Questions from Cost Accounting

Q: Following is a list of transactions that affected one division within a

Following is a list of transactions that affected one division within a multiple-division company. Indicate, for the current fiscal year, whether each transaction would increase (I), decrease (D), hav...

Q: Jeannie South is a division manager of Montana Manufacturing Inc. She

Jeannie South is a division manager of Montana Manufacturing Inc. She is in the process of evaluating a $4,000,000 investment. The following net annual increases, before depreciation, in divisional in...

Q: In recent years, salaries for chief financial officers (CFOs)

In recent years, salaries for chief financial officers (CFOs) of large U.S. corporations averaged only about 20 percent of the total CFO compensation package; the other 80 percent is performance-based...

Q: The company president has asked you, as the new controller,

The company president has asked you, as the new controller, to comment on any deficiencies of the firm. After saying you believe that the firm needs long-run performance measurements, the president sa...

Q: For the most recent fiscal year, the Northern Division of Eastern

For the most recent fiscal year, the Northern Division of Eastern Corporation generated an asset turnover ratio of 4 and a profit margin (as measured by the segment margin) ratio of 4 percent on sales...

Q: The following 2010 information is available for Cornwall Industries: average assets

The following 2010 information is available for Cornwall Industries: average assets invested, $7,200,000; revenues, $26,400,000; and expenses, $24,600,000. a. Calculate return on investment. b. Calcul...

Q: In discussing your cost accounting class with friends, you explained that

In discussing your cost accounting class with friends, you explained that you were currently studying methods of evaluating capital investments. You mentioned that most of these methods rely upon cash...

Q: Bill’s Cabinets sells a product for $360 per unit. The

Bill’s Cabinets sells a product for $360 per unit. The company’s variable cost per unit is $60 for direct material, $50 per unit for direct labor, and $34 per unit for overhead. Annual fixed productio...

Q: Nashville Tours is considering adding a new bus route. To do

Nashville Tours is considering adding a new bus route. To do so, the company would be required to purchase a new bus, which would cost $600,000, have a 10-year life, and have no salvage value. If the...

Q: Rockport Municipal Marina is considering adding a new dock to accommodate large

Rockport Municipal Marina is considering adding a new dock to accommodate large yachts. The dock would cost $700,000 and would generate $144,000 annually in new cash inflows. Its expected life would b...