© 2012 Pearson Education, Inc. Publishing as Prentice Hall
Solutions Manual
Upper Saddle River, NJ 07458
COST
ACCOUNTING
Fourteenth Edition
Charles T. Horngren
Srikant M. Datar
Madhav Rajan
© 2012 Pearson Education, Inc. Publishing as Prentice Hall. SM Cost Accounting 14/e by Horngren
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Copyright © 2012 by Pearson Education, Inc., Upper Saddle River, New Jersey, 07458.
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ISBN-13: 978-0-13-210921-5
ISBN 10: 0-13-210921-2
© 2012 Pearson Education, Inc. Publishing as Prentice Hall. SM Cost Accounting 14/e by Horngren
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TABLE OF CONTENTS
Preface v
Supplements Available for Fourteenth Edition ix
Alternative Suggested Chapter Sequences xiii
Categorization of Assignment Material xvii
Presentation of Solutions xxxi
Major Changes in Text for the Fourteenth Edition xxxiii
Changes in Assignment Material for the Fourteenth Edition xxxvii
Chapter Solutions
1 The Manager and Management Accounting 1–1
2 An Introduction to Cost Terms and Purposes 2–1
3 Cost–Volume–Profit Analysis 3–1
4 Job Costing 4–1
5 Activity–Based Costing and Activity–Based Management 5–1
6 Master Budget and Responsibility Accounting 6–1
7 Flexible Budgets, Direct–Cost Variances, and Management Control 7–1
8 Flexible Budgets, Overhead Cost Variances, and Management Control 8–1
9 Inventory Costing and Capacity Analysis 9–1
10 Determining How Costs Behave 10–1
11 Decision Making and Relevant Information 11–1
12 Pricing Decisions and Cost Management 12–1
13 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 13–1
14 Cost Allocation, Customer–Profitability Analysis, and Sales–Variance Analysis 14–1
15 Allocation of Support–Department Costs, Common Costs, and Revenues 15–1
16 Cost Allocation: Joint Products and Byproducts 16–1
17 Process Costing 17–1
18 Spoilage, Rework, and Scrap 18–1
19 Balanced Scorecard: Quality, Time, and the Theory of Constraints 19–1
20 Inventory Management, Just–in–Time, and Simplified Costing Methods 20–1
21 Capital Budgeting and Cost Analysis 21–1
22 Management Control Systems, Transfer Pricing, and Multinational Considerations 22–1
© 2012 Pearson Education, Inc. Publishing as Prentice Hall. SM Cost Accounting 14/e by Horngren
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23 Performance Measurement, Compensation, and Multinational Considerations 23-1
© 2012 Pearson Education, Inc. Publishing as Prentice Hall. SM Cost Accounting 14/e by Horngren
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PREFACE
The keys to the success of a course in cost accounting are the assignment and discussion of
provocative problem material. The gathering of high-quality assignment material has been a
crucial phase of this book‘s preparation – not a painful afterthought.
Please review the preface in the text in conjunction with examining the suggestions in this
Solutions Manual. Please also read all the front matter of this manual.
Anna Jensen, Barbara Durham, Anna Jensen and Shalin Shah assisted us greatly with
contributing, critiquing, and checking of the problems and their solutions. We thank them for
their many wonderful contributions.
We deeply appreciate the tremendous support of Caroline Roop, Aimée Hamel, and Shalin Shah.
Their ability to cheerfully respond to the many challenges made our tasks much more
manageable. We further appreciate the technical support for data analysis provided by DeYett
Law.
We are thankful to Stephanie Wall and Christina Rumbaugh at Prentice-Hall for providing
continual support in preparing this Solutions Manual.
CHARLES T. HORNGREN
SRIKANT M. DATAR
MADHAV V. RAJAN
© 2012 Pearson Education, Inc. Publishing as Prentice Hall. SM Cost Accounting 14/e by Horngren
viii
© 2012 Pearson Education, Inc. Publishing as Prentice Hall. SM Cost Accounting 14/e by Horngren
SUPPLEMENTS AVAILABLE FOR THE FOURTEENTH EDITION
A complete package of supplements is available to assist students and instructors in using
Cost Accounting: A Managerial Emphasis
MyAccountingLab: for Horngren Cost Accounting 14e
MyAccountingLab is an online homework and assessment tool, designed to help students
practice cost accounting problems and concepts, and give their instructors feedback on their
performance. It lets cost accounting professors assign a homework deliverable that is
automatically graded, but that also serves as a tutorial experience for students.
Based on Pearson‘s MathXL platform that has graded over millions of assignments,
MyAccountingLab provides a strong, reliable platform with a rock solid performance history. To
learn more visit www.myaccountinglab.com.
For Instructors
Instructor Resource Center (IRC)
These password-protected resources are accessible from www.pearsonhighered.com for Cost
Accounting, 14th ed. Resources Include:
Instructor‘s Manual
Test Item File
Test Gen EQ—A computerized test item file.
