Questions from Cost Accounting

Q: Preston Department Store has a new promotional program that offers a free

Preston Department Store has a new promotional program that offers a free gift-wrapping service for its customers. Preston’s customer-service department has practical capacity to wra...

Q: Fang Inc. produces and sells DVDs to business people and students

Fang Inc. produces and sells DVDs to business people and students who are planning extended stays in China. It has been very successful with two DVDs: Beginning Mandarin and Conversational Mandarin. I...

Q: Central University completed construction of its newest administrative building at the end

Central University completed construction of its newest administrative building at the end of 2017. The University’s first employees moved into the building on January 1, 2018. The b...

Q: The Eastern Summit Company has prepared department overhead budgets for budgeted-

The Eastern Summit Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: Management has decided that the most appropriate inventory costs are achi...

Q: The Martinez Company has two products. Product 1 is manufactured entirely

The Martinez Company has two products. Product 1 is manufactured entirely in department X. Product 2 is manufactured entirely in department Y. To produce these two products, the Martinez Company has t...

Q: Tate Inc. and Booth Inc. are two small manufacturing companies

Tate Inc. and Booth Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Tate rents the machine on its own, it will cost $26,000. If Booth rents the m...

Q: Magic Systems, Inc., sells computer hardware to end consumers.

Magic Systems, Inc., sells computer hardware to end consumers. The CX30 is sold as a “bundle,” which includes three hardware products: a personal computer (PC) towe...

Q: Suppose that during 2017, the market for Stanmore’s special-purpose

Suppose that during 2017, the market for Stanmore’s special-purpose machines grew by 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Stanmore’s strategic...

Q: Sportz, Inc., manufactures athletic shoes and athletic clothing for both

Sportz, Inc., manufactures athletic shoes and athletic clothing for both amateur and professional athletes. The company has two product lines (clothing and shoes), which are produced in separate manuf...

Q: Boca Resorts (BR) operates a five-star hotel with

Boca Resorts (BR) operates a five-star hotel with a worldclass spa. BR has a decentralized management structure, with three divisions: â–  Lodging (rooms, conference facilities) &acir...