Questions from Cost Accounting

Q: Distinguish between the stand-alone and the incremental revenue-allocation

Distinguish between the stand-alone and the incremental revenue-allocation methods.

Q: Identify and discuss arguments that individual product managers may put forward to

Identify and discuss arguments that individual product managers may put forward to support their preferred revenue-allocation method. 

Q: Why might a manager prefer that budgeted rather than actual cost-

Why might a manager prefer that budgeted rather than actual cost-allocation rates be used for costs being allocated to his or her department from another department?

Q: Distinguish among the three methods of allocating the costs of support departments

Distinguish among the three methods of allocating the costs of support departments to operating departments.

Q: Why is the constant gross-margin percentage NRV method sometimes called

Why is the constant gross-margin percentage NRV method sometimes called a “joint-cost-allocation and a profit-allocation” method?

Q: “Managers must decide whether a product should be sold at splitoff

“Managers must decide whether a product should be sold at splitoff or processed further. The sales value at splitoff method of joint-cost allocation is the best method for generating the information m...

Q: “Managers should consider only additional revenues and separable costs when making

“Managers should consider only additional revenues and separable costs when making decisions about selling at splitoff or processing further.” Do you agree? Explain.

Q: Why might managers seeking a monthly bonus based on attaining a target

Why might managers seeking a monthly bonus based on attaining a target operating income prefer the sales method of accounting for byproducts rather than the production method?

Q: Distinguish between a joint product and a byproduct.

Distinguish between a joint product and a byproduct.

Q: “We are already measuring total factor productivity. Measuring partial productivities

“We are already measuring total factor productivity. Measuring partial productivities would be of no value.” Do you agree? Comment briefly.