Questions from Cost Accounting

Q: Coventry Inc. is a diversified multidivisional corporation. One of its

Coventry Inc. is a diversified multidivisional corporation. One of its business units manufactures and sells industrial pumps. Coventry’s corporate management gives Industrial Pumps management conside...

Q: Light Seating Canada produces recliners, the device inside car seats that

Light Seating Canada produces recliners, the device inside car seats that allows the seats to recline to a position comfortable to the driver but prevents the seat from trapping the driver in the case...

Q: As a way to incent competition between divisions, the president of

As a way to incent competition between divisions, the president of Industrial Products told the division managers that a quarterly bonus would be paid only to the most profitable division. However, ab...

Q: Crango Products is a cranberry cooperative that operates two divisions: a

Crango Products is a cranberry cooperative that operates two divisions: a harvesting division and a processing division. Currently, all of Harvesting’s output is converted into cranb...

Q: Assume that Pat Borges, CEO of Crango, has mandated a

Assume that Pat Borges, CEO of Crango, has mandated a transfer price equal to 200% of full cost. Now she decides to decentralize some management decisions and sends around a memo that states: “Effecti...

Q: The Ottawa Valley Instrument Company (OVIC) consists of the semiconductor

The Ottawa Valley Instrument Company (OVIC) consists of the semiconductor division and the process-control division, each of which operates as an independent profit centre. The semiconductor division...

Q: Argone division of Gemini Corporation is located in the United States.

Argone division of Gemini Corporation is located in the United States. Its effective income tax rate is 20%. Another division of Gemini, Calcia, is located in Canada, where the income tax rate is 38%....

Q: Fox Valley Healthcare Inc. is a not-for-profit

Fox Valley Healthcare Inc. is a not-for-profit organization that operates eight nursing homes and 10 assisted-living facilities. The company has grown considerably over the last three years and expect...

Q: LVT is an international manufacturer of fragrances for women. Management at

LVT is an international manufacturer of fragrances for women. Management at LVT is considering expanding the product line to men’s fragrances. From the best estimates of the marketing and production m...