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Solution Manual for Management Accounting for Decision Makers:
11th Edition By Peter Atrill, Eddie McLaney| All Chapters (1 - 12)|
Latest Version A+
SECTIONA
Authors’ note to tutors
Using the book
The book is designed to provide readers withJa
soundJintroductionJto management accounting. It assu mes no
previous knowledge of the subject and recognises that students
using it may come from a wid e variety of backgrounds. The book,
therefore, tries to avoid technical jargonJand does not assume a h
igh level of numerical ability from students. It has been class tested
by students on various courses an d we have modified and refined
the material to take account of their comments. We have also taken
a ccount of the comments made by lecturers who used the first nine
editions of the bookJand of speciall y commissioned reviews.
1
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The bookJaims to encourage an active approach to learningJby
providing activities and self-
assessment questions at appropriate points. This approach is
designed to stimulate thought concerning particularJissues and to
give the readers the opportunityJto test theirJunderstanding of the
principles co vered.
The book is supplemented by a password-
controlled lecturers’ website and a student website available to all
readers.
The structure of the book allows theJtutorJtoJdeliverJthe subject
inJa number of ways. It can be used as recommended reading for a
traditional course based on lectures and tutorials. There are critical
revie w questions and exercises at the end of each chapter that can
be usedJas the basis forJtutorials. It coul d also provide the basis for
a distance learning approach forJpart-time orJoff-
campus students. For these students, the interactive nature of the
book may beJextremely useful wher e access to a tutor is restricted.
2
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The book can also be used as the basis forJan openJlearning
approach f orJfull-time campus-
based students. We have successfully used it in this way at the
University of Plymouth Business Scho ol. Accounting ‘surgeries’
have also been provided to give students the opportunity forJone-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, alongJwith otherJdiagrams and
materials, are available as PowerPoint slide s 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 add C HA P TER 2
3
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Relevant costs and benefits for decision making
Solution to Exercise 2.4
SJ Services Ltd
£
The relevant cost of skilled labour as such is zero because the staff
will be employ ed and paid irrespective of the contract. However, if
the contract is undertaken, the b usiness will lose sales in the
alternative activity. The effective costJof this will be the l ostJsales
revenue net of the ‘other costs’ that will be saved, which amounts to
864
Semi-
skilled staff are being paid anyway, so their wages are not relevant.
The additional costJto be incurred will be the wages paid to the
4
Solution Manual for Management Accounting for Decision Makers:
11th Edition By Peter Atrill, Eddie McLaney| All Chapters (1 - 12)|
Latest Version A+
SECTIONA
Authors’ note to tutors
Using the book
The book is designed to provide readers withJa
soundJintroductionJto management accounting. It assu mes no
previous knowledge of the subject and recognises that students
using it may come from a wid e variety of backgrounds. The book,
therefore, tries to avoid technical jargonJand does not assume a h
igh level of numerical ability from students. It has been class tested
by students on various courses an d we have modified and refined
the material to take account of their comments. We have also taken
a ccount of the comments made by lecturers who used the first nine
editions of the bookJand of speciall y commissioned reviews.
1
,Created by QuickNotesPro
The bookJaims to encourage an active approach to learningJby
providing activities and self-
assessment questions at appropriate points. This approach is
designed to stimulate thought concerning particularJissues and to
give the readers the opportunityJto test theirJunderstanding of the
principles co vered.
The book is supplemented by a password-
controlled lecturers’ website and a student website available to all
readers.
The structure of the book allows theJtutorJtoJdeliverJthe subject
inJa number of ways. It can be used as recommended reading for a
traditional course based on lectures and tutorials. There are critical
revie w questions and exercises at the end of each chapter that can
be usedJas the basis forJtutorials. It coul d also provide the basis for
a distance learning approach forJpart-time orJoff-
campus students. For these students, the interactive nature of the
book may beJextremely useful wher e access to a tutor is restricted.
2
,Created by QuickNotesPro
The book can also be used as the basis forJan openJlearning
approach f orJfull-time campus-
based students. We have successfully used it in this way at the
University of Plymouth Business Scho ol. Accounting ‘surgeries’
have also been provided to give students the opportunity forJone-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, alongJwith otherJdiagrams and
materials, are available as PowerPoint slide s 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 add C HA P TER 2
3
, Created by QuickNotesPro
Relevant costs and benefits for decision making
Solution to Exercise 2.4
SJ Services Ltd
£
The relevant cost of skilled labour as such is zero because the staff
will be employ ed and paid irrespective of the contract. However, if
the contract is undertaken, the b usiness will lose sales in the
alternative activity. The effective costJof this will be the l ostJsales
revenue net of the ‘other costs’ that will be saved, which amounts to
864
Semi-
skilled staff are being paid anyway, so their wages are not relevant.
The additional costJto be incurred will be the wages paid to the
4
