Questions from Cost Accounting


Q: Joyce Brown has run Medical Maids, a specialty cleaning service for

Joyce Brown has run Medical Maids, a specialty cleaning service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. Joyce has on...

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Q: Give two examples in which the difference in the costs of two

Give two examples in which the difference in the costs of two products or services is much smaller than the difference in their prices.

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Q: What are three benefits of using a product life-cycle reporting

What are three benefits of using a product life-cycle reporting format?

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Q: Define predatory pricing, dumping, and collusive pricing.

Define predatory pricing, dumping, and collusive pricing.

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Q: Describe two alternative approaches to long-run pricing decisions.

Describe two alternative approaches to long-run pricing decisions.

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Q: Give two examples of a value-added cost and two examples

Give two examples of a value-added cost and two examples of a non-value-added cost.

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Q: “A company should not allocate costs that are fixed in the

“A company should not allocate costs that are fixed in the short run to customers.” Do you agree? Explain briefly.

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Q: How should a company decide on the number of cost pools it

How should a company decide on the number of cost pools it should use to allocate costs to divisions, channels, and customers?

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Q: “Managers will always choose the alternative that maximizes operating income or

“Managers will always choose the alternative that maximizes operating income or minimizes costs in the decision model.” Do you agree? Why?

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Q: Show how managers can gain insight into the causes of a sales

Show how managers can gain insight into the causes of a sales-volume variance by subdividing the components of this variance.

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