Questions from Cost Accounting

Q: In 1993, Procter & Gamble (P&G) management

In 1993, Procter & Gamble (P&G) management tried to control costs by eliminating many of its brands’ coupons while increasing print advertising. Only a miniscule portion of the hundreds of billions of...

Q: Companies sometimes experience difficult financial times —often so drastic that bankruptcy

Companies sometimes experience difficult financial times —often so drastic that bankruptcy is declared. If a firm does not invest sufficient resources in its growth, then at some point it will experie...

Q: Ohio Steel produces steel products for a variety of customers. One

Ohio Steel produces steel products for a variety of customers. One division of the company is the Garage Door Division, created in the late 1940s. Since that time, this division’s principal products h...

Q: After graduating last year from an Ivy League university, Joe Tyler

After graduating last year from an Ivy League university, Joe Tyler was hired as a stock analyst. Wanting to make his mark on the industry, Tyler issued a scathing report on a major discount departmen...

Q: In August 2007, Heelys, a Texas-based maker of

In August 2007, Heelys, a Texas-based maker of wheeled shoes, reported quarterly profits that beat the street estimates by three cents per share. Upon receiving the news, the market price of Heelys dr...

Q: Laura Thompson, newly appointed controller of Allied Networking Services Inc.

Laura Thompson, newly appointed controller of Allied Networking Services Inc. (ANSI), a rapidly growing company, has just been asked to serve as lead facilitator of a team charged with designing a cos...

Q: A large U.S. corporation participates in a highly competitive

A large U.S. corporation participates in a highly competitive industry. Company management has decided that decentralization will best allow the company to meet the competition and achieve profit goal...

Q: Kessla Taub manages the marketing department at Electronic Village. Company management

Kessla Taub manages the marketing department at Electronic Village. Company management has been concerned about the sales of three products and has informed Taub that, regardless of other sales, her p...

Q: Sid Simon wants to cash in on the increased demand for ethanol

Sid Simon wants to cash in on the increased demand for ethanol. Accordingly he purchased a corn farm in Iowa. Simon believes his corn crop can be sold to an ethanol plant for $4.80 per bushel. Variabl...

Q: Folsom Fashions sells a line of women’s dresses. Folsom’s performance report

Folsom Fashions sells a line of women’s dresses. Folsom’s performance report for November 2010 is shown below. The company uses a flexible budget to analyze its per...