Questions from Cost Accounting

Q: A distinguishing feature of today’s digital technology is that it is characterized

A distinguishing feature of today’s digital technology is that it is characterized by zero (or near-zero) marginal costs. Once you’ve made the investment needed to create a digital good, it costs next...

Q: German global company Siemens AG had a turnover of almost €76

German global company Siemens AG had a turnover of almost €76 billion in 2015, recording a profit after taxes of €7.4 billion, according to its annual report. The company operates globally, with 351 0...

Q: From Real World View 19.1, you know that Siemens

From Real World View 19.1, you know that Siemens operates in many countries and has quite a diverse product offering. With such complex and broad operations, there are many factors that can affect the...

Q: The financial mission of a company should be to invest and create

The financial mission of a company should be to invest and create cash flows in excess of the cost of capital. If an investment is announced that is expected to earn in excess of the cost of capital,...

Q: Teva Pharmaceutical Industries Ltd reorganized its pharmaceutical operations into decentralized cost and

Teva Pharmaceutical Industries Ltd reorganized its pharmaceutical operations into decentralized cost and profit centres. Teva proposed a transfer pricing system based on marginal costs. But the propos...

Q: Medical devices are normally associated with use by hospitals and medical practices

Medical devices are normally associated with use by hospitals and medical practices. Some devices are used by normal consumers and, according to an article on the Medical Device and Diagnostic Industr...

Q: According to an article in the Financial Times the UK tax authority

According to an article in the Financial Times the UK tax authority (HMRC – HM Revenue & Customs) raised £1.1bn from challenging the pricing of multinational companies’ internal deals in 2013–14 – mor...

Q: Across Europe, just how much – or little – US multinational

Across Europe, just how much – or little – US multinational firms are paying in taxes is coming under intense scrutiny according to an article published in the Washington Post. Most of the investigati...

Q: The Globe and Mail (Canada) quotes an article written by

The Globe and Mail (Canada) quotes an article written by Professor Pietro Micheli in Industry Week in which he listed seven myths about performance management that promote the wrong behaviours. The fo...

Q: Southwest Airlines set ‘operating efficiency’ as its strategic theme. The

Southwest Airlines set ‘operating efficiency’ as its strategic theme. The four perspectives embodied in the balanced scorecard were linked together by a series of r...