Solutions Manual for Management Accounting: An Integrative Approach, 2nd Edition by McNair-Connolly
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Course
Accounting
Institution
Accounting
Solutions Manual for Management Accounting: An Integrative Approach, 2nd Edition by McNair-Connolly. ISBN-13: 0751
All Chapters Solutions Manual in PDF
Questions
1. Management accounting is the heart of the metrics and analytical models that are used by
organizations to inform planning, decision making, and control. It is focused on the issues and
challenges facing organizations, examining them from the perspective of management. Guided by
logic and the IMA Statement of Ethical Professional Practice, management accounting practice is
shaped by the strategy, structure, processes, and products or services offered by an organization to
its customers. Financial accounting takes an external perspective in evaluating a firm’s performance,
emphasizing the development of GAAP-driven balance sheets, income statements, and statements of
cash flow for an entity. Financial accounting is historical in nature, while management accounting is
future-looking and decision-driven.
2. BPA includes the continuous improvement, or control loop, or the Plan-Do-Check-Adjust cycle that
underlies management action. It also includes a comprehensive framework of five product domains
(process, product, customer/market, supply chain, and entity) and uses an integrated database to
complete its analysis. Taking a BPA perspective enhances and organizes the analytical models and
methods used by modern management accountants.
3. Data becomes information when it is “imbued” with a purpose—information is data that is compiled
and used for specific purposes, such as analyzing the impact of price changes on the demand for a
product.
4. Costs occur throughout the organization, everywhere resources are consumed to support some form
of work or output. Cost, or the economic value of consumed resources, is a basic building block of
both management accounting and BPA.
5. The management process is the basic cycle of activity in organizations. It begins with the
development of a plan to accomplish one or more goals. Given this plan, action is taken, or the “do” in
the management process loop. Once activity has occurred, the results are compared with the plan
during the “check” phase of the management process. Finally, adjustments are made to the plan or
the actions taken to meet the planned goals, completing the cycle of plan-do-check-adjust that
defines the core of management’s work in organizations.
6. The five decision domains are the process domain, product domain, customer/market domain, supply
chain domain, and entity domain. They differ in terms of the types of decisions and actions taken, as
well as the level of manager charged with making decisions within the domain. In the process
domain, attention is focused on how work is completed. It is the most basic domain, the domain of
basic action that generates the results that assure stakeholder requirements are met. In the product
domain, attention turns to the output of the processes, focusing on the final products and services
customers purchase from the firm. In the customer/market domain, the emphasis is on a group of
customers or specific markets for products and services—it directs attention to a cluster of customers
or products that are consumed in similar ways. In the supply chain domain, we focus attention on the
relationships with suppliers and customers that link together from the attainment of basic raw
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