Questions from Cost Accounting


Q: Define strategy.

Define strategy.

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Q: Define opportunity cost.

Define opportunity cost.

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Q: Describe the five key forces to consider when analyzing an industry.

Describe the five key forces to consider when analyzing an industry.

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Q: “Management should always maximize sales of the product with the highest

“Management should always maximize sales of the product with the highest contribution margin per unit.” Do you agree? Why?

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Q: Describe three alternative cost-plus pricing methods.

Describe three alternative cost-plus pricing methods.

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Q: DLN is an architectural firm that designs and builds buildings. It

DLN is an architectural firm that designs and builds buildings. It prices each job on a cost plus 20% basis. Overhead costs in 2017 are $8,100,000. DLN’s simple costing system alloca...

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Q: “Cost written off as depreciation on equipment already purchased is always

“Cost written off as depreciation on equipment already purchased is always irrelevant.” Do you agree? Why?

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Q: What is downsizing?

What is downsizing?

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Q: Describe the three steps in solving a linear programming problem.

Describe the three steps in solving a linear programming problem.

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Q: How might the optimal solution of a linear programming problem be determined

How might the optimal solution of a linear programming problem be determined?

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