Archives: Quiz
978-0393123982 Chapter 8 Lecture Note
Chapter 8 21 Chapter 8 Slutsky Equation Most books talk about income and substitution effects, but then they don’t do anything with the ideas. My view is that you have to give the student enough of an understanding of an […]
978-0393123982 Chapter 7 Solution Manual Part 2
NAME 89 since. Lord Peter has learned that Sir Cedric left England and is living under an assumed name somewhere in the Empire. There are three sus- pects, R. Preston McAfee of Brass Monkey, Ontario, Canada, Richard Manning of North […]
978-0393123982 Chapter 7 Solution Manual Part 1
Chapter 7 NAME Revealed Preference Introduction. In the last section, you were given a consumer’s pref- erences and then you solved for his or her demand behavior. In this chapter we turn this process around: you are given information about […]
978-0393123982 Chapter 7 Lecture Note
18 Chapter Highlights Chapter 7 Revealed Preference This is a big change of pace, and usually a welcome one. The basic idea of revealed preference, as described in Section 7.1, is a very intuitive one. All I want to do […]
978-0393123982 Chapter 6 Solution Manual Part 2
NAME 75 tables below report total current consumption expenditures and expendi- tures on certain major categories of goods for 5 different income groups in the United States in 1961. People within each of these groups all had similar incomes. Group […]
978-0393123982 Chapter 6 Solution Manual Part 1
Chapter 6 NAME Demand Introduction. In the previous chapter, you found the commodity bundle that a consumer with a given utility function would choose in a specific price-income situation. In this chapter, we take this idea a step further. We […]
978-0393123982 Chapter 6 Lecture Note
16 Chapter Highlights Chapter 6 Demand This is a very important chapter, since it unifies all the material in the previous chapter. It is also the chapter that separates the sheep from the goats. If the student has been paying […]
978-0393123982 Chapter 5 Solution Manual Part 2
58 CHOICE (Ch. 5) 04812 16 4 8 12 Y 16 X (3,3) Blue curve Black curve Red line (b) On the same graph, use red ink to draw Linus’s budget line if the price of xis 1 and the […]
978-0393123982 Chapter 5 Solution Manual Part 1
Chapter 5 NAME Choice Introduction. You have studied budgets, and you have studied prefer- ences. Now is the time to put these two ideas together and do something with them. In this chapter you study the commodity bundle chosen by […]
978-0393123982 Chapter 5 Lecture Note
Chapter 5 13 Chapter 5 Choice This is the chapter where we bring it all together. Make sure that students understand the method of maximization and don’t just memorize the various special cases. The problems in the workbook are designed […]
978-0393123982 Chapter 4 Solution Manual Part 2
40 UTILITY (Ch. 4) 4.5 (0) As you may recall, Nancy Lerner is taking Professor Stern’s economics course. She will take two examinations in the course, and her score for the course is the minimum of the scores that she […]
978-0393123982 Chapter 4 Solution Manual Part 1
Chapter 4 NAME Utility Introduction. In the previous chapter, you learned about preferences and indifference curves. Here we study another way of describing prefer- ences, the utility function. A utility function that represents a person’s preferences is a function that […]
978-0393123982 Chapter 4 Lecture Note
10 Chapter Highlights Chapter 4 Utility In this chapter, the level of abstraction kicks up another notch. Students often have trouble with the idea of utility. It is sometimes hard for trained economists to sympathize with them sufficiently, since it […]
978-0393123982 Chapter 38 Solution Manual
Chapter 38 NAME Asymmetric Information Introduction. The economics of information and incentives is a rela- tively new branch of microeconomics, in which much intriguing work is going on. This chapter shows you a sample of these problems and the way […]
978-0393123982 Chapter 38 Lecture Note
Chapter 38 95 Chapter 38 Information The students really like this material on information economics, but you have to work at it to really get the ideas across. The first topic is the famous lemon’s market. I found it easy […]
978-0393123982 Chapter 37 Solution Manual Part 2
462 PUBLIC GOODS (Ch. 37) (h) With the proportional income tax scheme discussed above, what bud- get constraint would a rich person consider in deciding how many aerobics lessons to vote for? 3A+B= 100.What is the relevant bud- get constraint […]
978-0393123982 Chapter 37 Solution Manual Part 1
Chapter 37 NAME Public Goods Introduction. In previous chapters we studied selfish consumers con- suming private goods. A unit of private goods consumed by one person cannot be simultaneously consumed by another. If you eat a ham sand- wich, I […]
978-0078025631 Chapter 11A Lecture Note
Chapter 11A – Lecture Notes 11A-1 I. Appendix 11A: transfer pricing (Slide #1 is a title slide) A. Key concepts/definitions i. A transfer price is the price charged when one segment of a company provides goods or services to another […]
978-0078025631 Chapter 11 Solution Manual Part 8
Appendix 11B Service Department Charges Exercise 11B-1 (15 minutes) 1. and 2. Northern Plant Southern Plant Total Variable cost charges: $0.25 per ton × 130,000 tons ……….. $ 32,500 $0.25 per ton × 50,000 tons …………. $ 12,500 $ 45,000 […]
978-0078025631 Chapter 11 Solution Manual Part 7
Problem 11A-6 (60 minutes) 1. From the standpoint of the selling division, Alpha Division: Total contribution margin on lost sales Variable cost Transfer price + per unit Number of units transferred ³ ( ) ³($30 – $18) × 5,000 Transfer […]
978-0078025631 Chapter 11 Solution Manual Part 6
Appendix 11A Transfer Pricing Exercise 11A-1 (30 minutes) 1. a. The lowest acceptable transfer price from the perspective of the selling division is given by the following formula: Total contribution margin on lost sales Variable cost Transfer price + per […]
978-0078025631 Chapter 11 Solution Manual Part 5
Problem 11-21 (continued) 2. Students’ answers may differ in some details from this solution. Applied Pharmaceuticals Return on Stockholders’ Equity Financial Customer perception of first-to-market capability Customer perception of product quality Customer R&D Yield Defect rates Internal Business Processes Dollars […]
978-0078025631 Chapter 11 Solution Manual Part 4
Problem 11-16 (continued) 3. Students’ answers may differ in some details from this solution. Time to fill an order Customer satisfaction with breadth of product offerings customers acquired Average change- over time Number of different paper grades produced Average manufacturing […]
978-0078025631 Chapter 11 Solution Manual Part 3
Exercise 11-11 (30 minutes) 1. Net operating income Margin = Sales $70,000 = = 5% $1,400,000 Sales Turnover = Average operating assets $1,400,000 = = 4 $350,000 ROI = Margin × Turnover = 5% × 4 = 20% 2. Net […]
978-0078025631 Chapter 11 Solution Manual Part 2
Exercise 11-4 (continued) 3. Management will be able to tell if a hypothesis is false if an improvement in a performance measure at the bottom of an arrow does not, in fact, lead to improvement in the performance measure at […]
978-0078025631 Chapter 11 Solution Manual Part 1
Chapter 11 Performance Measurement in Decentralized Organizations Solutions to Questions 11-1 In a decentralized organization, decision-making authority isn’t confined to a few top executives; instead, decision-making authority is spread throughout the organization. operating assets. 11-6 If ROI is used to […]
978-0078025631 Chapter 11 Lecture Note Part 2
Chapter 11 – Lecture Notes 11-8 1. Economic Value Added (EVA®) is an adaptation of residual income. We will not distinguish between these two terms. B. Calculating residual income i. The equation for computing residual income is as shown. Notice: […]
978-0078025631 Chapter 11 Lecture Note Part 1
Chapter 11 – Lecture Notes 11-1 Chapter 11 Lecture Notes Chapter theme: Managers in large organizations have to delegate some decisions to those who are at lower levels in the organization. This chapter explains how responsibility accounting systems, return on […]
978-0078025631 Chapter 11 Excel Solution
Chapter 11 Solutions Manual Content 11-1 Chapter 11: Applying Excel The completed worksheet is shown below. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 11 Solutions Manual […]
978-0078025631 Chapter 10B Lecture Note
Chapter 10B – Lecture Notes 10B-1 I. Appendix 10B: General Ledger Entries to Record Variances (Slide #1 is the title slide) Learning Objective 5: Prepare journal entries to record standard costs and variances. A. Glacier Peak Outfitters – revisited i. […]
978-0078025631 Chapter 10A Lecture Note
Chapter 10A – Lecture Notes 10A-1 I. Appendix 10A: predetermined overhead rates and overhead analysis in a standard costing system (Slide #1 is the title slide) Learning Objective 4: Compute and interpret the fixed overhead budget and volume variances. A. […]
978-0078025631 Chapter 10 Solution Manual Part 9
Problem 10B-3 (continued) 5. The variances have many possible causes. Some of the more likely causes include the following: Materials variances: Favorable price variance: Good price, inferior quality materials, unusual discount due to quantity purchased, drop in market price, less […]
978-0078025631 Chapter 10 Solution Manual Part 8
Problem 10A-12 (continued) Alternative solution: Budget variance: = $271,600 – $270,000 Budget Actual fixed Budgeted fixed = – variance overhead overhead = $1,600 U Volume variance: æö ÷ ç÷ ç÷ ç÷ ç÷ ÷ ç èø ´ Fixed portion of Standard […]
978-0078025631 Chapter 10 Solution Manual Part 7
Problem 10A-9 (continued) Fixed overhead variances: Actual Fixed Overhead Budgeted Fixed Overhead Fixed Overhead Applied to Work in Process $209,400 $210,000 32,000 hours × $6 per hour = $192,000 Budget Variance, $600 F Volume Variance, $18,000 U […]
978-0078025631 Chapter 10 Solution Manual Part 6
Exercise 10A–2 (continued) 3. Variable overhead rate variance: Variable overhead rate variance = (AH × AR) – (AH × SR) ($185,600) – (64,000 hours × $3 per hour) = $6,400 F Variable overhead efficiency variance: Variable overhead efficiency variance = […]
978-0078025631 Chapter 10 Solution Manual Part 5
Problem 10-15 (continued) 2. Summary of variances: Material price variance …………………….. $ 3,000 F Material quantity variance ………………… 8,400 U Labor rate variance …………………………. 11,800 U Labor efficiency variance ………………….. 1,200 F Variable overhead rate variance …………. 590 U Variable […]
978-0078025631 Chapter 10 Solution Manual Part 4
Problem 10-13 (45 minutes) 1. a. Actual Quantity of Input, at Actual Price (AQ × AP) Actual Quantity of Input, at Standard Price (AQ × SP) Standard Quantity Allowed for Actual Output, at Standard Price (SQ × SP) 21,600 feet** […]
978-0078025631 Chapter 10 Solution Manual Part 3
Problem 10-9 (continued) 2. Many students will miss parts 2 and 3 because they will try to use product costs as if they were hourly costs. Pay particular attention to the computation of the standard direct labor time per unit […]
978-0078025631 Chapter 10 Solution Manual Part 2
Exercise 10-4 (continued) 3. Actual Hours of Input, at the Actual Rate Actual Hours of Input, at the Standard Rate Standard Hours Allowed for Output, at the Standard Rate (AH × AR) (AH × SR) (SH × SR) 5,750 hours […]
978-0078025631 Chapter 10 Solution Manual Part 1
Chapter 10 Standard Costs and Variances Solutions to Questions 10-1 A quantity standard indicates how much of an input should be used to make a unit of output. A price standard indicates how much the input should cost. 10-2 Separating […]
978-0078025631 Chapter 10 Lecture Note Part 2
Chapter 10 – Lecture Notes 10-8 materials price variance, and materials quantity variance, respectively. 1. The standard price is used to compute the quantity variance so that the production manager is not held responsible for the performance of the purchasing […]
978-0078025631 Chapter 10 Lecture Note Part 1
Chapter 10 – Lecture Notes 10-1 Chapter 10 Lecture Notes Chapter theme: This chapter extends our study of management control by explaining how standard costs are used by managers to control costs. It demonstrates how to compute direct materials, direct […]
978-0078025631 Chapter 10 Excel Solution
Chapter 10 Solutions Manual Content 10-1 Chapter 10: Applying Excel The completed worksheet is shown below. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 10 Solutions Manual […]
978-0078025631 Chapter 1 Solution Manual Part 2
Exercise 1-6 (15 minutes) Industry Type of Risk Control Airlines An airplane might crash. Implement a preventive maintenance program. Pharmaceutical drugs A customer might be harmed by a drug. Design tamper-proof packaging. Package delivery A package may get lost. Implement […]
978-0078025631 Chapter 1 Lecture Note Part 2
Chapter 01 – Lecture Notes 1-9 supervisor or next highest uninvolved managerial level. b. If immediate supervisor is the CEO, consider the board of directors or the audit committee. c. Contact above immediate supervisor should only be initiated with supervisor’s […]
978-0078025631 Chapter 1 Lecture Note Part 1
Chapter 01 – Lecture Notes 1-1 Chapter 1 Lecture Notes Chapter theme: This chapter explains why managerial accounting is important to the future careers of all business students. It answers two questions: (1) what is managerial accounting? and (2) why […]
978-0078025631 Appendix B Solution Manual Part 2
Problem B-5 (continued) 5. The selling price for the new product should at least cover its variable cost and opportunity cost: Selling price of Variable cost of + the new product the new product Opportunity cost Amount of the constrained […]
978-0078025631 Appendix B Solution Manual Part 1
Appendix B Profitability Analysis Solutions to Questions B-1 Absolute profitability measures the impact on overall profits of adding or dropping a particular segment, such as a product or measured by the profitability index, which is computed by dividing the incremental […]
978-0078025631 Appendix B Lecture Note
Appendix B – Lecture Notes AppB-1 Appendix B Lecture Notes Main theme: Perhaps more than any other information, managers would like to know the profitability of their products, customers, and other business segments. Accordingly, this appendix provides a coherent framework […]
978-0078025631 Appendix A Solution Manual Part 3
Problem A-7 (continued) 2. A chart based on the above table would look like the following: Based on this chart, a selling price of about $18 would maximize net op- erating income. –$15,000 –$10,000 –$5,000 $0 $5,000 $10,000 $15,000 $20,000 […]