Solution Manual for Intermediate Accounting 3rd Edition by Wahlen

Solution Manual for Intermediate Accounting 3rd Edition by Wahlen

Solution Manual for Fundamentals of Cost Accounting 6th Edition by Lanen

1. Describe the way managers use accounting information to create value in organizations.

2. Distinguish between the uses and users of cost accounting and financial accounting information.

3. Explain how cost accounting information is used for decision making and performance evaluation in organizations.

4. Identify current trends in cost accounting.

5. Understand ethical issues faced by accountants and ways to deal with ethical problems that you face in your career.

1. VALUE CREATION IN ORGANIZATIONS

• Why Start with Value Creation?
• Value Chain
• Supply Chain and Distribution Chain
• Using Cost Information to Increase Value
• Accounting and the Value Chain

1. ACCOUNTING SYSTEMS

• Financial Accounting
• Cost Accounting
• Cost Accounting, GAAP, and IFRS
• Customers of Cost Accounting

• The Manager’s Job Is to Make Decisions
• Decision Making Requires Information
• Finding and Eliminating Activities That Don’t Add Value
• Identifying Strategic Opportunities Using Cost Analysis
• Owners Use Cost Information to Evaluate Managers

1. COST DATA FOR MANAGERIAL DECISIONS

• Costs for Decision Making
• Costs for Control and Evaluation
  • Budgeting
• Different Data for Different Decisions

1. TRENDS IN COST ACCOUNTINGthroughout the value chain

• Cost Accounting in Research and Development (R&D)
• Cost Accounting in Design
• Cost Accounting in Purchasing
• Cost Accounting in Production
• Cost Accounting in Marketing
• Cost Accounting in Distribution
• Cost Accounting in Customer Service
• Enterprise Resource Planning
• Creating Value in the Organization

1. KEY FINANCIAL PLAYERS IN THE ORGANIZATION

• What Makes Ethics So Important?
• Ethics
• The Sarbanes-Oxley Act of 2002 and Ethics

1. APPENDIX: INSTITUTE OF MANAGEMENT ACCOUNTANTS CODE OF ETHICS

• Statements of Ethical Professional Practice
• Principles
• Standards
  • Resolving Ethical Issues

• Why Start with Value Creation?

• Goal of cost accounting is to assist manages in achieving the maximum value for their organizations.

• Value Chain

• The value chain is the set of activities that transforms raw resources into the goods and services end users purchase and consume.

• It includes the treatment or disposal of any waste generated by the end users.

• Value-added activities are those that customers perceive as adding utility to the goods or services they purchase.

• Exhibit 1.1 identifies the individual components of the value chain and providesexamples of the activities in each component, along with some of the costs associatedwith these activities.Although the list of value chain components suggests a sequential process, many of the components overlap.

• Research and development (R&D): The creation and development of ideas related to new products, services, or processes.

• Design: The detailed development and engineering of products, services, or processes.

• Purchasing: The acquisition of goods and services needed to produce a good or service.

• Production: The collection and assembly of resources to produce a product or deliver a service.

• Marketing and Sales: The process of informing potential customers about the attributes of products or services that leads to their sale.

• Distribution: The process for delivering products or services to customers.

• Customer service: The support activities provided to customers for a product or service.
• Before product ideas are formulated,no value exists. Once an idea is established, however, value is created.

• Whenresearch and development of the product begins, value increases.

• As the productreaches the design phase, value continues to increase.

• Each component adds value tothe product or service.

• Administrative functions, such as human resource management and accounting, are not included as part of the value chain; they are included instead in every business function of the value chain.

• Supply Chain and Distribution Chain

• The supply chainincludes the set of firms and individualsthat sells goods and servicesto the firm. (See Business Application box “Choosing Where to Produce in the Supply Chain.”)

• The distribution chainincludes the set of firms and individualsthat buys and distributesgoods and services fromthe firm.

• These suppliers and customers are on the firm’s boundaries. Thus, the supply chain and distribution chain are the parts of the value chain outside the firm.

• Using Cost Information to Increase Value

• The measurement and reporting of costs is avaluable activity.

• Cost information that is received too late to help managersmakedecisionswould not add value.

• Accounting and the Value Chain

• Cost accounting focuses on how the individual stages contribute to the value and how to work with other managers to improve performance.

Solution Manual for Financial and Managerial Accounting 8th Edition By Wild

Chapter 1

1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans.
2. Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for people who can design accounting systems, supervise their operation, analyze complex transactions, and interpret reports. Demand also exists for people who can effectively use computers to prepare and analyze accounting reports. Technology will never substitute for qualified people with abilities to prepare, use, analyze, and interpret accounting information.
3. External users and their uses of accounting information include: (a) lenders, to measure the risk and return of loans; (b) shareholders, to assess whether to buy, sell, or hold their shares; (c) directors, to oversee the organization; (d) employees and labor unions, to judge the fairness of wages and assess future employment opportunities; and (e) regulators, to determine whether the organization is complying with regulations. Other users are voters, legislators, governmentofficials, contributors to nonprofits, suppliers, and customers.
4. Business owners and managers use accounting information to help answer questions such as: What resources does an organization own? What debts are owed? How much income is earned? Are expenses reasonable for the level of sales? Are customers’ accounts being promptly collected?
5. Service businesses include: Standard and Poor’s, Dun & Bradstreet, Merrill Lynch, Southwest Airlines, CitiCorp, Humana, Charles Schwab, and Prudential.  Businesses offering products include Nike, Reebok, Gap, Apple, Ford Motor Co., Philip Morris, Coca-Cola, Best Buy, and WalMart.
6. The internal role of accounting is to serve the organization’s internal operating functions. It does this by providing useful information for internal users in completing their tasks more effectively and efficiently. By providing this information, accounting helps the organization reach its overall goals.
7. Accounting professionals offer many services including auditing, management advice, tax planning, business valuation, and money management.
8. Marketing managers are likely interested in information such as sales volume, advertising costs, promotion costs, salaries of sales personnel, and sales commissions.
9. Accounting is described as a service activity because it serves decision makers by providing information to help them make better business decisions.
10. Some accounting-related professions include consultant, financial analyst, underwriter, financial planner, appraiser, FBI investigator, market researcher, and system designer.

Solution Manual for Fundamentals of Financial Accounting 6th Edition by Phillips

1. The time value of money is the idea that a dollar received today is worth more than a dollar to be received at any later date because it can be invested today to earn interest over time.
2. Future value—The future value of a number of dollars is the amount that it will increase to in the future at i interest rate for n periods. The future value is the principal plus accumulated interest compounded each period.

3. $10,000 x 2.59374 = $25,937 (rounded to the nearest dollar).
4. $8,000 x .38554 = $3,084 (rounded to the nearest dollar).
5. An annuity is a term that refers to equal periodic cash payments or receipts of an equal amount each period for two or more periods. In contrast to a future value of $1, or a present value of $1 (which involves a single contribution or amount), an annuity involves a series of equal contributions for a series of equal periods. An annuity may refer to a future value or a present value.

7. $1,000 x 14.48656 = $14,487. (rounded to the nearest dollar)

Solution Manual for Managerial Accounting 11th CANADIAN Edition by Garrison

• Describe the functions performed by managers.
• Identify the major differences and similarities between financial and managerial accounting.
• Explain the basic concepts of lean production and enterprise risk management.
• Explain the nature and importance of ethics for accountants and the role of corporate social responsibility.
• Explain how intrinsic motivation, extrinsic incentives, and cognitive biases affect employee behaviour.

• It explains the nature of managerial accounting in providing internal accounting information to support the work of management—planning, directing and motivating, and controlling.
• It describes the nature of organizations and the role of management accountants in an organization.
• It explains how companies are responding to a changing business environment by improving business process with the following four approaches:
  • Lean Production
  • Enterprise Risk Management
• It discusses the importance of upholding ethical standards.

Solution Manual for Financial and Managerial Accounting 8th Edition By Wild

Chapter 1

1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans.
2. Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for people who can design accounting systems, supervise their operation, analyze complex transactions, and interpret reports. Demand also exists for people who can effectively use computers to prepare and analyze accounting reports. Technology will never substitute for qualified people with abilities to prepare, use, analyze, and interpret accounting information.
3. External users and their uses of accounting information include: (a) lenders, to measure the risk and return of loans; (b) shareholders, to assess whether to buy, sell, or hold their shares; (c) directors, to oversee the organization; (d) employees and labor unions, to judge the fairness of wages and assess future employment opportunities; and (e) regulators, to determine whether the organization is complying with regulations. Other users are voters, legislators, governmentofficials, contributors to nonprofits, suppliers, and customers.
4. Business owners and managers use accounting information to help answer questions such as: What resources does an organization own? What debts are owed? How much income is earned? Are expenses reasonable for the level of sales? Are customers’ accounts being promptly collected?
5. Service businesses include: Standard and Poor’s, Dun & Bradstreet, Merrill Lynch, Southwest Airlines, CitiCorp, Humana, Charles Schwab, and Prudential.  Businesses offering products include Nike, Reebok, Gap, Apple, Ford Motor Co., Philip Morris, Coca-Cola, Best Buy, and WalMart.
6. The internal role of accounting is to serve the organization’s internal operating functions. It does this by providing useful information for internal users in completing their tasks more effectively and efficiently. By providing this information, accounting helps the organization reach its overall goals.
7. Accounting professionals offer many services including auditing, management advice, tax planning, business valuation, and money management.
8. Marketing managers are likely interested in information such as sales volume, advertising costs, promotion costs, salaries of sales personnel, and sales commissions.
9. Accounting is described as a service activity because it serves decision makers by providing information to help them make better business decisions.
10. Some accounting-related professions include consultant, financial analyst, underwriter, financial planner, appraiser, FBI investigator, market researcher, and system designer.