Questions from Cost Accounting

Q: JB Limited is a small specialist manufacturer of electronic components and much

JB Limited is a small specialist manufacturer of electronic components and much of its output is used by the makers of aircraft for both civil and military purposes. One of the few aircraft manufactur...

Q: (a). ‘While the ascertainment of product costs could be

(a). ‘While the ascertainment of product costs could be said to be one of the objectives of cost accounting, where joint products are produced and joint costs incurred, the total cos...

Q: A company is currently manufacturing at only 60 per cent of full

A company is currently manufacturing at only 60 per cent of full practical capacity, in each of its two production departments, due to a reduction in market share. The company is seeking to launch a n...

Q: PDR plc manufactures four products using the same machinery. The following

PDR plc manufactures four products using the same machinery. The following details relate to its products: There is a maximum of 2000 machine hours available per week. Requirement: (a). Determine...

Q: PQR Limited is an engineering company engaged in the manufacture of components

PQR Limited is an engineering company engaged in the manufacture of components and finished products. The company is highly mechanized and each of the components and finished products requires the use...

Q: B Ltd manufactures a range of products which are sold to a

B Ltd manufactures a range of products which are sold to a limited number of wholesale outlets. Four of these products are manufactured in a particular department on common equipment. No other facilit...

Q: According to a recent survey undertaken by CIMA, variable (or

According to a recent survey undertaken by CIMA, variable (or marginal) costing is used by almost 40 per cent of firms. Management accountants from a wide range of sectors, including manufacturing and...

Q: A South American farmer has 960 hectares of land on which he

A South American farmer has 960 hectares of land on which he grows squash, kale, lettuce and beans. Of the total, 680 hectares are suitable for all four vegetables, but the remaining 280 hectares are...

Q: Johnson trades as a chandler at the Savoy Marina. His profit

Johnson trades as a chandler at the Savoy Marina. His profit in this business during the year to 30 June was £12 000. Johnson also undertakes occasional contracts to build pleasure cruise...

Q: A company supplying capital equipment to the engineering industry is part of

A company supplying capital equipment to the engineering industry is part of a large group of diverse companies. It determines its tender prices by adding a standard profit margin as a percentage of i...