,Solution manual for Managerial Accounting 6e
Canadian Weygandt
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, CHAPTER 1
Managerial Accounting
ASSIGNMENT CLASSIFICATION TABLE
Self-Study Do It! A B
Study Objectives Questions Review Exercises Problems Problems
*1. Explain the distinguishing features 1, 6, 7, 8 1 3, 4, 5
of managerial accounting.
*2. Identify the three broad functions of 3 1 6, 7
management and the role of
management accountants in an
organizational structure.
*3. Explain the importance of business 2, 10 1 8
ethics.
*4. Identify changes and trends in 4, 5, 9 2 9
managerial accounting.
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-1
, BLOOM’ S TAXONOMY TABLE
© 2021 For Instructor Use Only
Correlation Chart between Bloom’s Taxonomy, Study Objectives and End-of-Chapter Exercises and Problems
Study Objective Knowledge Comprehension Application Analysis Synthesis Evaluation
* 1. Explain the distinguishing features D-1, E-5 E-3, E-4
of managerial accounting.
* 2. Identify the three functions of D-1, E-6, E-7
management and the role of
management accountants in an
organizational structure.
* 3. Explain the importance of business D-1 E-8
ethics.
* 4. Identify changes trends in D-2, E-9
managerial accounting.
A note about the correlation between CPA competencies and the end-of-chapter exercises and problems.
The CPA competencies are divided into enabling competencies and terminal competencies. Unless otherwise specified, the
terminal competency being tested by the end-of-chapter material in this course is cpa-t003 (Management Accounting). The
enabling competency being tested will differ between questions. The following questions test enabling competency cpa-e001
Professional and Ethical Behaviour:
E1.4,C1.11
1-2
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
Legend: The following abbreviations will appear throughout the solutions manual file.
LO Learning objective
Bloom's
BT Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes
AACSB Association to Advance Collegiate Schools of Business
Communication Communication
Ethics Ethics
Analytic Analytic
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
CPA CM CPA Canada Competency Map
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-3
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO DO IT! REVIEW
DO IT! REVIEW 1.1
1. False. Preparation of budgets is part of managerial accounting.
2. False. Financial accounting reports pertain to the entity as a whole and are
highly aggregated. It is managerial accounting reports that pertain to
subunits of the business and are very detailed.
3. False. Financial accounting must adhere to generally accepted accounting
principles and are subject to an audit by chartered professional
accountants.
4. True.
5. True.
6. True.
LO 1,2,3 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
DO IT! REVIEW 1.2
1. f. Just-in-time (JIT) inventory
2. a. Activity-based costing (ABC)
3. c. Total quality management (TQM)
4. d. Research and development, and product design
5. e. Service industries
6. b. Balanced scorecard
LO 4 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-4
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO EXERCISES
EXERCISE 1.3
Financial Accounting Managerial Accounting
Primary users External users Internal users
Types of reports Financial statements Internal reports
Frequency of reports Quarterly and annually As frequently as needed
Purpose of reports General-purpose Special-purpose for
specific decisions
Content of reports Highly aggregated Very detailed
Generally accepted Relevance to decisions
accounting principles
Verification Annual audit by CPA No independent audits
(chartered professional
accountant)
LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
EXERCISE 1.4
1. F 6. M
2. M 7. F
3. F 8. F
4. M 9. M
5. F 10. F
LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-5
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO EXERCISES (Continued)
EXERCISE 1.5
1.False. Financial accounting focuses on providing information to external users.
2.True.
3.False. Preparation of budgets is part of managerial accounting.
4.False. Managerial accounting applies to service, merchandising, and
manufacturing companies.
5.True.
6.False. Managerial accounting reports are prepared as frequently as needed.
7.True.
8.True.
9.False. Financial accounting reports must comply with generally accepted
accounting principles.
10.False. Managerial accountants are expected to behave ethically, and there is a
code of ethical standards for managerial accountants.
LO 1 BT: K Difficulty: S Time: 10 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
EXERCISE 1.6
a. (1)Planning
b. (2)Directing
c. (3)Controlling
LO 2 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
EXERCISE 1.7
a. (6) Chief executive officer
b. (5) Line position
c. (2) Chief financial officer
d. (1) Board of directors
e. (7) Staff position
f. (4) Controller
g. (3) Treasurer
LO 2 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-6
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO EXERCISES (Continued)
EXERCISE 1.8
Following the implementation of the Sarbanes-Oxley Act, CEOs and CFOs
must certify that the financial statements give a fair presentation of the
company’s operating results and its financial condition. In addition, top
managers must certify that the company maintains an adequate system of
internal controls to safeguard the company’s assets and ensure accurate
financial reports. Companies must pay more attention to the composition of
the board of directors. In particular, members of the audit committee of the
board of directors must all be entirely independent (that is, non-employees)
and at least one must be a financial expert. The Sarbanes-Oxley Act increases
the penalties for misconduct.
LO 3 BT: C Difficulty: M Time: 5 min. AACSB: Ethics CPA: cpa-t003 cpa-e001 CM: Mgt. Accounting; Ethics
EXERCISE 1.9
a. 3. Balanced scorecard
b. 4. Value chain
c. 2. Just-in-time inventory
d. 1. Activity-based costing
LO 4 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-7
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO CASES
CASE 1.10
Since the questions were fairly open-ended, the following are only suggested results.
The class may be able to think of others, or of more items for each one.
a. Hayley Geagea Needs information on sales, perhaps by salesperson and by
territory
Luc Lemieux Needs cost information for his department
Gary Richardson Needs all accounting information
Manny Cordoza Needs product cost information
Patrick Dumoulin Needs information on component costs and costs for his
department
b. Hayley Geagea Income statement
Luc Lemieux Specialized cost reports
Gary Richardson All
Manny Cordoza Income statement and cost of goods manufactured
schedule
Patrick Dumoulin Specialized cost reports
c. Hayley Geagea Sales by territory—Detailed information, possibly by
product line, issued daily or weekly
Luc Lemieux Cost of computer programs—Accumulated cost incurred
for each major program used including maintenance and
updates of program, issued monthly
Gary Richardson Cost of preparing reports—Detailed analysis of all reports
provided, their frequency, time, and estimated cost to
prepare, issued monthly
Manny Cordoza Cost of product—Detailed cost by product line, comparing
actual with estimated costs, issued as each batch of
production is completed
Patrick Dumoulin Cost of product design—Accumulated total costs of each
new product, issued at end of each project
LO 1 BT: C Difficulty: M Time: 15 min AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-8
Canadian Weygandt
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
, CHAPTER 1
Managerial Accounting
ASSIGNMENT CLASSIFICATION TABLE
Self-Study Do It! A B
Study Objectives Questions Review Exercises Problems Problems
*1. Explain the distinguishing features 1, 6, 7, 8 1 3, 4, 5
of managerial accounting.
*2. Identify the three broad functions of 3 1 6, 7
management and the role of
management accountants in an
organizational structure.
*3. Explain the importance of business 2, 10 1 8
ethics.
*4. Identify changes and trends in 4, 5, 9 2 9
managerial accounting.
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-1
, BLOOM’ S TAXONOMY TABLE
© 2021 For Instructor Use Only
Correlation Chart between Bloom’s Taxonomy, Study Objectives and End-of-Chapter Exercises and Problems
Study Objective Knowledge Comprehension Application Analysis Synthesis Evaluation
* 1. Explain the distinguishing features D-1, E-5 E-3, E-4
of managerial accounting.
* 2. Identify the three functions of D-1, E-6, E-7
management and the role of
management accountants in an
organizational structure.
* 3. Explain the importance of business D-1 E-8
ethics.
* 4. Identify changes trends in D-2, E-9
managerial accounting.
A note about the correlation between CPA competencies and the end-of-chapter exercises and problems.
The CPA competencies are divided into enabling competencies and terminal competencies. Unless otherwise specified, the
terminal competency being tested by the end-of-chapter material in this course is cpa-t003 (Management Accounting). The
enabling competency being tested will differ between questions. The following questions test enabling competency cpa-e001
Professional and Ethical Behaviour:
E1.4,C1.11
1-2
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
Legend: The following abbreviations will appear throughout the solutions manual file.
LO Learning objective
Bloom's
BT Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes
AACSB Association to Advance Collegiate Schools of Business
Communication Communication
Ethics Ethics
Analytic Analytic
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
CPA CM CPA Canada Competency Map
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-3
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO DO IT! REVIEW
DO IT! REVIEW 1.1
1. False. Preparation of budgets is part of managerial accounting.
2. False. Financial accounting reports pertain to the entity as a whole and are
highly aggregated. It is managerial accounting reports that pertain to
subunits of the business and are very detailed.
3. False. Financial accounting must adhere to generally accepted accounting
principles and are subject to an audit by chartered professional
accountants.
4. True.
5. True.
6. True.
LO 1,2,3 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
DO IT! REVIEW 1.2
1. f. Just-in-time (JIT) inventory
2. a. Activity-based costing (ABC)
3. c. Total quality management (TQM)
4. d. Research and development, and product design
5. e. Service industries
6. b. Balanced scorecard
LO 4 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-4
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO EXERCISES
EXERCISE 1.3
Financial Accounting Managerial Accounting
Primary users External users Internal users
Types of reports Financial statements Internal reports
Frequency of reports Quarterly and annually As frequently as needed
Purpose of reports General-purpose Special-purpose for
specific decisions
Content of reports Highly aggregated Very detailed
Generally accepted Relevance to decisions
accounting principles
Verification Annual audit by CPA No independent audits
(chartered professional
accountant)
LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
EXERCISE 1.4
1. F 6. M
2. M 7. F
3. F 8. F
4. M 9. M
5. F 10. F
LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-5
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO EXERCISES (Continued)
EXERCISE 1.5
1.False. Financial accounting focuses on providing information to external users.
2.True.
3.False. Preparation of budgets is part of managerial accounting.
4.False. Managerial accounting applies to service, merchandising, and
manufacturing companies.
5.True.
6.False. Managerial accounting reports are prepared as frequently as needed.
7.True.
8.True.
9.False. Financial accounting reports must comply with generally accepted
accounting principles.
10.False. Managerial accountants are expected to behave ethically, and there is a
code of ethical standards for managerial accountants.
LO 1 BT: K Difficulty: S Time: 10 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
EXERCISE 1.6
a. (1)Planning
b. (2)Directing
c. (3)Controlling
LO 2 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
EXERCISE 1.7
a. (6) Chief executive officer
b. (5) Line position
c. (2) Chief financial officer
d. (1) Board of directors
e. (7) Staff position
f. (4) Controller
g. (3) Treasurer
LO 2 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-6
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO EXERCISES (Continued)
EXERCISE 1.8
Following the implementation of the Sarbanes-Oxley Act, CEOs and CFOs
must certify that the financial statements give a fair presentation of the
company’s operating results and its financial condition. In addition, top
managers must certify that the company maintains an adequate system of
internal controls to safeguard the company’s assets and ensure accurate
financial reports. Companies must pay more attention to the composition of
the board of directors. In particular, members of the audit committee of the
board of directors must all be entirely independent (that is, non-employees)
and at least one must be a financial expert. The Sarbanes-Oxley Act increases
the penalties for misconduct.
LO 3 BT: C Difficulty: M Time: 5 min. AACSB: Ethics CPA: cpa-t003 cpa-e001 CM: Mgt. Accounting; Ethics
EXERCISE 1.9
a. 3. Balanced scorecard
b. 4. Value chain
c. 2. Just-in-time inventory
d. 1. Activity-based costing
LO 4 BT: K Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-7
, Managerial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition Weygandt, Kimmel, Aly
SOLUTIONS TO CASES
CASE 1.10
Since the questions were fairly open-ended, the following are only suggested results.
The class may be able to think of others, or of more items for each one.
a. Hayley Geagea Needs information on sales, perhaps by salesperson and by
territory
Luc Lemieux Needs cost information for his department
Gary Richardson Needs all accounting information
Manny Cordoza Needs product cost information
Patrick Dumoulin Needs information on component costs and costs for his
department
b. Hayley Geagea Income statement
Luc Lemieux Specialized cost reports
Gary Richardson All
Manny Cordoza Income statement and cost of goods manufactured
schedule
Patrick Dumoulin Specialized cost reports
c. Hayley Geagea Sales by territory—Detailed information, possibly by
product line, issued daily or weekly
Luc Lemieux Cost of computer programs—Accumulated cost incurred
for each major program used including maintenance and
updates of program, issued monthly
Gary Richardson Cost of preparing reports—Detailed analysis of all reports
provided, their frequency, time, and estimated cost to
prepare, issued monthly
Manny Cordoza Cost of product—Detailed cost by product line, comparing
actual with estimated costs, issued as each batch of
production is completed
Patrick Dumoulin Cost of product design—Accumulated total costs of each
new product, issued at end of each project
LO 1 BT: C Difficulty: M Time: 15 min AACSB: None CPA: cpa-t003 CM: Mgt. Accounting
Solutions Manual © 2021 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
1-8
