Questions from Cost Accounting

Q: Explain the term “supply chain” and its importance to cost

Explain the term “supply chain” and its importance to cost management.

Q: Increasing the number of indirect-cost pools is guaranteed to sizably

Increasing the number of indirect-cost pools is guaranteed to sizably increase the accuracy of product or service costs.” Do you agree? Why?

Q: The Solutions Corporation is a manufacturer of centrifuges. Fixed and variable

The Solutions Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is two hou...

Q: Rozema, Inc., produces chemicals for large biotech companies. It

Rozema, Inc., produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August 2013: Use F for favorable and U for unfavorable:

Q: The Singapore division of a Canadian telecommunications company uses standard costing for

The Singapore division of a Canadian telecommunications company uses standard costing for its machine-paced production of telephone equipment. Data regarding production during June are as follows: R...

Q: Meals on Wheels (MOW) operates a meal home-delivery

Meals on Wheels (MOW) operates a meal home-delivery service. It has agreements with 20 restaurants to pick up and deliver meals to customers who phone or fax orders to MOW. MOW allocates variable and...

Q: Furniture, Inc., specializes in the production of futons. It

Furniture, Inc., specializes in the production of futons. It uses standard costing and flexible budgets to account for the production of a new line of futons. For 2011, budgeted variable overhead at a...

Q: Dvent budgets 18,000 machine-hours for the production of

Dvent budgets 18,000 machine-hours for the production of computer chips in August 2011. The budgeted variable overhead rate is $6 per machine hour. At the end of August, there is a $375 favorable spen...

Q: Purdue, Inc., manufactures tires for large auto companies. It

Purdue, Inc., manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. For each independent scenario given,...

Q: David James is a cost accountant and business analyst for Doorknob Design

David James is a cost accountant and business analyst for Doorknob Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct cost categories: direct materials and direct...