Questions from Cost Accounting

Q: Nate Stately, a manager of the Plate division for the Great

Nate Stately, a manager of the Plate division for the Great Slate Manufacturing Company, has the opportunity to expand the division by investing in additional machinery costing $320,000. He would depr...

Q: Met-All Manufacturing manufactures over 20,000 different products made

Met-All Manufacturing manufactures over 20,000 different products made from metal, including building materials, tools, and furniture parts. The manager of the Furniture Parts division has proposed th...

Q: LudmillaQuagg owns a fitness centre and is thinking of replacing the old

LudmillaQuagg owns a fitness centre and is thinking of replacing the old Fit-O-Matic machine with a brand new Flab-Buster 3000. The old FitO-Matic has a historical cost of $50,000 and accumulated depr...

Q: The management of Kleinburg Industrial Bakery is analyzing two competing investment projects

The management of Kleinburg Industrial Bakery is analyzing two competing investment projects and they must decide which one can be done immediately and which one can be postponed for at least a year....

Q: Whengon Manufacturing makes electronic hearing aids. Department A manufactures 10,

Whengon Manufacturing makes electronic hearing aids. Department A manufactures 10,000 units of part HR-7 and Department B uses this part to make the finished product. HR-7 is a specific part for a pat...

Q: Blue Ribbon Fisheries is a fishing company located on the Canadian Pacific

Blue Ribbon Fisheries is a fishing company located on the Canadian Pacific coast. It has three divisions: 1. Harvesting—operates a fleet of 20 trawling vessels. 2. Processing—processes the raw fish in...

Q: Mark’s division has been judged on the basis of its profit and

Mark’s division has been judged on the basis of its profit and return on investment. Top management has been working to gain effective results from a policy of decentralizing responsibility for all de...

Q: Under the general transfer-pricing guideline, the minimum transfer price

Under the general transfer-pricing guideline, the minimum transfer price will vary depending on whether or not the supplying division has idle capacity.” Do you agree? Explain.

Q: Italian Sausages Inc. is still a family-owned company located

Italian Sausages Inc. is still a family-owned company located in Maple, Ontario. It has experienced significant growth in the last 10 years, and nowadays it employs more than 100 persons in production...

Q: Green News Group has two major divisions: Print and Internet.

Green News Group has two major divisions: Print and Internet. Summary financial data (in millions) for 2014 and 2015 are as follows: he two division managers’ annual bonuses are ba...