Questions from Cost Accounting

Q: Performance Auto Company operates a New Car Division (that sells high

Performance Auto Company operates a New Car Division (that sells high-performance sports cars) and a Performance Parts Division (that sells performance improvement parts for family cars). Some divisio...

Q: Bailey Corporation recently announced a bonus plan to be awarded to the

Bailey Corporation recently announced a bonus plan to be awarded to the manager of the most profitable division. The three division managers are to choose whether ROI or RI will be used to measure pro...

Q: The Grandlund Corporation manufactures similar products in Canada and Norway. The

The Grandlund Corporation manufactures similar products in Canada and Norway. The Canadian and Norwegian operations are organized as decentralized divisions. The following information is available for...

Q: Lada Manufacturing makes fashion products and competes on the basis of quality

Lada Manufacturing makes fashion products and competes on the basis of quality and leading-edge designs. The company has $3,000,000 invested in assets in its clothing manufacturing division. After-tax...

Q: The Dexter Division of AMCO sells car batteries. AMCO’s corporate management

The Dexter Division of AMCO sells car batteries. AMCO’s corporate management gives Dexter management considerable operating and investment autonomy in running the division. AMCO is considering how it...

Q: Bill Watts, president of Western Publications, accepts a capital-

Bill Watts, president of Western Publications, accepts a capital-budgeting project advocated by Division X. This is the division in which the president spent his first 10 years with the company. On th...

Q: Brasskey (BK) Company makes doorbells. It has a weighted

Brasskey (BK) Company makes doorbells. It has a weighted-average cost of capital of 8%, and total assets of $5,690,000. BK has current liabilities of $700,000. Its operating income for the year was $6...

Q: Nature’s Elixir Corporation operates three divisions that process and bottle natural fruit

Nature’s Elixir Corporation operates three divisions that process and bottle natural fruit juices. The historical-cost accounting system reports the following information for 2015:...

Q: Peach Computer Corporation is the largest personal computer company in the world

Peach Computer Corporation is the largest personal computer company in the world. The CEO of Peach is retiring, and the board of directors is considering external candidates to fill the position. The...

Q: Konekopf Corporation has a division in Canada and another in France.

Konekopf Corporation has a division in Canada and another in France. The investment in the French assets was made when the exchange rate was $1.20 per euro. The average exchange rate for the year was...