Archives: Solution Manual
978-0134475585 Chapter 2 Solution 3
SOLUTION (20 min.) Total costs and unit costs Number of attendees 0 50 100 175 200 Variable cost per attendee (Materials $35 + Food, $75 Fixed Costs per session (Trainer, $11,000 + Materials, $2,500 + Catering, $5,000 − Offset for […]
978-0134475585 Chapter 2 Solution 2
SOLUTION (15–20 min.) Classification of costs, merchandising sector. Cost object: DVDs sold in movie section of store Cost variability: With respect to changes in the number of DVDs sold There may be some debate over classifications of individual items, especially […]
978-0134475585 Chapter 2 Solution 1
CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-1 Define cost object and give three examples. 2-2 Define direct costs and indirect costs. Direct costs of a cost object are related to the particular cost object and can be […]
978-0134475585 Chapter 1 Solution 3
SOLUTION (30 min.) Pharmaceutical company, budgeting, ethics. 1. The overarching principles of the IMA Statement of Ethical Professional Practice are Honesty, Fairness, Objectivity and Responsibility. The statement’s corresponding “Standards for Ethical Behavior…” require management accountants to Perform professional duties in […]
978-0134475585 Chapter 1 Solution 2
SOLUTION (10–15 min.) Professional ethics and reporting division performance. 1. Mendez’s ethical responsibilities are well summarized in the IMA’s “Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management” (Exhibit 1-7 of text). Areas of ethical responsibility include […]
978-0134475585 Chapter 1 Solution 1
CHAPTER 1 THE MANAGER AND MANAGEMENT ACCOUNTING 1-1 How does management accounting differ from financial accounting? Management accounting measures, analyzes, and reports financial and nonfinancial information Financial accounting focuses on reporting to external parties such as investors, government agencies, and […]
978-0134474021 Chapter 22 Solutions Manual Part 2
b. Identify and describe three ways Mickie violated internal control principles during the AIS implementation. Most of the control features of the “old” system were retained in the “new” system; Proper backup procedures were not implemented in many areas. This […]
978-0134474021 Chapter 22 Solutions Manual Part 1
CHAPTER 22 SYSTEMS DESIGN, IMPLEMENTATION, AND OPERATION SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 22.1 Prism Glass is converting to a new information system. To expedite and speed up implementation, the CEO asked your consulting team to postpone establishing standards and controls […]
978-0134474021 Chapter 21 Solutions Manual Part 3
d. Suppose the company decides the prototype system is not practical, abandons it, and takes some other approach to solving its information problem. Does that mean prototyping is not a valid systems development approach? Explain your answer. Just because the […]
978-0134474021 Chapter 21 Solutions Manual Part 2
b. Susan Shelton did not agree with Mark’s weightings and suggested the following changes: Flexibility 60 Reputation and reliability 50 Quality of support utilities 10 Graphics capability 10 When the changes are made, which vendor should Mark recommend? Based on […]
978-0134474021 Chapter 21 Solutions Manual Part 1
CHAPTER 21 AIS DEVELOPMENT STRATEGIES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 21.1 What is the accountant’s role in the computer acquisition process? Should the accountant play an active role, or should all the work be left to computer experts? In what […]
978-0134474021 Chapter 20 Solutions Manual Part 4
20.13 Managers at some companies face an ongoing systems development crisis: IS departments develop systems that businesses cannot or will not use. At the heart of the problem is a “great divide” that separates the world of business and the […]
978-0134474021 Chapter 20 Solutions Manual Part 3
20.8 Recent years have brought an explosive growth in electronic communication. Laptops, netbooks, e-readers, personal digital assistants, sophisticated cell phones, fax machines, e-mail, teleconferencing, office productivity software, and sophisticated management information systems have changed the way information is received, processed, […]
978-0134474021 Chapter 20 Solutions Manual Part 2
20.4 The controller of Tim’s Travel (TT) is deciding between upgrading the company’s existing computer system or replacing it with a new one. Upgrading the four-year-old system will cost $97,500 and extend its useful life for another seven years. The […]
978-0134474021 Chapter 20 Solutions Manual Part 1
CHAPTER 20 INTRODUCTION TO SYSTEMS DEVELOPMENT; SYSTEMS ANALYSIS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 20.1 The approach to long-range AIS planning described in this chapter is important for large organizations with extensive investments in computer facilities. Should small organizations with far […]
978-0134474021 Chapter 19 Solutions Manual Part 3
19.7 At Big Time University (BTU) students are allowed to purchase two basketball tickets for each home game. Each ticket contains the date of the game, and the seat information, such as section, row, and individual seat number. Students pay […]
978-0134474021 Chapter 19 Solutions Manual Part 2
REQUIRED a. Draw an REA diagram for the library system. Remember to include cardinalities. a. REA diagram solution. 19-1 ©2018 Pearson Education, Inc. Accounting Information Systems Explanation of cardinalities: 1. One key to the problem is understanding that the Loan […]
978-0134474021 Chapter 19 Solutions Manual Part 1
CHAPTER 19 SPECIAL TOPICS IN REA MODELING SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 19.1 Often it takes several sales calls to obtain the first order from a new customer. Why then does Figure 19-1 depict the relationship between the Call on […]
978-0134474021 Chapter 18 Solutions Manual Part 2
18.9 Refer to Figure 18.4 and Table 18-1 to write the query logic needed to answer the following questions. (Optional: If requested by your instructor, write your queries in SQL or a Query-By-Example graphical interface.) Some answers may require more […]
978-0134474021 Chapter 18 Solutions Manual Part 1
CHAPTER 18 IMPLEMENTING AN REA MODEL IN A RELATIONAL DATABASE SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 18.1 How would the process of generating a cash disbursements journal from the REA data model presented in Figure 18-4 and Table 18-1 differ from […]
978-0134474021 Chapter 17 Solutions Manual Part 2
g. h. In this scenario, a sale can include multiple inventory items. Also, a single inventory item can be included in multiple sales. For example, Wal-Mart customers can purchase many inventory items such as detergent, tires, and clothing items. These […]
978-0134474021 Chapter 16 Solutions Manual Part 2
b. Print out a report that shows sales by month for each salesperson. 16-1 ©2018 Pearson Education, Inc. Step1: select the salesperson, order date, and order amount fields in the window in the upper right corner that says “Choose Fields […]
978-0134474021 Chapter 15 Solutions Manual Part 3
f. Follow the instructions to run the “trace precedents” audit tool. Print screen shots that show the results, and save your work. How useful is this tool? What are its limitations, if any? The Trace Precedents tool is found on […]
978-0134474021 Chapter 15 Solutions Manual Part 2
b. Suggest ways to improve the Kowal Manufacturing Company’s internal controls over hiring and payroll processing. (CPA Examination, adapted) 1. A system of advice forms should be installed so that new hires, terminations, rate 2. Before applicants are hired, their […]
978-0134474021 Chapter 15 Solutions Manual Part 1
CHAPTER 15 THE HUMAN RESOURCES MANAGEMENT/PAYROLL CYCLE SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 15.1 Should CPA firms continue to use time sheets for their employees? Why or why not? This should prompt discussion about how to account for employees’ efforts. CPAs […]
978-0134474021 Chapter 14 Solutions Manual Part 4
Double market share limitations for all three products plus the following constraint: sauce case sales cannot exceed 50% of the sum of soup and casserole case sales 14.9 EXCEL PROBLEM Download the spreadsheet for problem 14.9 from the website for […]
978-0134474021 Chapter 14 Solutions Manual Part 3
Then, to use Solver:.. 1. Move to the Data tab and then click on ?/arrow symbol in the Solver … …. 2. Then enter the values in the cells in the Solver pop-up window as instructed in the article : […]
978-0134474021 Chapter 14 Solutions Manual Part 2
14.5 The Joseph Brant Manufacturing Company makes athletic footwear. Processing of production orders is as follows: At the end of each week, the production planning department prepares a master production schedule (MPS) that lists which shoe styles and quantities are […]
978-0134474021 Chapter 14 Solutions Manual Part 1
CHAPTER 14 THE PRODUCTION CYCLE SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 14.1. When activity-based cost reports indicate that excess capacity exists, management should either find alternative revenue-enhancing uses for that capacity or eliminate it through downsizing. What factors influence management’s decision? […]
978-0134474021 Chapter 13 Solutions Manual Part 3
Ch 13: The Expenditure Cycle 13.10 Last year the Diamond Manufacturing Company purchased over $10 million worth of office equipment under its “special ordering” system, with individual orders ranging from $5,000 to $30,000. Special orders are for low-volume items that […]
978-0134474021 Chapter 13 Solutions Manual Part 2
Accounting Information Systems 13.4 Match threats in the first column to appropriate control procedures in the second column. More than one control may be applicable. Threat Control Procedure 1. _d,e__ Failing to take available purchase discounts for prompt payment. a. […]
978-0134474021 Chapter 13 Solutions Manual Part 1
CHAPTER 13 THE EXPENDITURE CYCLE: PURCHASING TO CASH DISBURSEMENTS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 13.1 In this chapter and in Chapter 12 the controller of AOE played a major role in evaluating and recommending ways to use IT to improve […]
978-0134474021 Chapter 12 Solutions Manual Part 4
Ch. 12: The Revenue Cycle: Sales to Cash Collections 12.10 The Family Support Center is a small charitable organization. It has only four full-time employees: two staff, an accountant, and an office manager. The majority of its funding comes from […]
978-0134474021 Chapter 12 Solutions Manual Part 3
12.7 O’Brien Corporation is a midsize, privately owned, industrial instrument manufacturer supplying precision equipment to manufacturers in the Midwest. The corporation is 10 years old and uses an integrated ERP system. The administrative offices are located in a downtown building […]
978-0134474021 Chapter 12 Solutions Manual Part 2
Ch. 12: The Revenue Cycle: Sales to Cash Collections 12.4 EXCEL PROJECT. (Hint: For help on steps b and c, see the article “Dial a Forecast,” by James A. Weisel, in the December 2006 issue of the Journal of Accountancy. […]
978-0134474021 Chapter 12 Solutions Manual Part 1
Ch. 12: The Revenue Cycle: Sales to Cash Collections CHAPTER 12 THE REVENUE CYCLE: SALES TO CASH COLLECTIONS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 12.1 Customer relationship management systems hold great promise, but their usefulness is determined by the amount of […]
978-0134474021 Chapter 11 Solutions Manual
CHAPTER 11 AUDITING COMPUTER-BASED INFORMATION SYSTEMS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 11.1 Auditing an AIS effectively requires that an auditor have some knowledge of computers and their accounting applications. However, it may not be feasible for every auditor to be […]
978-0134474021 Chapter 10 Solutions Manual Part 6
10. 10 The ABC Company runs two shifts, from 8:00 AM to Midnight. Backups and system maintenance are performed between midnight and 8:00 AM. For each of the following scenarios, determine whether the company’s current backup procedures enable it to […]
978-0134474021 Chapter 10 Solutions Manual Part 5
10.7 Which control(s) would best mitigate the following threats? a. The hours worked field in a payroll transaction record contained the value 400 instead of 40. As a result, the employee received a paycheck for $6,257.24 instead of $654.32. b. […]
978-0134474021 Chapter 10 Solutions Manual Part 4
Check that only a single character is used. (field check) Alternatively, the following IF statement also checks this: =IF(LEN(S4)=1,””,”Plane character must contain only one character”) The LEN function returns the length of a text string. In this case, it checks […]
978-0134474021 Chapter 10 Solutions Manual Part 3
Using the data validation tool, a limit check to ensure that hours worked must be less than or equal to 40 can be designed as follows: Alternatively, the following IF statement would enforce the same limit check: =IF(A4<=40,””,”Error: hours worked […]
978-0134474021 Chapter 10 Solutions Manual Part 2
10.2 What is the difference between using check digit verification and a validity check to test the accuracy of an account number entered on a transaction record? Check digit verification is designed to detect typographical errors such as transposing two […]
978-0134474021 Chapter 10 Solutions Manual Part 1
CHAPTER 10 PROCESSING INTEGRITY AND AVAILABILITY CONTROLS SPECIAL INTRODUCTION TO EXCEL This chapter includes a number of problems that use Excel’s built-in Data Validation tool to help students better understand processing integrity controls by programming them in a spreadsheet. Some […]
978-0134474021 Chapter 9 Solutions Manual Part 3
Ch. 9: Confidentiality and Privacy Controls 9.10 Certificate authorities are an important part of a public key infrastructure (PKI). Research at least two certificate authorities and write a report that explains the different types of digital certificates that they offer. […]
978-0134474021 Chapter 9 Solutions Manual Part 2
Then uncheck the box next to “Locked” as shown below, because these are going to be the only cells we do not protect in the next step. Now, under the Format drop-down menu, select “Protect Sheet” and then a) enter […]
978-0134474021 Chapter 9 Solutions Manual Part 1
CHAPTER 9 CONFIDENTIALITY AND PRIVACY CONTROLS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 9.1 From the viewpoint of the customer, what are the advantages and disadvantages to the opt-in versus the opt-out approaches to collecting personal information? From the viewpoint of the […]
978-0134474021 Chapter 8 Solutions Manual Part 2
Solution: Part a: Best case for P (25 minutes): Average case for P (20 minutes) Worst case for P (15 minutes) D=5 D=8 D=10 D=5 D=8 D=10 D=5 D=8 D=10 R=6 Good Good Good R=6 Good Good Good R=6 Good […]
978-0134474021 Chapter 8 Solutions Manual Part 1
CHAPTER 8 CONTROLS FOR INFORMATION SECURITY SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 8.1 Explain why an organization would want to use all of the following information security controls: firewalls, intrusion prevention systems, intrusion detection systems, and a CIRT. Using this combination […]
978-0134474021 Chapter 7 Solutions Manual Part 5
a Control strengths in Spring Water’s sales/cash receipts b Type of control activity c Problems avoided/Risks mitigated by the controls 2 Transactions are sequentially numbered by the cash register. Design and use of documents and records. -Minimizes employee error and […]
978-0134474021 Chapter 7 Solutions Manual Part 4
7.8 Tralor Corporation manufactures and sells several different lines of small electric components. Its internal audit department completed an audit of its expenditure processes. Part of the audit involved a review of the internal accounting controls for payables, including the […]