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Instructor’s Manual
to accompany
ACCOUNTING FOR DECISION MAKING
& CONTROL
SEVENTH EDITION
JEROLD L. ZIMMERMAN
WILLIAM E. SIMON GRADUATE SCHOOL
OF BUSINESS ADMINISTRATION
UNIVERSITY OF ROCHESTER
THIS MATERIAL IS FOR CLASSROOM USE ONLY AND
MAY NOT BE COPIED OR USED FOR ANY OTHER PURPOSE
COPYRIGHT 2011
ALL RIGHTS RESERVED
DO NOT COPY OR DUPLICATE WITHOUT PERMISSION
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CONTENTS
PREFACE
ii
PART I: USING THE TEXT
Suggested Course Outlines
iii
Chapter Teaching Suggestions
vii
Suggested Assignment Problems & Cases
xxiii
Alphabetical Listing of Problems and Cases
xxxi
PART II: SOLUTIONS TO PROBLEMS AND CASES
1. Introduction
1-1
2. The Nature of Costs
2-1
3. Opportunity Cost of Capital and Capital Budgeting
3-1
4. Organizational Architecture
4-1
5. Responsibility Accounting and Transfer Pricing
5-1
6. Budgeting
6-1
7. Cost Allocation: Theory
7-1
8. Cost Allocation: Practices
8-1
9. Absorption Cost Systems
9-1
10. Criticisms of Absorption Cost Systems: Incentive to Overproduce
10-1
11. Criticisms of Absorption Cost Systems: Inaccurate Product Costs
11-1
12. Standard Costs: Direct Labor and Materials
12-1
13. Overhead and Marketing Variances
13-1
14. Management Accounting in a Changing Environment
14-1
PART III: TEST BANK AND SOLUTIONS
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PREFACE
This Instructor’s Manual for Accounting for Decision Making & Control contains
three parts. The first part describes how the text can be used in a variety of courses: a
seven week executive MBA, a quarter-length course, and a semester-length course.
Sample class outlines are provided for each type of course. The first part also contains
detailed chapter-by-chapter teaching summaries (including suggested problems and
cases) of how I teach each chapter, what topics to emphasize, and the strategy for
presenting the subject matter. Also included is a classification of the end-of-chapter
problems and cases by level of difficulty and degree of classroom discussion generated,
and an alphabetical index to all problems and cases.
The second part of this Instructor’s Manual contains detailed solutions to the endof-chapter problems and cases. Many of these problems developed out of discussions
with students in actual situations at their companies, or are based on my consulting
experience. All of the problems have been used on exams and have been taught in class
several times. However, no amount of prior usage can guarantee that a bright student
will not see a new interpretation or solution. Thought-provoking problems have this
characteristic. I am very interested in receiving feedback on the problems and cases, as
well as the text. Please e-mail me at jerry.zimmerman@simon.rochester.edu.
The third part of this Manual is a test bank, including solutions. Producing good
exam problems and solutions is difficult.
Textbook authors are always welcome
recipients and grateful acknowledgers of such material.
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PART I: USING THE TEXT
Suggested Course Outlines
Quarter, Semester, and Executive Courses
Accounting for Decision Making & Control can be used in quarter- and semesterlength introductory MBA managerial accounting courses and 7-8 week executive MBA
courses. The following three tables suggest course outlines for quarter, semester, and
executive MBA courses. None of the outlines cover capital budgeting (Chapter 3).
Quarter-length courses. Table 1 presents a ten-week quarter course. The text
contains too much material to cover it all comfortably in a ten week quarter course.
Chapter 3 on capital budgeting, and all the appendices must be omitted. This allows time
for covering the crucial problems and a few supplemental cases, but limited opportunity
for outside readings.
Semester-length courses. Table 2 presents a thirteen-week semester course. A
semester format gives the instructor added flexibility for covering Chapter 3 on capital
budgeting, appendices, outside readings, additional topics, or cases. Depending on the
instructor’s interest and program demands, the book complements additional topics on
ethics, international examples, new manufacturing advances, quality management, ABC
and ABM, balanced score card, lean manufacturing, etc. These topics fit naturally
toward the end of the course after developing the underlying framework and an
understanding of the evolution of costing systems.
Executive MBA courses. Table 3 presents the outline for a seven-week executive
course. The book has been used successfully with executive MBA students. In a seven
week, one-day-a-week setting with three hours of lectures per week, the course is fast
paced. Executive students, having encountered similar situations, find the problems very
realistic, and are especially receptive to integrating the accounting, economics, and
organizational aspects of the material. However, much of the material must be pared
back. Delete all of the appendices, Chapter 3 on capital budgeting, and Chapters 12 and
13 on standard costs and variances.
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TABLE 1: Ten-Week Quarter Course
(Two 90 minute lectures per week)
(No coverage of Material in Appendices)
Class No.
Chapter
1
1
Introduction
2
2
Nature of Costs
3
2
Nature of Costs
4
4
Organizational Architecture
5
5
Responsibility Accounting and Transfer Pricing
6
5
Responsibility Accounting and Transfer Pricing
7
6
Budgets and Budgeting
8
6
Budgets and Budgeting
9
7
Cost Allocation: Theory
10
8
Cost Allocation: Practices
11
Topic
MIDTERM
12
9
Absorption Cost Systems
13
9
Absorption Cost Systems
14
10
Criticisms of Absorption Cost Systems: Incentive to
Overproduce
15
11
Criticisms of Absorption Cost Systems: Inaccurate Product
Costs
16
12
Standard Costs: Direct Labor and Materials
17
12
Standard Costs: Direct Labor and Materials
18
13
Overhead and Marketing Variances
19
14
Management Accounting in a Changing Environment
20
14
Management Accounting in a Changing Environment
Notes:
Each class can present some of the material in the chapter and cover 2-3 homework problems.
Assigning a longer case every 2-3 weeks also breaks up the pace of the course and allows the students
to apply the concepts to longer, more difficult problems.
This format does not allow much time for outside readings. To read and understand the chapter and
work 2-3 problems requires about 5-6 hours of preparation time per class.
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TABLE 2: Thirteen-Week Semester Course
(Two 90 minute lectures per week)
Week
Chapter
1
1
2
Introduction
Nature of Costs
2
2
2
Nature of Costs
Appendix: Estimating Fixed and Variable Costs
3
3
Opportunity Cost of Capital and Capital Budgeting
4
4
5
Organizational Architecture
Responsibility Accounting and Transfer Pricing
4
5
6
Responsibility Accounting and Transfer Pricing
Budgets and Budgeting
6
6
7
Budgets and Budgeting
Cost Allocation: Theory
7
7
8
Cost Allocation: Theory
Cost Allocation: Practices
Appendix — Reciprocal Method for Allocating Service
Department Costs
8
9
Topic
MIDTERM
Absorption Cost Systems
9
9
Absorption Cost Systems
Appendix — Process Costing
10
10
11
Criticisms of Absorption Cost Systems: Incentive to Overproduce
Criticisms of Absorption Cost Systems: Inaccurate Product Costs
11
12
Standard Costs: Direct Labor and Materials
12
13
Overhead and Marketing Variances
Outside readings & cases (new manufacturing systems, ABC,
Target costing, etc.)
13
14
Management Accounting in a Changing Environment
Outside readings & cases (new manufacturing systems, TQM, JIT,
ABM, etc.)
Notes:
Each class can present some of the material in the chapter and cover 2-3 homework problems.
Assigning a longer case to be handed in every 2-3 weeks also breaks up the pace of the course and allows the
students to apply the concepts to longer, more difficult problems.
The semester format allows time for outside readings to supplement the text. Chapter 3 on capital budgeting
is not covered, Chapter 14 can be increased to two weeks and a capstone case added..
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TABLE 3: Seven-Week Executive MBA Course
(3 hours of lecture per week)
(No coverage of Material in Appendices)
Week
Chapter
1
1
2
Introduction
Nature of Costs
2
4
5
Organizational Architecture
Responsibility Accounting and Transfer Pricing
3
6
Budgets and Budgeting
4
7
8
Cost Allocation: Theory
Cost Allocation: Practices
5
9
Absorption Cost Systems
6
10
Criticisms of Absorption Cost Systems: Incentive to
Overproduce
Criticisms of Absorption Cost Systems: Inaccurate Product
Costs
11
7
14
Topic
Management Accounting in a Changing Environment
Notes:
The fast paced coverage of the material works especially well with executives, most of whom have
confronted work situations similar to the assignments. They relate quite well to the end-of-chapter
material and there are usually lively class discussions. In fact, many of the problems in the text were
generated from discussions with executive students outside of class describing a job experience. This
course works best if the students have had a microeconomics course.
There is no midterm exam.
This format requires that the appendices be omitted. If it is necessary to cover standard costs and
variances, assign Chapter 12 on direct labor and material standards. Standard costs can be added to
the first half of lecture number 7.
Very little outside reading should be used unless it is optional. Reading the chapters and working a
few homework problems each week will quickly consume the student’s available study time.
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Chapter Teaching Suggestions
My teaching approach is to require the students not only to read the assigned
chapter, but also to prepare and submit a few problems at the beginning of class. This not
only provides a foundation for constructive class discussion, but also ensures that
students do not fall behind.
Throughout the course I emphasize that students of managerial accounting will
develop the very valuable skill of knowing how to take a diverse set of facts and figures
and reduce them to a cogent financial analysis. They will become more skilled in
constructing spreadsheets and doing financial analysis. This skill is similar to learning a
foreign language, and similarly requires constant practice. The daily assignments provide
this discipline.
Chapter 1.
Introduction
Chapter 1 summarizes the course and contains a number of important concepts,
including: internal versus external accounting; the trade-off between using the accounting
system for decision making versus using it for control; single versus multiple accounting
systems; the role of the controller; and economic Darwinism.
A good way to begin the first lecture is to hand out a copy of the Vortec problem
statement (Chapter 1, section F) and give the students five minutes to sketch out the
solution. Then ask them, how many would accept the special order? This is a good way
to generate class discussion the first day. By following the text’s analysis of Vortec in
Chapter 1, several questions naturally arise, including:
• What additional information is required?
• What is the difference between variable and average costs?
• How do the incentives of various managers to accept the order differ?
Vortec is a good ice breaker which allows the students to see that the accounting costs are
being used for a variety of purposes; in particular, they are being used for both decision
making and control. Since the trade-off between decision making and control is an
important organizing feature of the text, it is useful to introduce this key pedagogy early
in the course. (Point out that Chapter 2 elaborates on decision making and Chapters 4
and 5 describe the general issues involving control.)
I also like to reinforce the multiple roles of accounting using Figure 1-1. Finally,
it is important to spend a few minutes discussing the importance of Economic
Darwinism. Many of the topics we discuss (cost allocations, budgeting, product costing)
have survived in competitive industries for long periods of time. For the average firm,
these accounting procedures must be yielding benefits at least as large as their costs. This
does not mean that these procedures are cost beneficial for every firm. Nor does it mean
that these accounting systems operate at zero costs (including the costs of dysfunctional
decision making).
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Chapter 2.
The Nature of Costs
I begin this lecture by defining opportunity costs, “The sacrifice forgone from a
specific decision.” Students find this definition too abstract to have much meaning. Plan
on spending 20 - 30 minutes giving examples and working through text problems. A
good example to use to illustrate opportunity costs is: “How do you decide what to do
this Saturday night?” First you think about the opportunities (movie, concert, watching
TV, studying managerial accounting). (The last gets a good laugh.) Then you think
about what you give up if you do a particular activity. You forgo cash in some cases as
well as the opportunity to do something else. If your managerial accounting final exam is
on Monday, going to a concert precludes studying for the final. If you fail the final and
have to repeat the course in the summer, this can impose large costs, especially if you are
unable to get a good summer internship. This simple example illustrates all the key
points of opportunity costs:
•
•
•
opportunity costs involve both pecuniary and non-pecuniary considerations,
opportunity costs are forward looking,
opportunity costs vary with the opportunity set (e.g., which movies are
playing and when assignments are due).
Two problems in the text are very good at driving home the concept of
opportunity costs:
P2-10 Emrich Processing
P2-26 Eastern University Parking
Emrich (P2-10) always generates a 15 minute discussion. Ask the students what
cost of the remaining acid should be considered in setting the price for the new contract.
Possible answers will be $700, $500, $0, and -$400. The correct answer is -$400. In this
case opportunity costs are negative because the firm can avoid the disposal costs. This
then leads into a question of what price to charge. Since we don’t know the customer’s
demand curve, we can’t set a price, but the discussion helps illustrate the relation between
costs and pricing (a point that arises throughout the course). Appendix A discusses the
relation between costs and pricing.
Eastern University Parking (P2-26) can generate as much as 20 to 30 minutes of
discussion. Parking is a universal problem on all campuses, and hence, this problem hits
a strong emotional nerve. Most students initially overlook the opportunity cost of land in
setting the parking fees and will discuss other problems with the parking system for five
minutes or so before someone hits on the problem of how land is being valued. It isn’t.
And this creates the bias towards surface lots. Once everyone understands this, then ask,
“Why has the University systematically priced its land at zero?” “Are the administrators
dumb?” Most students are willing to stop here and say yes. But prompt them by asking,
“What are the organizational consequences of including land costs in parking fees?” The
solution describes the organizational issues. This problem illustrates dramatically how
accounting costs have both decision making and organizational implications.
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Mastich Counters (P2-28) is a great problem for student discussion, especially for
executive students because it involves primarily a human resources question that they
have all encountered – should firms adopt a take-it or loose-it policy for vacation
accruals?
At this point I usually compare opportunity and accounting costs. The key point
is that most accounting costs are historical in nature and hence backward-, not forwardlooking.
The final point to emphasize is that estimating opportunity costs is itself a costly
process. Much analysis is usually required to define the opportunity set and to estimate
the benefits forgone from each alternative. Because opportunity costs are costly to
estimate, proxies are often used, such as accounting costs.
After introducing opportunity costs, I spend the rest of the time on cost variability
and review total, average, fixed, variable, and marginal costs. Students will remember
these terms from their economics course, and are reassured when told that we simplify
the economics treatment by assuming cost curves are straight lines, thus eliminating
derivatives from this course. This discussion is very important because it is one of the
first times in the curriculum that two courses are integrated with and build on each other.
A good break-even problem is Amy’s Boards (P2-44), which illustrates that the
snow boards are a variable cost before they are purchased, but become a fixed cost once
purchased. In later chapters, students have difficulty knowing how to handle fixed costs.
Amy’s Boards provides a simple, intuitive example of how fixed costs arise from making
the capacity decision.
Recommended Problem Assignment
2-9
Taylor Chemicals
2-10
Emrich Processing
2-15
Home Auto Parts
2-22
iGen3
2-25
Oppenheimer Visuals
2-26
Eastern University Parking
2-28
Mastich Counters
2-31
News.com
2-34
Candice
2-41
Happy Feet
2-42
Digital Convert
2-43
APC Electronics
2-44
Amy’s Boards
Case 2-1 Old Turkey Mash
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Chapter 3.
Opportunity Cost of Capital and Capital Budgeting
This chapter is a fairly traditional treatment of capital budgeting. It can be
omitted without interrupting the flow of the material, or it can be postponed until later in
the course. The later chapters and problems do not rely on this material. Like other
managerial accounting texts, to simplify the analysis, topics in Chapters 4–14 are treated
as single-period decision problems.
As our students have already taken a basic corporate finance and capital
budgeting course, I do not cover this chapter in my managerial accounting course.
Teaching this chapter depends on the students’ prior exposure to discounting, and the
instructor’s objectives.
Chapter 4.
Organizational Architecture
Since Rochester students have had two managerial economics courses that cover
the basic topics in Chapter 4, this chapter largely constitutes a review and is presented in
conjunction with Chapter 5, with Chapter 5 being used to reinforce and illustrate the
general theoretical issues raised in Chapter 4. The key points to emphasize include: the
importance of agency problems: how the organizational architecture can reduce these
problems, and the accounting system as an integral part of the performance evaluation
system in most organizations. I spend a few minutes reviewing the major concepts and
terminology used later in the course:
• Organizational architecture (three-legged stool)
Performance evaluation
Rewards and punishments
Partitioning decision rights
• Importance of linking decision rights and knowledge
• Administrative devices for the three-legged stool
Separation of decision management and decision control
Initiation - decision management
Ratification - decision control
Implementation - decision management
Monitoring - decision control
Hierarchies
Recommended Problem Assignment
4-5
Voluntary Financial Disclosure
4-17
Private Country Clubs
4-18
Tipping
4-24
Repro Corporation
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Chapter 5.
Responsibility Accounting and Transfer Pricing
The purpose of Chapter 5 is to illustrate the role of the accounting system in the
firm’s organizational architecture. Two examples are used: performance evaluation of
responsibility centers, and accounting-based transfer pricing.
The first part of the chapter on responsibility accounting is a good example of the
linkage between the assignment of decision rights and performance evaluation. I review
Table 5-1 and point out that evaluating cost centers based on minimizing average cost
does not necessarily maximize firm profits. I also like to spend a few minutes discussing
EVA and asking the question, “How does EVA differ from residual income?” Except for
some measurement refinements in the cost of capital and accounting income, the two are
the same. They differ in that some EVA consultants emphasize linking EVA to
compensation.
The second topic of the chapter is transfer pricing. Traditional managerial
accounting courses cover transfer pricing towards the end of the course. I believe it is
best covered at the beginning as part of the topic of organizational architecture. Cost
allocations and cost recharges pervade all organizations. To understand the incentive
issues of cost allocations, the general topic of transfer pricing provides an underlying
theoretical foundation for cost allocations in general.
I do not lecture extensively on transfer pricing. Our students have had the
economics of transfer pricing in their managerial economics course. Instead, I emphasize
several key points:
•
Accounting-based transfer prices are prevalent, even when market prices are
available.
•
The ideal transfer price is opportunity cost.
•
Transfer pricing is not a zero-sum game, and all transfer pricing methods have
both advantages and disadvantages (no method is best in all situations).
•
With variable cost transfer pricing, someone must have the decision rights to
determine which costs are fixed and which costs are variable. Since lowerlevel managers usually have more specialized knowledge of the cost behavior
patterns, they can use this knowledge opportunistically to reclassify “fixed”
costs as “variable” for calculating the variable cost transfer price. This same
argument also arises again in Chapter 10 when discussing variable costing.
I usually start class with Royal Resort and Casino (Case 5-4) to illustrate the
interdependencies among divisions and how difficult it is for accounting systems to
capture these interdependencies. Next, I spend about 15 minutes reviewing these major
points, the remainder of class time is used discussing assigned problem material. A
number of our students are marketing majors, so Stale-Mart (P5-18) always goes over
well in class. XBT Keyboards (P5-25) provides a good example for demonstrating the
incentives of managers operating under a variable costing transfer pricing rule to
outsource those production methods with high fixed costs, thereby converting them into
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variable costs. I always assign Celtex (Case 5-2), which is a shortened and simplified
version of the old Birch Paper case. The students never suggest my solution, which
always produces a lively and interesting class discussion.
Recommended Problem Assignment
5-11
Cogen
5-12
University Lab Testing
5-18
Stale-Mart
5-20
Flat Images
5-24
Transfer Price Company
5-25
XBT Keyboards
5-26
Infantino Saab
5-28
Serviflow
Case 5-2 Celtex
Case 5-3 Executive Inn
Case 5-4 Royal Resort and Casino
Chapter 6.
Budgeting
I begin the topic of budgeting by having the students prepare solutions to PotterBowen (P6-10) and Madden International (P6-24). These problems, drawn from actual
company histories, use their budgeting systems in two very different ways. PotterBowen’s is a top-down decision control system, whereas Madden International’s is a
bottom-up decision management scheme, designed to stimulate the assembly of
specialized knowledge within the firm. These two polar extremes illustrate some key
points:
•
Firms make trade-offs involving decision management versus decision control
in designing their budgeting system.
•
Budgeting systems, like other parts of the firm’s organizational architecture,
must be matched and coordinated to the other parts of the architecture. There
are complementarities among the various components.
These two problems also highlight the multiple roles served by budgeting systems. I
emphasize that virtually all firms use budgets and that budgeting has survived for
centuries. Thus, budgets are important financial mechanisms used by managers. To help
illustrate what budgets do, use the simple dichotomy of decision management and
decision control. Decision management versus control also helps explain a number of
budgeting phenomena, such as long-term budgets, budget lapsing, line-item budgets, and
zero-based budgets.
A useful feature of this topic is that budgeting may be used to illustrate the ability
of organizational architecture to explain observed institutional practices, such as why
some firms use line item budgets and others do not.
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I like to teach the budgeting material right after introducing organizational
architecture because, although not a technically demanding topic, it directly reinforces
the organizational architecture material and allows some good examples of how to use
the theoretical material in Chapter 4 to analyze actual company practice.
Recommended Problem Assignment
6-7
Golf World
6-10
Potter-Bowen
6-17
Panarude Airfreight
6-20
Webb & Drye
6-21
Spa Ariana
6-22
Picture Maker
6-24
Madden International
6-25
Brehm Vineyards
Chapter 7.
Cost Allocation: Theory
I begin this chapter by having the students discuss their solutions to the Corporate
Jet problem (P7-3). This is an example from an actual company that quickly piques the
students’ interests in cost allocations. This problem also illustrates quite nicely that cost
allocations are really just questions of transfer pricing. After about 15 minutes of student
discussion, I review the major points from the first part of the chapter: the pervasiveness
of cost allocations and some reasons for allocating costs. Since corporate income taxes
and third-party reimbursements cannot explain the pervasiveness of allocations, issues of
motivation and control must also be important considerations in those cases where taxes
and reimbursement do not apply (e.g., non-profits).
The analysis in this chapter is used to demonstrate how cost allocations can be
used to affect behavior. Reviewing this material requires about 30 minutes of class time.
The isoquants and budget lines in the Appendix are standard topics covered in every
economics text. Using these microeconomic tools in the managerial accounting course
helps to integrate the curriculum for the students. Applying the concepts they learned in
economics reinforces the earlier material and shows them the benefits of how
microeconomic tools can be applied to understand other management practices such as
cost allocations.
The topic of insulating versus noninsulating allocations again illustrates the interrelations between performance measurement and other parts of the firm’s organizational
architecture. For example, a firm might sometimes choose a noninsulating allocation
scheme to foster cooperation. I also like to assign Avid Pharmaceuticals (P7-5),
Encryption Inc. (P7-11), or Scanners Plus (P7-20) to illustrate how noninsulating cost
allocations induce risk sharing. This discussion works to integrate the finance course
with managerial accounting.
Numerous problems highlight how cost allocation schemes affect behavior. My
favorite problems are listed below. Students find this material very engaging. Plan to
spend at least two hours of class time on this chapter, and make sure you assign enough
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class time to cover at least four or five problems. Also, continue to stress that cost
allocations represent nothing more than transfer pricing problems.
Recommended Problem Assignment
7-3
Corporate Jet
7-5
Avid Pharmaceuticals
7-6
Wasley
7-7
Hallsite Imaging
7-11
Encryption, Inc.
7-16
Vorma
7-17
Bio Labs
7-18
World Imports
7-19
Painting Department
7-20
Scanners Plus
7-22
Allied Adhesives
7-24
Plastic Chairs
7-25
Woodley Furniture
7-26
Transmation
7-27
BFR Ship Building
Case 7-2 Durango Plastics
Chapter 8.
Cost Allocation: Practices
Chapter 8 continues the discussion in Chapter 7, describing some of the practical
problems encountered in cost allocations, including allocating service department costs
and joint costs. In particular, with reciprocal service flows, the actual mechanics of cost
allocation become fairly complicated. I use the allocation of service department costs
(e.g., direct vs. step-down) to illustrate that, no matter how complex the calculations
appear, in the end a transfer price results which can create incentives for managers to
outsource the product or service. In some cases, this can lead to a death spiral. It is
important that students understand the mechanical details of the various service
department cost allocation methods because it builds their confidence that they can
successfully analyze complex algorithms. Ultimately, they must address the joint
questions of: do the resulting cost allocations approximate opportunity costs, and what
incentives are likely created by the allocations?
I spend about 10 minutes of class time having the students discuss and critique
each others’ answers to Karsten Mills (P8-22). This is a real company death-spiral
example which demonstrates that there are no simple solutions to many cost
allocation/transfer pricing problems. I end this topic with Carlos Sanguine Winery (Case
8-1). This is another actual company. Several interesting aspects of this case include:
•
This is a joint cost problem that the company did not recognize;
•
Allocating grape costs based on gallons was distorting the relative profitability
of the product lines;
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•
They were about to close a product line because it appeared unprofitable;
•
Before they could change accounting systems, they were acquired in an
unfriendly takeover (and my involvement with the firm ended).
Recommended Problem Assignment
8-4
Mystic Herbals
8-10
Enzymes
8-11
Sunder Toys
8-12
WWWeb Marketing
8-15
Vigdor Wood Products
8-16
Advanced Micro Processors
8-21
RBB Brands
8-22
Karsten Mills
8-25
Littleton Medical Center
8-27
Grove City Broadcasting
8-31
IVAX
Case 8-1 Carlos Sanguine Winery
Chapter 9.
Absorption Cost Systems
This chapter is a straightforward presentation of a traditional absorption costing
system, focusing on the mechanics of absorption costing and leaving most of the analysis
to the next two chapters. This chapter is kept simple and descriptive to insure that the
students have a thorough grounding and understanding of the mechanics before a detailed
analysis is presented.
I like to give the students the “big picture” of the accounting system by presenting
the usual cost flows through the accounts (Figure 9-1). This helps tie the managerial
accounting course back to their financial accounting course. It also demonstrates that all
manufacturing costs eventually flow through to the income statement.
Tables 9-3 and 9-4 on costs and pricing in an oil change outlet is a unique way to
introduce the idea of normal volume and tie it into the pricing decision. Thus, this
material again allows the integration of the managerial economics and managerial
accounting courses. This example provides a nice vehicle to illustrate how shifts in the
demand curve cause volume and price changes, but as long as marginal cost is constant,
prices should not be raised when demand falls (and average costs rise). Appendix B
presents this material in more rigorous fashion.
I begin the class by reviewing the mechanics for 15 minutes: the job order cost
sheet and cost flows through the accounts (Figure 9-1). I then have the class discuss
Hurst Mats (9-25), which illustrates how focusing on decision management versus
decision control affects the choice of the allocation base to make sure everyone
understands the technical details. The balance of class time is spent having the students
discuss their answers to MacGiver Brass (P9-4) and Welding Robots (P9-17). MacGiver
Brass involves a bank loan decision, which provides of the finance majors with an
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illustration of the importance of understanding cost accounting. Welding Robots
integrates and reviews a number of key concepts: opportunity costs, fixed and variable
costs, and job order costing.
I do not cover the mechanics of process costing (Appendix A). Most of the
students in the course are non-accounting majors and find the technical aspects of process
costing dull. Instead, I make a few brief remarks that parallel the material in the last
section of the chapter and refer them to Appendix A if they are interested.
Recommended Problem Assignment
9-4
MacGiver Brass
9-5
Pool Scrubbers
9-6
Termalloy
9-12
Simple Plant
9-18
Digiear
9-20
Pebble Beach Sandal
9-25
Hurst Mats
9-27
Amalfi Texts
9-28
Pyramid Products
Chapter 10. Criticisms of Absorption Cost Systems: Incentive to Overproduce
Having introduced the mechanics of absorption costing in Chapter 9, Chapters 10
and 11 analyze these systems. Chapter 10 discusses the incentives to overproduce, which
leads to variable costing. Chapter 11 discusses the assertion that an absorption costing
system miscosts some products, which leads to activity-based costing. Both of these
chapters increase the students’ understanding of how traditional, absorption cost systems
work.
I begin the class with either Zipp Cards (P10-5) or Medford Mug Company (P1011). These problems illustrate the incentive to overproduce under an absorption costing
system. Having made sure everyone understands how overproduction lowers average
cost (as long as marginal cost is not increasing), I then return to the text and review the
numerical example in Tables 10-4 through 10-6. This illustration reintroduces the often
overlooked, important question of who has the decision rights to determine fixed and
variable cost. Managers still have the incentive to overproduce under a variable costing
system if, at the end of the year, they can classify cost overruns as variable and thereby
inventory them by overproducing.
The incentive to reclassify fixed costs as variable is also present if a variable cost
transfer pricing method is chosen. This again is another good opportunity to link
absorption costing to transfer pricing. Absorption-based product costs are in fact transfer
prices. Hence, the general theoretical issues discussed under transfer pricing also apply
to absorption costing. Linking the discussion in Chapter 10 back to that in Chapter 5
helps to unify the course and to demonstrate that managerial accounting is not a set of
unrelated computational methods.
Transpacific Bank (P10-6) is another good problem for finance majors.
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Recommended Problem Assignment
10-5
Zipp Cards
10-6
Transpacific Bank
10-7
Zeflax Bottles
10-9
Aspen View
10-10
CLIC Lighters
10-11
Medford Mug Company
10-12
Kothari Inc.
10-13
Mystic Mugs
10-15
Taylor Chains
10-17
Dim
10-19
Weststar Appliances
10-22
Sants Brake Co.
Case 10-1: Joon
Chapter 11. Criticisms of Absorption Cost Systems: Inaccurate Product Costs
Chapter 11 discusses another criticism of absorption costing systems – inaccurate
product costs. The proposed solution, activity-based costing, is also described. I
introduce this topic by having the students discuss their solutions to several problems
which demonstrate that traditional unit-level allocation bases can produce misleading
product costs. Milan Pasta (P11-4) is a good example of miscosting. Having introduced
the topic with this example, I spend about 20 minutes on ABC, describing how it differs
from traditional unit-based absorption costing, and its advantages.
I then ask the students, why haven’t more firms fully implemented ABC into their
general ledger? Why are product costs for performance evaluation still based on unitlevel allocations? These firms have already incurred the cost of calculating ABC product
costs. Why don’t more firms change their performance measures to an ABC system?
The ensuing discussion inevitably raises organizational issues. When you change
the product costing system, some managers are made better off and some are made worse
off, which leads to high influence costs. Some key points that should be made are:
•
Adopting ABC constitutes a change in performance measures, requiring
compensating changes in the performance reward system in order to keep the
three-legged stool from becoming unbalanced. Tie this point back to Chapter
4.
•
Lower-level managers with specialized knowledge of cost drivers must be
given the decision rights over choice of the cost drivers. These decision rights
can be exercised opportunistically.
•
Exercising this discretion over choice of cost drivers imposes control costs on
the firm. Usually decision control is harder under ABC than under a more
centrally-managed absorption costing system.
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•
Again, we see that the decision to use ABC versus absorption costing involves
a trade-off between decision management and decision control. ABC is likely
better for decision management, but worse for decision control. As with
budgeting, a trade-off must be made between decision management and
decision control. Figure 11-4 illustrates there is an optimum number of cost
drivers.
Finally, I end the lecture by discussing Friendly Grocer (P11-9), Sanchez Gadgets
(P11-11), Goodstone Tires (P11-15), or Familia Insurance Company (P11-18). The
marketing majors like these problems. The key point of these problems is that, while
ABC may give you a better understanding of your costs, it does not help in understanding
revenues and the interdependencies among demand for various products offered by the
firm. In Friendly Grocer (P11-9), even with ABC, shelf space costs are based on the
historical cost of occupancy. Yet, the opportunity cost of shelf space is not the historical
cost, it is the contribution margin of not stocking some other item and the effect of that
item on the sales of other items stocked. If the grocery store did not stock milk, the sales
of other products would fall. Neither an absorption costing nor an ABC system can
capture these demand-side interdependencies.
SnapOn Fasteners (Case 11-2) is based on the Mueller-Lehmkuhl case, but is
shorter. It contains the essential features of Mueller-Lehmkuhl, but with a very different
solution.
Recommended Problem Assignment
11-4
Milan Pasta
11-6
Astin Car Stereos
11-8
True Cost Manufacturing, Inc.
11-9
Friendly Grocer
11-11
Sanchez Gadgets
11-14
Kay Enterprises
11-15
Goodstone Tires
11-18
Familia Insurance Company
Case 11-2 SnapOn Fasteners
Chapter 12
Standard Costs: Direct Labor and Materials
This chapter describes the mechanics and incentives of standard costs and
variances. To prevent the lecture from becoming overly mechanical and dry, I
continually emphasize the organizational issues and incentive effects of standard cost
variances. I remind the class that agency problems require control mechanisms and that
standard costs provide that control. By splitting the total direct material variance into a
price variance and a quantity variance, the purchasing department is controlled by the
price variance, and the production department is controlled by the quantity variance. But
these are noisy measures of performance. Moreover, there are substantial interaction
effects (externalities) among the various departments. And so while it is important that
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students understand the computation of the variances, they should also be able to analyze
the incentive effects of standard costs.
I like to begin the lecture by discussing Great Southern Furniture (P12-15). The
production setting being very intuitive and simple illustrates quite nicely how standards
can be used for decision making (in this case how much to bid on the job) and decision
control (a benchmark to evaluate actual performance). This problem also illustrates how
a time study is used to set standards – a few sets of furniture are assembled and the time
to assemble them is used as the standard.
One of the more interesting issues in standard costing involves determining who
has the decision rights to set and revise the standards and how frequently standards are
revised. This involves the usual trade-off between decision management and decision
control described in Chapter 6 (Budgets and Budgeting). The frequency of standard
revisions also involves trading off decision management and decision control.
One company has the policy, “We never, never revise the standards, except when
we have to” (Changing Standards, P12-6). While this statement sounds silly on the
surface, it really does have content. I use the 1970s example of the Hunt brothers, who
tried to corner the silver market. In less than a year, silver prices roughly tripled. Silver
is a major input to making photographic materials because silver compounds are light
sensitive. If Kodak did not change its standard costs when silver prices tripled, poor
decisions would result. For example, higher silver prices dictate that more resources
should be expended in reclaiming spent silver from manufacturing and film processing.
But managers will only expend more resources in silver reclamation if the standard price
of silver is raised. Thus, the rule, “We never change our standards, except when we have
to” makes sense in the following way. Changing standards involves a trade-off between
decision management and decision control. Frequent standard changes reduce the ability
of a standard cost system to hold managers accountable and reduce the control value of
standard costs. However, if standards are not revised after very large changes,
dysfunctional decision making occurs.
Students should understand that standard costs and budgeting are closely related.
To help reinforce this understanding, I use Oaks Auto Supply (P12-4) to introduce the
topic of target costing. After working this problem and discussing target costing in
general, I ask the students a couple of questions: With target costing, is the knowledge at
the top or at the bottom of the organization? Is target costing a bottom-up or top-down
system? What about standard costing? How do incentives change with target costing as
opposed to standard costing?
I then refer back to Chapter 6 on budgeting and remind them that some budgeting
processes are top-down and others are bottom-up (participative budgeting). The best
system for the firm is determined by the firm’s goals and other parts of the organizational
architecture. Emphasize that “one size doesn’t fit all.”
Covering the mechanics of calculating material and labor variances takes about an
hour of class time. While the students generally understand the formulas after reading
the chapter, a little class review reduces their anxiety level. I like to emphasize that all
material and labor variances are unfavorable, in the sense that they indicate a deviation
from plan. “Favorable” labor and material variances could indicate lower quality
products are being produced.
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I usually discuss either AN7-X1 (P12-5) or Zinc Faucets (P12-11) to justify why
price variances are calculated when materials are purchased. This allows timely
reporting of price variances instead of waiting until raw materials enter the manufacturing
process. Hence, price (and wage rate) variances are computed based on actual quantities,
not standard quantities. Since price changes of raw materials are useful data for pricing
and production decisions, the timely reporting of price variances is useful for decision
making, as well as control.
I end the lecture by having the students discuss Domingo Cigars (Case 12-1).
This problem provides a good combination of calculations and analysis of the incentive
effects of the manufacturing process.
Recommended Problem Assignment
12-1
Medical Instruments
12-4
Oaks Auto Supply
12-5
AN7-X1
12-6
Changing Standards
12-11
Zinc Faucets
12-15
Great Southern Furniture
12-16
Cibo Leathers
12-18
Starling Coatings
Case 12-1 Domingo Cigars
Chapter 13. Overhead and Marketing Variances
Chapter 13 illustrates how standard costs and variances can be defined in a variety
of different contexts. The first part of the chapter concludes the calculation of
manufacturing by computing overhead variances introduced in Chapter 12. A simple
three overhead variance structure illustrates most of the substantive issues. I have found
that more complicated four and five fixed and variable overhead variance systems add
few insights to justify the additional computational complexity. The second half of the
chapter describes marketing variances.
I devote some time to discussing standard volume and how it differs from
budgeted and actual volumes, an issue, which requires clarification for most students. I
then spend 15 minutes discussing marketing variances, which marketing majors find
more interesting than the manufacturing variances. I try to cover Chapter 13 in about an
hour of class time.
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Recommended Problem Assignment
3-5
Oneida Metal
13-9
Western Sugar
13-10
Soldering Department
13-11
Commando Force
13-14
Turow Trailers
13-16
UOP
13-19
Ultrasonic
13-21
MRI Department
Chapter 14. Management Accounting in a Changing Environment
Chapter 14 is the most important chapter in the book, providing not only a
conclusion (in contrast to other managerial accounting texts), but also a framework for
understanding how managerial accounting changes in a dynamic world. The chapter also
contains some end-of-chapter problems that review most of the major topics discussed in
the book.
I spend at least two hours of class time on Chapter 14. I begin the lecture by
discussing Figure 14-1, a simplified version first introduced in Chapter 1. This important
figure provides a framework that describes:
•
How the internal accounting system is part of the firm’s organizational
architecture;
•
How the architecture is related to the firm’s business strategy;
•
How the firm’s business strategy depends on aspects of the external
environment, such as technology, market competition, and government
regulation.
Figure 14-1 illustrates that the internal accounting system is not isolated from other
policies of the firm. Based on Figure 14-1, several important insights are emphasized:
•
Changes in the accounting system rarely occur in a vacuum. Accounting
system changes generally occur at the same time as changes in the firm's
business strategy and other organizational changes, particularly with regard to
the partitioning of decision rights and the performance evaluation and reward
systems.
•
Alterations in the firm's organizational architecture, including changes in the
accounting system, are likely a response to changes in the firm's business
strategy caused by external shocks from technology and shifting market
conditions.
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•
Before implementing an accounting or other organizational change, it is
important to understand what is driving the change.
•
An accounting system should not be adopted merely because other firms are
doing so; they may have different external shocks causing their previous
systems to become obsolete.
•
An accounting system should not be changed without concurrent, consistent
changes in the way decision rights are partitioned as well as in the
performance reward systems. All three parts of the organization's architecture
must be internally consistent and coordinated.
After describing Figure 14-1, I demonstrate how it applies to various
organizational innovations: total quality management, JIT, Six Sigma and Lean
Manufacturing, and the balanced score card. An assigned problem for each innovation is
worked in class to ensure the students understand the basics. Then each innovation is
analyzed, including the accounting system changes.
I like to end the course by having the students discuss their solution to Telephone
Computer Corporation (case 14-2). This case, which is based on an actual company, is a
good comprehensive problem that reviews many of the topics discussed in the course. It
requires the student to analyze a rather complicated business decision. In addition, the
student must understand the organizational architecture/culture into which this particular
decision fits.
Recommended Problem Assignment
14-2
Chateau Napa
14-3
Fiedler International
14-4
Guest Watches
14-8
Software Development, Inc.
14-9
Stirling Acquisition
14-12
Warren City Parts Manufacturing
14-13
Secure Servers Inc.
Case 14-1 Global Oil
Case 14-2 Telephone Computer Corporation (TCC)
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Suggested Assignment Problems & Cases
This table contains a listing of the best problems in each chapter. Problems and cases are classified as “basic problems,” “more
challenging problems,” and “extensions to text.” Basic problems review the essential material in the text in a straightforward fashion. More
challenging problems go beyond the basic material and require the student to exercise some judgment and conduct some analysis. These
problems are either more unstructured or require some further application of topics covered in the text. Extensions to the text are problems
that introduce new topics not discussed in the text.
Suggested Assignment Problems
Chapter
1 Introduction
Basic Problems
P1-1
P1-2
P1-5
P1-8
P1-10
MBA Students
One Cost System Isn't Enough
Using Accounting for Planning
Golf Specialties
Montana Pen
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More Challenging Problems
P1-3
P1-7
U.S. and Japanese Tax Laws
Budgeting
Extensions to Text
P1-4
P1-6
P1-9
Managers Need Accounting
Information
Goals of a Corporation
Parkview Hospital
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Suggested Assignment Problems
Chapter
2 Nature of Costs
Basic Problems
P2-1
P2-2
P2-4
P2-5
P2-6
P2-7
P2-9
P2-16
P2-17
P2-19
P2-20
Darien Industries
Negative Opportunity Costs
Silky Smooth Lotions
J. P. Max Dept. Stores
Bidwell Company
Vintage Cellars
Taylor Chemicals
Measer
Affording a Hybrid
MedView
Manufacturing Cost
Classification
P2-24 Exotic Roses
P2-33 Littleton Imaging
More Challenging Problems
P2-3 NPR
P2-10 Emrich*
P2-11 Gas Prices*
P2-13 Volume and Profits
P2-14 American Cinema
P2-18 Fast Photo
P2-21 Australian Shipping*
P2-22 iGen3
P2-25 Oppenheimer Visuals
P2-26 Eastern University Parking*
P2-30 JLE Electronics
P2-31 News.com
P2-34 Candice Company
P2-35 Mat Machinery
P2-36 Cost Behavior Patterns
P2-37 Royal Holland Line
P2-38 Roberts Machining
P2-39 Doral Rentals
P2-41 Happy Feet
P2-42 Digital Convert
P2-43 APC Electronics
Extensions to Text
P2-15
P2-23
P2-28
P2-32
P2-40
P2-44
P2-45
C2-1
C2-3
Home Auto Parts*
Adapt, Inc.
Mastich Counters*
Kinsley & Sons
Fuller Aerosols
Amy’s Boards*
Blue Sage Mountain
Old Turkey Mash*
Puttmaster
*Problem generates much classroom discussion
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Suggested Assignment Problems (cont.)
Chapter
Basic Problems
3 Opportunity Cost of
Capital and Capital
Budgeting
P3-1
P3-2
P3-3
P3-4
P3-7
P3-9
P3-10
P3-11
P3-12
P3-15
P3-19
P3-21
P3-25
P3-27
P3-30
4 Organizational
Architecture
P4-1
P4-2
P4-3
P4-4
P4-6
More Challenging Problems
Extensions to Text
IRR
Accelerated Depreciation
Jasper, Inc.
Just One, Inc.
Northern Sun, Inc.
Lottery
Mr. Jones’ Retirement
NPV vs. Payback
Simple Investment
New Car
House Mortgage
Toledo Stadium
Cost-Saving Device
Housing Markets
Watson’s Bay
P3-13
P3-14
P3-17
P3-20
P3-28
P3-31
P3-32
Demand for DVD Players
Clean Tooth
Federal Dam Project
Flower City Grocery
Mortgage Department
Linda Lion Co.
Dakota Mining
P3-26
P3-29
P3-33
P3-34
P3-35
P3-36
P3-37
P3-38
Depreciation Tax Shield
Electric Generator
Overland Steel
Black Feather Indian Nation
Scottie Corporation
Punch Press
Apex Corporation
Eastern Educational Services
Empowerment
Pay for Performance
Course Packets
Allied Van Lines
University Physician
Compensation
P4-8 American InterConnect I
P4-11 Vanderschmidt’s
P4-13 Formula 409
P4-17 Private Country Clubs*
P4-5
P4-10
P4-14
P4-16
P4-18
P4-19
P4-20
P4-21
P4-22
Voluntary Financial Disclosure
Decentralization
Pratt & Whitney
American InterConnect II
Tipping*
White’s Department Store
Coase Farm
Rothwell Inc.
Gong-Fen*
P4-9
P4-23
P4-24
C4-1
C4-2
Raises
International Computer Co.
Repro Corporation*
Christian Children’s Fund
Woodhaven Service*
*Problem generates much classroom discussion
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Suggested Assignment Problems (cont.)
Chapter
Basic Problems
5 Responsibility
Accounting and
Transfer Pricing
P5-1
P5-2
P5-4
P5-7
P5-9
P5-16
P5-17
P5-23
Canadian Subsidiary
Phipps Electronics
Economic Earnings
ICB, Intl
Microelectronics
CJ Equity Partners
Sunstar Appliances
Savannah Products
6 Budgeting
P6-1
P6-4
P6-5
P6-6
P6-8
P6-9
P6-11
P6-12
P6-13
P6-14
P6-16
P6-19
P6-27
P6-28
G. Bennett Stewart*
Budget Lapsing
DMP Consultants
Federal Insurance
Coating Department
Marketing Plan
Feder Purchasing Department
Access.Com
Videx
New York Fashions
Adrian Power
Madigan Modems
Old Rosebud
Troika Toys
More Challenging Problems
P5-6
P5-11
P5-13
P5-15
P5-18
P5-19
P5-20
P5-21
P5-24
P5-26
P5-28
C5-2
C5-3
P6-2
P6-7
P6-10
P6-15
P6-17
P6-20
P6-21
P6-22
P6-23
P6-24
P6-25
P6-29
C6-1
Metal Press
Cogen
Beckett Automotive Group
U.S. Pump Systems*
Stale-Mart
R&D Inc.
Flat Images
Premier Brands
Transfer Price Company
Infantino Saab*
Serviflow
Celtex*
Executive Inn*
Investment Banks
Golf World*
Potter-Bowen*
International Telecon*
Panrude Airfreight
Webb & Drye*
Spa Ariana
Picture Maker
City Hospital Nursing*
Madden International*
Brehm Vineyards
Cellular First
Artisans Shirtcraft
Extensions to Text
P5-3
P5-8
P5-10
P5-12
P5-22
P5-25
P5-27
C5-4
Sunder Properties
Shop and Save
US Copiers*
University Lab Testing
Hochstedt
XBT Keyboards
Wujo
Royal Resort & Casino*
P6-3
P6-18
P6-26
P6-30
P6-31
C6-2
C6-3
Ice Storm*
Veriplex*
Republic Insurance*
Magee Inc.
James Marketing Campaign*
Scion*
LaserFlo*
*Problem generates much classroom discussion
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Suggested Assignment Problems (cont.)
Chapter
Basic Problems
More Challenging Problems
Extensions to Text
7 Cost Allocations:
Theory
P7-1
P7-6
P7-8
P7-7
P7-9
P7-10
P7-11
P7-12
P7-13
P7-16
P7-18
P7-19
P7-24
MRI
Wasley
Jolsen International
Hallsite Imaging
Winterton Group
National Training Institute
Encryption, Inc.*
Ball Brothers Purchasing Dept.
Telstar Electronics
Vorma
World Imports
Painting Department
Plastic Chairs
P7-2
P7-3
P7-4
P7-5
P7-15
P7-21
P7-23
P7-25
P7-26
C7-1
Slawson
Corporate Jet*
Massey Electronics
Avid Pharmaceuticals
Fuentes Systems
Giza Farms
Chicago Omni Hotel*
Woodley Furniture
Tramsmation
Phonetex*
P7-14
P7-17
P7-20
P7-22
P7-27
C7-2
Diagnostic Imaging Software
Bio Labs*
Scanners Plus*
Allied Adhesives
BFR Ship Building*
Durango Plastics*
8 Cost Allocations:
Practices
P8-2
P8-3
P8-5
P8-6
P8-7
P8-8
P8-9
P8-25
P8-26
P8-28
Outback Opals
Rose Hospital
Fidelity Bank
Joint Products, Inc.
Talor Chemical Company
Donovan Steel
Murray Hill’s Untimely Demise
Littleton Medical Center
Aurora Medical Center
Barry’s Fashions
P8-1
P8-4
P8-12
P8-13
P8-14
P8-15
P8-16
P8-17
P8-20
P8-21
P8-22
P8-24
P8-27
P8-29
P8-31
C8-1
Step Down
Mystic Herbals
WWWeb Marketing*
ITI Technology
Metro Blood Bank
Vigdor Wood Products
Advanced Micro Processors
Jason Rocks
Doe Company
RBB Brands*
Karsten Mills*
Beckett Manufacturing
Grove City Broadcasting
Janitorial Services
IVAX
Carlos Sanguine Winery*
P8-10 Enzymes
P8-11 Sunder Toys
P8-18 Bank Service Centers
(appendix)
P8-19 Ferguson Metals
P8-30 Jones Consortium*
C8-2 Wyatt Oil*
*Problem generates much classroom discussion
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Suggested Assignment Problems (cont.)
Chapter
9 Absorption Cost
Systems
10 Criticisms of
Absorption Cost
Systems: Incentive to
Overproduce
Basic Problems
P9-1
P9-2
P9-3
P9-5
P9-6
P9-7
P9-8
P9-9
P9-10
P9-11
P9-13
P9-14
P9-15
P9-22
P9-24
Equivalent Units
IPX Packaging
Densain Water
Pool Scrubbers
Thermalloy
Lys Wheels
Ware Paper Box
DeJure Scents
Chemtrex (appendix)
Media Designs
Rick’s Bags
Unknown Company
Wellington
Bartolotta Company
Frames, Inc.
P10-1 Federal Mixing
P10-2 Xerox
P10-3 Varilux
P10-4 Truini Paints
P10-5 Zipp Cards
P10-7 Zeflax Bottles
P10-8 Alliance Tooling
P10-10 CLIC Lighters
P10-11 Medford Mug Company
P10-13 Mystic Mugs
P10-14 Avant Designs
More Challenging Problems
P9-4
P9-12
P9-18
P9-19
P9-21
P9-23
P9-26
P9-27
P9-29
C9-3
MacGiver Brass*
Simple Plant
DigiEar
Specialized Surgical Instrument
Jacklin Stampings
Kitchen Rite*
Mutual Fund Company*
Amalfi Texts
Magic Floor
PortCo Products*
P10-6 TransPacific Bank*
P10-9 Aspen View
P10-12 Kothari Inc.
P10-15 Taylor Chains
P10-17 DIM
P10-20 Blauvelt Products
P10-21 UniCom
P10-22 Sants Brake Co.
Extensions toText
P9-16
P9-17
P9-20
P9-25
P9-28
C9-1
C9-2
Building Services Department*
Welding Robots*
Pebble Beach Sandal
Hurst Mats*
Pyramid Products*
Heath Metal Products*
Portable Phones, Inc.*
P10-16
P10-18
P10-19
C10-1
Navisky
Easton Plant
Weststar Applicances
Joon*
*Problem generates much classroom discussion
Using the Text
xxviii
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Instructor’s Manual, Accounting for Decision Making and Control
Full file at http://testbankassistant.com
Suggested Assignment Problems (cont.)
Chapter
Basic Problems
11 Criticisms of
Absorption Cost
Systems: Inaccurate
Product Costs
P11-1
P11-2
P11-3
P11-4
P11-5
P11-13
P11-16
Maui Seminar
GAMMA
ABC & Volume Changes
Milan Pasta
Implementing ABC
Toby Manufacturing
Hospital Admission Office
12 Standard Costs: Direct
Labor and Materials
P12-1 Medical Instruments
P12-2 Mickles Ltd.
P12-5 AN7-X1
P12-6 Changing Standards
P12-7 Standard Cost Systems
P12-8 Smythe and Yves
P12-9 Healing Touch
P12-10 Marian Health Care System
P12-11 Zinc Faucets
P12-12 Howard Binding
P12-14 Flower City Cartridges
P12-15 Great Southern Furniture
P12-17 Software Associates
More Challenging Problems
Extensions to Text
P11-6
P11-7
P11-8
P11-12
P11-14
P11-19
C11-1
C11-3
Astin Car Stereos*
DVDS
True Cost Manufacturing, Inc.*
Wedig Diagnostics
Kay Enterprises
Brickley Chains
Tilist Golf
DynaGolf*
P11-9
P11-10
P11-11
P11-15
P11-17
P11-18
C11-2
Friendly Grocer*
Houston Milling
Sanchez Gadgets*
Goodstone Tires
ABC and Taxes
Familia Insurance Company*
SnapOn Fasteners*
P12-3
P12-4
P12-13
12-16
P12-18
C12-2
Alexander Products
Oaks Auto Supply
Fast Fax
Cibo Leathers
Starling Coatings
Rust Belt Mufflers*
P12-19 Trevino Golf Balls*
C12-1 Domingo Cigars*
*Problem generates much classroom discussion
Using the Text
Instructor’s Manual, Accounting for Decision Making and Control
©The McGraw-Hill Companies, Inc., 2011
xxix
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Suggested Assignment Problems (cont.)
Chapter
Basic Problems
More Challenging Problems
Extensions to Text
13 Overhead and
Marketing Variances
P13-1
P13-2
P13-4
P13-5
P13-7
P13-11
P13-12
P13-14
P13-17
P13-18
P13-19
P13-21
On-Call
Purchasing Department*
Logical Solutions
Oneida Metal
Printers, Inc.
Commando Force
Wine Distributors
Turow Trailers*
Artco Planters
Shady Tree Manufacturing
Ultrasonic
MRI Department
P13-3 Spectra Inc.*
P13-6 Beanie Babies
P13-8 Galt Electric Motors
P13-9 Western Sugar*
P13-10 Soldering Department
P13-15 Betterton Corporation
P13-20 Megan Corp.
P13-22 Anpax, Inc.
P13-13
P13-16
P13-23
C13-1
14 Management
Accounting in a
Changing Environment
P14-1
P14-3
P14-4
P14-6
P14-7
P14-10
P14-11
British Airways
Fiedler International
Guest Watches*
Old Town Roasters
The Pottery Store
TQM at Stowbrdidge Div.
Winter Games
P14-2 Chateau Napa
P14-5 Applying TQM in
Manufacturing versus
Administration*
P14-9 Stirling Acquisition*
P14-12 Warren City Parts*
P14-15 Tagway 4000*
P14-8
P14-13
P14-14
C14-1
C14-2
Auden Manufacturing
UOP*
Mopart Division*
Lancaster Chamber Orchestra*
Software Development, Inc.*
Secure Servers Inc.
Kollel Hospital*
Global Oil
Telephone Computer
Corporation*
C14-3 Productivity Measures
*Problem generates much classroom discussion
Using the Text
xxx
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Instructor’s Manual, Accounting for Decision Making and Control
Full file at http://testbankassistant.com
ALPHABETICAL LISTING OF PROBLEMS AND CASES
(H DENOTES HEALTH CARE RELATED PROBLEM; S DENOTES SERVICE INDUSTRY RELATED PROBLEM)
Problem/Case
Title
Chapter/Problem/
Case Number
A
Ab Landlord (S)
ABC and Taxes
ABC and Volume Changes
Accelerated Depreciation Problem
Access.Com (S)
Adapt, Inc.
Adrian Power
Advanced Micro Processors
Affording a Hybrid (S)
Alexander Products (H)
Alliance Tooling
Allied Adhesives
Allied Van Lines (S)
Amalfi Texts
American Cinema (S)
American InterConnect I (S)
American InterConnect II (S)
Amy’s Boards (S)
AN7-X1
Anpax, Inc.
APC Electronics
Apex Corporation
Applying TQM in Manufacturing v Adminis.
Artco Planters
Artisans Shirtcraft (S)
Aspen View
Ch. 3, P3-8
Ch. 11, P11-17
Ch. 11, P11-3
Ch. 3, P3-2
Ch. 6, P6-12
Ch. 2, P2-23
Ch. 6, P6-16
Ch. 8, P8-16
Ch. 2, P2-17
Ch. 12, P12-3
Ch. 10, P10-8
C. 7, P7-22
Ch. 4, P4-4
Ch. 9, P9-27
Ch. 2, P2-14
Ch. 4, P4-8
Ch. 4, P4-16
Ch. 2, P2-44
Ch. 12, P12-5
Ch. 13, P13-22
Ch. 2, P2-43
Ch. 3, P3-37
Ch. 14, P14-5
Ch. 13, P13-17
Ch. 6, Case 6-1
Ch. 10, P10-9
Using the Text
Instructor’s Manual, Accounting for Decision Making and Control
Problem/Case
Title
Chapter/Problem/
Case Number
Assembly and Parts Departments
Astin Car Stereos
Avid Pharmaceuticals
Auden Manufacturing
Aurora Medical Center (H)
Australian Shipping (S)
Avant Designs
Ch. 5, P5-14
Ch. 11, P11-6
Ch. 7, P7-5
Ch. 13, P13-13
Ch. 8, P8-26
Ch. 2, P2-21
Ch. 10, P10-14
B
Ball Brothers Purchasing Department (S)
Bank Service Centers (S)
Barry’s Fashions (S)
Bartolotta Company
Beanie Babies
Beckett Automotive Group (S)
Beckett Manufacturing
Betterton Corporation
BFR Ship Building
Bidwell Company
Bio Labs (H)
Black Feather Indian Nation (S)
Blauvelt Products
Blue Sage Mountain
Brehm Vineyards
Brickley Chains
British Airways (S)
Budget Lapsing versus Line-Item Budgets (S)
Ch. 7, P7-12
Ch. 8, P8-18
Ch. 8, P8-28
Ch. 9, P9-20
Ch. 13, P13-6
Ch. 5, P5-13
Ch. 8, P8-24
Ch. 13, P13-15
Ch. 7, P7-27
Ch. 2, P2-6
Ch. 7, P7-17
Ch. 3, P3-34
Ch. 10, P10-20
Ch. 2, P2-45
Ch. 6, P6-25
Ch. 11, P11-19
Ch. 14, P14-1
Ch. 6, P6-4
©The McGraw-Hill Companies, Inc., 2011
xxxi
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Budgeting (S)
Building Services Department (S)
Ch. 1, P1-7
Ch. 9, P9-16
C
Canadian Subsidiary
Candice Company
Carlos Sanguine Winery
Cellular First (S)
Celtex
Changing Standards
Chateau Napa
Chemtrex
Chicago Omni Hotel (S)
Christian Children’s Fund
Cibo Leathers
City Hospital Nursing (H)
CJ Equity Partners
Clean Tooth (S)
CLIC Lighters
Coase Farm
Coating Department
Cogen
Commando Force
Corporate Jet Problem (S)
Cost Behavior Patterns
Cost-Saving Device
Course Packets (S)
Ch. 5, P5-1
Ch. 2, P2-34
Ch. 8, Case 8-1
Ch. 6, P6-29
Ch. 5, Case 5-2
Ch. 12, P12-6
Ch. 14, P14-2
Ch. 9, P9-10
Ch. 7, P7-23
Ch. 4, Case 4-1
Ch. 12, P12-16
Ch. 6, P6-23
Ch. 5, P5-16
Ch. 3, P3-14
Ch. 10, P10-10
Ch. 4, P4-20
Ch. 6, P6-8
Ch. 5, P5-11
Ch. 13, P13-11
Ch. 7, P7-3
Ch. 2, P2-36
Ch. 3, P3-25
Ch. 4, P4-3
D
Dakota Mining
Darien Industries (S)
Decentralization
Declining Market, Inc.
DeJure Scents
Demand for DVD Players
Using the Text
xxxii
Ch. 3, P3-32
Ch. 2, P2-1
Ch. 4, P4-10
Ch. 3, P3-6
Ch. 9, P9-9
Ch. 3, P3-13
Depreciation Tax Shield
Densain Water
Desert Storm Mail Deliveries (S)
Diagnostic Imaging Software (H)
DigiEar (H)
Digital Convert
DIM
Discretionary Cost Centers
DMP Consultants
Doe Company
Domingo Cigars
Donovan Steel
Doral Rentals
Durango Plastics
DVDS
Dyna Golf
Ch. 3, P3-26
Ch. 9, P9-3
Ch. 4, P4-7
Ch. 7, P7-14
Ch. 9, P9-18
Ch. 2, P2-42
Ch. 10, P10-17
Ch. 5, P5-5
Ch. 6, P6-5
Ch. 8, P8-20
Ch. 12, Case 12-1
Ch. 8, P8-8
Ch. 2, P2-39
Ch. 7, Case 7-2
Ch. 11, P11-7
Ch. 11, Case 11-3
E
Eastern Educational Services (S)
Eastern University Parking (S)
Easton Plant
Economic Earnings
Electric Generator
Empowerment
Emrich Processing
Encryption, Inc.
Enzymes
Equity Corp.
Equivalent Units
EVA
Executive Inn (S)
Exotic Roses
Ch. 3, P3-38
Ch. 2, P2-26
Ch. 10, P10-18
Ch. 5, P5-4
Ch. 3, P3-29
Ch. 4, P4-1
Ch. 2, P2-10
Ch. 7, P7-11
Ch. 8, P8-10
Ch. 3, P3-5
Ch. 9, P9-1
Ch. 5, P5-3
Ch. 5, Case 5-3
Ch. 2, P2-24
F
Familia Insurance Company (S)
Ch. 11, P11-18
©The McGraw-Hill Companies, Inc., 2011
Instructor’s Manual, Accounting for Decision Making and Control
Full file at http://testbankassistant.com
Fast Fax
Fast Photo
Feder Purchasing Department
Federal Dam Project
Federal Insurance (S)
Federal Mixing
Ferguson Metals
Fidelity Bank (S)
Fiedler International
Flat Images
Flower City Cartridges
Flower City Grocery (S)
Formula 409
Four Service Centers (S)
Frames, Inc.
Friendly Grocer (S)
Fuentes Systems
Fuller Aerosols
Ch. 12, P12-13
Ch. 2, P2-18
Ch. 6, P6-11
Ch. 3, P3-17
Ch. 6, P6-6
Ch. 10, P10-1
Ch. 8, P8-19
Ch. 8, P8-5
Ch. 14, P14-3
Ch. 5, P5-20
Ch. 12, P12-14
Ch. 3, P3-20
Ch. 4, P4-13
Ch. 8, P8-23
Ch. 9, P9-24
Ch. 11, P11-9
Ch. 7, P7-15
Ch. 2, P2-40
Grove City Broadcasting (S)
Guest Watches
Ch. 8, P8-27
Ch. 14, P14-4
H
Hallsite Imaging
Happy Feet (S)
Heath Metal Products
Healing Touch
Hochstedt
Home Auto Parts (S)
Hospital Admission Office (H)
House Mortgage (S)
Housing Markets (S)
Houston Milling
Howard Binding
Hurst Mats
Ch. 7, P7-7
Ch. 2, P2-41
Ch. 9, Case 9-1
Ch. 12, P12-9
Ch. 5, P5-22
Ch. 2, P2-15
Ch. 11, P11-16
Ch. 3, P3-19
Ch. 3, P3-27
Ch. 11, P11-10
Ch. 12, P12-12
Ch. 9, P9-25
I
G
G. Bennett Stewart on Management
Incentives
G. Demopoulos & Son Inc. (S)
Galt Electric Motors
GAMMA
Gas Prices
Geico
Giza Farms
Global Oil
Goals of a Corporation
Gold Mountain Ski Resort (S)
Golf Specialties
Golf World (S)
Gong-Fen
Goodstone Tires
Great Southern Furniture (S)
Ch. 6, P6-1
Ch. 2, P2-39
Ch. 13, P13-8
Ch. 11, P11-2
Ch. 2, P2-11
Ch. 3, P3-24
Ch. 7, P7-21
Ch. 14, Case 14-1
Ch. 1, P1-6
Ch. 2, P2-48
Ch. 1, P1-8
Ch. 6, P6-7
Ch. 4, P4-22
Ch. 11, P11-15
Ch. 12, P12-15
Using the Text
Instructor’s Manual, Accounting for Decision Making and Control
ICB, Intl.
Ice Storm
iGen3
Implementing ABC
Infantino Saab (S)
International Computer Company (S)
International Telecon (S)
Investment Banks (S)
IPX Packaging
IRR Problem
ITI Technology
IVAX
Ch. 5, P5-7
Ch. 6, P6-3
Ch. 2, P2-22
Ch. 11, P11-5
Ch. 5, P5-26
Ch. 4, P4-23
Ch. 6, P6-15
Ch. 6, P6-2
Ch. 9, P9-2
Ch. 3, P3-1
Ch. 8, P8-13
Ch. 8, P8-31
J
J.P. Max Department Stores (S)
Jacklin Stampings
James Marketing Campaign (S)
Ch. 2, P2-5
Ch. 9, P9-21
Ch. 6, P6-31
©The McGraw-Hill Companies, Inc., 2011
xxxiii
Full file at http://testbankassistant.com
Janitorial Services (S)
Jason Rocks
Jasper, Inc.
JLE Electronics
Joint Products, Inc.
Jolsen International (S)
Jones Consortium (S)
Joon
Just One, Inc.
Ch. 8, P8-29
Ch. 8, P8-17
Ch. 3, P3-3
Ch. 2, P2-30
Ch. 8, P8-6
Ch. 7, P7-8
Ch. 8, P8-30
Ch. 10, Case 10-1
Ch.3, P3-4
K
Karsten Mills
Kay Enterprises
Kinsley & Sons (S)
Kitchen Rite
Kollel Hospital (H)
Kothari Inc.
Ch. 8, P8-22
Ch. 11, P11-14
Ch. 2, P2-32
Ch. 9, P9-23
Ch. 14, P14-14
Ch. 10, P10-12
L
Lancaster Chamber Orchestra (S)
LaserFlo
Linda Lion Co.
Littleton Imaging (H)
Littleton Medical Center (H)
Logical Solutions
Lottery (S)
Lys Wheels
Ch. 13, Case 13-1
Ch. 6, Case 6-3
Ch. 3, P3-31
Ch. 2, P2-33
Ch. 8, P8-25
Ch. 13, P13-4
Ch. 3, P3-9
Ch. 9, P9-7
M
MacGiver Brass
Madden International (H) (S)
Madigan Modems
Magee Inc.
Magic Floor
Managers Need Accounting Information
Using the Text
xxxiv
Ch. 9, P9-4
Ch. 6, P6-24
Ch. 6, P6-19
Ch. 6, P6-30
Ch. 9, P9-29
Ch. 1, P1-4
Manufacturing Cost Classification
Marian Health Care System (H)
Marketing Plan (S)
Massey Electronics
Mastich Counters (S)
Mat Machinery
Maui Seminar
MBA Students
Measer
Medford Mug Company
Media Designs (S)
Medical Instruments (H)
MedView (H)
Megan Corp.
Metal Press
Metro Blood Bank (H)
Mickles Ltd.
Microelectronics
Milan Pasta
Montana Pen
Mopart Division
Mortgage Department (S)
Mowerson Division
MRI (H)
MRI Department (H)
Mr. Jones’s Retirement
Murray Hill’s Untimely Demise (S)
Mutual Fund Company
Mystic Herbals
Mystic Mugs
Ch. 2, P2-20
Ch. 12, P12-10
Ch. 6, P6-9
Ch. 7, P7-4
Ch. 2, P2-28
Ch. 2, P2-35
Ch. 11, P11-1
Ch. 1, P1-1
Ch. 2, P2-16
Ch. 10, P10-11
Ch. 9, P9-11
Ch. 12, P12-1
Ch. 2, P2-19
Ch. 13, P13-20
Ch. 5, P5-6
Ch. 8, P8-14
Ch. 12, P12-2
Ch. 5, P5-9
Ch. 11, P11-4
Ch. 1, P1-10
Ch. 13, P13-23
Ch. 3, P3-28
Ch. 2, Case 2-2
Ch. 7, P7-1
Ch. 13, P13-21
Ch. 3, P3-10
Ch. 8, P8-9
Ch. 9, P9-26
Ch. 8, P8-4
Ch. 10, P10-13
N
National Taxpayers Union (S)
National Training Institute (S)
Navisky
Negative Opportunity Costs
Ch. 3, P3-16
Ch. 7, P7-10
Ch. 10, P10-16
Ch. 2, P2-2
©The McGraw-Hill Companies, Inc., 2011
Instructor’s Manual, Accounting for Decision Making and Control
Full file at http://testbankassistant.com
New Car
New York Fashions
News.Com (S)
Neweway Plastics
Northern Sun, Inc.
NPR (S)
NPV vs. Payback
Ch. 3, P3-15
Ch. 6, P6-14
Ch. 2, P2-31
Ch. 9, P9-31
Ch. 3, P3-7
Ch. 2, P2-3
Ch. 3, P3-11
O
Oaks Auto Supply
Old Rosebud Farms
Old Town Roasters (S)
Old Turkey Mash
On-Call (S)
One Cost System Isn’t Enough
Oneida Metal
Oppenheimer Visuals
Optometry Practice (H)
Outback Opals
Overland Steel
Ch. 12, P12-4
Ch. 6, P6-27
Ch. 14, P14-6
Ch. 2, Case 2-1
Ch. 13, P13-1
Ch. 1, P1-2
Ch. 13, P13-5
Ch. 2, P2-25
Ch. 2, P2-31
Ch. 8, P8-2
Ch. 3, P3-33
P
Painting Department
Panarude Airfreight (S)
Parkview Hospital (H)
Pay for Performance
Pebble Beach Sandal
Penury Company
Phipps Electronics
Phonetex
Picture Maker (S)
Plastic Chairs
Pool Scrubbers
Portable Phones, Inc.
PortCo Products
Ch. 7, P7-19
Ch. 6, P6-17
Ch. 1, P1-9
Ch. 4, P4-2
Ch. 9, P9-20
Ch. 2, P2-13
Ch. 5, P5-2
Ch. 7, Case 7-1
Ch. 6, P6-22
Ch. 7, P7-24
Ch. 9, P9-5
Ch. 9, Case 9-2
Ch. 9, Case 9-3
Using the Text
Instructor’s Manual, Accounting for Decision Making and Control
Potter-Bowen (S)
PQR Coal
Pratt & Whitney
Premier Brands
Printers, Inc.
Private Country Clubs (S)
Productivity Measures
Punch Press
Purchasing Department
Puttmaster (S)
Pyramid Products
Ch. 6, P6-10
Ch. 3, P3-22
Ch. 4, P4-14
Ch. 5, P5-21
Ch. 13, P13-7
Ch. 4, P4-17
Ch. 14, Case 14-3
Ch. 3, P3-36
Ch. 13, P13-2
Ch. 2, Case 2-3
Ch. 9, P9-28
Q
R
R&D Inc.
Raises
RBB Brands
Reed Park, Inc. (S)
Repro Corporation
Republic Insurance (S)
Rick’s Bags
Roberts Machining
Roderiques
Rose Hospital (H)
Rothwell Inc. (S)
Royal Holland Line (S)
Royal Resort and Casino (S)
Rust Belt Mufflers
Ch. 5, P5-19
Ch. 4, P4-9
Ch. 8, P8-21
Ch. 7, P7-23
Ch. 4, P4-24
Ch. 6, P6-26
Ch. 9, P9-13
Ch. 2, P2-38
Ch. 11, P11-9
Ch. 8, P8-3
Ch. 4, P4-21
Ch. 2, P2-37
Ch. 5, Case 5-4
Ch. 12, Case 12-2
S
Sales Commissions
Sanchez Gadgets
Sants Brakes Co.
Ch. 4, P4-12
Ch. 11, P11-11
Ch. 10, P10-22
©The McGraw-Hill Companies, Inc., 2011
xxxv
Full file at http://testbankassistant.com
Savannah Products
Scanners Plus
Scion Corp.
Scottie Corporation
Secure Servers Inc. (S)
Serviflow
Shady Tree Manufacturing
Shop and Save (S)
Silky Smooth Lotions
Simple Investment
Simple Plant
Slawson
Smythe and Yves
SnapOn Fasteners
Software Development, Inc. (S)
Software Associates (S)
Soldering Department
South American Mining
Spa Ariana (S)
Specialized Surgical Instruments (H)
Spectra Inc.
Stale-Mart (S)
Standard Cost Systems
Starling Coatings
Step-Down
Stirling Acquisition (S)
Student Loan Program (S)
Sunder Properties (S)
Sunder Toys
Sunnybrook Farms (S)
Sunstar Appliances
Swan Systems
Ch. 5, P5-23
Ch. 7, P7-20
Ch. 6, Case 6-2
Ch. 3, P3-35
Ch. 14, P14-13
Ch. 5, P5-28
Ch. 13, P13-18
Ch. 5, P5-8
Ch. 2, P2-4
Ch. 3, P3-12
Ch. 9, P9-12
Ch. 7, P7-2
Ch. 12, P12-8
Ch. 11, Case 11-2
Ch. 14, P14-8
Ch. 12, P12-17
Ch. 13, P13-10
Ch. 3, P3-18
Ch. 6, P6-21
Ch. 9, P9-19
Ch. 13, P13-3
Ch. 5, P5-18
Ch. 12, P12-7
Ch. 12, P12-18
Ch. 8, P8-1
Ch. 14, P14-9
Ch. 3, P3-23
Ch. 5, P5-3
Ch. 8, P8-11
Ch. 2, P2-9
Ch. 5, P5-17
Ch. 5, Case 5-1
T
Tagway 4000
Talor Chemical Company
Using the Text
xxxvi
Taylor Chains
Taylor Chemicals
Telephone Computer Corporation (TCC)
Telstar Electronics
The Pottery Store (S)
Theory X – Theory Y
Thermalloy
Tilist Golf
Tipping (S)
Toby Manufacturing
Toledo Stadium (S)
TQM at the Stowbridge Division
Transfer Price Company
Transmation
TransPacific Bank (S)
Trevino Golf Balls
Troika Toys (S)
Troy Industrial Designs
True Cost Manufacturing, Inc.
Truini Paints
Turow Trailers
Ch. 10, P10-15
Ch. 2, P2-9
Ch. 14, Case 14-2
Ch. 7, P7-13
Ch. 14, P14-7
Ch. 4, P4-15
Ch. 9, P9-6
Ch. 11, Case 11-1
Ch. 4, P4-18
Ch. 11, P11-13
Ch. 3, P3-21
Ch. 14, P14-10
Ch. 5, P5-24
Ch. 7, P7-26
Ch. 10, P10-6
Ch. 12, P12-19
Ch. 6, P6-28
Ch. 5, Case 5-1
Ch. 11, P11-8
Ch. 10, P10-4
Ch. 13, P13-14
U
U.S. and Japanese Tax Laws
U.S. Pump Systems
Ultrasonic (H)
UniCom
University Lab Testing (H)
University Physician Compensation (H)
Unknown Company
UOP
US Copiers
Using Accounting for Planning
Ch. 1, P1-3
Ch. 5, P5-15
Ch. 13, P13-19
Ch. 10, P10-21
Ch. 5, P5-12
Ch. 4, P4-6
Ch. 9, P9-14
Ch. 13, P13-16
Ch. 5, P5-10
Ch. 1, P1-5
Ch. 14, P14-15
Ch. 8, P8-7
©The McGraw-Hill Companies, Inc., 2011
Instructor’s Manual, Accounting for Decision Making and Control
Full file at http://testbankassistant.com
V
Vanderschmidt’s (S)
Varilux
Veriplex
Videx
Vigdor Wood Products
Vintage Cellars
Volume and Profits
Voluntary Financial Disclosure
Vorma
X, Y, Z
Ch. 4, P4-11
Ch. 10, P10-3
Ch. 6, P6-18
Ch. 6, P6-13
Ch. 8, P8-15
Ch. 2, P2-7
Ch. 2, P2-13
Ch. 4, P4-5
Ch. 7, P7-16
XBT Keyboards
Xerox
Zeflax Bottles
Zinc Faucets
Zipp Cards (S)
Ch. 5, P5-25
Ch. 10, P10-2
Ch. 10, P10-7
Ch. 12, P12-11
Ch. 10, P10-5
W
Ware Paper Box
Warren City Parts Manufacturing
Wasley
Watson’s Bay
Webb & Drye (S)
Wedig Diagnostics (H)
Welding Robots
Wellington
Western Sugar
Weststar Appliances
White’s Department Store (S)
William Company (S)
Wine Distributors (S)
Winter Games
Winterton Group (S)
Woodhaven Service (S)
Woodley Furniture
World Imports (S)
Wujo (H)
WWWeb Marketing
Wyatt Oil
Ch. 9, P9-8
Ch. 14, P14-12
Ch. 7, P7-6
Ch. 3, P3-30
Ch. 6, P6-20
Ch. 11, P11-12
Ch. 9, P9-17
Ch. 9, P9-15
Ch. 13, P13-9
Ch. 10, P10-19
Ch. 4, P4-19
Ch. 2, P2-29
Ch. 13, P13-12
Ch. 14, P14-11
Ch. 7, P7-9
Ch. 4, Case 4-2
Ch. 7, P7-25
Ch. 7, P7-18
Ch. 5, P5-27
Ch. 8, P8-12
Ch. 8, Case 8-2
Using the Text
Instructor’s Manual, Accounting for Decision Making and Control
©The McGraw-Hill Companies, Inc., 2011
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