SOLUTIONS MANUAL
Cost Management: A Strategic Emphasis
Edward Blocher, Paul Juras, and Steven Smith
ST
──────────────────────────────────────────────────
2024 Release
UV
IA
?_
AP
PR
OV
ED
? ?
, TABLE OF CONTENTS
Cost Management: A Strategic Emphasis (2024 Release) - Solutions Manual
Edward Blocher, Paul Juras, Steven Smith
ST
PART ONE: INTRODUCTION TO STRATEGY, COST MANAGEMENT, AND COST SYSTEMS
Chapter 1 Cost Management and Strategy
UV
Chapter 2 Implementing Strategy: The Value Chain, the Balanced
Scorecard, and the Strategy Map
R
Chapter 3 Basic Cost Management Concepts
U
Chapter 4 Job Costing
IA
Chapter 5 Activity-Based Costing and Customer Profitability Analysis
SE
Chapter 6 Process Costing
Chapter 7 Cost Allocation: Departments, Joint Products, and By-
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Products
IS
PART TWO: PLANNING AND DECISION MAKING
Chapter 8 O Cost Estimation
AP
Chapter 9 Short-Term Profit Planning: Cost-Volume-Profit(CVP)
Analysis
N
Chapter 10 Strategy and the Master Budget
N
Chapter 11 Decision Making with a Strategic Emphasis
PR
Chapter 12 Strategy and the Analysis of Capital Investments
O
Chapter 13 Cost Planning for the Product Life Cycle: Target Costing,
Theory of Constraints, and Strategic Pricing
C
OV
PART THREE: OPERATIONAL-LEVEL CONTROL
ED
Chapter 14 Operational Performance Measurement: Sales, Direct Cost
Variances, and the Role of Nonfinancial Performance
Measures
M
Chapter 15 Operational Performance Measurement: Indirect Cost
ED
Variances and Resource Capacity Management
Chapter 16 Operational Performance Measurement: Further Analysis of
Productivity and Sales
Chapter 17 The Management and Control of Quality
??
PART FOUR: MANAGEMENT-LEVEL CONTROL
Chapter 18 Strategic Performance Measurement: Cost Centers, Profit
Centers, and the Balanced Scorecard
Chapter 19
, Strategic Performance Measurement: Investment Centers and
Transfer Pricing
Chapter 20 Management Compensation, Business Analysis, and
Business Valuation
ST
UV
R
U
IA
SE
?_
IS
O
AP
N
NPR
O
C
OV
ED
M
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, 1–1 Give four examples of firms you believe would be significant users of
cost management information and explain why.
1-1 Firms Using Cost Management. Here are some examples; there
ST
are many possible answers.
1. Wal-Mart: to keep costs low by streamlining restocking and sales
2. Dell: to keep costs low by improving manufacturing performance
and by using target costing and other management techniques
UV
3. Citicorp: to keep costs low by using activity analysis to identify
key operations and to find those that add little or no value
4. A local school district or public agency: to keep costs low in
order to provide the best possible service given available funds
5. Procter & Gamble: to assess the profitability of its different
IA
products
6. Any other large, diversified manufacturer, like Procter & Gamble:
which needs to be able to analyze the relative profitability of its
?_
different products, using cost management
7. A small machine shop: which needs cost management to
determine whether it should repair or replace a machine
8. A dance studio: to analyze and choose between different
AP
compensation plans for its teachers; and to determine whether it
should open a new studio
PR
1–2 Give three examples of firms you believe would not be significant users
of cost management information and explain why.
OV
1-2 Firms not expected to be significant users of cost management
information:
1. Microsoft: here the focus is on forming strategic alliances,
ED
innovation and competition; cost management is more important for
other firms in the information technology business, such as Hewlett
Packard and IBM that compete in part on innovation but also on price
2. Versace: a high fashion firm competes on innovation and product
leadership; the development and communication of attractive new
??
ideas is the key to competitive success rather than cost management
3. Other firms in the fashion industry, such as Chanel, Coach , and
Armani: for reasons similar to Versace
4. Major league sports: dependent primarily on the development of fan
support, good coaching and player acquisition
Cost Management: A Strategic Emphasis
Edward Blocher, Paul Juras, and Steven Smith
ST
──────────────────────────────────────────────────
2024 Release
UV
IA
?_
AP
PR
OV
ED
? ?
, TABLE OF CONTENTS
Cost Management: A Strategic Emphasis (2024 Release) - Solutions Manual
Edward Blocher, Paul Juras, Steven Smith
ST
PART ONE: INTRODUCTION TO STRATEGY, COST MANAGEMENT, AND COST SYSTEMS
Chapter 1 Cost Management and Strategy
UV
Chapter 2 Implementing Strategy: The Value Chain, the Balanced
Scorecard, and the Strategy Map
R
Chapter 3 Basic Cost Management Concepts
U
Chapter 4 Job Costing
IA
Chapter 5 Activity-Based Costing and Customer Profitability Analysis
SE
Chapter 6 Process Costing
Chapter 7 Cost Allocation: Departments, Joint Products, and By-
?_
Products
IS
PART TWO: PLANNING AND DECISION MAKING
Chapter 8 O Cost Estimation
AP
Chapter 9 Short-Term Profit Planning: Cost-Volume-Profit(CVP)
Analysis
N
Chapter 10 Strategy and the Master Budget
N
Chapter 11 Decision Making with a Strategic Emphasis
PR
Chapter 12 Strategy and the Analysis of Capital Investments
O
Chapter 13 Cost Planning for the Product Life Cycle: Target Costing,
Theory of Constraints, and Strategic Pricing
C
OV
PART THREE: OPERATIONAL-LEVEL CONTROL
ED
Chapter 14 Operational Performance Measurement: Sales, Direct Cost
Variances, and the Role of Nonfinancial Performance
Measures
M
Chapter 15 Operational Performance Measurement: Indirect Cost
ED
Variances and Resource Capacity Management
Chapter 16 Operational Performance Measurement: Further Analysis of
Productivity and Sales
Chapter 17 The Management and Control of Quality
??
PART FOUR: MANAGEMENT-LEVEL CONTROL
Chapter 18 Strategic Performance Measurement: Cost Centers, Profit
Centers, and the Balanced Scorecard
Chapter 19
, Strategic Performance Measurement: Investment Centers and
Transfer Pricing
Chapter 20 Management Compensation, Business Analysis, and
Business Valuation
ST
UV
R
U
IA
SE
?_
IS
O
AP
N
NPR
O
C
OV
ED
M
ED
??
, 1–1 Give four examples of firms you believe would be significant users of
cost management information and explain why.
1-1 Firms Using Cost Management. Here are some examples; there
ST
are many possible answers.
1. Wal-Mart: to keep costs low by streamlining restocking and sales
2. Dell: to keep costs low by improving manufacturing performance
and by using target costing and other management techniques
UV
3. Citicorp: to keep costs low by using activity analysis to identify
key operations and to find those that add little or no value
4. A local school district or public agency: to keep costs low in
order to provide the best possible service given available funds
5. Procter & Gamble: to assess the profitability of its different
IA
products
6. Any other large, diversified manufacturer, like Procter & Gamble:
which needs to be able to analyze the relative profitability of its
?_
different products, using cost management
7. A small machine shop: which needs cost management to
determine whether it should repair or replace a machine
8. A dance studio: to analyze and choose between different
AP
compensation plans for its teachers; and to determine whether it
should open a new studio
PR
1–2 Give three examples of firms you believe would not be significant users
of cost management information and explain why.
OV
1-2 Firms not expected to be significant users of cost management
information:
1. Microsoft: here the focus is on forming strategic alliances,
ED
innovation and competition; cost management is more important for
other firms in the information technology business, such as Hewlett
Packard and IBM that compete in part on innovation but also on price
2. Versace: a high fashion firm competes on innovation and product
leadership; the development and communication of attractive new
??
ideas is the key to competitive success rather than cost management
3. Other firms in the fashion industry, such as Chanel, Coach , and
Armani: for reasons similar to Versace
4. Major league sports: dependent primarily on the development of fan
support, good coaching and player acquisition
