Questions from Cost Accounting

Q: Give three definitions of investment used in practice when computing ROI.

Give three definitions of investment used in practice when computing ROI.

Q: Match each of the following numbered descriptions with one or more of

Match each of the following numbered descriptions with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item: a. Theoretical capacity b. Practical...

Q: United Savings Bank (USB) is examining the profitability of its

United Savings Bank (USB) is examining the profitability of its Premier Account, a combined savings and checking account. Depositors receive a 2% annual interest rate on their average deposit. USB ear...

Q: How do managers plan for variable overhead costs?

How do managers plan for variable overhead costs?

Q: Explain how the analysis of fixed manufacturing overhead costs differs for (

Explain how the analysis of fixed manufacturing overhead costs differs for (a) planning and control and (b) inventory costing for financial reporting.

Q: What denominator-level capacity concepts emphasize the output a plant can

What denominator-level capacity concepts emphasize the output a plant can supply? What denominator-level capacity concepts emphasize the output customers demand for products produced by a plant?

Q: Describe three criteria for evaluating cost functions and choosing cost drivers.

Describe three criteria for evaluating cost functions and choosing cost drivers.

Q: What are the variances in a 4-variance analysis?

What are the variances in a 4-variance analysis?

Q: Will the financial statements of a company always differ when different choices

Will the financial statements of a company always differ when different choices at the start of the accounting period are made regarding the denominator-level capacity concept?

Q: “The difference between practical capacity and master-budget capacity utilization

“The difference between practical capacity and master-budget capacity utilization is the best measure of management’s ability to balance the costs of having too much capacity and having too little cap...