Questions from Cost Accounting

Q: The Sherriton Hotels chain embarked on a new customer loyalty program in

The Sherriton Hotels chain embarked on a new customer loyalty program in 2015. The 2015 year-end data have been collected, and it is now time for you to determine whether the loyalty program should be...

Q: Ramish Electronics has only two retail and two wholesale customers. Information

Ramish Electronics has only two retail and two wholesale customers. Information relating to each customer for 2015 follows (in thousands): Ramish’s annual distribution-channel cost...

Q: Lee Manufacturing makes a component they call P14-31. This

Lee Manufacturing makes a component they call P14-31. This component is manufactured only when ordered by a customer, so Lee keeps no inventory of P14-31. The list price is $100 per unit, but customer...

Q: Joliver, a renowned pastry chef employed at a four-star

Joliver, a renowned pastry chef employed at a four-star hotel, has decided to open his own exclusive pastry shop. He has $100,000 to invest and the information he has obtained is as follows: ■ There i...

Q: Glat Corporation manufactures a product called the glat, which it sells

Glat Corporation manufactures a product called the glat, which it sells to merchandising firms such as International House of Glats (IHoG), Glats-R-Us (GRU), Glat Marcus (GM), Glat City (GC), Good Gla...

Q: TC Motors assembles and sells motor vehicles, and uses standard costing

TC Motors assembles and sells motor vehicles, and uses standard costing. Actual data relating to April and May 2015 are The selling price per vehicle is $24,000. The budgeted level of production use...

Q: Bear Hill operates a five-star hotel with a world-

Bear Hill operates a five-star hotel with a world-recognized championship golf course. It has a decentralized management structure. There are three divisions: ■ Lodging (rooms, conference facilities)...

Q: PétaleParfum (PP) manufactures and sells upscale perfumes. In recent

PétaleParfum (PP) manufactures and sells upscale perfumes. In recent months, PP has started selling its products in bundled form, as well as in individual form. Sales in 2015 of three pro...

Q: Your Market (YM) runs two convenience stores, one in

Your Market (YM) runs two convenience stores, one in Vancouver and one in Surrey. Operating income for each store in 2015 follows: The equipment has a remaining useful life of one year and zero disp...

Q: Greenbold Manufacturing has four divisions named after its locations: Ontario,

Greenbold Manufacturing has four divisions named after its locations: Ontario, Alberta, Yukon, and Saskatchewan. Corporate headquarters is in Manitoba. Greenbold corporate headquarters incurs $5,600,0...