Questions from Cost Accounting


Q: Give two examples where the difference in the costs of two products

Give two examples where the difference in the costs of two products or services is much smaller than the difference in their prices.

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Q: Describe three key components of a strategic analysis of operating income.

Describe three key components of a strategic analysis of operating income.

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Q: What criteria might be used to justify cost allocation decisions? Which

What criteria might be used to justify cost allocation decisions? Which are the dominant criteria?

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Q: The Zwatch Company manufactures trendy, high-quality moderately priced watches

The Zwatch Company manufactures trendy, high-quality moderately priced watches. As Zwatch’s senior financial analyst, you are asked to recommend a method of inventory costing. The CF...

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Q: How do cost–benefit considerations affect choices by a company about

How do cost–benefit considerations affect choices by a company about the allocation of indirect criteria?

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Q: Give examples of bases used to allocate corporate cost pools to the

Give examples of bases used to allocate corporate cost pools to the operating divisions of an organization

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Q: Why might a manager prefer that budgeted rather than actual indirect cost

Why might a manager prefer that budgeted rather than actual indirect cost allocation rates be used for costs being allocated to her division from another division?

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Q: Specify the strengths and weaknesses among the three methods of allocating the

Specify the strengths and weaknesses among the three methods of allocating the costs of service divisions to production divisions.

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Q: Distinguish between two methods of allocating common costs.

Distinguish between two methods of allocating common costs.

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Q: Why might the number of products in a joint cost setting differ

Why might the number of products in a joint cost setting differ from the number of outputs? Give an example.

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