Questions from Cost Accounting

Q: Why is the constant gross margin percentage NRV method sometimes called a

Why is the constant gross margin percentage NRV method sometimes called a “joint cost and a profit allocation” method?

Q: How might a dispute over the allocation of revenues of a bundled

How might a dispute over the allocation of revenues of a bundled product be resolved?

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

Explain why a favourable sales-quantity variance occurs.

Q: Why might some companies choose not to compute market-size and

Why might some companies choose not to compute market-size and market-share variances?

Q: Why is customer profitability analysis a vitally important topic to managers?

Why is customer profitability analysis a vitally important topic to managers?

Q: Are for-profit businesses the only users of revenue allocation?

Are for-profit businesses the only users of revenue allocation? Explain.

Q: How can the extent of price discounting be tracked on a customer

How can the extent of price discounting be tracked on a customer-by-customer basis?

Q: Give three examples of industries that often use process-costing systems

Give three examples of industries that often use process-costing systems.

Q: State two conditions under which computing equivalent units will make a material

State two conditions under which computing equivalent units will make a material difference to reported inventory amounts.

Q: Identify the main difference between journal entries in process costing and the

Identify the main difference between journal entries in process costing and the ones in job costing.