SOLUTION MANUAL
A
Horngren's Accounting, The Managerial Chapters, 14th Edition
A A A A A A
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
A A A A A A A A A
,Table of contents
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 M:1 A
Introduction to Managerial Accounting
A A A
Review Questions
A
1. WhatAisAtheAprimaryApurposeAofAmanagerialAaccounting?
TheAprimaryApurposeAofAmanagerialAaccountingAisAtoAprovideAinformationAtoAhelpAmanagersApla
n,Adirect,Acontrol,AandAmakeAdecisions.
2. ListAsixAdifferencesAbetweenAfinancialAaccountingAandAmanagerialAaccounting.
FinancialAaccountingAandAmanagerialAaccountingAdifferAonAtheAfollowingA6Adimensions:A(1)AprimaryA
users,A(2)ApurposeAofAinformation,A(3)AfocusAandAtimeAdimensionAofAtheAinformation,A(4)ArulesAandAr
e-Astrictions,A(5)AscopeAofAinformation,AandA(6)Abehavioral.
3. ExplainAtheAdifferenceAbetweenAlineApositionsAandAstaffApositions.
LineApositionsAareAdirectlyAinvolvedAinAprovidingAgoodsAorAservicesAtoAcustomers.AStaffAposition
sAsupportAlineApositions.
4. ExplainAtheAdifferencesAbetweenAplanning,Adirecting,AandAcontrolling.
PlanningAmeansAchoosingAgoalsAandAdecidingAhowAtoAachieveAthem.ADirectingAinvolvesArunningAtheA
day-to-
dayAoperationsAofAaAbusiness.AControllingAisAtheAprocessAofAmonitoringAoperationsAandAkeepingAtheAc
ompanyAonAtrack.
5. ListAtheAfourAIMAAstandardsAofAethicalApracticeAandAbrieflyAdescribeAeach.
TheAfourAIMAAstandardsAofAethicalApracticeAandAaAdescriptionAofAeachAfollow.
I. Competence.
MaintainAanAappropriateAlevelAofAprofessionalAleadershipAandAexpertiseAbyAenhanci
ngAknowledgeAandAskills.
PerformAprofessionalAdutiesAinAaccordanceAwithArelevantAlaws,Aregulations,AandAtechnic
alAstandards.
ProvideAdecisionAsupportAinformationAandArecommendationsAthatAareAaccurate,Aclear,Aconcise,
, andAtimely.
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. DescribeAaAserviceAcompanyAandAgiveAanAexample.
ServiceAcompaniesAsellAtime,Askills,AandAknowledge.AExamplesAofAserviceAcompaniesAincludeAphoneA
serviceAcompanies,Abanks,AcleaningAserviceAcompanies,AaccountingAfirms,AlawAfirms,AmedicalAphysi
-Acians,AandAonlineAauctionAservices.
7. DescribeAaAmerchandisingAcompanyAandAgiveAanAexample.
MerchandisingAcompaniesAresellAproductsAtheyAbuyAfromAsuppliers.AMerchandisersAkeepAanAinvento
ryAofAproducts,AandAmanagersAareAaccountableAforAtheApurchasing,Astorage,AandAsaleAofAtheAproducts.
AEx-AamplesAofAmerchandisingAcompaniesAincludeAtoyAstores,AgroceryAstores,AandAclothingAstores.
8. HowAdoAmanufacturingAcompaniesAdifferAfromAmerchandisingAcompanies?
MerchandisingAcompaniesAresellAproductsAtheyApreviouslyAboughtAfromAsuppliers,AwhereasAmanufa
c-
A
Horngren's Accounting, The Managerial Chapters, 14th Edition
A A A A A A
By Tracie Miller-Nobles Brenda Mattison, All Chapters 1 - 9
A A A A A A A A A
,Table of contents
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 M:1 A
Introduction to Managerial Accounting
A A A
Review Questions
A
1. WhatAisAtheAprimaryApurposeAofAmanagerialAaccounting?
TheAprimaryApurposeAofAmanagerialAaccountingAisAtoAprovideAinformationAtoAhelpAmanagersApla
n,Adirect,Acontrol,AandAmakeAdecisions.
2. ListAsixAdifferencesAbetweenAfinancialAaccountingAandAmanagerialAaccounting.
FinancialAaccountingAandAmanagerialAaccountingAdifferAonAtheAfollowingA6Adimensions:A(1)AprimaryA
users,A(2)ApurposeAofAinformation,A(3)AfocusAandAtimeAdimensionAofAtheAinformation,A(4)ArulesAandAr
e-Astrictions,A(5)AscopeAofAinformation,AandA(6)Abehavioral.
3. ExplainAtheAdifferenceAbetweenAlineApositionsAandAstaffApositions.
LineApositionsAareAdirectlyAinvolvedAinAprovidingAgoodsAorAservicesAtoAcustomers.AStaffAposition
sAsupportAlineApositions.
4. ExplainAtheAdifferencesAbetweenAplanning,Adirecting,AandAcontrolling.
PlanningAmeansAchoosingAgoalsAandAdecidingAhowAtoAachieveAthem.ADirectingAinvolvesArunningAtheA
day-to-
dayAoperationsAofAaAbusiness.AControllingAisAtheAprocessAofAmonitoringAoperationsAandAkeepingAtheAc
ompanyAonAtrack.
5. ListAtheAfourAIMAAstandardsAofAethicalApracticeAandAbrieflyAdescribeAeach.
TheAfourAIMAAstandardsAofAethicalApracticeAandAaAdescriptionAofAeachAfollow.
I. Competence.
MaintainAanAappropriateAlevelAofAprofessionalAleadershipAandAexpertiseAbyAenhanci
ngAknowledgeAandAskills.
PerformAprofessionalAdutiesAinAaccordanceAwithArelevantAlaws,Aregulations,AandAtechnic
alAstandards.
ProvideAdecisionAsupportAinformationAandArecommendationsAthatAareAaccurate,Aclear,Aconcise,
, andAtimely.
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. DescribeAaAserviceAcompanyAandAgiveAanAexample.
ServiceAcompaniesAsellAtime,Askills,AandAknowledge.AExamplesAofAserviceAcompaniesAincludeAphoneA
serviceAcompanies,Abanks,AcleaningAserviceAcompanies,AaccountingAfirms,AlawAfirms,AmedicalAphysi
-Acians,AandAonlineAauctionAservices.
7. DescribeAaAmerchandisingAcompanyAandAgiveAanAexample.
MerchandisingAcompaniesAresellAproductsAtheyAbuyAfromAsuppliers.AMerchandisersAkeepAanAinvento
ryAofAproducts,AandAmanagersAareAaccountableAforAtheApurchasing,Astorage,AandAsaleAofAtheAproducts.
AEx-AamplesAofAmerchandisingAcompaniesAincludeAtoyAstores,AgroceryAstores,AandAclothingAstores.
8. HowAdoAmanufacturingAcompaniesAdifferAfromAmerchandisingAcompanies?
MerchandisingAcompaniesAresellAproductsAtheyApreviouslyAboughtAfromAsuppliers,AwhereasAmanufa
c-
