Solution Manual For Managerial Accounting, 7th Edition

Preview (31 of 361 Pages)

100%

Purchase to unlock

Solution Manual For Managerial Accounting, 7th Edition - Page 1 preview image

Loading page ...

Chapter 1Managerial Accounting in the Information AgeQUESTIONS1.The goal of managerial accounting is to provide information needed for planning,control, and decision making.2.Budgetedperformanceisausefulbenchmarkforevaluatingcurrentperiodperformance.3.This question asks students to identify three differences between financial andmanagerial accounting. In the text, five differences are noted:a)Managerial accounting is directed at internal rather than external users ofaccounting information.b)Managerial accounting may deviate from generally accepted accountingprinciples (GAAP).c)Managerial accounting may present more detailed information.d)Managerial accounting may present more nonmonetary information.e)Managerial accounting places more emphasis on the future.4.Examples of nonmonetary information that might appear in managerial accountingreports include: the quantity of material consumed in production, the number ofhours worked by the office staff, and the number of product defects.5.Total variable costs change in proportion to business activity while total fixed costsdo not change.6.Salaries of theemployees in the grocery departmentwould be a controllable costfor the manager ofthe grocerydepartment at aWalmart store. Depreciation relatedto the buildinghousing the grocery departmentwould be a noncontrollable cost.7.Incremental analysis involves a comparison of the revenues that change and thecoststhatchangewhenadecisionalternativeisconsidered.Ifincrementalrevenue exceeds incremental cost,thedecision alternative should be undertaken.8.“You get what you measure!” suggests that managers’ behaviors are affected byperformance measures.9.Information flows up and down the value chainandbetweencompaniesandtheirsuppliers and betweencompaniesandtheircustomers. Information technology ishelpingcompaniestrack buying patterns of customers and send targeted sellingmessages to themelectronically. Information technology is also helping companiesbetter manage their supply chains and gain internal efficiencies.10.A legal action is not necessarily ethical. Ethical actions involve “what’s right” whilelegal actions involve operating within boundaries of the law.

Preview Mode

This document has 361 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

Accounting

Master Managerial Accounting Techniques

Controlling and Reporting of Real Assets

Sarbanes Oxley Act, GAAP and IFRS

Accounting Audit Final Exam MCQs 2015

Team A Week 5 Problems

IFRS or US GAAP Which is the Best Reporting Standard

Analysis of Relevant Costs in Managerial Decision-Making

Financial Reporting, Regulations, and Corporate Governance

Understanding Key Concepts in Managerial Accounting

Company

Explore

Study Tools