Questions from Cost Accounting

Q: User Friendly Computer Inc., with headquarters in Nepean, Ontario,

User Friendly Computer Inc., with headquarters in Nepean, Ontario, manufactures and sells a premium desktop computer system. User Friendly has three divisions, each of which is located in a different...

Q: The Orsilo Corporation makes and sells 10,000 multisystem music players

The Orsilo Corporation makes and sells 10,000 multisystem music players each year. Its assembly division purchases components from other divisions of Orsilo or from external suppliers and assembles th...

Q: TECA Halifax makes kids’ bicycles. The frames division makes and paints

TECA Halifax makes kids’ bicycles. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. TECA is a successful and profitable corp...

Q: The trouble with discounted cash flow techniques is that they ignore depreciation

The trouble with discounted cash flow techniques is that they ignore depreciation costs.” Do you agree? Explain.

Q: Quest Motors Inc. operates as a decentralized multidivision company. The

Quest Motors Inc. operates as a decentralized multidivision company. The tivo division of Quest Motors purchases most of its airbags from the airbag division. The airbag division’s incremental cost fo...

Q: The Handit Company manufactures telecommunications equipment at its plant in Ottawa,

The Handit Company manufactures telecommunications equipment at its plant in Ottawa, Ontario. The company has marketing divisions throughout the world. A Handit marketing division in Vienna, Austria,...

Q: Industrial Diamonds, Inc., based in Montreal, Quebec, has

Industrial Diamonds, Inc., based in Montreal, Quebec, has two divisions: â–  South African mining division, which mines a rich diamond vein in South Africa. â–  Canadia...

Q: The Allison Corporation, manufacturer of tractors and other heavy farm equipment

The Allison Corporation, manufacturer of tractors and other heavy farm equipment, is organized along decentralized product lines, with each manufacturing division operating as a separate profit centre...

Q: Francesca Freed wants a Burg-NFry franchise. The buy-

Francesca Freed wants a Burg-NFry franchise. The buy-in is $500,000. Burg-N-Fry headquarters tells Francesca that typical annual operating costs are $160,000 (cash) and that she can bring in “as much...

Q: Wilcox is a familyowned company that has been making microwaves for almost

Wilcox is a familyowned company that has been making microwaves for almost 20 years. The company’s production line includes 10 models, ranging from a basic model to a deluxe stainles...