Questions from Cost Accounting

Q: Excellent Motor Company makes electric cars and has two products, the

Excellent Motor Company makes electric cars and has two products, the Simplegreen and the Excellentgreen. To produce the Simplegreen, Excellent Motor employed assets of $10,500,000 at the beginning of...

Q: Hamilton Corp. is a reinsurance and financial services company. Hamilton

Hamilton Corp. is a reinsurance and financial services company. Hamilton strongly believes in evaluating the performance of its stand-alone divisions using financial metrics such as ROI and residual i...

Q: Comfy Corporation manufactures furniture in several divisions, including the patio furniture

Comfy Corporation manufactures furniture in several divisions, including the patio furniture division. The manager of the patio furniture division plans to retire in two years. The manager receives a...

Q: Performance Auto Company operates a new car division (that sells high

Performance Auto Company operates a new car division (that sells high- performance sports cars) and a performance parts division (that sells performance-improvement parts for family cars). Some divisi...

Q: Ryan Alcoa, a new associate at Jonas Partners, has compiled

Ryan Alcoa, a new associate at Jonas Partners, has compiled the following data for a potential investment for the firm: Investment: $300,000 Annual sales revenues = $180,000 Annual cash costs = $80,0...

Q: The Seaside Corporation manufactures similar products in the United States and Norway

The Seaside Corporation manufactures similar products in the United States and Norway. The U.S. and Norwegian operations are organized as decentralized divisions. The following information is availabl...

Q: Sanchez Corporation runs two convenience stores, one in Connecticut and one

Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2017 is as follows: The equipment has a zero disposal value. In a senio...

Q: Cora Manufacturing makes fashion products and competes on the basis of quality

Cora Manufacturing makes fashion products and competes on the basis of quality and leading-edge designs. The company has two divisions, clothing and cosmetics. Cora has $5,000,000 invested in assets i...

Q: Wonkies, Inc. is a large company that owns fast-

Wonkies, Inc. is a large company that owns fast-food restaurants, has a soft drink division, and a snack division. Wonkies, Inc. corporate management gives its division managers considerable operating...

Q: Doorchime Company makes doorbells. It has a weighted-average cost

Doorchime Company makes doorbells. It has a weighted-average cost of capital of 6% and total assets of $5,690,000. Doorchime has current liabilities of $550,000. Its operating income for the year was...