Questions from Cost Accounting


Q: Trimake Limited makes three main products, using broadly the same production

Trimake Limited makes three main products, using broadly the same production methods and equipment for each. A conventional product costing system is used at present, although an activity-based costin...

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Q: Duo plc produces two products, A and B. Each has

Duo plc produces two products, A and B. Each has two components specified as sequentially numbered parts, i.e. product A (parts 1 and 2) and product B (parts 3 and 4). Two production departments (mach...

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Q: ABC plc, a group operating retail stores, is compiling its

ABC plc, a group operating retail stores, is compiling its budget statements for the next year. In this exercise, revenues and costs at each store A, B and C are predicted. Additionally, all central c...

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Q: Excel Ltd make and sell two products, VG4U and VG2.

Excel Ltd make and sell two products, VG4U and VG2. Both products are manufactured through two consecutive processes – making and packing. Raw material is input at the commencement o...

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Q: A company sells and services photocopying machines. Its sales department sells

A company sells and services photocopying machines. Its sales department sells the machines and consumables, including ink and paper, and its service department provides an after-sales service to its...

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Q: Seeprint Limited is negotiating an initial one-year contract with an

Seeprint Limited is negotiating an initial one-year contract with an important customer for the supply of a specialized printed colour catalogue at a fixed contract price of £16 per catal...

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Q: The accountant of Laburnum Ltd is preparing documents for a forthcoming meeting

The accountant of Laburnum Ltd is preparing documents for a forthcoming meeting of the budget committee. Currently, variable cost is 40 per cent of selling price and total fixed costs are Â&poun...

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Q: A ticket agent has an arrangement with a concert hall that holds

A ticket agent has an arrangement with a concert hall that holds pop concerts on 60 nights a year whereby he receives discounts as follows per concert: For purchase of: ……………………………………………. He receives...

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Q: The term TetraPak® is one which is familiar to most consumers

The term TetraPak® is one which is familiar to most consumers – it is the name you will see on the card cartons in which milk, juice and other liquid products are frequently packaged. The Tetra group...

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Q: Crabbe, the owner of the Ocean Hotel, is concerned about

Crabbe, the owner of the Ocean Hotel, is concerned about the hotel’s finances and has asked your advice. Crabbe gives you the following information: ‘We have rooms...

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