Grāmata: Introduction to Management Accounting Global Edition (VLeBooks)
Author: Charles T. Horngren [and Three Others]. Pages: 861 Publisher: Pearson Education
Published: 06 November, 2013
eISBN-13: 9780273790624
CHAPTER 1 • MANAGERIAL ACCOUNTING, THE BUSINESS ORGANIZATION, AND PROFESSIONAL
ETHICS
1-B1 Scorekeeping, Attention Directing, and Problem Solving For each of the following activities,
identify the function the accountant is performing— scorekeeping, attention directing, or problem
solving. Explain each of your answers.
1. Estimating the operating costs and outputs that could be expected for each of two large metal-
stamping machines offered for sale by different manufacturers; only one of these machines is to be
acquired by your company
2. Recording daily material purchase vouchers
3. Analyzing the expected costs of acquiring and using each of two alternate types of welding
equipment
4. Preparing a report of overtime labor costs by production department
5. Estimating the costs of moving corporate headquarters to another city
6. Interpreting increases in nursing costs per patient-day in a hospital
7. Analyzing deviations from the budget of the factory maintenance department
8. Assisting in a study by the manufacturing vice president to determine whether to buy certain
parts needed in large quantities for manufacturing products or to acquire facilities for manufacturing
these parts
9. Preparing estimated costs for a new marketing campaign 10.
Recording overtime hours of the product finishing department
11. Compiling data for a report showing the ratio of advertising expenses to sales for each
branch store
12. Investigating reasons for increased returns and allowances for drugs purchased by a hospital
13. Preparing a schedule of fuel costs by months and government departments
14. Computing and recording end-of-year adjustments for expired fire insurance on the factory
warehouse
1-B2 Management by Exception The Skokomish Indian tribe sells fireworks for the 5 weeks preceding
July 4. The tribe’s stand on Highway 101 near Hoodsport had budgeted sales of $80,000. Expected
expenses were as follows:
Cost of fireworks $ 40,000
Labor cost 10,000
Other costs 7,000
Total costs $ 57,000
Actual sales were $79,440, almost equal to the budget. The tribe spent $39,400 for fireworks,
$13,100 for labor, and $6,900 for other costs.
1. Compute budgeted profit and actual profit.
2. Prepare a performance report to help identify those costs that were significantly different from
the budget.
3. Suppose the tribe uses a management-by-exception rule. What costs deserve further explanation?
Why?
1-B3 Ethical Code of Conduct According to the Financial Executives Institute , “corporate governance
consultants and academics agree that a company needs to have a code of conduct” for its
employees. Most companies, even many of those who experienced ethical breakdowns, have such a
code. Answer the following questions about corporate codes of conduct.
1. What is a corporate code of conduct?
2. What types of issues are covered in a corporate code of conduct?
At what level of detail?
3. In some cases, codes of conduct were not effective. What, besides simply having a code, is
necessary for a code of conduct to be effective?
Additional Assignment Material QUESTIONS
1-1 Who uses information from an accounting system?
1-2 “The emphases of financial accounting and management accounting differ.” Explain.
1-3 “The field is less sharply defined. There is heavier use of economics, decision sciences, and
behavioral sciences.” Identify the branch of accounting described in the quotation.
1-4 Distinguish among scorekeeping, attention directing, and problem solving.
1-5 “Generally accepted accounting principles (GAAP) assist the development of management
accounting systems.” Do you agree? Explain.
1-6 “The Foreign Corrupt Practices Act applies to bribes paid outside the United States.” Do you
agree? Explain.
1-7 Why is the Sarbanes-Oxley Act controversial?
1-8 Why is integrity so important to accountants?
1-9 “Integrity is more important for business professionals than it is for business students.” Do you
agree? Explain.
1-10 Give three examples of service organizations. What distinguishes service organizations from
other types of organizations?
1-11 What two major considerations affect the design of all accounting systems? Explain each.
1-12 “The accounting system is intertwined with operating management. Business operations
would be in a hopeless tangle without the recordkeeping that is so often regarded with disdain.”
Do you agree? Explain, giving examples.
