Solutions n
cc eatin
ii En n by
nii n
ii n n ii
,TABLEOF CONTENTS ii
n ii
Chaptern 1: n The n Changingn Role n ofn Managerialn Accountingn in n an Dynamicn Business nEnvironmen
tiiChaptern 2: n Basicn Costn Management n Concepts
Chaptern 3: n Productn Costingn andn Costn Accumulation n in n an Batch n Production n Environment nCh
aptern 4: n Processn Costingn andn Hybridn Product-Costing n Systems
Chaptern 5: n Activity-
Basedn Costingn andn Management nChaptern 6: n Activity n Anal
ysis,n Costn Behavior,n andn CostnEstimation iiChaptern 7: n Cost
-Volume-Profitn Analysis
Chaptern 8: n Variable n Costingn andn the n Measurement n ofn ESGn andn Quality n Cost
snChaptern 9: n Financialn Planningn andn Analysis: n The n Mastern Budget
Chaptern 10: n Standardn Costingn andn Analysisn ofn Directn Costs
Chaptern 11: n Flexible n Budgetingn andn the n Management n ofn Overheadn andn Support n Activity nCost
siiChaptern 12: n Responsibility n Accountingn andn the n Balancedn Scorecard
Chaptern 13: n Investment n Centersn andn Transfern PricingnCha
ptern 14: n Decision n Making: n Relevant n Costsn andn Benefits nCh
aptern 15: n Targetn Costingn andn Costn Analysisn forn Pricingn
Decisions iiChaptern 16: n Capitaln Expenditure n Decisions
Chaptern 17: n Allocation n ofn S u pport n Activity n Costsn an dn Jointn Costs
Appendixn I: n The n Sarbanes-
Oxley n Act,n Internaln Controls,n andn Management n AccountingiiAppendixnII: n Compoundn Interestn
andn the n Conceptn ofn Presentn Value
,Appendixn III: n Inventory n Management
, CHAPTER 1 n
The Crucial Role of Managerial Accounting in a Dyn
n n n n n n n n
amic Business Environment
n n
FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
n n n n n n n n n n
Thenfocus-on-
ethicsn insetnfornChaptern1n isnthenIMAnStatementnof nEthicaln Professionaln Practice. nInstructorsncannu
senthisnlistnofnethicalnprinciplesn andnstandardsn tonleadnan classndiscussion. nThe ndiscussionn
can nalso nrange nto nconsideration nof nhow n thesenstandards nmay nhave nbeen n violatedn byn acco
untantsn andn managers ninvolved nin nthen variousn ethical n scandals nuncoverednovern the n pastn sev
eraln years.n Itn isn alson usefulnton discussnthen pros nand nconsnof nthen proceduresn thatnIMA nsuggests
nfornits nmembersnwhenn they nbelieven they nknow naboutn ethical nlapsesnin n theirn organizati
ons.
ANSWERS TO REVIEW QUESTIONS
n n n
1-1 Thenexplosionn inn e-
commercen willn affectn managersninn significantn ways.n Onen effectn willn ben an drastic n
reduction nin n papern work.n Millions nof n transactionsn betweennbusinessesn aren now nbei
ngnconducted nelectronically nwith nno nhard-
copyn documentation.n Alongn withthis n methodn of n communicatingnfor n businessn transact
ionsncomesn thenvery nsignificant nissuenof ninformation nsecurity. n Businesses nneed n ton
findnwaysn ton protectn confidentialninformation nin ntheir nownncomputers, ninn cloud nc
omputingndata ncenters,nand nwhilenmovingn acrossn then internet, n whilen atn then sam
en timen sharingn then informationn necessaryn ton complete ntransactions.n Anotherneffectn
ofne-
commerce nisn then dramaticallyn increasednspeednwithnwhichnbusinessn transaction
sncannben conducted. n Inn addition, n there nwillnbendramatic nchangesninn the nwaynmanag
erialnaccountingnprocedures nare ncarried nout,none nexamplenbeingncloud-
nbasedn budgeting, nwhich nis nthe nenterprise-
widenandn electronic ncompletion nofn an company’sn budgetingn process n usingn cloud-
basedn softwaren andn datan storage.
cc eatin
ii En n by
nii n
ii n n ii
,TABLEOF CONTENTS ii
n ii
Chaptern 1: n The n Changingn Role n ofn Managerialn Accountingn in n an Dynamicn Business nEnvironmen
tiiChaptern 2: n Basicn Costn Management n Concepts
Chaptern 3: n Productn Costingn andn Costn Accumulation n in n an Batch n Production n Environment nCh
aptern 4: n Processn Costingn andn Hybridn Product-Costing n Systems
Chaptern 5: n Activity-
Basedn Costingn andn Management nChaptern 6: n Activity n Anal
ysis,n Costn Behavior,n andn CostnEstimation iiChaptern 7: n Cost
-Volume-Profitn Analysis
Chaptern 8: n Variable n Costingn andn the n Measurement n ofn ESGn andn Quality n Cost
snChaptern 9: n Financialn Planningn andn Analysis: n The n Mastern Budget
Chaptern 10: n Standardn Costingn andn Analysisn ofn Directn Costs
Chaptern 11: n Flexible n Budgetingn andn the n Management n ofn Overheadn andn Support n Activity nCost
siiChaptern 12: n Responsibility n Accountingn andn the n Balancedn Scorecard
Chaptern 13: n Investment n Centersn andn Transfern PricingnCha
ptern 14: n Decision n Making: n Relevant n Costsn andn Benefits nCh
aptern 15: n Targetn Costingn andn Costn Analysisn forn Pricingn
Decisions iiChaptern 16: n Capitaln Expenditure n Decisions
Chaptern 17: n Allocation n ofn S u pport n Activity n Costsn an dn Jointn Costs
Appendixn I: n The n Sarbanes-
Oxley n Act,n Internaln Controls,n andn Management n AccountingiiAppendixnII: n Compoundn Interestn
andn the n Conceptn ofn Presentn Value
,Appendixn III: n Inventory n Management
, CHAPTER 1 n
The Crucial Role of Managerial Accounting in a Dyn
n n n n n n n n
amic Business Environment
n n
FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
n n n n n n n n n n
Thenfocus-on-
ethicsn insetnfornChaptern1n isnthenIMAnStatementnof nEthicaln Professionaln Practice. nInstructorsncannu
senthisnlistnofnethicalnprinciplesn andnstandardsn tonleadnan classndiscussion. nThe ndiscussionn
can nalso nrange nto nconsideration nof nhow n thesenstandards nmay nhave nbeen n violatedn byn acco
untantsn andn managers ninvolved nin nthen variousn ethical n scandals nuncoverednovern the n pastn sev
eraln years.n Itn isn alson usefulnton discussnthen pros nand nconsnof nthen proceduresn thatnIMA nsuggests
nfornits nmembersnwhenn they nbelieven they nknow naboutn ethical nlapsesnin n theirn organizati
ons.
ANSWERS TO REVIEW QUESTIONS
n n n
1-1 Thenexplosionn inn e-
commercen willn affectn managersninn significantn ways.n Onen effectn willn ben an drastic n
reduction nin n papern work.n Millions nof n transactionsn betweennbusinessesn aren now nbei
ngnconducted nelectronically nwith nno nhard-
copyn documentation.n Alongn withthis n methodn of n communicatingnfor n businessn transact
ionsncomesn thenvery nsignificant nissuenof ninformation nsecurity. n Businesses nneed n ton
findnwaysn ton protectn confidentialninformation nin ntheir nownncomputers, ninn cloud nc
omputingndata ncenters,nand nwhilenmovingn acrossn then internet, n whilen atn then sam
en timen sharingn then informationn necessaryn ton complete ntransactions.n Anotherneffectn
ofne-
commerce nisn then dramaticallyn increasednspeednwithnwhichnbusinessn transaction
sncannben conducted. n Inn addition, n there nwillnbendramatic nchangesninn the nwaynmanag
erialnaccountingnprocedures nare ncarried nout,none nexamplenbeingncloud-
nbasedn budgeting, nwhich nis nthe nenterprise-
widenandn electronic ncompletion nofn an company’sn budgetingn process n usingn cloud-
basedn softwaren andn datan storage.
