Questions from Cost Accounting

Q: Murdoch Turner seeks your advice on revising the existing bonus plan for

Murdoch Turner seeks your advice on revising the existing bonus plan for division managers of Green News Group. Assume division managers do not like bearing risk. Turner is considering three ideas: ■...

Q: Community Credit Union (CCU) recently introduced a new bonus plan

Community Credit Union (CCU) recently introduced a new bonus plan for its business unit executives. The company believes that current profitability and customer satisfaction levels are equally importa...

Q: Hamilton Semiconductors manufactures specialized chips that sell for $20 each.

Hamilton Semiconductors manufactures specialized chips that sell for $20 each. Hamilton’s manufacturing costs consist of variable cost of $2 per chip and fixed costs of $9,000,000. Hamilton also incur...

Q: United Forest Products (UFP) is a large timber and wood

United Forest Products (UFP) is a large timber and wood processing plant. UFP’s performance-evaluation system pays its managers substantial bonuses if the company achieves annual budgeted profit numbe...

Q: When the Smith & Bain Company formed three divisions a year ago

When the Smith & Bain Company formed three divisions a year ago, the president told the division managers that an annual bonus would be paid to the most profitable division. However, absolute divi...

Q: Mineral Waters Ltd. operates three divisions that process and bottle sparkling

Mineral Waters Ltd. operates three divisions that process and bottle sparkling mineral water. The historical-cost accounting system reports the following data for 2015: Mineral Waters estimates the...

Q: Leader Automotive Canada is a Tier 1 supplier in the automotive industry

Leader Automotive Canada is a Tier 1 supplier in the automotive industry (direct supplier to car assemblies), an industry that is considered the most competitive in the manufacturing sector. A couple...

Q: The following forecast variable costing income statement was prepared for Electric Machines

The following forecast variable costing income statement was prepared for Electric Machines Ltd. for the year ending April 2015: Sales ……………………………………..$100,000,000 Variable costs …………………………….45,000,0...

Q: Transfer pricing is confined to profit centres.” Do you agree?

Transfer pricing is confined to profit centres.” Do you agree? Why?

Q: Corners Ltd. owns and manages three convenience stores. The following

Corners Ltd. owns and manages three convenience stores. The following information has been collected for the year 2015: Required: 1. Compute the ROI for each store, where investment is measured at (...