SOLUTION MANUAL
M
Horngren's Accounting, The Managerial Chapters, 14th Edition
M M M M M M
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
M M M M M M M M M
,Table of contents
M M
1. Introduction to Managerial Accounting
M M M
2. Job Order Costing
M M
3. Process CostingM
4. Cost-Volume-Profit Analysis M
5. Master Budgets
M
6. Flexible Budgets and Standard Cost Systems
M M M M M
7. Cost Allocation and Responsibility Accounting
M M M M
8. Short-Term Business Decisions
M M
9. Capital Investment Decisions
M M
,Chapter M:1 M
Introduction to Managerial Accounting
M M M
Review Questions
M
1. WhatMisMtheMprimaryMpurposeMofMmanagerialMaccounting?
TheMprimaryMpurposeMofMmanagerialMaccountingMisMtoMprovideMinformationMtoMhelpMmanagers
Mplan,M
direct,Mcontrol,MandMmakeMdecisions.
2. ListMsixMdifferencesMbetweenMfinancialMaccountingMandMmanagerialMaccounting.
FinancialMaccountingMandMmanagerialMaccountingMdifferMonMtheMfollowingM6Mdimensions:M(1)Mprim
aryMusers,M(2)MpurposeMofMinformation,M(3)MfocusMandMtimeMdimensionMofMtheMinformation,M(4)Mrul
esMandMre-Mstrictions,M(5)MscopeMofMinformation,MandM(6)Mbehavioral.
3. ExplainMtheMdifferenceMbetweenMlineMpositionsMandMstaffMpositions.
LineMpositionsMareMdirectlyMinvolvedMinMprovidingMgoodsMorMservicesMtoMcustomers.MStaffMposit
ionsMsupportMlineMpositions.
4. ExplainMtheMdifferencesMbetweenMplanning,Mdirecting,MandMcontrolling.
PlanningMmeansMchoosingMgoalsMandMdecidingMhowMtoMachieveMthem.MDirectingMinvolvesMrunningMt
heMday-to-
dayMoperationsMofMaMbusiness.MControllingMisMtheMprocessMofMmonitoringMoperationsMandMkeepingMt
heMcompanyMonMtrack.
5. ListMtheMfourMIMAMstandardsMofMethicalMpracticeMandMbrieflyMdescribeMeach.
TheMfourMIMAMstandardsMofMethicalMpracticeMandMaMdescriptionMofMeachMfollow.
I. Competence.
MaintainManMappropriateMlevelMofMprofessionalMleadershipMandMexpertiseMbyMenha
ncingMknowledgeMandMskills.
PerformMprofessionalMdutiesMinMaccordanceMwithMrelevantMlaws,Mregulations,MandMtech
nicalMstandards.
ProvideMdecisionMsupportMinformationMandMrecommendationsMthatMareMaccurate,Mclear,Mconcis
e,
, andMtimely.
RecogniseMandMhelpMmangeMrisk.
II. Confidentiality.
KeepMinformationMconfidentialMexceptMwhenMdisclosureMisMauthorizedMorMlegallyMrequired.
InformMallMrelevantMpartiesMregardingMappropriateMuseMofMconfidentialMinformation.M Monit
orMtoMensureMcompliance.
RefrainMfromMusingMconfidentialMinformationMforMunethicalMorMillegalMadvantage.
III. Integrity.
MitigateMactualMconflictsMofMinterest.MRegularlyMcommunicateMwithMbusinessMassociatesMtoMa
voidMapparentMconflictsMofMinterest.MMAdviseMallMpartiesMofManyMpotentialMconflicts.
RefrainMfromMengagingMinManyMconductMthatMwouldMprejudiceMcarryingMoutMdutiesMethically.
AbstainMfromMengagingMinMorMsupportingManyMactivityMthatMmightMdiscreditMtheMprofession.
ContributeMtoMaMpositiveMethicalMcultureMandMplaceMintegrityMofMtheMprofessionMaboveMpe
rsonalMinterest.
5,Mcont.
IV. Credibility.
CommunicateMinformationMfairlyMandMobjectively.
ProvideMallMrelevantMinformationMthatMcouldMreasonablyMbeMexpectedMtoMinfluenceManMint
endedMuser’sMunderstandingMofMtheMreports,Manalyses,MorMrecommendations.
ReportManyMdelaysMorMdeficienciesMinMinformation,Mtimeliness,Mprocessing,MorMinternalMcon
trolsMinMconformanceMwithMorganizationMpolicyMand/orMapplicableMlaw.
CommunicateManyMprofessionalMlimitationsMorMotherMconstraintsMthatMwouldMprecludeMres
ponsi-MbleMjudgmentMorMsuccessfulMperformanceMofManMactivity.
6. DescribeMaMserviceMcompanyMandMgiveManMexample.
ServiceMcompaniesMsellMtime,Mskills,MandMknowledge.MExamplesMofMserviceMcompaniesMincludeMph
oneMserviceMcompanies,Mbanks,McleaningMserviceMcompanies,MaccountingMfirms,MlawMfirms,Mmedic
alMphysi-Mcians,MandMonlineMauctionMservices.
7. DescribeMaMmerchandisingMcompanyMandMgiveManMexample.
MerchandisingMcompaniesMresellMproductsMtheyMbuyMfromMsuppliers.MMerchandisersMkeepManMinve
ntoryMofMproducts,MandMmanagersMareMaccountableMforMtheMpurchasing,Mstorage,MandMsaleMofMtheMp
roducts.MEx-
MamplesMofMmerchandisingMcompaniesMincludeMtoyMstores,MgroceryMstores,MandMclothingMstores.
8. HowMdoMmanufacturingMcompaniesMdifferMfromMmerchandisingMcompanies?
MerchandisingMcompaniesMresellMproductsMtheyMpreviouslyMboughtMfromMsuppliers,MwhereasMmanu
M
Horngren's Accounting, The Managerial Chapters, 14th Edition
M M M M M M
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
M M M M M M M M M
,Table of contents
M M
1. Introduction to Managerial Accounting
M M M
2. Job Order Costing
M M
3. Process CostingM
4. Cost-Volume-Profit Analysis M
5. Master Budgets
M
6. Flexible Budgets and Standard Cost Systems
M M M M M
7. Cost Allocation and Responsibility Accounting
M M M M
8. Short-Term Business Decisions
M M
9. Capital Investment Decisions
M M
,Chapter M:1 M
Introduction to Managerial Accounting
M M M
Review Questions
M
1. WhatMisMtheMprimaryMpurposeMofMmanagerialMaccounting?
TheMprimaryMpurposeMofMmanagerialMaccountingMisMtoMprovideMinformationMtoMhelpMmanagers
Mplan,M
direct,Mcontrol,MandMmakeMdecisions.
2. ListMsixMdifferencesMbetweenMfinancialMaccountingMandMmanagerialMaccounting.
FinancialMaccountingMandMmanagerialMaccountingMdifferMonMtheMfollowingM6Mdimensions:M(1)Mprim
aryMusers,M(2)MpurposeMofMinformation,M(3)MfocusMandMtimeMdimensionMofMtheMinformation,M(4)Mrul
esMandMre-Mstrictions,M(5)MscopeMofMinformation,MandM(6)Mbehavioral.
3. ExplainMtheMdifferenceMbetweenMlineMpositionsMandMstaffMpositions.
LineMpositionsMareMdirectlyMinvolvedMinMprovidingMgoodsMorMservicesMtoMcustomers.MStaffMposit
ionsMsupportMlineMpositions.
4. ExplainMtheMdifferencesMbetweenMplanning,Mdirecting,MandMcontrolling.
PlanningMmeansMchoosingMgoalsMandMdecidingMhowMtoMachieveMthem.MDirectingMinvolvesMrunningMt
heMday-to-
dayMoperationsMofMaMbusiness.MControllingMisMtheMprocessMofMmonitoringMoperationsMandMkeepingMt
heMcompanyMonMtrack.
5. ListMtheMfourMIMAMstandardsMofMethicalMpracticeMandMbrieflyMdescribeMeach.
TheMfourMIMAMstandardsMofMethicalMpracticeMandMaMdescriptionMofMeachMfollow.
I. Competence.
MaintainManMappropriateMlevelMofMprofessionalMleadershipMandMexpertiseMbyMenha
ncingMknowledgeMandMskills.
PerformMprofessionalMdutiesMinMaccordanceMwithMrelevantMlaws,Mregulations,MandMtech
nicalMstandards.
ProvideMdecisionMsupportMinformationMandMrecommendationsMthatMareMaccurate,Mclear,Mconcis
e,
, andMtimely.
RecogniseMandMhelpMmangeMrisk.
II. Confidentiality.
KeepMinformationMconfidentialMexceptMwhenMdisclosureMisMauthorizedMorMlegallyMrequired.
InformMallMrelevantMpartiesMregardingMappropriateMuseMofMconfidentialMinformation.M Monit
orMtoMensureMcompliance.
RefrainMfromMusingMconfidentialMinformationMforMunethicalMorMillegalMadvantage.
III. Integrity.
MitigateMactualMconflictsMofMinterest.MRegularlyMcommunicateMwithMbusinessMassociatesMtoMa
voidMapparentMconflictsMofMinterest.MMAdviseMallMpartiesMofManyMpotentialMconflicts.
RefrainMfromMengagingMinManyMconductMthatMwouldMprejudiceMcarryingMoutMdutiesMethically.
AbstainMfromMengagingMinMorMsupportingManyMactivityMthatMmightMdiscreditMtheMprofession.
ContributeMtoMaMpositiveMethicalMcultureMandMplaceMintegrityMofMtheMprofessionMaboveMpe
rsonalMinterest.
5,Mcont.
IV. Credibility.
CommunicateMinformationMfairlyMandMobjectively.
ProvideMallMrelevantMinformationMthatMcouldMreasonablyMbeMexpectedMtoMinfluenceManMint
endedMuser’sMunderstandingMofMtheMreports,Manalyses,MorMrecommendations.
ReportManyMdelaysMorMdeficienciesMinMinformation,Mtimeliness,Mprocessing,MorMinternalMcon
trolsMinMconformanceMwithMorganizationMpolicyMand/orMapplicableMlaw.
CommunicateManyMprofessionalMlimitationsMorMotherMconstraintsMthatMwouldMprecludeMres
ponsi-MbleMjudgmentMorMsuccessfulMperformanceMofManMactivity.
6. DescribeMaMserviceMcompanyMandMgiveManMexample.
ServiceMcompaniesMsellMtime,Mskills,MandMknowledge.MExamplesMofMserviceMcompaniesMincludeMph
oneMserviceMcompanies,Mbanks,McleaningMserviceMcompanies,MaccountingMfirms,MlawMfirms,Mmedic
alMphysi-Mcians,MandMonlineMauctionMservices.
7. DescribeMaMmerchandisingMcompanyMandMgiveManMexample.
MerchandisingMcompaniesMresellMproductsMtheyMbuyMfromMsuppliers.MMerchandisersMkeepManMinve
ntoryMofMproducts,MandMmanagersMareMaccountableMforMtheMpurchasing,Mstorage,MandMsaleMofMtheMp
roducts.MEx-
MamplesMofMmerchandisingMcompaniesMincludeMtoyMstores,MgroceryMstores,MandMclothingMstores.
8. HowMdoMmanufacturingMcompaniesMdifferMfromMmerchandisingMcompanies?
MerchandisingMcompaniesMresellMproductsMtheyMpreviouslyMboughtMfromMsuppliers,MwhereasMmanu
