Questions from General Accounting

Q: Car Mart pays $130,000 rent each year for its

Car Mart pays $130,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here. The company allocates 65% of total rent expense to the...

Q: Use the information in the following table to compute each department’s contribution

Use the information in the following table to compute each department’s contribution to overhead (both in dollars and as a percent). Which department contributes the largest dollar a...

Q: Compute return on investment for each of the divisions below (each

Compute return on investment for each of the divisions below (each is an investment center). Comment on the relative performance of each investment center.

Q: Following is information on an investment considered by Hudson Co. The

Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 12% return from its investments. Compute this investmentâ€&#...

Q: Assume that we tour Samsung’s factory where it makes its products.

Assume that we tour Samsung’s factory where it makes its products. List three direct costs and three indirect costs that we are likely to see.

Q: Refer to the information in QS 25-11 and instead assume

Refer to the information in QS 25-11 and instead assume the investment has a salvage value of $20,000. Compute the investment’s net present value. Information from QS 25-11: Followi...

Q: A company is considering investing in a new machine that requires a

A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will generate annual cash flows of $21,000 for the next three years. Assume the company u...

Q: Radar Company sells bikes for $300 each. The company currently

Radar Company sells bikes for $300 each. The company currently sells 3,750 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $225 each to make; $150 in variable costs per b...

Q: Kando Company incurs a $9 per unit cost for Product A

Kando Company incurs a $9 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase Produc...

Q: Holmes Company produces a product that can either be sold as is

Holmes Company produces a product that can either be sold as is or processed further. Holmes has already spent $50,000 to produce 1,250 units that can be sold now for $67,500 to another manufacturer....