Questions from Cost Accounting

Q: Sooke Ale recently purchased a brewing plant from a bankrupt company.

Sooke Ale recently purchased a brewing plant from a bankrupt company. It was constructed only two years ago. The plant has budgeted fixed manufacturing overhead of $50 million per year ($4.167 million...

Q: Transferred-in costs are those incurred in the preceding accounting period

Transferred-in costs are those incurred in the preceding accounting period.” Do you agree? Explain.

Q: What has been regarded as normal spoilage in the past is not

What has been regarded as normal spoilage in the past is not necessarily acceptable as normal spoilage in the present or future.” Explain.

Q: In accounting for spoiled goods, we are dealing with cost assignment

In accounting for spoiled goods, we are dealing with cost assignment rather than cost incurrence.” Explain.

Q: The point of inspection is the key to the allocation of spoilage

The point of inspection is the key to the allocation of spoilage costs.” Do you agree? Explain.

Q: The costs of reworking defective units are always charged to the specific

The costs of reworking defective units are always charged to the specific jobs where the defects were originally discovered.” Do you agree? Explain.

Q: Name five cost categories that are important in managing goods for sale

Name five cost categories that are important in managing goods for sale in a retail organization.

Q: Describe just-in-time (JIT) purchasing and its

Describe just-in-time (JIT) purchasing and its benefits.

Q: Nost Vineyards is a wine manufacturer. It distributes its products to

Nost Vineyards is a wine manufacturer. It distributes its products to retailers across Canada. Nost’s objective is to be the number one distributor of its product lines in Canada. Nost competes agains...

Q: Lynn Hardt, a management accountant with the Paibec Corporation, is

Lynn Hardt, a management accountant with the Paibec Corporation, is evaluating whether a component, MTR-2000, should continue to be manufactured by Paibec or purchased from Marley Company, an outside...