Questions from Cost Accounting

Q: Sid’s Skins makes a variety of covers for electronic organizers and portable

Sid’s Skins makes a variety of covers for electronic organizers and portable music players. The company’s designers have discovered a market for a new clear plastic covering with college logos for a p...

Q: Dino’s, Inc., makes a variety of T-shirts with

Dino’s, Inc., makes a variety of T-shirts with logos. The company has discovered a new market for sweatshirts with logos. Market research indicates that a sweatshirt like this would sell well in the m...

Q: Terracotta, Inc., makes toy soldiers. Company management believes that

Terracotta, Inc., makes toy soldiers. Company management believes that a new model would sell well at a price of $65. The company estimates unit materials costs to be $16 for the model, and overhead c...

Q: Mobility Partners makes wheelchairs and other assistive devices. For years it

Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to s...

Q: Mel’s Meals 2 Go purchases cookies that it includes in the 10

Mel’s Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel’s kitchen and adjoining meeting room operate at 70 percent of capacity. Mel’s purchase...

Q: Refer to the facts in Exercise 4-42. Mel suddenly

Refer to the facts in Exercise 4-42. Mel suddenly finds an opportunity to sell boxed dinners. The new opportunity would require the use of the 30 percent unused capacity. The contribution margin from...

Q: You and two friends drive your car to Texas for spring break

You and two friends drive your car to Texas for spring break. A third friend asks if you can drop her off in Oklahoma. How would you allocate the cost of the trip among the four of you?

Q: Atlantic Soup Company is presently operating at 75 percent of capacity.

Atlantic Soup Company is presently operating at 75 percent of capacity. Worried about the company’s performance, the president is considering dropping its clam chowder line. If clam...

Q: What is dumping? What role would a cost accountant play in

What is dumping? What role would a cost accountant play in determining whether dumping has occurred?

Q: A company has learned that a particular input product required for its

A company has learned that a particular input product required for its production of several products is in limited supply. What approach should management take to maximize profits in the presence of...