Questions from Cost Accounting

Q: Doorchime Company makes doorbells. It has a weighted average cost of

Doorchime Company makes doorbells. It has a weighted average cost of capital of 9%, and total assets of $5,550,000. Doorchime has current liabilities of $800,000. Its operating income for the year was...

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 2011:...

Q: P. F. Skidaddle’s operates casual dining restaurants in three regions

P. F. Skidaddle’s operates casual dining restaurants in three regions: Denver, Seattle, and Sacramento. Each geographic market is considered a separate division. The Denver division...

Q: Konekopf Corporation has a division in the United States, and another

Konekopf Corporation has a division in the United States, and another in France. The investment in the French assets was made when the exchange rate was $1.30 per euro. The average exchange rate for t...

Q: Zynga Multinational, Inc., has divisions in the United States,

Zynga Multinational, Inc., has divisions in the United States, Germany, and New Zealand. The U.S. division is the oldest and most established of the three, and has a cost of capital of 8%. The German...

Q: Global Event Group has two major divisions: print and Internet.

Global Event Group has two major divisions: print and Internet. Summary financial data (in millions) for 2011 and 2012 are as follows: The two division managers’ annual bonuses are...

Q: An auditor for the Internal Revenue Service is trying to reconstruct some

An auditor for the Internal Revenue Service is trying to reconstruct some partially destroyed records of two taxpayers. For each of the cases in the accompanying list, find the unknowns designated by...

Q: Chris Moreno seeks your advice on revising the existing bonus plan for

Chris Moreno seeks your advice on revising the existing bonus plan for division managers of Global Event Group. Assume division managers do not like bearing risk. Moreno is considering three ideas: Ma...

Q: Community Bank recently introduced a new bonus plan for its business unit

Community Bank recently introduced a new bonus plan for its business unit executives. The company believes that current profitability and customer satisfaction levels are equally important to the bank...

Q: Hamilton Semiconductors manufactures specialized chips that sell for $25 each.

Hamilton Semiconductors manufactures specialized chips that sell for $25 each. Hamilton’s manufacturing costs consist of variable cost of $3 per chip and fixed costs of $8,000,000. Hamilton also incur...