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: Carter Corporation recently announced a bonus plan to be awarded to the

Carter 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 Seaside Corporation manufactures similar products in the United States and Norway

The Seaside Corporation manufactures similar products in the United States and Norway. The U.S. and Norwegian operations are organized as decentralized divisions. The following information is availabl...

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

Eva 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: he Fremont, California, plant of New United Motor Manufacturing,

he Fremont, California, plant of New United Motor Manufacturing, Inc. (NUMMI), a joint venture of General Motors and Toyota, assembles two types of cars (Corollas and Geo Prisms). Separate assembly li...

Q: Sunny Spot Travel Agency specializes in flights between Toronto and Jamaica.

Sunny Spot Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Canadian Air. Sunny Spot’s fixed costs are $23,500 per month. Canadian Air charges passengers $1,500...

Q: The Super Donut owns and operates six doughnut outlets in and round

The Super Donut owns and operates six doughnut outlets in and round Kansas City. You are given the following corporate budget data for next year: Revenues ………………..……………….$10,000,000 Fixed costs ……………...

Q: Brooke Motors is a small car dealership. On average, it

Brooke Motors is a small car dealership. On average, it sells a car for $27,000, which it purchases from the manufacturer for $23,000. Each month, Brooke Motors pays $48,200 in rent and utilities and...

Q: The Express Banquet has two restaurants that are open 24-hours

The Express Banquet has two restaurants that are open 24-hours a day. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffee to full meals. The avera...

Q: Bredahl Logistics, a U.S. shipping company, has

Bredahl Logistics, a U.S. shipping company, has just begun distributing goods across the Atlantic to Norway. The company began operations in 2010, transporting goods to South America. The company’s ea...