SOLUTIONS MANUAL
Fundamentals of Cost Accounting
ST
William N. Lanen, Shannon W. Anderson, and Michael W. Maher
UV
7th Edition
IA
?_
AP
PR
OV
ED
??
, TABLE OF CONTENTS
ST
Fundamentals of Cost Accounting (7th Edition)
Author: William Lanen
INTRODUCTION AND OVERVIEW
UV
Chapter 1 Cost Accounting: Information for Decision Making
Chapter 2 Cost Concepts and Behavior
COST ANALYSIS AND ESTIMATION
IA
Chapter 3 Fundamentals of Cost-Volume-Profit Analysis
Chapter 4 Fundamentals of Cost Analysis for Decision Making
?_
Chapter 5 Cost Estimation
COST MANAGEMENT SYSTEMS
AP
Chapter 6 Fundamentals of Product and Service Costing
Chapter 7 Job Costing
Chapter 8 Process Costing
PR
Chapter 9 Activity-Based Costing
Chapter 10 Fundamentals of Cost Management
Chapter 11 Service Department and Joint Cost Allocation
OV
MANAGEMENT CONTROL SYSTEMS
Chapter 12 Fundamentals of Management Control Systems
Chapter 13 Planning and Budgeting
ED
Chapter 14 Business Unit Performance Measurement
Chapter 15 Transfer Pricing
??
Chapter 16 Fundamentals of Variance Analysis
Chapter 17 Additional Topics in Variance Analysis
, Chapter 18 Performance Measurement to Support Business Strategy
ST
UV
IA
?_
AP
PR
OV
ED
??
, SOLUTION MANUAL FOR
Fundamentals Of Cost Accounting 7th Edition William
STM
Lanen
UEV
1
DI
Cost Accounting: Information for Decision
CA?O
Making
_NA
Solutions to Review Questions
1-1.
NP
Among the goals of an organization, a central one is to create and increase value. Cost
accounting systems are designed to provide information to decision makers in the
organization with the information they need to accomplish this goal. Therefore, the
OP
designers of the cost accounting system need to understand how value is created in the
organization to design systems for their organization.
RISO
1-2.
Financial accounting is designed to provide information about the firm to external users.
External users include investors, creditors, government authorities, regulators,
customers, competitors, suppliers, labor unions, and so on. Cost accounting systems
SVE
are designed to provide information to internal users (managers).
This difference is important, because it affects the design of the systems. Financial
accounting systems are based on standards or rules. This allows the user to compare
the results of different firms. Managerial accounting systems do not require rules. Each
EUD
firm is free to develop managerial accounting systems that best serve the needs of the
decision makers (managers).
R?
1-3.
B Providing cost information for financial reporting
A Identifying the best store in a chain
?
Solutions Manual, Chapter 4 1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw Hill LLC.
Fundamentals of Cost Accounting
ST
William N. Lanen, Shannon W. Anderson, and Michael W. Maher
UV
7th Edition
IA
?_
AP
PR
OV
ED
??
, TABLE OF CONTENTS
ST
Fundamentals of Cost Accounting (7th Edition)
Author: William Lanen
INTRODUCTION AND OVERVIEW
UV
Chapter 1 Cost Accounting: Information for Decision Making
Chapter 2 Cost Concepts and Behavior
COST ANALYSIS AND ESTIMATION
IA
Chapter 3 Fundamentals of Cost-Volume-Profit Analysis
Chapter 4 Fundamentals of Cost Analysis for Decision Making
?_
Chapter 5 Cost Estimation
COST MANAGEMENT SYSTEMS
AP
Chapter 6 Fundamentals of Product and Service Costing
Chapter 7 Job Costing
Chapter 8 Process Costing
PR
Chapter 9 Activity-Based Costing
Chapter 10 Fundamentals of Cost Management
Chapter 11 Service Department and Joint Cost Allocation
OV
MANAGEMENT CONTROL SYSTEMS
Chapter 12 Fundamentals of Management Control Systems
Chapter 13 Planning and Budgeting
ED
Chapter 14 Business Unit Performance Measurement
Chapter 15 Transfer Pricing
??
Chapter 16 Fundamentals of Variance Analysis
Chapter 17 Additional Topics in Variance Analysis
, Chapter 18 Performance Measurement to Support Business Strategy
ST
UV
IA
?_
AP
PR
OV
ED
??
, SOLUTION MANUAL FOR
Fundamentals Of Cost Accounting 7th Edition William
STM
Lanen
UEV
1
DI
Cost Accounting: Information for Decision
CA?O
Making
_NA
Solutions to Review Questions
1-1.
NP
Among the goals of an organization, a central one is to create and increase value. Cost
accounting systems are designed to provide information to decision makers in the
organization with the information they need to accomplish this goal. Therefore, the
OP
designers of the cost accounting system need to understand how value is created in the
organization to design systems for their organization.
RISO
1-2.
Financial accounting is designed to provide information about the firm to external users.
External users include investors, creditors, government authorities, regulators,
customers, competitors, suppliers, labor unions, and so on. Cost accounting systems
SVE
are designed to provide information to internal users (managers).
This difference is important, because it affects the design of the systems. Financial
accounting systems are based on standards or rules. This allows the user to compare
the results of different firms. Managerial accounting systems do not require rules. Each
EUD
firm is free to develop managerial accounting systems that best serve the needs of the
decision makers (managers).
R?
1-3.
B Providing cost information for financial reporting
A Identifying the best store in a chain
?
Solutions Manual, Chapter 4 1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw Hill LLC.
