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primary users are external _____ buy products in bulk producers, marks them up, and resell to retailers a law office, an advertising agency, and a hospital are examples of ___ ??Direct or indirect cost---assuming that the cost object is the juniors department at kohls junior department sales clerk electricity for the building cost of hangers used to display clothing in the store failing to read the specification of the software package before purchasing it violates the ____ standard providing earning information to you sister before it is publicly announced violates the _____ standard main characteristic of information is that it must be relevant reports tend to be prepared for the parts of the organization rather than the whole organization primary users are internal it is governed by GAAP or the IFRS the primary characteristic of information are that it must be reliable and objective reports are prepared as needed it is not governed by legal requirements formula for inventory turnover cost of goods sold / average inventory = inventory turnover the institute of management accountants(IMA) issues the _______ certification certified management accountant (CMA) typically do not have an inventory johnson & johnson a personal care products manufacturer converts _____ into finished products choose-finished goods inventory manufacturing companiesraw materials inventory inventory (merch)merchandising companieswholesalersservice companieswork in progress inventory has three types of inventory on the balance sheet stealing from your employer is a violation of the ______ standard skipping continuing education sessions could violate the requirement to maintain professional ________. if your comany paid for you to attend the conference, skipping the sessions also violated the _______ standard composed of goods partially through the manufacturing process (not finished) work in progress inventory forever 21, target, and kohl's are all examples of ______ for a company such as best buy, includes all of the costs necessary to purchase products and get them on to the shelves most for profit organizations can be described as being in one of three categories service companies, manufacturing companies, merchandising companies the monthly professional magazine published by the institute of management accountants is called ____ the certification offered by IMA focuses on ____ and ____ topics failing to provide job description information to management because you fear it may be used to cut a position in department violates the _____ standard choose-competence confidentiality integrity credibility to earn CMA certification a candidate must have a ______.The CMA exam can be taken before finishing the degree the certification launched in 2012 jointly by the american institute of public accountants and the chartered institute of management accountants is called Chartered Global Management information is verified by external auditors reporting is based mainly on the company as a whole ( net income - preferred dividends) / average common equity = rate of return on equity ( net income + interest expense) / average total assets = rate of return on assets reports are usually prepared quarterly and annually gross profit / net sales = gross profit percentage average net accounts receivable / on day's sales = average receivables net income / net sales = rate of return on net sales operating income percentage operating income / net sales = operating income percentage Full file at testbanku/ Solution Manual for ManagerialAccounting 3rd Canadian Edition byBraunComplete downloadable file at:- testbanku/Solution-Manual-for-Managerial-Accounting-3rd-Canadian-Edition-by-BraunQuick CheckAnswers:
2Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual 1 Short Exercises(5–10 min.) S1-The four primary responsibilities of managers include planning, directing, controlling, and decision making. Managers plan by setting goals and objectives for the company and devising strategies for achieving those goals. Then they direct the day-to- day operations of the company in light of the goals and objectives. They control the company by comparing actual results to plans and then use that feedback to adjust plans and operations. Throughout all aspects of these duties, management is making critical business decisions. Student responses may vary. 2 Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual (5–10 min.) S1-a. Internal auditing department b. Controller c. Treasurer d. Internal auditing department e. Controller f. Controller g. Treasurer h. Internal auditing department i. Controller j. Controller k. Treasurer l. Internal auditing department m. Controller 4 Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual Full file at testbanku/ (5–10 min.) S1-Characteristic Check () if related to internal auditing a. Helps to ensure that company’s internal controls are functioning properly b. Reports to treasurer or controller c. Required by the Toronto Stock Exchange if company stock is publicly traded on the TSX d. Reports directly to the audit committee e. Ensures that the company achieves its profit goals f. Is part of the accounting department g. Usually reports to a senior executive (CFO or CEO) for administrative matters h. Performs the same function as independent certified public accountants i. External audits can be performed by the internal auditing department Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual 5 Full file at testbanku/ (continued) S1-Finally, An important part of management accountants’ responsibilities is communicating information and providing reports to senior management. To be able to rely on these reports, management must have confidence that the management accountant is not hiding inconvenient facts or presenting a biased view. Student responses may vary. Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual 7 (5 min.) S1-a. Providing earnings information to your brother before it is publicly announced violates the concept of client confidentiality, and fails to uphold trust. b. Stealing from your employer is a violation of the concept of integrity, and is illegal c. Skipping continuing education sessions could violate the requirement to maintain professional competence in enabling competencies. If your company paid for you to attend the conference, skipping the sessions also violates the notion of integrity d. Failing to read the specifications of the software package before purchasing it violates professional competence in enabling competencies e. Failing to provide job description information to management because you fear it may be used to cut a position in your department violates the notion of integrity and the required skills of a competent accountant 8 Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual (5–10 min.) S1-a. Lean b. Traditional c. Traditional d. Lean e. Traditional f. Lean g. Lean h. Traditional i. Lean j. Lean k. Lean l. Lean m. Traditional 10 Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual Full file at testbanku/ (5 min.) S 1-
Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual 11 Full file at testbanku/ (continued) S1-Req. 2 Cost /<Benefit> Analysis Costs <Savings> Prevention costs: Negotiating with and training suppliers to obtain higher quality materials and on-time delivery............. $ 300, Redesigning the speakers to make them easier to manufacture............................................. 1,400, Appraisal costs: Additional 20 minutes of testing for each speaker.......... 500, Savings on Inspection of raw materials............................ $<400,000> Internal failure costs: Savings on Rework......................................................... <650,000> Savings on Lost profits from lost production time due to rework...................................................................... <300,000> External failure costs: Savings on Warranty repair costs.................................... <200,000> Savings on Lost profits from lost sales due to disappointed customers............................................... <850,000 > Net <Benefit> from implementing quality program............. $ 0 Wharfedale should implement the new quality program. The company would save $0 by implementing the new program but the change would likely improve longer term relations with current as well as potential new customers............. Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual 13 (5–10 min.) S1-
14 Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual (5 min.) E1-14Aa. Companies must follow IFRS or ASPE in their financial accounting systems. b. Financial accounting develops reports for external parties such as creditors and shareholders. c. When managers evaluate the company’s performance compared to the plan, they are performing the controlling responsibility of management. d. Managers are decision makers inside a company. e. Financial accounting provides information on a company’s past performance to external parties. f. Managerial accounting systems are not restricted by IFRS or ASPE but are chosen by comparing the costs versus the benefits of the system. g. Choosing goals and the means to achieve them is the planning function of management. h. Managerial accounting systems report on various segments or business units of the company. i. Financial accounting statements of public companies are audited annually by public accountants. 16 Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual Full file at testbanku/ (5–10 min.) E1-15A
Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual 17 Full file at testbanku/ (5 min.) E1-17AMajor issues in management accounting include:
(Student answers may vary.) Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual 19 (15 min.) E1-18AReq. 1 While the amount is not large now, the repeated nature of the thefts means that they add up over time. Also, the repeated nature of the thefts increases the severity of Anik Cousineau’s unethical behaviour. A new employee who has engaged in repeated thefts is unlikely to become a valued and trusted employee. As controller, Mary Gonzales hired Anik, and she is also responsible for the lack of controls that permitted a new employee to commit this theft. However, this is no excuse for Anik’s unethical behaviour. The controller should think carefully whether it is in the company’s interest to keep Anik or fire her immediately. This incident also reflects poorly on Mary’s competence. She needs to learn from the experience and supervise the next bookkeeper more carefully. Req. 2 The new information makes Mary’s decision more complex. Being new, she may want to discuss the situation with the company president. Even if the bookkeeper believed she was just “borrowing” the money, her behaviour is still unethical. It will probably be difficult to confirm whether Anik did in fact repay money she had taken in the past. Unless Mary can obtain additional clarifying information, one alternative to firing her would be to indicate to Anik that this behaviour will not be tolerated in the future and to establish better controls and closer supervision. Student responses may vary. 20 Managerial Accounting Third Canadian Edition Instructor’s Solutions Manual Is focused on evaluating a company's performance not only by its ability to generate?Evaluating a company's performance not only by its ability to generate economic profits, but also by its impact on people and the planet.
Which of the following characteristics apply to managerial accounting as opposed to financial accounting?Managerial accounting reports are less regulated than financial accounting reports. Managerial accounting is characterized by its objectivity, reliability, consistency and historical nature.
Which is not a characteristic of managerial accounting information?Managerial accounting does not emphasize the external financial statements as it is the role of financial accounting to prepare and present the financial details of a business to external users for transparency.
Are operating costs that are expensed in the accounting period in which they are incurred?Answer: Period costs are operating costs that are expensed in the accounting period in which they are incurred.
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