Questions from Cost Accounting

Q: Brighton, Inc., manufactures kitchen tiles. The company recently expanded

Brighton, Inc., manufactures kitchen tiles. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It began negotiating for a one-month ban...

Q: We have discussed two methods for process costing, weighted average and

We have discussed two methods for process costing, weighted average and FIFO. Your colleague recommends last-in, first-out (LIFO) process costing to the controller as a new system. The controller is c...

Q: Chocolate Bars, Inc. (CBI), manufactures creamy deluxe chocolate

Chocolate Bars, Inc. (CBI), manufactures creamy deluxe chocolate candy bars. The firm has developed three distinct products: Almond Dream, Krispy Krackle, and Creamy Crunch. CBI is profitable, but man...

Q: Refer to Problem 9-51. Jean Sharpe decides to gather

Refer to Problem 9-51. Jean Sharpe decides to gather additional data to identify the cause of overhead costs and figure out which products are most profitable. She notices that $30,000 of the overhead...

Q: The following exchange occurred just after the finance staff at Diversified Electronics

The following exchange occurred just after the finance staff at Diversified Electronics rejected a capital investment proposal. David Parker (Product Development): I just don’t under...

Q: What are the advantages of divisional income as a business unit performance

What are the advantages of divisional income as a business unit performance measure? What are the disadvantages?

Q: How is divisional income like income computed for the firm? How

How is divisional income like income computed for the firm? How is it different?

Q: Give an example in which the use of ROI measures might lead

Give an example in which the use of ROI measures might lead the manager to make a decision that is not in the firm’s interests.

Q: How does residual income differ from ROI?

How does residual income differ from ROI?

Q: What impact does the use of gross book value or net book

What impact does the use of gross book value or net book value in the investment base have on the computation of ROI?