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    Chapter 1 Managerial Accounting: Tools for Decision Making Discussion QUESTIONS Q1-1. Financial accounting is oriented toward external users and is concerned with general-purpose financial statements. These financial accounting statements are highly aggregated‚ report on relatively long time periods‚ are oriented toward the past‚ and must conform to external standards. These standards emphasize the use of objective data. Management accounting is oriented toward internal users and is

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    Chapter 5: Cost Behavior: Analysis and Use As we shall see in later chapters‚ the ability to predict how costs respond to changes in activity is critical for making decisions‚ controlling operations‚ and evaluating performance. Three major classifications of costs were discussed in this chapter—variable‚ fixed‚ and mixed. Mixed costs consist of variable and fixed elements and can be expressed in equation form as Y = a + bX‚ where X is the activity‚ Y is the cost‚ a is the fixed cost element‚ and

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    Exercise 2-2 | | |Product |Period Cost | | | |(Inventoriable) Cost | | |1. |Depreciation on salespersons’ cars | |X | |2.

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    Exercise 11-1 (10 minutes) 1. 2. 3. Exercise 11-2 (10 minutes) Average operating assets £2‚200‚000 Net operating income £400‚000 Minimum required return: 16% × £2‚200‚000  352‚000 Residual income £ 48‚000 Exercise 11-3 (20 minutes) 1. Throughput time = Process time + Inspection time + Move time + Queue time = 2.8 days + 0.5 days + 0.7 days + 4.0 days = 8.0 days 2. Only process time is value-added time; therefore the manufacturing cycle efficiency

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    CHAPTER 3 Product Costing and Cost Accumulation in a Batch Production Environment ANSWERS TO REVIEW QUESTIONS 3-1 (a) Use in financial accounting: In financial accounting‚ product costs are needed to determine the value of inventory on the balance sheet and to compute the cost-of-goods-sold expense on the income statement. b) Use in managerial accounting: In managerial accounting‚ product costs are needed for planning‚ for cost control‚ and for decision making. c) Use in cost

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    Garrison Managerial Accounting Solutions (PDF Documents) provides by doc.biasbias.com And hosted at /doc11/Garrison_Managerial_Accounting_Solutions.pdf Garrison Managerial Accounting Solutions Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. Managerial Accounting Garrison Noreen Brewer 14th Edition ... Managerial accounting 14th edition garrison solutions - free eBooks Managerial Accounting: Ray Garrison‚ Eric Noreen‚ Peter Brewer ... Managerial Accounting with Connect Plus: Ray Garrison‚ Eric

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    EXERCISE 14-1 (15-20 minutes) Valuation account relating to the long-term liability‚ bonds payable (sometimes referred to as an adjunct account). The 3‚000 would continue to be reported as long-term. Current liability if current assets are used to satisfy the debt. Current liability‚ 200‚000 long-term liability‚ 800‚000. Current liability. Probably noncurrent‚ although if operating cycle is greater than one year and current assets are used‚ this item would be classified as current. Current liability

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    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 service‚ and 2. Planning to use the drivers of costs in those activities in the most efficient way. 8-2 At the start of an accounting period‚ a larger percentage of fixed overhead costs are locked-in than is the case with variable overhead

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    Managerial Accounting and the Business Environment Chapter 1 © 2010 The McGraw-Hill Companies‚ Inc. Learning Objective 1 Understand the role of management accountants in an organization. McGraw-­‐Hill/Irwin   Slide 2 Organizational Structure Decentralization is the delegation of decisionmaking authority throughout an organization. Corporate Organization Chart Board of Directors President Purchasing Personnel Vice President Operations Chief Financial Officer Controller

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    making across the various functional areas of an organization Managerial accounting: the form of accounting concerned with providing information to managers for use in planning and controlling operations and for decision making Financial accounting: the form of accounting concerned with providing information to shareholders‚ creditors‚ and others outside the organization The work of managers and their need for managerial accounting information Every organization has managers – someone must be

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