Managerial Accounting 7th Edition Jiambalvo Solution Manual
Solution Manual for Managerial Accounting 7th Edition James Jiambalvo, ISBN: 1119577705, ISBN: 9781119577706
TABLE OF CONTENTS
1 Managerial Accounting in the Information Age 1-1
2 Job-Order Costing for Manufacturing and Service Companies 2-1
3 Process Costing 3-1
4 Cost-Volume-Profit Analysis 4-1
5 Variable Costing 5-1
6 Cost Allocation and Activity-Based Costing 6-1
7 The Use of Cost Information in Management Decision Making 7-1
8 Pricing Decisions, Customer Profitability Analysis, and Activity-Based Pricing 8-1
9 Capital Budgeting and Other Long-Run Decisions 9-1
10 Budgetary Planning and Control 10-1
11 Standard Costs and Variance Analysis 11-1
12 Decentralization and Performance Evaluation 12-1
13 Statement of Cash Flows 13-1
14 Analyzing Financial Statements: A Managerial Perspective 14-1
Chapter 1
Managerial Accounting in the Information Age
QUESTIONS
1. The goal of managerial accounting is to provide information needed for planning, control, and decision making.
2. Budgeted performance is a useful benchmark for evaluating current period performance.
3. This question asks students to identify three differences between financial and managerial accounting. In the text, five differences are noted:
a) Managerial accounting is directed at internal rather than external users of accounting information.
b) Managerial accounting may deviate from generally accepted accounting principles (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 accounting reports include: the quantity of material consumed in production, the number of hours worked by the office staff, and the number of product defects.
5. Total variable costs change in proportion to business activity while total fixed costs do not change.
6. Salaries of the employees in the grocery department would be a controllable cost for the manager of the grocery department at a Walmart store. Depreciation related to the building housing the grocery department would be a noncontrollable cost.
7. Incremental analysis involves a comparison of the revenues that change and the costs that change when a decision alternative is considered. If incremental revenue exceeds incremental cost, the decision alternative should be undertaken.
8. “You get what you measure!” suggests that managers’ behaviors are affected by performance measures.
9. Information flows up and down the value chain and between companies and their suppliers and between companies and their customers. Information technology is helping companies track buying patterns of customers and send targeted selling messages to them electronically. Information technology is also helping companies better manage their supply chains and gain internal efficiencies.
10. A legal action is not necessarily ethical. Ethical actions involve “what’s right” while legal actions involve operating within boundaries of the law.
