Questions from Cost Accounting

Q: Saina Supplies leases and sells materials, tools, and equipment and

Saina Supplies leases and sells materials, tools, and equipment and also provides add-on services such as ground maintenance and waterproofing to construction and mining sites. The company has grown r...

Q: The Slate Company manufactures and sells television sets. Its assembly division

The Slate Company manufactures and sells television sets. Its assembly division (AD) buys television screens from the screen division (SD) and assembles the TV sets. The SD, which is operating at capa...

Q: Mountaineer, Inc., has two divisions, A and B,

Mountaineer, Inc., has two divisions, A and B, that manufacture expensive bicycles. Division A produces the bicycle frame, and division B assembles the rest of the bicycle onto the frame. There is a m...

Q: Cran Health Products is a cranberry cooperative that operates two divisions,

Cran Health Products is a cranberry cooperative that operates two divisions, a harvesting division and a processing division. Currently, all of harvesting’s output is converted into...

Q: Assume that Pat Borges, CEO of Cran Health, had mandated

Assume that Pat Borges, CEO of Cran Health, had mandated a transfer price equal to 225% of full cost. Now he decides to decentralize some management decisions and sends around a memo that states the f...

Q: Express Grow Inc., based in Ankeny, Iowa, sells high

Express Grow Inc., based in Ankeny, Iowa, sells high-end fertilizers. Express Grow has two divisions: â–  North Italy mining division, which mines potash in northern Italy â
...

Q: Ballantine Corp. produces and sells lead crystal glassware. The firm

Ballantine Corp. produces and sells lead crystal glassware. The firm consists of two divisions, Commercial and Specialty. The Commercial division manufactures 300,000 glasses per year. It incurs varia...

Q: Newbury Printers operates a printing press with a monthly capacity of 3

Newbury Printers operates a printing press with a monthly capacity of 3,200 machine-hours. Newbury has two main customers: Wallace Corporation and Kimberly Corporation. Data on each customer for Janua...

Q: Beacon, a division of Libra Corporation, is located in the

Beacon, a division of Libra Corporation, is located in the United States. Its effective income tax rate is 30%. Another division of Libra, Falcon, is located in Canada, where the income tax rate is 40...

Q: Cocoa Mill Chocolates manufactures specialty chocolates and sells them to fine candy

Cocoa Mill Chocolates manufactures specialty chocolates and sells them to fine candy stores. The company operates two divisions, cocoa and candy, as decentralized entities. The cocoa division purchase...