Questions from Cost Accounting

Q: Playful Pens, Inc., makes a single model of a pen

Playful Pens, Inc., makes a single model of a pen. The cartridge for the pen (which contains the ink) is manufactured on one machine. The cartridge holder (which you hold when you hold the pen) is man...

Q: Sherene Nili manages a company that produces wedding gowns. She produces

Sherene Nili manages a company that produces wedding gowns. She produces both a custom product that is made to order and a standard product that is sold in bridal salons. Her accountant prepared the f...

Q: What do the terms variable costs and fixed costs mean?

What do the terms variable costs and fixed costs mean?

Q: Sam, Martina, Aretha, Roxi, and Tomas (SMART

Sam, Martina, Aretha, Roxi, and Tomas (SMART) operate a management consulting firm. The firm has just received an inquiry from a prospective client about its prices for educational seminars to teach i...

Q: M. Anthony, LLP, produces music in a studio in

M. Anthony, LLP, produces music in a studio in London. The cost of producing one typical song follows: Average Cost per Song: Labor, including musicians and technicians . . . . . . . . . . . . . . . $...

Q: King City Specialty Bikes (KCSB) produces high-end bicycles

King City Specialty Bikes (KCSB) produces high-end bicycles. The costs to manufacture and market the bicycles at the company’s volume of 2,000 units per month are shown in the follow...

Q: Carson Corporation produces and sells three products, Alpha, Beta,

Carson Corporation produces and sells three products, Alpha, Beta, and Gamma, in a local market and in a regional market. At the end of the first quarter of the current year, the following income stat...

Q: Power Music owns five music stores, where it sells music,

Power Music owns five music stores, where it sells music, instruments, and supplies. In addition, it rents instruments. At the end of last year, the new accounts showed that although the business as a...

Q: You have been asked to assist the management of Ironwood Corporation in

You have been asked to assist the management of Ironwood Corporation in arriving at certain decisions. Ironwood has its home office in Michigan and leases factory buildings in Wisconsin, Minnesota, an...

Q: The Bubble Company produces a variety of bottles from recycled plastic.

The Bubble Company produces a variety of bottles from recycled plastic. The company has one particular machine on which it can produce either of two types of water bottles, 1-liter bottles or 1/2-lite...