Questions from Cost Accounting

Q: Refer to Exercise 14-20. The results for year 2

Refer to Exercise 14-20. The results for year 2 have just been posted: In Exercise 14-20 Eastern Merchants shows the following information for its two divisions for year 1: Required Compute divisi...

Q: A division is considering the acquisition of a new asset that will

A division is considering the acquisition of a new asset that will cost $720,000 and have a cash flow of $252,000 per year for each of the four years of its life. Depreciation is computed on a straigh...

Q: The following data are available for two divisions of Solomons Company:

The following data are available for two divisions of Solomons Company: The cost of capital for the company is 8 percent. Ignore taxes. Required a. If Solomons measures performance using ROI, which...

Q: Under which of the following conditions will the first-in,

Under which of the following conditions will the first-in, first-out (FIFO) method of process costing produce the same cost of goods manufactured as the weighted-average method? a. When goods produced...

Q: Ocean Division currently earns $780,000 and has divisional assets

Ocean Division currently earns $780,000 and has divisional assets of $3.9 million. The division manager is considering the acquisition of a new asset that will add to profit. The investment has a cost...

Q: Refer to the information in Exercises 14-25 and 14-

Refer to the information in Exercises 14-25 and 14-26. In Exercises 14-25 and 14-26 Ocean Division currently earns $780,000 and has divisional assets of $3.9 million. The division manager is consider...

Q: Noonan Division has total assets (net of accumulated depreciation) of

Noonan Division has total assets (net of accumulated depreciation) of $3,300,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $300,000. Expected divisional i...

Q: Refer to the facts in Exercise 14-28, but assume

Refer to the facts in Exercise 14-28, but assume that Noonan has been leasing the machine for $60,000 annually. Assume also that the machine generates income of $42,000 annually after the lease paymen...

Q: The Caribbean Division of Mega-Entertainment Corporation just started operations.

The Caribbean Division of Mega-Entertainment Corporation just started operations. It purchased depreciable assets costing $30 million and having a four-year expected life, after which the assets can b...

Q: Refer to the data in Exercise 14-30. Assume that

Refer to the data in Exercise 14-30. Assume that the division uses beginning-of-year asset values in the denominator for computing ROI. In Exercise 14-30 The Caribbean Division of Mega-Entertainment...