Managerial Accounting Creating Value In A Dynamic Business Environment 10th Global Edition Ronald W. Hilton, David E. Platt, Platt Hilton, Mcgraw-Hill - Solutions

Unlock the full potential of your studies with our comprehensive solutions for "Managerial Accounting: Creating Value in a Dynamic Business Environment, 10th Global Edition." Access a wealth of resources, including the answers key, solutions manual, and step-by-step answers to every question. Dive into the chapter solutions and test bank, crafted to enhance your understanding and performance. Our instructor manual offers insights directly from the textbook, providing you with expertly solved problems. Download the solutions PDF for free and bolster your learning with our online platform. Perfect for mastering all the questions and answers in this essential accounting guide.

EXERCISE 1-15. Incremental Analysis In the past year, Western Components had sales of $8,000,000 and total production costs of $6,000,000. In the coming year, the company believes that sales and production can be increased by 30 percent, but this will require adding a second production shift to
EXERCISE 1-14. Incremental Analysis Akron Chemicals produces a chemical, PX44, which is used to retard lading in exterior house paint. In the past year, the company produced 200,000 gallons at a total cost of $ 1 ,000,000 ($5 per gallon). The company is currently considering an order for 10,000
EXERCISE 1-13. Opportunity Cost Gordon made plans to visit a friend in Dallas during the Labor Day weekend. However, before the trip his employer asked him if he would work overtime for 16 hours at $25 per hour during the weekend. What will be the opportunity cost if Gordon decides to visit his
EXERCISE 1-12. Opportunity Costs Parrish Plumbing provides plumbing services to residential customers from Monday through Friday. Ken Parrish, the owner, believes that it is important for his employees to have Saturday and Sunday off to spend with their families. However, he also recognizes that
EXERCISE 1-11. Sunk Cost Anne, the manager of quality assurance at an electronics manufacturing firm, purchased a circuit-testing machine last year for $25,000. This year a new machine, which is faster and more reliable than Anne's current model, is available in the market. In deciding whether or
EXERCISE 1-10. Cost Terms Explain how a cost can be controllable at one administrative level and noncontrollable at another administrative level.
EXERCISE 1-9. Cost Terms Indicate whether each of the following costs is most likely a fixed cost or a variable cost.a. Assembly labor.b. The cost of material used in production.c. Rent.d. Depreciation.e. Fuel cost at an airline.
EXERCISE 1-8. Cost Terms Identify each of the following statements with fixed costs or variable costs.a. A cost that varies in total with changes in the activity level.b. A cost that varies on a per-unit basis with changes in the activity level.c. A cost that remains fixed per unit with changes in
EXERCISE 1-7. Financial vs. Managerial Accounting Consider a large manufacturing company like Boeing that rewards its sales force with bonuses based on sales.For this purpose, should the company record sales when orders are placed or, to be consistent with GAAP, wait until orders are delivered?
EXERCISE 1-6. Performance Reports At ZX Fashions, the budgeted income statement for December, 2006 indicated sales of $100,000 and cost of sales of $60,000. Actual sales and cost of sales were $120,000 and $70,000, respectively. Should Margo Nelson, owner of the company, be concerned that cost of
EXERCISE 1-5. Performance Reports Which of the following statements related to performance reports is false?a. Performance reports may provide a comparison of actual performance with planned performance.b. Performance reports may provide a comparison of actual performance with performance in a
EXERCISE 1-3. Ethics/Internet Assignment Guthrie Wilson is an accountant at Bellwether Systems, a company that sells and installs customer relationship management(CRM) systems. The company sells third-party software at cost plus 20 percent and charges a fee of $200 per hour of
EXERCISE 1-2. Writing Assignment Nancy Peterson owns Lightning Printing, a copy business with several high-speed printers. One is a color printer that was purchased just last year at a cost of $25,000. Recently a sales person got Nancy to witness a demo of a new $23,000 color printing machine that
EXERCISE 1-1. Group Assignment A key idea in this book is that You get what you measure! Essentially, this means that performance measures have a great influence on the behavior of managers.Required Select a company with which you are familiar. Identify three performance measures that the company
12. If an action is legal, is it necessarily ethical? Explain.
11. How have changes in information technology impacted management of the value chain?
10. What is the title of the individual to whom the controller and the treasurer report?
9. What is meant by the statement "You get what you measure!"?
8. What is incremental analysis? How is the concept used in decision making?
7. Consider the manager of the home appliance department at a Sears store. For this manager, list a cost that is controllable and a cost that is noncontrollable.
6. Explain the difference between fixed and variable costs.
5. List three examples of nonmonetary information that might appear in a managerial accounting report.
4. List three differences between financial and managerial accounting.
3. In a performance report, current period performance is compared with some benchmark. What might be a useful benchmark?
2. Briefly describe the planning and control process.
1. What is the goal of managerial accounting?
12. Which of the following is not one of the seven questions in the framework for ethical decision making?:a. Will an individual or an organization be harmed by any of the decision alternatives?-b. Would someone I respect find any of the alternatives objectionable?c. At a "gut" level, am I
11. The "information age" has impacted:a. Relationships and interactions with customers.b. Relationships and interactions with suppliers.c. Internal processes.d. All of the above.
10. List the two key managerial accounting ideas noted in the chapter.
9. The salary a student forgoes while in college is an example of:a. Opportunity cost.b. Direct cost.c. Sunk cost.d. Variable cost.
8. costs are directly traceable to a product, activity, or department whereas costs are not.
7. Costs incurred in the past are:a. Opportunity costs.b. Direct costs.c. Sunk costs.d. Variable costs.
6. Which of the following is most likely to be a fixed cost?a. The cost of material used in production.b. Rent.c. Assembly labor cost.d. Commissions.
5. Which of the following is most likely to be a variable cost?a. Depreciation.b. The cost of material used in production.c. Rent.d. Advertising.
4. Which of the following statements is false?a. Managerial accounting statements do not necessarily comply with GAAP.b. Financial accounting statements normally reflect more detail than would be found in managerial accounting reports.c. Managerial accounting reports emphasize future activities and
3. Which of the following statements about budgets is false?a. Budgets may be expressed in dollars, quantities, or both.b. Budgets may reflect projected revenues, projected expenses, projected cash flows, or projected quantities of inputs or outputs.c. Budgets must be prepared in accordance with
2. Match the following terms with the management activities described below:a. Planning.b. Control.c. Decision Making.(1) This management activity involves changing operations, revising plans, or rewarding/punishing managers.(2) This management activity compares actual results with planned outcomes
1. The primary goal of managerial accounting is to:a. Provide information to current and potential investors in the company.b. Provide information to creditors as well as current and prospective investors.c. Provide information to creditors, taxing authorities, and current and prospective
17-8. Explain the difference between two-stage allocation with departmental overhead rates and activity-based costing Which approach generally results in more accurate product costs?
17-6. What potenaal behavioral problem can result when the dual approach is used?
17-5. Why does the dual-allocation approach improve the resulting cost allocation'
17-4. How does the managenal accountant determine the department sequence in the step-down method" How are ties handled?
17-3. Explain buefly the main differences between the direct. step-down, and reciprocal-services methods of service department cost allocation
16-23. (Appendix B) Buefly descube two conect methods of net-present-value analysis in an inflationary penod
16-22. Discuss the pros and cons of the accounting rate of return as an investment
16-21. How is an investmeni reoject's accounting rate of retur defined? Why do the accounting rate of return and inter- nal rate of return on a capital project generally differ?
16-20. What are the two main drawbacks of the payback mechod?
16-17. Why may the net-present-value and internal-1ate-of- return methods yield different tankings for investments with different lives?
16-11. Give an example of a noncash expense What impact does such an expense have in a capital-budgeting analy- sis? Explain how to compute the after-tax impact of a noncash expense
16-5. State the decision rule used to accept or reject an invest- ment proposal under each of these methods of analysis (1) net-present-value method and (2) internal-rate-of- ietuin method
16-4. Buefly explain the concept of discourted-cash-flow analysis What are the two common methods of dis- counted-cash-flow analysis?
16-2. Distinguish between the following two types of capital- budgeting decisions acceptance-of-rejection decisions and capital-raticaing decisions
15-26. Explain what is meant by unlawful price discrimination and predatory pricing
15-25. Describe the following approaches to pricing new piod- acts skimining pucing penetration pricing, and target costing
15-24. The decision to accept or reject a special order and the selection of a price for a special order are very similai decisions Explain
15-23. Explain the importance of the excess-capacity issue in setting a competitive bid price
15-22. Briefly describe the time-and-material pruing approach
15-21, Could rear-down methods be used effectively for target pucing in a service-industry company, such as a hotel or an aline? Explain
15-20. Explain the role of value engineering in target costing
15-19. Why is a focus on the customer such a key principle of tagel costing?
15-18. Explain the phrase price-led costing
15-17. Briefly explain the concept of return-on-investment pricing
15-16. Explain the behavioral problem that can result when cost-plus prices are based on variable cost
15-15. List three advantages of pricing based on vanable cost
15-14. What is the primary disadvantage of basing the cost- plus pricing formula on absorption cost?
15-13. Last four reasons often cred for the widespread use of absorption cost as the cost base in cost-plus pricing formulas
15-12. List the four common cost bases used m cost-plus pricing How can they all result in the same price
15-11. Wute the general formula for cost-plus pricing and briefly explain its use
15-10. Determining the best approach to pricing requires a cost-benefit trade-off Explain
15-9. Describe three lunitations of the economic, profit- maximizing model of pricing
15-8. Briefly define total cosi and mergmal cost
15-7. Define the following terms total revenue, marginal revenue, demand curve, price elasticity and cross-elasacity
15-5. Explain the following assertion Price setting gener- ally requires a balance between market forces and cost considerations" 15-6. Briefly explain the concept of economic proft- manmazing pricing It may be helpful to use graphs in your explanation
15-4. Explain what is meant by the following statemen "In considering the reactions of competitors, it is crucial to define your product
15-3. List and briefly describe four major influences on puic- ing decisions
15-2. All this marginal revenue and marginal cost stuff is pust theory Prices are determined by production costs" Evaluate this assertion
15-1. Comment on the following remark made by a bank president The prices of cur banking services are determined by the financial-services market Costs are nrelevant
14.32 Toon Town Toy Company is considering the elimination of its Packaging Department Management has received an offer from an outside fum to supply all Toon Town's packaging needs To help het in making the decision Toon Town's president has asked the controller for an analysis of the cost of
14.31 Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counte. He has prepared the following profit analysis for the year just ended Sales Lass Cost of food Gross profit Less Operaing expe $67,500 30,000 $37,500 Wages of counier personnel $13,000 Paper products
14.30 Redo Exhibit 14-4 without the relevant data
14.29 Choose an organization and a particular decision situation Then give examples, using that decision context of each step illustrated in Exhibit 14-1
14-28. List five ways that management can seek to relax a constraint by expanding the capacity of a bottleneck operation
14-27. Are the concepts underlying a relevant-cost analysis still valid in an advanced manufacturing environment? Are these concepts valid when activity-based costing is used? Explai
14-26. "Accounting systems should produce only relevant data. and forget about the relevant data Then I'd know what was relevant and what wasn t Comment on this remark by a company president
14-25. Give two examples of sunk costs and explam why they are irrelevant in decision making
14-24. Why can unitized fixed costs cause enois in decision making?
14-23. List four potential pitfalls in decision making which represent common erious
14-22. There is an important link between decision making and managerial performance evaluation Explain
14-21. How is sensitivity analysis used to cope with uncer tainty in decision making?
14-20. What is meant by the term cent: .bution margin per unit of scarce resource?
14-19. Buefly describe the proper approach to making a production decision when limited resources are involved
14-18. Are allocated joint processing costs relevant when making a decision to sell a joint product at the split-off point or process it further? Why?
14-17. What is a joint production process? Describe a special decision that commonly arises in the context of a joint production process Briefly describe the proper approach for making this type of decision
14-16. Briefly describe the proper approach for making a decision about adding or dropping a product line
14-15. What is meant by the team differential cost anahs
14-14. How does the existence of excess production capacity affect the decision to accept or reject a special order?
14-13. What behavioral tendency do people often exhibit with regard to opportunity costs?
14-12. Define the term opportunity cost, and give an example of one
14-11. Give an example of an inelevant future cost Why is it elevant?
14-10. Why might a manager exhibit a behavioral tendency to inappropriately consider sunk costs in making a decision?

Showing 600 - 700 of 1325

Managerial Accounting Creating Value In A Dynamic Business Environment 10th Global Edition Ronald W. Hilton, David E. Platt, Platt Hilton, Mcgraw-Hill - Solutions

Step by Step Answers