- Mcgraw-hill Solutions Manual Managerial Accounting
- Solutions Manual Financial And Managerial Accounting Williams
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Mcgraw-hill Solutions Manual Managerial Accounting
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Managerial Accounting Solutions Manual 2018-2019 Edition Chapters 17 through 24 The managerial accounting solutions manual provides answers to all Basic and Involved Problems found in the textbook. The managerial accounting book covers a range of managerial and cost accounting topics related to planning, directing, and controlling functions. Costing methods, operating and capital budgets, tools for analysis, performance evaluation, decision-making processes, and reporting techniques are all covered in depth. This material is customary for most managerial accounting courses, and is foundational for all accountants and business people. PDF $39.95 Paperback $44.95.
CHAPTER 10 Budgetary Control and Responsibility Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! A Problems B Problems 1, 2, 8, 10 3A 3B 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 1A, 2A, 3A 1B, 2B, 3B 13 6A 6B Exercises 1. Describe the concept of budgetary control. Evaluate the usefulness of static budget reports. 3, 4, 5 1, 2 3.
Explain the development of flexible budgets and the usefulness of flexible budget reports. 6, 7, 8, 9, 10, 11, 12 3, 4, 5 4. Describe the concept of responsibility accounting. 13, 14, 15, 16, 17, 18, 24 5. Indicate the features of responsibility reports for cost centers. Identify the content of responsibility reports for profit centers.
20, 21 7 3 15, 16 4A 4B 7. Explain the basis and formula used in evaluating performance in investment centers. 22, 23, 24 8, 9, 10 4 16, 17, 18, 19 5A 5B Explain the difference between ROI and residual income.
25, 26 11, 12 20, 21 7A 7B.8. 1 1, 2 9, 11, 14.Note: All asterisked Questions, Exercises, and Problems relate to material contained in the appendix to the chapter. Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 10-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted (min.) Simple 20–30 Moderate 30–40 Simple 20–30 1A Prepare flexible budget and budget report for manufacturing overhead. 2A Prepare flexible budget, budget report, and graph for manufacturing overhead.
3A State total budgeted cost formula, and prepare flexible budget reports for two time periods. 4A Prepare responsibility report for a profit center. Moderate 20–30 5A Prepare responsibility report for an investment center, and compute ROI. Moderate 40–50 6A Prepare reports for cost centers under responsibility accounting, and comment on performance of managers. Moderate 40–50 Compare ROI and residual income.
Moderate 25–35 Simple 20–30 Moderate 30–40 Simple 20–30.7A 1B Prepare flexible budget and budget report for manufacturing overhead. 2B Prepare flexible budget, budget report, and graph for manufacturing overhead. 3B State total budgeted cost formula, and prepare flexible budget reports for two time periods. 4B Prepare responsibility report for a profit center. Moderate 20–30 5B Prepare responsibility report for an investment center, and compute ROI. Moderate 40–50 6B Prepare reports for cost centers under responsibility accounting, and comment on performance of managers.
Moderate 40–50 Compare ROI and residual income. Moderate 25–35.7B 10-2 Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) Copyri Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-of-Chapter Exercises and Problems ght © 2012 John Wiley & Sons, Inc. Weyga ndt, Manag Learning Objective Knowledge Comprehension E10-1 Q10-1 Q10-2 2. Evaluate the usefulness of static budget reports. E10-1 Q10-3 Q10-4 3. Explain the development of flexible budgets and the usefulness of flexible budget reports.
Solutions Manual Financial And Managerial Accounting Williams
Q10-9 Q10-12 E10-1 Q10-6 Q10-7 Q10-8 Q10-10 Q10-11 BE10-4 DI10-1 DI10-2 E10-3 E10-5 Q10-13 Q10-14 Q10-15 Q10-16 Q10-17 E10-13 Q10-18 Q10-24 P10-6A P10-6B BE10-6 E10-9 E10-11 E10-14 E10-15 P10-4A P10-4B Accou 6/e, 4. Describe the concept of responsibility accounting. Solutio ns Manua l (For Instruc tor Use Only) Analysis 1. Describe the concept of budgetary control.
Erial nting, Application 5. Indicate the features of responsibility reports for cost centers. Q10-19 Q10-5 BE10-1 BE10-2 E10-2 P10-3A E10-10 P10-3B E10-7 E10-9 E10-10 E10-11 E10-12 BE10-5 E10-4 E10-6 P10-1A P10-3A P10-1B 6. Identify the content of responsibility reports for profit centers. Q10-20 Q10-21 BE10-7 DI10-3 E10-16 7. Explain the basis and formula used in evaluating performance in investment centers.
Q10-22 Q10-23 Q10-24 BE10-8 BE10-9 BE10-10 DI10-4 E10-16 E10-19 E10-17 E10-18 BE10-11 BE10-12 E10-20 E10-21 P10-7A BYP10-5 BYP10-4 BYP10-6 BYP10-7.8. Explain the difference between ROI and residual income. Broadening Your Perspective Q10-25 Q10-26 Synthesis Evaluation E10-8 P10-3B BE10-3 E10-8 P10-2A P10-2B P10-5A P10-5B P10-7B BYP10-2 BYP10-3 BYP10-8 BYP10-9 BLO OM’ S TAX ONO MY TAB LE ANSWERS TO QUESTIONS 1.
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(a) Budgetary control is the use of budgets in controlling operations. (b) The steps in budgetary control are: (1) Develop the planned objectives (budget). (2) Analyze differences between actual and budgeted results. (3) Take corrective action. (4) Modify future plans, if necessary. Purpose (a) (b) (c) Name of Report Scrap Departmental overhead costs Income statement Frequency Daily Monthly Monthly and Quarterly Primary Recipient(s) Production manager Department manager Top management 3.
The budget report for the second quarter can include year-to-date information as well as data for the second quarter. There is no justification for Ken’s concern. The sales budget is derived from the sales forecast and it represents management’s best estimate of sales.
Thus, it is a useful basis for evaluating sales performance. A static budget is an appropriate basis for evaluating a manager’s effectiveness in controlling costs when: (1) The actual level of activity closely approximates the master budget activity level and/or (2) The behavior of the costs in response to changes in activity is fixed. Yes, this is true.
A flexible budget is a series of static budgets at different levels of activity. The performance is unfavorable. The budgeted indirect labor cost in the static budget is $1.35 per direct labor hour ($54,000 ÷ 40,000). At 45,000 direct labor hours, budgeted costs are $60,750 (45,000 X $1.35). Thus, indirect labor is $3,250 over budget ($64,000 – $60,750). The performance is favorable.
Factory insurance is a fixed cost. At 50,000 direct labor hours, the budgeted cost is still $6,500. Thus, factory insurance is $200 under budget ($6,500 – $6,300).
The steps in preparing a flexible budget are: (1) Identify the activity index and the relevant range of activity. (2) Identify the variable costs, and determine the budgeted variable cost per unit of activity for each cost.
(3) Identify the fixed costs, and determine the budgeted amount for each cost. (4) Prepare the budget for selected increments of activity within the relevant range. Cali Company can say that total budgeted costs are $20,000 fixed plus $6.50 per direct labor hour ($85,000 – $20,000) ÷ 10,000. (a) At 9,000 hours, total budgeted costs are $86,000, or $50,000 + ($4 X 9,000).
(b) At 12,345 hours, total budgeted costs are $99,380, or $50,000 + ($4 X 12,345). 10-4 Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) Questions Chapter 10 (Continued) 12. Management by exception means that top management’s review of a budget report is focused either entirely or primarily on differences between actual results and planned objectives. The criteria for identifying exceptions are materiality and controllability of the item.
Responsibility accounting is a method of controlling operations that involves accumulating and reporting costs (and revenues, where relevant) on the basis of the manager who has the authority to make the day-to-day decisions about the items. The purpose of responsibility accounting is to evaluate a manager’s performance on the basis of matters directly under that manager’s control.
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