Management Accounting 2e Updates

Updates

Management Accounting, 2e

While the authors and the publisher work very hard to have error-free products, from time to time we become aware of corrections that need to be made. The following information contains a list of all of the corrections known to date. Should you find any others, please email the information to us using the Talk to Us section of this Web site.

Page Update

m32 In the first line of the table at the top of the page, change "week" to "month" to match the solutions manual.

m32 In Exercise 1-13, sixth line, change $500 to $550 to match the solutions manual.

m109 (Business Environment Essay): The legend on the chart titled "Worldwide E-commerce Projected Sales Revenue Growth" is in error. North America is green, Asia Pacific is yellow, Western Europe is blue, and Rest of world is red.

m305-m306 Pages m305-306 (related to Exhibit 6-5): To be consistent with similar discussion elsewhere in the textbook, the inventory turnover ratios described and displayed in Exhibit 6-5 should be based on average, not ending, inventory balances. Hence, average raw materials inventory should be computed as ($50,000 + $30,000) / 2 = $40,000, and raw materials inventory turnover computed as $290,000 / $40,000 = 7.25. Similarly, average work-in-process inventory should be computed as ($90,000 + $80,000) / 2 = $75,000, and work-in-process inventory turnover computed as $764,000 / $75,000 = 10.19. Finished goods inventory should be computed as ($60,000 + $40,000) / 2 = $50,000, and finished goods inventory turnover computed as $788,000 / $50,000 = 15.76.

m374-m375 (Business Environment Essay): Regrettably, Eiji Toyoda's name was misspelled throughout this essay (there is no "l" in Eiji, which is pronounced ae-gee').

m396 (Problem 7-6): The last three rows of the table in this problem should be titled "Purchases per year," "Number of machine setups per year," and "Engineering change orders per year." The title "Number of machine setups per unit" is in error.

Page	Update
m32	In the first line of the table at the top of the page, change "week" to "month" to match the solutions manual.
m32	In Exercise 1-13, sixth line, change $500 to $550 to match the solutions manual.
m109	(Business Environment Essay): The legend on the chart titled "Worldwide E-commerce Projected Sales Revenue Growth" is in error. North America is green, Asia Pacific is yellow, Western Europe is blue, and Rest of world is red.
m305-m306	Pages m305-306 (related to Exhibit 6-5): To be consistent with similar discussion elsewhere in the textbook, the inventory turnover ratios described and displayed in Exhibit 6-5 should be based on average, not ending, inventory balances. Hence, average raw materials inventory should be computed as ($50,000 + $30,000) / 2 = $40,000, and raw materials inventory turnover computed as $290,000 / $40,000 = 7.25. Similarly, average work-in-process inventory should be computed as ($90,000 + $80,000) / 2 = $75,000, and work-in-process inventory turnover computed as $764,000 / $75,000 = 10.19. Finished goods inventory should be computed as ($60,000 + $40,000) / 2 = $50,000, and finished goods inventory turnover computed as $788,000 / $50,000 = 15.76.
m374-m375	(Business Environment Essay): Regrettably, Eiji Toyoda's name was misspelled throughout this essay (there is no "l" in Eiji, which is pronounced ae-gee').
m396	(Problem 7-6): The last three rows of the table in this problem should be titled "Purchases per year," "Number of machine setups per year," and "Engineering change orders per year." The title "Number of machine setups per unit" is in error.