Questions from Cost Accounting


Q: Figure Four is a distributor of pharmaceutical products. Its ABC system

Figure Four is a distributor of pharmaceutical products. Its ABC system has five activities: Rick Flair, the controller of Figure Four, wants to use this ABC system to examine individual customer pr...

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Q: The Detroit Penguins play in the American Ice Hockey League. The

The Detroit Penguins play in the American Ice Hockey League. The Penguins play in the Downtown Arena (owned and managed by the City of Detroit), which has a capacity of 15,000 seats (5,000 lower-tier...

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Q: The Jinwa Corporation sells two brands of wine glasses: Plain and

The Jinwa Corporation sells two brands of wine glasses: Plain and Chic. Jinwa provides the following information for sales in the month of June 2011: All variances are to be computed in contribution...

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Q: Soda-King manufactures and sells three soft drinks: Kola,

Soda-King manufactures and sells three soft drinks: Kola, Limor, and Orlem. Budgeted and actual results for 2011 are as follows: Required: 1. Compute the total sales-volume variance, the total sales...

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Q: Soda-King prepared the budget for 2011 assuming a 12%

Soda-King prepared the budget for 2011 assuming a 12% market share based on total sales in the western region of the United States. The total soft drinks market was estimated to reach sales of 20 mill...

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Q: The Chicago power plant that services all manufacturing departments of Mid West

The Chicago power plant that services all manufacturing departments of Mid West Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms: The expec...

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Q: Chocolat Inc. is a producer of premium chocolate based in Palo

Chocolat Inc. is a producer of premium chocolate based in Palo Alto. The company has a separate division for each of its two products: dark chocolate and milk chocolate. Chocolat purchases ingredients...

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Q: Chocolat Inc. decides to examine the effect of using the dual

Chocolat Inc. decides to examine the effect of using the dual-rate method for allocating truck costs to each roundtrip. At the start of 2012, the budgeted costs were as follows: The actual results f...

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Q: Phoenix Partners provides management consulting services to government and corporate clients.

Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments—administrative services (AS) and information systems...

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Q: Brite Exteriors is a firm that provides house painting services. Robert

Brite Exteriors is a firm that provides house painting services. Robert Brite, the owner, is trying to find new ways to increase revenues. Mr. Brite performs the following actions, not in the order li...

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