costacctg13_sm_ch01
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costacctg13_sm_ch01

Course: ACCOUNTING 101, Spring 2011

School: Clarion

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CHAPTER 1 THE ACCOUNTANT'S ROLE IN THE ORGANIZATION ACCOUNTANT' See the front matter of this Solutions Manual for suggestions regarding your choices of assignment material for each chapter. 1-1 Management accounting measures, analyzes and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. It focuses on internal reporting and is not restricted...

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1-CHAPTERCHAPTERCHAPTER1THETHETHEACCOUNTANTACCOUNTANTACCOUNTANTSROLEROLEROLEINININTHETHETHEORGANIZATIONORGANIZATIONORGANIZATIONSeethefrontmatterofthisSolutionsManualforsuggestionsregardingyourchoicesofassignment material for each chapter.1-11-11-1Managementaccountingmeasures,analyzesandreportsfinancialandnonfinancialinformation that helps managers make decisions to fulfill the goals of an organization. It focuseson internal reporting and is not restricted by generally accepted accounting principles (GAAP).Financialaccountingfocusesonreportingtoexternalpartiessuchasinvestors,government agencies, and banks. It measures and records business transactions and providesfinancial statements that are based on generally accepted accounting principles (GAAP).Other differences include (1) management accounting emphasizes the future (not thepast), and (2) management accounting influences the behavior of managers and other employees(rather than primarily reporting economic events).1-21-21-2Financialaccountingisconstrainedbygenerallyacceptedaccountingprinciples.Management accounting is not restricted to these principles. The result is thatmanagement accounting allows managers to charge interest on owners capital to helpjudge a divisions performance, even though such a charge is not allowed under GAAP,managementaccountingcanincludeassetsorliabilities(suchasbrandnamesdeveloped internally) not recognized under GAAP, andmanagement accounting can use asset or liability measurement rules (such as presentvalues or resale prices) not permitted under GAAP.1-31-31-3Management accountants can help to formulate strategy by providing information aboutthesourcesofcompetitiveadvantageforexample,thecost,productivity,orefficiencyadvantage of their company relative to competitors or the premium prices a company can chargerelative to the costs of adding features that make its products or services distinctive.

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Clarion - ACCOUNTING - 101
CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-1 A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, a project, a customer, a brand category, an activity, and a department. 2-2 Dir
Clarion - ACCOUNTING - 101
CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS NOTATION USED IN CHAPTER 3 SOLUTIONS SP: VCU: CMU: FC: TOI: Selling price Variable cost per unit Contribution margin per unit Fixed costs Target operating income3-1 Cost-volume-profit (CVP) analysis examines the beha
Clarion - ACCOUNTING - 101
CHAPTER 4 JOB COSTING 4-1Cost poola grouping of individual cost items. Cost tracingthe assigning of direct costs to the chosen cost object. Cost allocationthe assigning of indirect costs to the chosen cost object. Cost-allocation basea factor that links
Clarion - ACCOUNTING - 101
CHAPTER 5 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT 5-1 Broad averaging (or peanut-butter costing) describes a costing approach that uses broad averages for assigning (or spreading, as in spreading peanut butter) the cost of resources uniformly
Clarion - ACCOUNTING - 101
CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 a. b. c. d. The budgeting cycle includes the following elements: Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on what is
Clarion - ACCOUNTING - 101
CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps man
Clarion - ACCOUNTING - 101
CHAPTER 8 FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or serv
Clarion - ACCOUNTING - 101
CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-1 No. Differences in operating income between variable costing and absorption costing are due to accounting for fixed manufacturing costs. Under variable costing only variable manufacturing costs are inc
Clarion - ACCOUNTING - 101
Clarion - ACCOUNTING - 101
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-1 1. 2. 3. 4. 5. The five steps in the decision process outlined in Exhibit 11-1 of the text are Identify the problem and uncertainties Obtain information Make predictions about the future Make decisi
Clarion - ACCOUNTING - 101
CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order, the relevant costs are only those costs that will chang
Clarion - ACCOUNTING - 101
CHAPTER 13 STRATEGY, BALANCED SCORECARD, AND STRATEGIC PROFITABILITY ANALYSIS 13-1 Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. 13-2 The five key forces to cons
Clarion - ACCOUNTING - 101
CHAPTER 14 COST ALLOCATION, CUSTOMER-PROFITABILITY ANALYSIS, AND SALES-VARIANCE ANALYSIS 14-1 Disagree. Cost accounting data plays a key role in many management planning and control decisions. The division president will be able to make better operating a
Clarion - ACCOUNTING - 101
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-1 The single-rate (cost-allocation) method makes no distinction between fixed costs and variable costs in the cost pool. It allocates costs in each cost pool to cost objects
Clarion - ACCOUNTING - 101
CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-1 Exhibit 16-1 presents many examples of joint products from four different general industries. These include: Industry Separable Products at the Splitoff Point Food Processing: Lamb Lamb cuts,
Clarion - ACCOUNTING - 101
CHAPTER 17 PROCESS COSTING 17-1 Industries using process costing in their manufacturing area include chemical processing, oil refining, pharmaceuticals, plastics, brick and tile manufacturing, semiconductor chips, beverages, and breakfast cereals. 17-2 Pr
Clarion - ACCOUNTING - 101
CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-1 Managers have found that improved quality and intolerance for high spoilage have lowered overall costs and increased sales. 18-2 Spoilageunits of production that do not meet the standards required by customers f
Clarion - ACCOUNTING - 101
CHAPTER 19 BALANCED SCORECARD: QUALITY, TIME, AND THE THEORY OF CONSTRAINTS 19-1 Quality costs (including the opportunity cost of lost sales because of poor quality) can be as much as 10% to 20% of sales revenues of many organizations. Quality-improvement
Clarion - ACCOUNTING - 101
CHAPTER 20 INVENTORY MANAGEMENT, JUST-IN-TIME, AND SIMPLIFIED COSTING METHODS 20-1 Cost of goods sold (in retail organizations) or direct materials costs (in organizations with a manufacturing function) as a percentage of sales frequently exceeds net inco
Clarion - ACCOUNTING - 101
CHAPTER 21 CAPITAL BUDGETING AND COST ANALYSIS 21-1 No. Capital budgeting focuses on an individual investment project throughout its life, recognizing the time value of money. The life of a project is often longer than a year. Accrual accounting focuses o
Clarion - ACCOUNTING - 101
CHAPTER 22 MANAGEMENT CONTROL SYSTEMS, TRANSFER PRICING, AND MULTINATIONAL CONSIDERATIONS 22-1 A management control system is a means of gathering and using information to aid and coordinate the planning and control decisions throughout an organization an
Clarion - ACCOUNTING - 101
CHAPTER 1 THE ACCOUNTANTS ROLE IN THE ORGANIZATION See the front matter of this Solutions Manual for suggestions regarding your choices of assignment material for each chapter. 1-1 Management accounting measures and reports financial and nonfinancial info
Clarion - ACCOUNTING - 101
CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-1 A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, a project, a customer, a brand category, an activity, and a department. 2-2 Dir
Clarion - ACCOUNTING - 101
CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS NOTATION USED IN CHAPTER 3 SOLUTIONS SP: VCU: CMU: FC: TOI: Selling price Variable cost per unit Contribution margin per unit Fixed costs Target operating income3-1 Cost-volume-profit (CVP) analysis examines the beha
Clarion - ACCOUNTING - 101
CHAPTER 4 JOB COSTING 4-1 Cost poola grouping of individual cost items. Cost tracingthe assigning of direct costs to the chosen cost object. Cost allocationthe assigning of indirect costs to the chosen cost object. Cost-allocation basea factor that links
Clarion - ACCOUNTING - 101
CHAPTER 5 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT 5-1 Broad averaging (or "peanut-butter costing") describes a costing approach that uses broad averages for assigning (or spreading, as in spreading peanut butter) the cost of resources uniform
Clarion - ACCOUNTING - 101
CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 a. b. c. d. The budgeting cycle includes the following elements: Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on what is
Clarion - ACCOUNTING - 101
CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps man
Clarion - ACCOUNTING - 101
CHAPTER 8 FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or serv
Clarion - ACCOUNTING - 101
CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-1 No. Differences in operating income between variable costing and absorption costing are due to accounting for fixed manufacturing costs. Under variable costing only variable manufacturing costs are inc
Clarion - ACCOUNTING - 101
CHAPTER 10 DETERMINING HOW COSTS BEHAVE 10-1 1. 2. The two assumptions are Variations in the level of a single activity (the cost driver) explain the variations in the related total costs. Cost behavior is approximated by a linear cost function within the
Clarion - ACCOUNTING - 101
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-1 1. 2. 3. 4. 5. The five steps in the decision process outlined in Exhibit 11-1 of the text are Obtain information Make predictions about future costs Choose an alternative Implement the decision Eva
Clarion - ACCOUNTING - 101
CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order, the relevant costs are only those costs that will chang
Clarion - ACCOUNTING - 101
CHAPTER 13 STRATEGY, BALANCED SCORECARD, AND STRATEGIC PROFITABILITY ANALYSIS 13-1 Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. 13-2 The five key forces to cons
Clarion - ACCOUNTING - 101
CHAPTER 14 COST ALLOCATION, CUSTOMER-PROFITABILITY ANALYSIS, AND SALES-VARIANCE ANALYSIS 14-1 Disagree. Cost accounting data plays a key role in many management planning and control decisions. The division president will be able to make better operating a
Clarion - ACCOUNTING - 101
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-1 The single-rate (cost-allocation) method makes no distinction between fixed costs and variable costs in the cost pool. It allocates costs in each cost pool to cost objects
Clarion - ACCOUNTING - 101
CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-1 Exhibit 16-1 presents nine examples of joint products from four different general industries. These include: IndustrySeparable Products at the Splitoff Point Food Processing: Lamb Lamb cuts, t
Clarion - ACCOUNTING - 101
CHAPTER 17 PROCESS COSTING 17-1 Industries using process costing in their manufacturing area include chemical processing, oil refining, pharmaceuticals, plastics, brick and tile manufacturing, semiconductor chips, beverages, and breakfast cereals. 17-2 Pr
Clarion - ACCOUNTING - 101
CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-1 Managers have found that improved quality and intolerance for high spoilage have lowered overall costs and increased sales. 18-2 Spoilageunits of production that do not meet the standards required by customers f
Rutgers - EXPOSITORY - 101
Lee 1 Raymond Lee Expository Writing 101 Terrill Assignment # 3 Final Draft Phase of Disorder Within a System Steven Johnson's essay, "The Myth of the Ant Queen," highlights how disorder worked in a system, specifically in Manchester. Disorder is simply t
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Daniel Yoon Expository Writing 101 Professor Brennan September 23, 2010The psychological system comprises primarily of complex defense mechanisms in order to preserve the fragile human mind. Whether it is a mere insult from a stranger, or a personal atta
Rutgers - EXPOSITORY - 101
Daniel Yoon Expository Writing 101 Professor Brennan October 19, 2010Understanding the flexibility of the human mind, it becomes simple to imagine that creation of context can alter the past, present, and future circumstance. A prime example is the proce
Rutgers - EXPOSITORY - 101
Daniel Yoon Expository Writing 101 Professor Brennan October 19, 2010Initially I was honored, overwhelmed, and confused as to what I could contribute to Professor Nafisi's discussion among esteemed guests. However once she obliged me with the topic I was
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Daniel Yoon Expository Writing 101 Professor Brennan November 4, 2010Understanding "who we are?" would be a noteworthy accomplishment, however merely grasping the idea of "where we are?" would be a momentous achievement. Since the earliest signs of civil
Rutgers - EXPOSITORY - 101
Daniel Yoon Expository Writing 101 Professor Brennan November 4, 2010Understanding "who we are?" would be a noteworthy accomplishment, however merely grasping the idea of "where we are?" would be a momentous achievement. Since the earliest signs of civil
Rutgers - EXPOSITORY - 101
Daniel Yoon Expository Writing 101 Professor Brennan October 12, 2010The psychological system comprises primarily of complex defense mechanisms in order to preserve the fragile human mind. Whether it is a mere insult from a stranger, or a personal attack
Rutgers - EXPOSITORY - 101
p.416 final paragraph p417 first paragraph MIDTERM Introduction with a thesis at the end of it A supporting paragraph linking the Nafisi with Gilbert A supporting paragraph linkin Nafisi with Gladwell A conclusion Audigger92@yahoo.com tpschep@hotmail.co
Rutgers - EXPOSITORY - 101
Daniel Yoon Expository Writing 101 September 23, 2010The idea of a panorama is to present the full unbroken view of a surrounding or observation. Likewise the story concerning the events that took place aboard the IRT train on December 22, 1984 presented
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Daniel Yoon Expos 101 Oral reportQuestion: Upon entering the work force and finding a career, the "stock option" becomes a decision that most of us will make. However with the recent financial crisis and lack of early education in the subject, the idea o
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Arnold Cheng 11/9/10 Expos Sec FO Paper 4 Final Draft The Seeming Truth Throughout the ages, humans have always pursued and sought after the truth, a forever "gray-area" subject. In his writing, "How to Tell a True War Story," author Tim O'Brien discusses
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Daniel Yoon Expos Professor Brennen 12/7/10Illustrating how truth is personal to an individual, and demonstrating how human perspective lies tangent to the actual world representation pushes exploration to what truth is and enables one to realize the und
Rutgers - EXPOSITORY - 101
Daniel Yoon Expos Professor Brennen 12/7/10Illustrating how truth is personal to an individual, and demonstrating how human perspective lies tangent to the actual world representation pushes exploration to what truth is and enables one to realize the und
Rutgers - EXPOSITORY - 101
Nyc broken mirror theory Human psyche Goetz Goetz plus nyc connection Daniel Yoon Expository Writing 101 September 8, 2010In response to the sharp and alarming rise in criminal activity in New York City, the Broken Windows theory proposed by criminologis
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Lee 1 Ray Lee Expository Writing 101 Terrill Assignment #2 Final Draft How Human Natural Tendencies Influenced The Citadel The Citadel has been regarded for many years as a public military college with many prides and traditions. However, the normal way o
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Daniel Yoon Expository Writing 101 Professor Brennan October 19, 2010The intense oppression existing in Tehran, Iran during Nafisi's tenure resulted in thousands of struggles for independence, specifically for women. In an effort to foster female toleran
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DateTurn inHave ReadClass ActivityAssignmen tNoteREVISED 10/7/10 Timothy C. Brennan "Expoz" Section: LS Office Hours T 6:30-7:30 LSH B215 Or by appointment101:E-mail address: timbren@aol.com T TH 5:00-6:20 Room LSHB112 Writing Program Phone (732)
Rutgers - EXPOSITORY - 101
Last Name ABBAS ABROL AGUIRRE ALDABBAS ALDERFER ALVAREZ AMADEO AMATO ANAND ANANDPARA ANDERSON ANTUZZI ARIF AYMES BALUYUT BANAFATO BERARDI BHANDARI BHATIA BIALECKI BIJLANI BIRTWELL BOSSAK BRESNAHAN CARVALHO CASAZZA CESARE CHANG CHAU CHEN CHEN CHENG CHIU CH
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Yoon, Daniel Daniel Assignment 1: Partial Summary 10/1/10 dgyoon92@Gmail.comThe article reports that corruption and bribery within international business transactions occur most frequently between firms from: developing nations, nations with high levels
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1 Yoon, Daniel Daniel Assignment 2: Completed Summary 10/15/10 dgyoon92@Gmail.comTo: Mr. Daniel From: Daniel YoonDate: 10/15/10 Subject: "Bribery in International Business TransactionsThe article reports that corruption and bribery within international
Rutgers - EXPOSITORY - 101
Journal of Business Ethics (2010) 92:1532 DOI 10.1007/s10551-009-0136-7 Springer 2009Bribery in International Business TransactionsChristopher Baughn Nancy L. Bodie Mark A Buchanan Michael B. BixbyABSTRACT. Globalization leads to cross-border business
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Daniel Yoon Oct 19, 2010 Professor Martin Markowitz Business Forum: Ethics in Business-Define Organizational Culture. Organizational Culture is attitude, psychology, beliefs, and values of an organization thatdetermines the environment of its managemen