Questions from Cost Accounting

Q: Racine Tire Co. manufactures tires for all-terrain vehicles.

Racine Tire Co. manufactures tires for all-terrain vehicles. The tires sell for $60 and variable cost per tire is $30; monthly fixed cost is $450,000. a. What is the break-even point in units and sale...

Q: The president of Charlottetown Inc. has given the managers of the

The president of Charlottetown Inc. has given the managers of the company’s three decentralized divisions (O’Leary, Alberton, and Summerside) the authority to decide whether to sell externally or inte...

Q: Tobias & Barfield LLC has three revenue departments: litigation (Lit

Tobias & Barfield LLC has three revenue departments: litigation (Lit.), family practice (FP), and legal consulting (LC). In addition, the company has two support departments, administration and ED...

Q: Eekaydo Inc. is organized on a divisional basis with considerable vertical

Eekaydo Inc. is organized on a divisional basis with considerable vertical integration. Mary Sue Oehlke is the new controller of the CarryOn! Division of Eekaydo. CarryOn! Division makes a variety of...

Q: Rowling Inc. is a decentralized company, and each investment center

Rowling Inc. is a decentralized company, and each investment center has its own sales force and production facilities. Top management uses return on investment (income divided by assets) for performan...

Q: Des Moines Industries consists of eight divisions that are evaluated as profit

Des Moines Industries consists of eight divisions that are evaluated as profit centers. All transfers between divisions are made at market price. I-O-WoW, a division of Des Moines, sells approximately...

Q: APAs are determined in advance of the time in which they are

APAs are determined in advance of the time in which they are used. Discuss problems that may be generated in a recessionary business climate for companies that have preapproved APAs.

Q: Hippolito Inc. manufactures industrial tools and has annual sales of approximately

Hippolito Inc. manufactures industrial tools and has annual sales of approximately $3.5 million with no evidence of cyclical demand. R&D is very important to Hippolito because its market share exp...

Q: To respond to increased competition and a reduction in profitability, the

To respond to increased competition and a reduction in profitability, the nationwide law firm of O’Brien New & Cave recently instituted a responsibility accounting system. One of...

Q: Swimmingly Corp. buys raw fish, cooks and processes it,

Swimmingly Corp. buys raw fish, cooks and processes it, and then cans it in single-portion containers. The canned fish is sold to several wholesalers, who specialize in providing food to school lunch...