Type:
Solution Manual
Resource:
Managerial Accounting
Edition:
3rd Edition
Author(s):
Karen W. Braun Wendy M. Tietz
Contents Chapter 1
Introduction to Managerial Accounting.………………………… 1-1
Chapter 2
Building Blocks of Managerial Accounting…………………….... 2-1
Chapter 3
Job Costing………………………………………………………… 3-1
Chapter 4
Activity-Based Costing, Lean Operations, and the Costs of Quality …………………………………………………... 4-1
Chapter 5
Process Costing………………………….…………………….....… 5-1
Chapter 6
Cost Behavior…………………..…………………...........................6-1
Chapter 7
Cost-Volume-Profit Analysis……………………………….……...7-1
Chapter 8
Short-Term Business Decisions.………………………………...…8-1
Chapter 9
The Master Budget …….…………………………...……………...9-1
Chapter 10
Performance Evaluation ………………………………………….10-1
Chapter 11
Standard Costs and Variances………………………..…………..11-1
Chapter 12
Capital Investment Decisions and the Time Value of Money…..12-1
Chapter 13
Statement of Cash Flows…….……………………………………13-1
Chapter 14
Financial Statement Analysis……………………………………..14-1
Chapter 15
Environmental Sustainability…………………………………….15-1
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Chapter 1 Overview Introduction to Managerial Accounting The chapter introduces managerial accounting along with the fundamental principle of the text which is the importance of using managerial accounting data in decision-making. Students are introduced to the importance of such data to decision-making by discussing the primary responsibilities of a manager: planning, directing, and controlling. To help students understand the managerial accounting focus, financial and managerial accounting are contrasted and compared. Managerial accounting has internal users relying on relevant information prepared specifically for management’s needs while financial accounting has external users using reliable and objective information in the form of financial statements. The importance of using managerial accounting for decision-making is illustrated through the presentation of a typical organizational structure as well as the roles and skills required of management accountants. In addition to their traditional costing and reporting roles, management accountants also play an important role in planning, analyzing, and interpreting accounting data including developing budgets that influence the organization’s culture and strategy. Increasing the importance and profile of management accountants is a goal of the Institute of Management Accountants (IMA). The IMA is the professional association for management accountants which also develops standards of ethics and standards of professional conduct. The Decision Guidelines and Summary Problems are useful examples of questions and outlines that help students summarize their learning reinforcing the objectives of the chapter. Two sets of Decision Guidelines and Summary Problems are present in this chapter. The first set of Guidelines reinforces the role of managerial accounting and the management accountant in an organization. The first set of Summary Problems reinforces the concepts introduced in the first part of the chapter. Topics include managements’ responsibilities, managerial versus financial accounting, and ethical responsibilities. The next section of the chapter presents the implications of regulatory trends. These include the Sarbanes-Oxley Act of 2002, IFRS, and XBRL. The final section of the chapter considers the impact of certain business trends affecting companies and their managerial accounting systems. These trends include: sustainability, social responsibility and the triple bottom line; shifting toward a service economy; competing in the global marketplace; advanced information systems; lean operations; total quality management; and ISO 9001:2008. Cost-Benefit Analysis, a staple of decision making, is introduced. The second set of Decision Guidelines illustrates some of the decisions managers need to consider in response to changes in the regulatory and business environment. An additional Summary Problem allows students to use cost-benefit analysis to determine whether a company should expand or not.
1-1 .
Learning Objectives After studying Chapter 1, your students should be able to: 1. Identify managers’ three primary responsibilities. 2. Distinguish financial accounting from managerial accounting. 3. Describe organizational structure and the roles and skills required of management accountants within the organization. 4. Describe the role of the Institute of Management Accountants (IMA) and use its ethical standards to make reasonable ethical judgments. 5. Discuss and analyze the implications of regulatory and business trends.
1-2 .
Teaching Outline 1. Identify managers’ three primary responsibilities. a. Planning b. Directing c. Controlling d. Exhibit 1-1 Managers’ Three Primary Responsibilities 2. Distinguish the differences between financial accounting and managerial accounting. a. Users b. Purpose of information provided c. Accounting product d. Required information and reporting format e. Underlying basis of the information f. Information characteristic emphasis g. Business unit h. Timing i. Verification j. Required information k. Impact of reports on employee behavior l. Exhibit 1-2 Managerial Accounting Versus Financial Accounting 3. Describe the organizational structure and the management accountant’s place within the organization. a. Board of directors b. CEO c. COO d. CFO e. Treasurer f. Controller g. Internal audit function h. Audit committee i. Exhibit 1-3 Typical Organizational Structure 4. Discuss the changing roles of management accountants. a. Use of cross-functional teams 5. Discuss the skills required of management accountants. a. Solid accounting knowledge b. Analytical skills c. Knowledge of how a business functions d. Team oriented e. Oral and written communication skills f. Exhibit 1-4 The Skills Required of Management Accountants 6. Describe the role of the Institute of Management Accountants (IMA). a. Professional association b. Certified Management Accountant (CMA) c. Average salaries 1-3 .