Questions from Cost Accounting

Q: Zzwuig Multinational Inc. has divisions in Canada, Germany, and

Zzwuig Multinational Inc. has divisions in Canada, Germany, and New Zealand. The Canadian division is the oldest and most established of the three, and has a cost of capital of 6%. The German division...

Q: British Columbia Lumber has a raw lumber division and a finished lumber

British Columbia Lumber has a raw lumber division and a finished lumber division. The variable costs are: ■ Raw lumber division: $100 per 100 board feet of raw lumber. ■ Finished lumber division: $125...

Q: Ajax Corporation has two divisions. The mining division makes toldine,

Ajax Corporation has two divisions. The mining division makes toldine, which is then transferred to the metals division. The toldine is further processed by the metals division and sold to customers a...

Q: Refer to Exercise 21-25. Assume that Division A can

Refer to Exercise 21-25. Assume that Division A can sell the 2,000 units to other customers at $155 per unit, with variable marketing cost of $5 per unit. Required: 1. Determine whether Allison-Chamb...

Q: Clover Inc. manufactures and sells television sets. Its assembly division

Clover Inc. manufactures and sells television sets. Its assembly division (AD) buys television screens from the screen division (SD) and assembles the TV sets. The SD, which is operating at capacity,...

Q: Europa Inc., has two divisions, A and B, which

Europa Inc., has two divisions, A and B, which manufacture expensive bicycles. Division A produces the bicycle frame, and Division B assembles the rest of the bicycle onto the frame. There is a market...

Q: Give two reasons why a dual-price approach to transfer pricing

Give two reasons why a dual-price approach to transfer pricing is not widely used.

Q: Refer to Exercise 21-28. Required:

Refer to Exercise 21-28. Required: 1. Suppose the manager of Division A has the option of (a) cutting the external price to $195, with the certainty that sales will rise to 1,000 units or (b) maintai...

Q: Christen Granite sells granite counter tops to the construction industry. Christen

Christen Granite sells granite counter tops to the construction industry. Christen Granite has three customers: Homebuilders, a small construction company that builds private luxury homes; Kitchen Con...

Q: You have the opportunity to expand your business b y purchasing new

You have the opportunity to expand your business b y purchasing new equipment for $189,000. You expect to incur fixed costs of $96,000 per year to use this new equipment, and you expect to incur varia...