Questions from General Accounting

Q: How does using the return on investment facilitate comparability between divisions of

How does using the return on investment facilitate comparability between divisions of decentralized companies?

Q: Dash Riprock is a cost analyst with Safe Insurance Company. Safe

Dash Riprock is a cost analyst with Safe Insurance Company. Safe is applying standards to its claims payment operation. Claims payment is a repetitive operation that could be evaluated with standards....

Q: Target Corp. sells merchandise primarily through its retail stores. On

Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon .com uses its e-commerce services, features, and technologies to sell its products through the Internet. R...

Q: Dip N’ Dunk Doughnuts has computed the net present value for capital

Dip N’ Dunk Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: a. Determine the present value index for ea...

Q: Cash payback period for a service company OBJ. 2 Prime Financial

Cash payback period for a service company OBJ. 2 Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $200,000 and each with an...

Q: Welcome Inn Hotels is considering the construction of a new hotel for

Welcome Inn Hotels is considering the construction of a new hotel for $90 million. The expected life of the hotel is 30 years, with no residual value. The hotel is expected to earn revenues of $26 mil...

Q: Hit-n-Run Food Trucks, Inc. owns and

Hit-n-Run Food Trucks, Inc. owns and operates food trucks (mobile kitchens) throughout the West Coast. The company’s employees have varying wage levels depending on their experience and length of time...

Q: If the unit cost of direct materials is decreased, what effect

If the unit cost of direct materials is decreased, what effect will this change have on the break-even point?

Q: The city of Milton has an annual budget cycle that begins on

The city of Milton has an annual budget cycle that begins on July 1 and ends on June 30. At the beginning of each budget year, an annual budget is established for each depart- ment. Th...

Q: Timbuk 3 Company has the following information for March:

Timbuk 3 Company has the following information for March: Cost of direct materials used in production…………$21,000 Direct labor…………………………………………………….... 54,250 Factory overhead…………………………………………….…35,000...