Questions from Cost Accounting

Q: “Companies that make no variable-cost/fixed-cost

“Companies that make no variable-cost/fixed-cost distinctions must use absorption costing, and those that do make variable-cost/fixed-cost distinctions must use variable costing.” Do you agree? Explai...

Q: What are the factors that affect the breakeven point under (

What are the factors that affect the breakeven point under (a) variable costing and (b) absorption costing?

Q: Critics of absorption costing have increasingly emphasized its potential for leading to

Critics of absorption costing have increasingly emphasized its potential for leading to undesirable incentives for managers. Give an example.

Q: Acclaim Inc. makes two styles of trophies, basic and deluxe

Acclaim Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Acclaim does large custom orders. Acclaim budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Man...

Q: What two assumptions are frequently made when estimating a cost function?

What two assumptions are frequently made when estimating a cost function?

Q: Define learning curve. Outline two models that can be used when

Define learning curve. Outline two models that can be used when incorporating learning into the estimation of cost functions.

Q: Discuss four frequently encountered problems when collecting cost data on variables included

Discuss four frequently encountered problems when collecting cost data on variables included in a cost function.

Q: “All the independent variables in a cost function estimated with regression

“All the independent variables in a cost function estimated with regression analysis are cost drivers.” Do you agree? Explain.

Q: Describe three alternative linear cost functions.

Describe three alternative linear cost functions.

Q: What is the difference between a linear and a nonlinear cost function

What is the difference between a linear and a nonlinear cost function? Give an example of each type of cost function.