Questions from Cost Accounting

Q: I am going to focus on the customers of my business and

I am going to focus on the customers of my business and leave cost allocation issues to my accountant.” Do you agree with this comment by a division president?

Q: Define relevant cost. Why are historical costs irrelevant?

Define relevant cost. Why are historical costs irrelevant?

Q: Do companies in either the service sector or the merchandising sector make

Do companies in either the service sector or the merchandising sector make choices about absorption costing versus variable costing?

Q: The main trouble with variable costing is that it ignores the increasing

The main trouble with variable costing is that it ignores the increasing importance of fixed costs in modern manufacturing.” Do you agree? Why?

Q: The rate variance for variable manufacturing overhead is affected by several factors

The rate variance for variable manufacturing overhead is affected by several factors. Explain.

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

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

Q: Select the graph that matches the numbered manufacturing cost data. Indicate

Select the graph that matches the numbered manufacturing cost data. Indicate by letter which of the graphs best fits each of the situations or items described. The vertical axes of the graphs represen...

Q: Explain how four-variance analysis differs from one-, two-,

Explain how four-variance analysis differs from one-, two-, and three-variance analysis.

Q: Which denominator-level concepts emphasize what a plant can supply?

Which denominator-level concepts emphasize what a plant can supply? Which denominator-level concepts emphasize what customers demand for products produced by a plant?

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

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 capa...