Questions from Cost Accounting


Q: A producer of high-quality executive motor cars has developed a

A producer of high-quality executive motor cars has developed a new model that it knows to be very advanced both technically and in style by comparison with the competition in its market segment. The...

See Answer

Q: Josun plc manufactures cereal-based foods, including various breakfast cereals

Josun plc manufactures cereal-based foods, including various breakfast cereals under private brand labels. In March the company had been approached by Cohin plc, a large national supermarket chain, to...

See Answer

Q: Sniwe plc intend to launch a commemorative product on 1 August 2017

Sniwe plc intend to launch a commemorative product on 1 August 2017 for a sports event commencing in 2019. The product will have variable costs of £16 per unit. Production capacity available for the p...

See Answer

Q: French Ltd is about to commence operations utilizing a simple production process

French Ltd is about to commence operations utilizing a simple production process to produce two products X and Y. It is the policy of French to operate the new factory at its maximum output in the fir...

See Answer

Q: AB plc makes two products, Alpha and Beta. The company

AB plc makes two products, Alpha and Beta. The company made a £500 000 profit last year and proposes an identical plan for the coming year. The relevant data for last year are summarized...

See Answer

Q: Nuts plc produces alpha and beta in two stages. The separation

Nuts plc produces alpha and beta in two stages. The separation process produces crude alpha and beta from a raw material costing £170 per tonne. The cost of the separation process is &Aci...

See Answer

Q: The traditional methods of cost allocation, cost apportionment and absorption into

The traditional methods of cost allocation, cost apportionment and absorption into products are being challenged by some writers who claim that much information given to management is misleading when...

See Answer

Q: Finnish paper company M-real produced paper and packaging products,

Finnish paper company M-real produced paper and packaging products, the demand for which is highly influenced by the demand for end consumer products. Global demand decreased due to the global economi...

See Answer

Q: It has been stated that companies do not have profitable products,

It has been stated that companies do not have profitable products, only profitable customers. Many companies have placed emphasis on the concept of customer account profitability (CAP) analysis in ord...

See Answer

Q: A product is manufactured by passing through three processes: A,

A product is manufactured by passing through three processes: A, B and C. In process C a by-product is also produced which is then transferred to process D where it is completed. For the first week in...

See Answer