Questions from Cost Accounting


Q: Many companies are trying to determine the best organizational structure for information

Many companies are trying to determine the best organizational structure for information technology (IT) operations. Although IT operations had been decentralized in the past, there has been a growing...

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Q: For each of the following organizational units, indicate whether the

For each of the following organizational units, indicate whether the unit would most likely be classified as a cost center (C), a revenue center (R), a profit center (P), or an investment center (I):...

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Q: Multiple-doctor medical practices are often structured with each doctor acting

Multiple-doctor medical practices are often structured with each doctor acting as a profit center. a. Discuss why such an organizational structure would be useful. b. Go to the Web and find some softw...

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Q: For 2010, Wagner Company planned to sell 460,000 units

For 2010, Wagner Company planned to sell 460,000 units at a $37 selling price. In early 2011, the marketing manager was asked to explain why budgeted revenue had not been achieved. Investigation revea...

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Q: You have asked your sales manager to explain why budgeted revenues for

You have asked your sales manager to explain why budgeted revenues for your division are below expectations. The budget indicated $472,500 of revenues based on a sales volume of 630,000 units. Sales r...

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Q: Theta Property Management provides management services for commercial real estate development projects

Theta Property Management provides management services for commercial real estate development projects. The firm recently started a new division to market video game services to existing clients. The...

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Q: Sheridan Shacks makes portable garden sheds that sell for $1,

Sheridan Shacks makes portable garden sheds that sell for $1,800 each. Costs are as follows: a. How many garden sheds must the company sell to break even? b. If Sheridan Shacks’ man...

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Q: London Ltd. operates its two divisions as investment centers. Information

London Ltd. operates its two divisions as investment centers. Information about these divisions follows. a. What is the residual income of each division if the “chargeâ€&...

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Q: Schulz GmbH, a German company, set an 18 percent target

Schulz GmbH, a German company, set an 18 percent target rate of return for its U.S. division for 2010. For 2010, the U.S. division generated $39,000,000 of revenue on average assets of $25,000,000. Th...

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Q: EVA is used by top management at College Learning Technologies to measure

EVA is used by top management at College Learning Technologies to measure and evaluate the performance of segment managers. The company’s cost of capital is 11 percent. In 2010, its Audio/Visual subsi...

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