Questions from Cost Accounting

Q: For August, Royal Consulting and Mediation Practice (RCMP) worked

For August, Royal Consulting and Mediation Practice (RCMP) worked 900 hours for Alberta Company and 2,100 hours for Ontario Corporation. RCMP bills clients at the rate of $400 per hour; labor cost for...

Q: Allocation Busters (AB) is a dispute mediation firm offering services

Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost allocations with government agencies. For March, AB worked 440 hours for Massive Airframes and 660...

Q: Chuck’s Brokerage Service (CBS) is a discount financial services firm

Chuck’s Brokerage Service (CBS) is a discount financial services firm offering clients investment advice, trading services, and a variety of mutual funds for investment. Chuck has co...

Q: TechMaster is an information technology (IT) consulting company offering services

TechMaster is an information technology (IT) consulting company offering services to small firms. TechMaster bills clients for its various services based on the hours its professionals spend. In Augus...

Q: What are the costs of a product using normal costing?

What are the costs of a product using normal costing?

Q: “Worrying about the choice of an overhead allocation base is a

“Worrying about the choice of an overhead allocation base is a waste of time. In the end, all the overhead is charged to production.” Do you agree? Why?

Q: Greg’s Diner has the following information for year 2, when several

Greg’s Diner has the following information for year 2, when several new employees were added to the waitstaff: Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $...

Q: Currently, generally accepted accounting principles (GAAP) in the United

Currently, generally accepted accounting principles (GAAP) in the United States require firms to expense research and development (R&D) costs as period costs. Therefore, when the resulting product is...

Q: Interview the manager of a construction company (for example, a

Interview the manager of a construction company (for example, a company that does house construction, remodeling, landscaping, or street or highway construction) about how the company bids on prospect...

Q: Would a dentist, an architect, a landscaper, and a

Would a dentist, an architect, a landscaper, and a lawyer use job costing or process costing? Explain.