter there are four critical review questions.
These are short, narrative questions involving recall, explanation and brief discussion. The solutions
to these are given at the end of the book. At the end of all chapters, except Chapter 1 (where there
are two), there are eight exercises. These are questions, many involving calculations, which are
similar in nature to examination-style questions. The solutions to five of these are given at the end
of the book and are, therefore, accessible to students. Solutions to the other three are in the
following pages of this manual and are not accessible to students.
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of-
chapter exercises there are:
• Two progress tests with solutions. These tests comprise multiple-choice questions, missing-
word questions and questions that are similar to the end-of-chapter exercises. One test
corresponds to Chapters 1 to 5, and the other to Chapters 6 to 12.
• Supplementary questions (10 of them) with solutions.
• Tutorial/seminar questions with solutions.
None of this material, except the case study comments, is accessible to students.
On the student website, there are five types of material:
• Revision exercises, similar in style to the end-of-chapter exercises, with solutions.
• Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled
online, where they will be automatically graded.
• Missing-word questions, typically 10 for each chapter. These too can be attempted and graded
online.
The multiple-choice fquestions fand fmissing-word fquestions fare fintended fto fprovide fstudents
fwith fa fquick fassessment fof ftheir fmastery fof fthe fmaterial fof feach fchapter.
The fsolutions fto fall fof fthis fmaterial, fexcept fto fthe fmultiple-choice fand fmissing-word fquestions,
fare ffully fannotated fin forder fto fgive fthe fnecessary ffeedback fto fstudents.
We fintend fto fexpand fthe fnumber fand fscope fof fthe fpractice/assessment fmaterials fon fa
fcontinuing fbasis.
We fhope fthat fyou fand fyour fstudents fwill ffind fthe fbook fboth faccessible fand finteresting. fWe
fshould fmuch fappreciate fany fsuggestions fyou fmay fhave fon fhow fthe fbook fand fsupplementary
fmaterial fmay fbe fimproved.
Peter fAtrill
fEddie
fMcLaney
Accounting for Decision Makers:
11th Edition By Peter Atrill, Eddie
McLaney All Chapters 1 - 12
,TABLE OF CONTENTS
1. Introduction to management accounting
2. Relevant costs and benefits for decision making
3. Cost–volume–profit analysis
4. Full costing
5. Costing and cost management in a competitive environment
6. Budgeting
7. Accounting for control
8. Making capital investment decisions
9. Managing risk
10.Strategic management accounting: performance evaluation and
pricing in a competitive environment
11.Measuring divisional performance
12.Managing working capital
, SECTION A
Authors’ note to tutors
Using the book
The book is designed to provide readers with a sound introduction to management accounting. It
assumes no previous knowledge of the subject and recognises that students using it may come from
a wide variety of backgrounds. The book, therefore, tries to avoid technical jargon and does not
assume a high level of numerical ability from students. It has been class tested by students on
various courses and we have modified and refined the material to take account of their comments.
We have also taken account of the comments made by lecturers who used the first nine editions of
the book and of specially commissioned reviews.
The book aims to encourage an active approach to learning by providing activities and self-assessment
questions at appropriate points. This approach is designed to stimulate thought concerning particular
issues and to give the readers the opportunity to test their understanding of the principles covered.
The book is supplemented by a password-controlled lecturers’ website and a student website
available to all readers.
The structure of the book allows the tutor to deliver the subject in a number of ways. It can be used
as recommended reading for a traditional course based on lectures and tutorials. There are critical
review questions and exercises at the end of each chapter that can be used as the basis for tutorials.
It could also provide the basis for a distance learning approach for part-time or off-campus students.
For these students, the interactive nature of the book may be extremely useful where access to a
tutor is restricted. The book can also be used as the basis for an open learning approach for full-time
campus-based students. We have successfully used it in this way at the University of Plymouth
Business School. Accounting ‘surgeries’ have also been provided to give students the opportunity
for one-to-one help with any problems they face.
The book is appropriate for modules that are designed to be covered in 100 to 150 hours of study.
For full-time students, this will often be covered in one academic year.
PowerPoint slides
The diagrams in the book, along with other diagrams and materials, are available as PowerPoint
slides to help in delivering lectures and tutorials and these can be downloaded from the lecturers’
website.
Practice/assessment material
The activities, whose solutions immediately follow them, and self-assessment questions, whose
solutions are at the end of the book, form an integral part of it. In addition, there are various other
, practice/assessment materials. At the end of each chapter there are four critical review questions.
These are short, narrative questions involving recall, explanation and brief discussion. The solutions
to these are given at the end of the book. At the end of all chapters, except Chapter 1 (where there
are two), there are eight exercises. These are questions, many involving calculations, which are
similar in nature to examination-style questions. The solutions to five of these are given at the end
of the book and are, therefore, accessible to students. Solutions to the other three are in the
following pages of this manual and are not accessible to students.
On the lecturers’ website, in addition to this Instructor’s Manual with solutions to selected end-of-
chapter exercises there are:
• Two progress tests with solutions. These tests comprise multiple-choice questions, missing-
word questions and questions that are similar to the end-of-chapter exercises. One test
corresponds to Chapters 1 to 5, and the other to Chapters 6 to 12.
• Supplementary questions (10 of them) with solutions.
• Tutorial/seminar questions with solutions.
None of this material, except the case study comments, is accessible to students.
On the student website, there are five types of material:
• Revision exercises, similar in style to the end-of-chapter exercises, with solutions.
• Multiple-choice questions, typically 10 for each chapter. These are intended to be tackled
online, where they will be automatically graded.
• Missing-word questions, typically 10 for each chapter. These too can be attempted and graded
online.
The multiple-choice fquestions fand fmissing-word fquestions fare fintended fto fprovide fstudents
fwith fa fquick fassessment fof ftheir fmastery fof fthe fmaterial fof feach fchapter.
The fsolutions fto fall fof fthis fmaterial, fexcept fto fthe fmultiple-choice fand fmissing-word fquestions,
fare ffully fannotated fin forder fto fgive fthe fnecessary ffeedback fto fstudents.
We fintend fto fexpand fthe fnumber fand fscope fof fthe fpractice/assessment fmaterials fon fa
fcontinuing fbasis.
We fhope fthat fyou fand fyour fstudents fwill ffind fthe fbook fboth faccessible fand finteresting. fWe
fshould fmuch fappreciate fany fsuggestions fyou fmay fhave fon fhow fthe fbook fand fsupplementary
fmaterial fmay fbe fimproved.
Peter fAtrill
fEddie
fMcLaney
