Questions from Cost Accounting


Q: “It is not important for a company to distinguish between cost

“It is not important for a company to distinguish between cost incurrence and locked-in costs.” Do you agree? Explain.

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Q: Explain why a favorable sales-quantity variance occurs.

Explain why a favorable sales-quantity variance occurs.

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Q: Why is customer-profitability analysis an important topic for managers?

Why is customer-profitability analysis an important topic for managers?

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Q: How can a company track the extent of price discounting on a

How can a company track the extent of price discounting on a customer-by-customer basis?

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Q: What information does the whale curve provide?

What information does the whale curve provide?

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Q: What role does the Cost Accounting Standards Board play when companies contract

What role does the Cost Accounting Standards Board play when companies contract with the U.S. government?

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Q: What is one key way to reduce cost-allocation disputes that

What is one key way to reduce cost-allocation disputes that arise with government contracts?

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Q: Describe how companies are increasingly facing revenue-allocation decisions.

Describe how companies are increasingly facing revenue-allocation decisions.

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Q: Decorative Doors, Inc., produces two types of doors, interior

Decorative Doors, Inc., produces two types of doors, interior and exterior. The company’s simple costing system has two direct-cost categories (materials and labor) and one indirect-...

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Q: Describe how the dual-rate method is useful to division managers

Describe how the dual-rate method is useful to division managers in decision making.

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