Questions from Managerial Accounting

Q: How do the cost flows in a retail organization or service organization

How do the cost flows in a retail organization or service organization differ from those in a manufacturing organization?

Q: Compare the defining characteristic and cost behavior of a consumable (flexible

Compare the defining characteristic and cost behavior of a consumable (flexible) resource to those of a capacity-related resource.

Q: Define direct cost and indirect cost and provide an example of each

Define direct cost and indirect cost and provide an example of each.

Q: What are indirect cost pools?

What are indirect cost pools?

Q: What does the term conversion costs mean?

What does the term conversion costs mean?

Q: Provide several examples of cost objects.

Provide several examples of cost objects.

Q: What are predetermined indirect cost rates commonly called in practice?

What are predetermined indirect cost rates commonly called in practice?

Q: How are indirect cost rates determined?

How are indirect cost rates determined?

Q: How is overhead cost estimated for individual jobs?

How is overhead cost estimated for individual jobs?

Q: The Redwood City plant of Crimson Components Company makes two types of

The Redwood City plant of Crimson Components Company makes two types of rotators for automobile engines: R361 and R572. The old cost accounting system at the plant traced support costs to four cost po...