管理会计英文版答案

CHAPTER 1Managerial Accounting, the Business Organization, and Professional Ethics1-A1Solution:Information is often useful for more than one function, so the following classifications for each activity are not definitive but serve as a starting point for discussion:1.Scorekeeping. A depreciation schedule is used in preparing financial statements to report the results of activities.2.Problem solving. Helps a manager assess the impact of a purchase decision.3.Scorekeeping. Reports on the results of an operation. Could also be attention directing if scrap is an area that might require management attention.4.Attention directing. Focuses attention on areas that need attention.5.Attention directing. Helps managers learn about the information contained in a performance report.6.Scorekeeping. The statement reports what has happened. Could also be attention directing if the report highlights a problem or issue.7.Problem solving. Assuming the cost comparison is to help the manager decide between two alternatives, this is problem solving.8.Attention directing. Variances point out areas where results differ from expectations. Interpreting them directs attention to possible causes of the differences.9.Problem solving. Aids a decision about where to make parts.10.Attention directing and problem solving. Budgeting involves making decisions about planned activities - hence, aiding problem solving. Budgets also direct attention to areas of opportunity or concern -hence, directing attention. Reporting against the budget also has a scorekeeping dimension.1-A2Solution:1.BudgetedActualDeviationsAmountsAmountsor VariancesRoom rental$ 140$ 140$ 0Food700865165UEntertainment6006000Decorations 220 260 40UTotal$1,660$1,865$205U 2.Because of the management by exception rule, room rental and entertainment require no explanation. The actual expenditure for food exceeded the budget by $165. Of this $165, $150 is explained by attendance of 15 persons more than budgeted (at a budget of $10 per person for food) and $15 is explained by expenditures above $10 per person.Actual expenditures for decorations were $40 more than the budget. The decorations committee should be asked for an explanation of the excess expenditures.1-29Solution:1.Controller. Financial statements are generally produced by the controllers department.2.Controller. Advising managers aids operating decisions.3.Controller. Advice on cost analysis aids managers operating decisions.4.Treasurer. Analysts affect the companys ability to raise capital, which is the responsibility of the treasurer.5.Treasurer. Financing the business is the responsibility of the treasurer.6.Controller. Tax returns are part of the accounting process overseen by the controller.7.Treasurer. Insurance, as with other risk management activities, is usually the responsibility of the treasurer.8.Treasurer. Allowing credit is a financial decision.CHAPTER 2INTRODUCTION TO COST BEHAVIOR AND COST-VOLUME RELATIONSHIPS2-A3Solution:The following format is only one of many ways to present a solution. This situation is really a demonstration of sensitivity analysis, whereby a basic solution is tested to see how much it is affected by changes in critical factors. Much discussion can ensue, particularly about the final three changes.The basic contribution margin per revenue mile is $1.50 - $1.30 = $.20(1)(2)(3)(4)(5)(1)(2)(3)-(4)RevenueContributionTotalMilesMargin PerContributionFixedNetSoldRevenue MileMarginExpensesIncome1.800,000$.20$160,000$120,000$ 40,0002.(a) 800,000.35280,000120,000160,000(b)880,000.20176,000120,00056,000(c)800,000.0756,000120,000(64,000)(d)800,000.20160,000132,00028,000(e)840,000.17142,800120,00022,800(f)720,000.25180,000120,00060,000(g)840,000.20168,000132,00036,0002-B2Solution:1. $2,300 ($30 - $10) = 115 child-days or 115 $30 = $3,450 revenue dollars.2.176 ($30 - $10) - $2,300 = $3,520 - $2,300 = $1,2203.a.198 ($30 - $10) - $2,300 = $3,960 - $2,300 = $1,660or (22 $20) + $1,220 = $440 + $1,220 = $1,660b.176 ($30 - $12) - $2,300 = $3,168 - $2,300 = $868or $1,220 - ($2 176) = $868c.$1,220 - $220 = $1,000d.(9.5 22) ($30 - $10) - ($2,300 + $300) = $4,180 - $2,600 = $1,580e.(7 22) ($33 - $10) - $2,300 = $3,542 - $2,300 = $1,2422-B3Solution:1. = = 1,250 units2.Contribution margin ratio: = 25%$8,000 25% = $32,0003. = = 2,500 units4.($50,000 - $20,000)(110%)= $33,000 contribution margin;$33,000 - $20,000= $13,0005.New contribution margin:$40 - ($30 - 20% of $30)=$40 - ($30 - $6) = $16;New fixed expenses: $80,000 110% = $88,000; = = 6,750 units2-27 Solution:Situation Best Cost DriverJustification1.Number of SetupsBecause each setup takes the same amount of time, the best cost driver is number of setups. Data is both plausible, reliable, and easy to maintain.2.Setup TimeLonger setup times result in more consumption of mechanics time. Simply using number of setups as in situation 1 will not capture the diversity associated with this activity.3.Cubic FeetAssuming that all products are stored in the warehouse for about the same time (that is inventory turnover is about the same for all products), and that products are stacked, the volume occupied by products is the best cost driver. 4.Cubic Feet WeeksIf some types of product are stored for more time than others, the volume occupied must be multiplied by a time dimension. For example, if product A occupies 100 cubic feet for an average of 2 weeks and product B occupies only 40 cubic feet but for an average of 10 weeks, product B should receive twice as much allocation of warehouse occupancy costs.5.Number of OrdersBecause each order takes the same amount of time, the best cost driver is number of orders. Data is both plausible, reliable, and easy to maintain.6.Number of OrdersEach order is for different types of products but there is not diversity between them in terms of the time it takes to process the order. (If there was variability in the number of product types ordered, the best driver would be number of order line items.)2-38Solution:1.100% Full50% FullRoom revenue $50$1,825,000 a$ 912,500 bVariable costs $10 365,000 182,500Contribution margin1,460,000730,000Fixed costs 1,200,000 1,200,000Net income (loss)$ 260,000$ (470,000)a100 365 = 36,500 rooms per year 36,500 $50 = $1,825,000b50% of $1,825,000 = $912,5002. Let N= number of rooms$50N -$10N - $1,200,000 = 0N= $1,200,000 $40 = 30,000 roomsPercentage occupancy= 30,000 36,500 = 82.2%2-40 Solution:1.Let R = pints of raspberries and 2R = pints of strawberriessales - variable expenses - fixed expenses = zero net income$1.10(2R) + $1.45(R) - $.75(2R) - $.95(R) - $15,600= 0$2.20R + $1.45R - $1.50R - $.95R -$15,600= 0$1.2R - $15,600= 0R= 13,000 pints of raspberries2R = 26,000 pints of strawberries2.Let S = pints of strawberries($1.10 - $.75) S - $15,600 = 0.35S - $15,600 = 0S = 44,571 pints of strawberries3.Let R = pints of raspberries($1.45 - $.95) R - $15,600 = 0$.50R - $15,600 = 0R = 31,200 pints of raspberries2-42Solution:Several variations of the following general approach are possible:Sales - Variable expenses - Fixed expenses = S - .75S - $440,000 = .25S = $440,000 + $120,0003-A1Solution:Some of these answers are controversial, and reasonable cases can be built for alternative classifications. Class discussion of these answers should lead to worthwhile disagreements about anticipated cost behavior with regard to alternative cost drivers.1.(b) Discretionary fixed cost.2.(e) Step cost. 3.(a) Purely variable cost with respect to revenue. 4.(a) Purely variable cost with respect to miles flown. 5.(d) Mixed cost with respect to miles driven. 6.(c) Committed fixed cost. 7.(b) Discretionary fixed cost. 8.(c) Committed fixed cost.9.(a) Purely variable cost with respect to cases of Coca-Cola. 10.(b) Discretionary fixed cost.11.(b) Discretionary fixed cost.3-A2Solution:1.Support costs based on 60% of the cost of materials:Sign ASign BDirect materials cost$400$200Support cost (60% of materials cost)$240$120Support costs based on $50 per power tool operation:Sign ASign BPower tool operations36Support cost$150$3002. If the activity analysis is reliable, by using the current method, Evergreen Signs is predicting too much cost for signs that use few power tool operations and is predicting too little cost for signs that use many power tool operations. As a result the company could be losing jobs that require few power tool operations because its bids are too high - it could afford to bid less on these jobs. Conversely, the company could be getting too many jobs that require many power tool operations, because its bids are too low - given what the true costs will be, the company cannot afford these jobs at those prices. Either way, the sign business could be more profitable if the owner better understood and used activity analysis. Evergreen Signs would be advised to adopt the activity-analysis recommendation, but also to closely monitor costs to see if the activity-analysis predictions of support costs are accurate.3-B2Solution:Board Z15 Board Q52Mark-up method:Material cost$40$60Support costs (100%)$40$60Activity analysis method:Manual operations157Support costs ($4) $60$28The support costs are different because different cost behavior is assumed by the two methods. If the activity analyses are reliable, then boards with few manual operations are overcosted with the markup method, and boards with many manual operations are undercosted with the markup method.3-B3 Solution:Variable cost per machine hour= = = P15,000 per machine hourFixed cost per month= total cost - variable cost= P260,000,000 - P15,000 x 12,000= P260,000,000 - P180,000,000= P 80,000,000 per monthor= P200,000,000 - P15,000 x 8,000= P200,000,000 - P120,000,000= P 80,000,000 per month3-32 Solution:1.Machining labor: G, number of units completed or labor hours2.Raw material: B, units produced; could also be D if the companys purchases do not affect the price of the raw material.3.Annual wage: C or E (depending on work levels), labor hours4.Water bill: H, gallons used5.Quantity discounts: A, amount purchased 6.Depreciation: E, capacity7.Sheet steel: D, number of implements of various types8.Salaries: F, number of solicitors9.Natural gas bill: C, energy usage3-34 Solution:1. 20012002Sales revenues$57$116Less: Operating income (loss) (19) 18Operating expenses$76 $ 982.Change in operating expenses Change in revenues = Variable cost percentage($98 - $76) ($116 - $57) = $22 $59 = .37 or 37%Fixed cost= Total cost Variable cost= $76 - .37 $57 = $55or= $98 - .37 $116 = $55Cost function = $55 + .37 Sales revenue3. Because fixed costs to not change, the entire a