100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Solution Manual for Horngren's Managerial Chapters Accounting, 7th Edition by Tracie Chapter 1-11 | A+ $16.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Horngren\\\'s Managerial Chapters Accounting,
  4.  
  5. Horngren\\\'s Managerial Chapters Accounting,

Exam (elaborations)

Solution Manual for Horngren's Managerial Chapters Accounting, 7th Edition by Tracie Chapter 1-11 | A+
 0 purchase
  • Course
  • Horngren\\\'s Managerial Chapters Accounting,
  • Institution
  • Horngren\\\'s Managerial Chapters Accounting,

Solution Manual for Horngren's Managerial Chapters Accounting, 7th Edition by Tracie Chapter 1-11 Chapter 1 Introduction to Managerial Accounting Review Questions 1. The primary purpose of managerial accounting is to provide information to help managers plan, direct, control, and make decisions. 2....

[Show more]

Preview 4 out of 938  pages

Document information

  • October 2, 2024
  • 938
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (18)

Written for

  • Horngren's Managerial Chapters Accounting,
  • Horngren's Managerial Chapters Accounting,

Seller

avatar-seller
Smartdove

Reviews received

Content preview

Solution Manual for
Horngren's Managerial Chapters Accounting, 7th Edition by Tracie
Chapterj1-11


Chapter 1 j


Introduction to Managerial Accounting
j j j




Review Questions
j




1. Thejprimaryjpurposejofjmanagerialjaccountingjisjtojprovidejinformationjtojhelpjmanagersjplan,jdirect,jc
ontrol,jandjmakejdecisions.

2. Financialjaccountingjandjmanagerialjaccountingjdifferjonjthejfollowingj6jdimensions:j(1)jprimaryjusers,j(2)j
purposejofjinformation,j(3)jfocusjandjtimejdimensionjofjthejinformation,j(4)jrulesjandjrestrictions,j(5)jscop
ejofjinformation,jandj(6)jbehavioral.

3. Linejpositionsjarejdirectlyjinvolvedjinjprovidingjgoodsjorjservicesjtojcustomers.jStaffjpositionsjsupportj
linejpositions.

4. Planningjmeansjchoosingjgoalsjandjdecidingjhowjtojachievejthem.jDirectingjinvolvesjrunningjthejday-to-
dayjoperationsjofjajbusiness.jControllingjisjthejprocessjofjmonitoringjoperationsjandjkeepingjthejcompanyjo
njtrack.

5. ThejfourjIMAjstandardsjofjethicaljpracticejandjajdescriptionjofjeachjfollow.
I. Competence.
Maintainjanjappropriatejleveljofjprofessionaljleadershipjandjexpertisejbyjenhancingjknowl
edgejandjskills.
Performjprofessionaljdutiesjinjaccordancejwithjrelevantjlaws,jregulations,jandjtechnicaljstanda
rds.
Providejdecisionjsupportjinformationjandjrecommendationsjthatjarejaccurate,jclear,jconcise,jandjti
mely.
Recognisejandjhelpjmangejrisk.
II. Confidentiality.
Keepjinformationjconfidentialjexceptjwhenjdisclosurejisjauthorizedjorjlegallyjrequired.
Informjalljrelevantjpartiesjregardingjappropriatejusejofjconfidentialjinformation.j Monitorjtojensurej
compliance.
Refrainjfromjusingjconfidentialjinformationjforjunethicaljorjillegaljadvantage.
III. Integrity.
Mitigatejactualjconflictsjofjinterest.jRegularlyjcommunicatejwithjbusinessjassociatesjtojavoidjapparen
tjconflictsjofjinterest.jjAdvisejalljpartiesjofjanyjpotentialjconflicts.
Refrainjfromjengagingjinjanyjconductjthatjwouldjprejudicejcarryingjoutjdutiesjethically.
Abstainjfromjengagingjinjorjsupportingjanyjactivityjthatjmightjdiscreditjthejprofession.

©j2021jPearsonjEducation,jInc. 1-1

, Contributejtojajpositivejethicaljculturejandjplacejintegrityjofjthejprofessionjabovejpersonaljinterest
.



5,jcont.
IV. Credibility.
Communicatejinformationjfairlyjandjobjectively.
Providejalljrelevantjinformationjthatjcouldjreasonablyjbejexpectedjtojinfluencejanjintendedjuser’sju
nderstandingjofjthejreports,janalyses,jorjrecommendations.
Reportjanyjdelaysjorjdeficienciesjinjinformation,jtimeliness,jprocessing,jorjinternaljcontrolsjinjconf
ormancejwithjorganizationjpolicyjand/orjapplicablejlaw.
Communicatejanyjprofessionaljlimitationsjorjotherjconstraintsjthatjwouldjprecludejresponsi-
jblejjudgmentjorjsuccessfuljperformancejofjanjactivity.



6. Servicejcompaniesjselljtime,jskills,jandjknowledge.j Examplesjofjservicejcompaniesjincludejphonejservicejc
ompanies,jbanks,jcleaningjservicejcompanies,jaccountingjfirms,jlawjfirms,jmedicaljphysicians,jandjonlineja
uctionjservices.

7. Merchandisingjcompaniesjreselljproductsjtheyjbuyjfromjsuppliers.jMerchandisersjkeepjanjinventoryjofjprod
ucts,jandjmanagersjarejaccountablejforjthejpurchasing,jstorage,jandjsalejofjthejproducts.jExamplesjofjmercha
ndisingjcompaniesjincludejtoyjstores,jgroceryjstores,jandjclothingjstores.

8. Merchandisingjcompaniesjreselljproductsjtheyjpreviouslyjboughtjfromjsuppliers,jwhereasjmanufacturingjc
ompaniesjusejlabor,jequipment,jsupplies,jandjfacilitiesjtojconvertjrawjmaterialsjintojnewjfinishedjproducts.jI
njcontrastjtojmerchandisingjcompanies,jmanufacturingjcompaniesjhavejajbroadjrangejofjproductionjactiviti
esjthatjrequirejtrackingjcostsjonjthreejkindsjofjinventory.

9. ThejthreejinventoryjaccountsjusedjbyjmanufacturingjcompaniesjarejRawjMaterialsjInventory,jWork-jin-
ProcessjInventory,jandjFinishedjGoodsjInventory.

RawjMaterialsjInventoryjincludesjmaterialsjusedjtojmanufacturejajproduct.jWork-in-
ProcessjInventoryjincludesjgoodsjthatjhavejbeenjstartedjinjthejmanufacturingjprocessjbutjarejnotjyetjco
mplete.j FinishedjGoodsjInventoryjincludesjcompletedjgoodsjthatjhavejnotjyetjbeenjsold.

10. Ajdirectjcostjisjajcostjthatjcanjbejeasilyjandjcost-
effectivelyjtracedjtojajcostjobjectj(whichjisjanythingjforjwhichjmanagersjwantjajseparatejmeasurementjofjc
ost).jAnjindirectjcostjisjajcostjthatjcannotjbejeasilyjorjcost-effectivelyjtracedjtojajcostjobject.

11. Thejthreejmanufacturingjcostsjforjajmanufacturingjcompanyjarejdirectjmaterials,jdirectjlabor,jandjmanufact
uringjoverhead.jDirectjmaterialsjarejmaterialsjthatjbecomejajphysicaljpartjofjajfinishedjproductjandjwhosejco
stsjarejeasilyjtraceablejtojthejfinishedjproduct.j Directjlaborjisjthejlaborjcostjofjthejemployeesjwhojconvertjma
terialsjintojfinishedjproducts.j Manufacturingjoverheadjincludesjall


©j2021jPearsonjEducation,jInc. 1-2

, manufacturingjcostsjexceptjdirectjmaterialsjandjdirectjlabor,jsuchjasjindirectjmaterials,jindirectjlabor,jfa
ctoryjdepreciation,jfactoryjrent,jandjfactoryjpropertyjtaxes.


12. Examplesjofjmanufacturingjoverheadjincludejcostsjofjindirectjmaterials,jindirectjlabor,jrepairjandjmainte
nancejinjfactory,jfactoryjutilities,jfactoryjrent,jfactoryjinsurance,jfactoryjpropertyjtaxes,jmanufacturingjpla
ntjmanagers’jsalaries,jandjdepreciationjonjmanufacturingjbuildingsjandjequipment.

13. Primejcostsjarejdirectjmaterialsjplusjdirectjlabor.jConversionjcostsjarejdirectjlaborjplusjmanufacturingjov
erhead.jNotejthatjdirectjlaborjisjclassifiedjasjbothjajprimejcostjandjajconversionjcost.

14. Productjcostsjarejthejcostjofjpurchasingjorjmakingjajproduct.j Thesejcostsjarejrecordedjasjanjassetjandjnotj
expensedjuntiljthejproductjisjsold.jProductjcostsjincludejdirectjmaterials,jdirectjlabor,jandjmanufacturingjo
verhead.

15. Periodjcostsjarejnon-
manufacturingjcostsjthatjarejexpensedjinjthejsamejaccountingjperiodjinjwhichjtheyjarejincurred,jwhereasjpr
oductjcostsjarejrecordedjasjanjassetjandjnotjexpensedjuntiljthejaccountingjperiodjinjwhichjthejproductjisjsol
d.

16. CostjofjGoodsjManufacturedjisjcalculatedjasjBeginningjWork-in-
ProcessjInventoryj+jTotaljManufacturingjCostsjIncurredjduringjthejYearj–jEndingjWork-in-
ProcessjInventory.jTotaljManufacturingjCostsjIncurredjduringjthejYearj=jDirectjMaterialsjUsedj+j
DirectjLaborj+jManufacturingjOverhead.

17. Forjajmanufacturingjcompany,jthejactivityjinjthejFinishedjGoodsjInventoryjaccountjprovidesjthejinform
ationjforjdeterminingjCostjofjGoodsjSold.jAjmanufacturingjcompanyjcalculatesjCostjofjGoodsjSoldjasjB
eginningjFinishedjGoodsjInventoryj+jCostjofjGoodsjManufacturedj–
jEndingjFinishedjGoodjInventory.jInjaddition,jajmanufacturingjcompanyjmustjtrackjcostsjfromjRawjMa

terialsjInventoryjandjWork-in-
ProcessjInventoryjinjorderjtojcomputejCostjofjGoodsjManufacturedjusedjinjthejpreviousjequation.

Forjajmerchandisingjcompany,jthejactivityjinjthejMerchandisejInventoryjaccountjprovidesjthejinformationjf
orjdeterminingjCostjofjGoodsjSold.jAjmerchandisingjcompanyjcalculatesjCostjofjGoodsjSoldjasjBeginningj
MerchandisejInventoryj+jPurchasesjandjFreightjInj–jEndingjMerchandisejInventory.

18. AjmanufacturingjcompanyjcalculatesjunitjproductjcostjasjCostjofjGoodsjManufacturedj/jTotaljnumb
erjofjunitsjproduced.

19. AjservicejcompanyjcalculatesjunitjcostjperjservicejasjTotaljoperatingjcostsj/jTotaljnumberjofjservices
jprovided.




©j2021jPearsonjEducation,jInc. 1-3

, 20. AjmerchandisingjcompanyjcalculatesjunitjcostjperjitemjasjTotaljcostjofjgoodsjsoldj/jTotaljnumberjofjitemsjsol
d.

Short Exercises
j



S-M:1-1

a. FA
b. MA
c. MA
d. FA
e. FA


S-M:1-2

a. Confidentiality
b. Integrity
c. Competencej(skippingjthejsession);j Integrityj(company-paidjconference)
d. Competence
e. Credibility;j Integrity


S-M:1-3

a. 2
b. 4
c. 1
d. 5
e. 4
f. 5
g. 3


S-M:1-4

Gluejforjframes $ 250
Plantjdepreciation 7,500
Plantjforeman’sjsalary 3,500
Plantjjanitor’sjwages 1,300
Oiljforjmanufacturingjequipment j 150jj
Totaljmanufacturingjoverhead j $j12,700jj




©j2021jPearsonjEducation,jInc. 1-4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Smartdove. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $16.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69411 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$16.99
  • (0)
Add to cart
Added