Cost Accounting With
Integrated Data
Analytics, 1e Karen
Congo Farmer, Amy
Fredin
(Solutions Manual All Chapter)
(For Complete File Download link at the
end of this File)
, Chapter 1
Cost Accounting Has Purpose
Note: the end of chapter brief exercises, exercises, and problems are coded K (knowledge), C
(comprehension), AP (application), AN (analysis), S (synthesize), and E (evaluation) according
to the original Blooms Taxonomy published in 1956.
Assignment Classification Table (By Learning Objective)
Brief
Learning Objectives Questions Exercises Exercises Problems
1. Explore the elements that 1, 2, 3, 4 1, 2, 3, 4, 5, 1, 2, 3 1, 2, 3, 4
support a company’s purpose, 6
as well as your own.
2. Connect the purpose of cost 5, 6, 7 7, 8, 9 4, 5, 6 5, 6
accounting with the role of
accountants in organizations.
3. Outline the frameworks, 8, 9, 10, 11, 10, 11, 12 7, 8, 9, 7, 8, 9
including ethics, that guide the 12 10
profession.
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© 2022 John Wiley & Sons, Inc. or the author, All rights reserved. Farmer, Cost Accounting, 1e, Job Costing Visualized (For Instructor Use Only)
,Assignment Characteristics Table
Level of Time
Item Description Difficulty (minutes)
E1.1 Get to know the mission and vision of each of the Big 4 Moderate 10–15
firms and their underlying values.
E1.2 Evaluate the state of competition within an industry Moderate 10–15
given a company’s SWOT analysis.
E1.3 Explain how a balanced scorecard reveals a company’s Moderate 10–15
strategy.
E1.4 Get to know how cost accounting skill sets are valued as Moderate 10–15
consulting services in the Big 4.
E1.5 Use the decision-making framework to make a personal Moderate 10–15
decision.
E1.6 Use the decision-making framework to make a business Simple 10–15
decision.
E1.7 Get to know the IMA. Simple 5–10
E1.8 Get to know the continuing education requirements for Moderate 10–15
IMA’s flagship certification.
E1.9 Get to know IMA’s Statement of Ethical Professional Moderate 15–20
Practice.
E1.10 Get to know the AICPA.
Simple 5–10
P1.1 What is your own personal purpose? Simple 5–10
P1.2 What are your goals in this course? Simple 5–10
P1.3 What strategies will you use to achieve your course Simple 10–15
goals?
P1.4 Conduct your own personal SWOT analysis related to Moderate 10–15
your role as a student.
P1.5 Determine which data analytics approaches would be Moderate 10–15
useful in addressing a business question.
P1.6 Explain the steps in the value chain. Moderate 5–10
P1.7 Get to know IMA’s Statements on Management Moderate 10–15
Accounting.
P1.8 Get to know the CPE requirements for CPAs in your Moderate 10–15
state.
P1.9 Get to know how NASBA supports the State Boards of
Accountancy.
Moderate 15–20
Case Sort out the issues in an ethical dilemma using IMA’s Moderate 10–15
Statement of Ethical Professional Practice alongside the
decision-making framework.
1-2
© 2022 John Wiley & Sons, Inc. or the author, All rights reserved. Farmer, Cost Accounting, 1e, Job Costing Visualized (For Instructor Use Only)
, Answers to Questions
1. A vision reflects what you strive to be (or what an organization strives to be) or what you strive to
achieve by some future date. In contrast, a mission (i.e., a purpose) is the reason you exist (or an
organization exists). Your mission, or purpose, is what drives you. A strategy reflects the chosen
method(s) and technique(s) to get you to the end goal (the vision). You can think of a vision as
being your destination, a mission (i.e., purpose) as your vehicle (what drives you!), and a strategy
is the road you take to get there. Being aware of these key pieces as well as how they work
together can help you stay motivated and adjust course as needed. By keeping your end goal in
mind, you will be more motivated and driven as you travel the road there.
LO: 1, Bloom: C, Difficulty: Simple, Time: 3-5, AACSB: Knowledge, Communication, Reflective Thinking, AICPA BC: N/A, AICPA AC: Reporting, AICPA PC:
Communication, IMA: N/A
2. A SWOT analysis is a survey of a company’s internal Strengths and Weaknesses along with its
external Opportunities and Threats. Companies use this type of analysis to evaluate their position
in the market so they can work to capitalize on their strengths and address their weaknesses in an
effort to take advantage of opportunities in the market while also addressing the threats.
In the process of conducting a SWOT analysis, managers often recognize Porter’s Five Forces
among the company’s strengths, weaknesses, opportunities, and threats. The five forces are
customer power, supplier power, threat of substitute products, threat of new entrants, and industry
rivalry.
Through a formal SWOT analysis or a formal evaluation of Porter’s Five Forces, a company will
have a very thorough understanding of where it is positioned in the market and in the industry,
which can help decision-makers determine the best course forward in order to live the company’s
mission and reach its vision.
LO: 1, Bloom: C, Difficulty: Simple, Time: 3-5, AACSB: Knowledge, Communication, AICPA BC: Strategic Perspective, AICPA AC: Reporting, AICPA PC:
Communication, IMA: Strategy, Planning, & Performance: Enterprise Risk Management
3. A balanced scorecard is a performance management tool in which managers can
comprehensively evaluate their organization’s performance. Within the balanced scorecard, four
traditional perspectives are often used (described below). Within each perspective, the company
recognizes its key objectives, key initiatives for each objective, and specific metrics for each
objective, using both financial and non-financial metrics—hence the term “balanced” scorecard.
Targets are specified for each objective, and at the end of the month/quarter/year, managers can
compare actual results against the company’s stated objectives and targets. A balanced scorecard
can be implemented for the entire entity, for sub-units, and/or for individuals.
The four perspectives of a traditional balanced scorecard include:
o Financial perspective—considers the shareholder’s perspective and how metrics like
growth, profit, and risk that impact shareholder value translate into company objectives.
o Customer perspective—considers the customer and includes the metrics that create value
for the customer, while also often measuring customer satisfaction and retention.
o Internal business process perspective—considers processes internal to a company that are
responsible for creating value for the customer and shareholder.
o Learning and growth perspective—considers how an organization supports its people and
infrastructure to drive and maintain new products and service development and growth.
The objectives within each of the four perspectives should be linked such that improvement in
more foundational areas of the scorecard, such as learning and growth or internal business
process perspectives, will lead to expected improvement in customer and financial areas, as well.
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© 2022 John Wiley & Sons, Inc. or the author, All rights reserved. Farmer, Cost Accounting, 1e, Job Costing Visualized (For Instructor Use Only)
