Complete Solutions Manual for Cost Accounting: Foundations & Evolutions 10e 10th Edition by Kinney, Raiborn, Dragoo. ISBN 3531
Full Chapters Solutions are included
Chapter 1 Introduction to Cost Accounting (pg. 1-1)
Chapter 2 Cost Terminology and Cost Behaviors (pg. 2-1)
Chapter 3 Prede...
QUESTIONS
Q1-1. Management accounting stresses the informational needs of internal users over those of external
users (the focus of financial accounting). Because of this perspective, management accounting
provides information in a format that is flexible and relevant to a particular manager’s usage. Fi-
nancial accounting, on the other hand, must provide some uniformity in the manner in which in-
formation is presented for it to be comparable among companies and in compliance with
generally accepted accounting principles.
Q1-2. It is more important to have legally binding cost accounting standards for defense contractors
than for other manufacturers because government contracts are often awarded on a low-bid ba-
sis. Without legally binding cost accounting standards, different bidders could include costs in dif-
ferent categories, making the bids noncomparable. With specified cost accounting standards,
there is a higher probability (although not absolute certainty) that comparison among bids is con-
sistent. Although contracts for nongovernment manufacturers may be awarded on a bid basis, it
is more common in this arena to consider a wide variety of factors in addition to cost.
Q1-3. A mission statement is important to an organization because it provides a clearly worded view of
what the organization wants to accomplish and how the organization uniquely meets or plans to
meet its targeted customers’ needs with products and services. Without a mission statement, an
organization may veer away from its “view of itself” and find that it is engaging in activities that are
not, and can never be, part of what it wants to do.
Q1-4. Organizational strategy is the link between a firm’s goals and objectives and its operational plans.
Strategy is therefore a specification of how a firm intends to compete and survive. Each organiza-
tion will have a unique strategy because it has unique goals, objectives, opportunities, and con-
straints.
Q1-5. Core competencies are the special proficiencies possessed and valued by an organization. If a
particular strategy requires core competencies that are not possessed by a firm, executing such a
strategy would be very difficult. For example, a strategy of Internet business expansion would be
difficult to execute in a firm that does not possess a core competency in web design or web secu-
rity. Similarly, a growth strategy would be impossible in a not-for-profit that did not have a core
competency in attracting volunteers or donors.
Solutions Manual, Chapter 1 1-1
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