Questions from Cost Accounting


Q: Z Ltd is considering various product pricing and material purchasing options with

Z Ltd is considering various product pricing and material purchasing options with regard to a new product it has in development. Estimates of demand and costs are as follows: Each unit requires 3kg...

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Q: Warren Ltd is to produce a new product in a short-

Warren Ltd is to produce a new product in a short-term venture which will utilize some obsolete materials and expected spare capacity. The new product will be advertised in quarter I with production a...

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Q: The Ruddle Co. Ltd had planned to install and, with

The Ruddle Co. Ltd had planned to install and, with effect from next April, commence operating sophisticated machinery for the production of a new product – product Zed. However, the...

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Q: G Limited, manufacturers of superior garden ornaments, is preparing its

G Limited, manufacturers of superior garden ornaments, is preparing its production budget for the coming period. The company makes four types of ornament, the data for which are as follows: Fixed ov...

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Q: A company makes two products, X and Y. Product X

A company makes two products, X and Y. Product X has a contribution of £124 per unit and product Y £80 per unit. Both products pass through two departments for processing and...

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Q: Goode, Billings and Prosper plc manufactures two products, Razzle and

Goode, Billings and Prosper plc manufactures two products, Razzle and Dazzle. Unit selling prices and variable costs, and daily fixed costs are: Production of the two products is restricted by limit...

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Q: In the March 2016 edition of CIMA’s Financial Management journal, Lawrie

In the March 2016 edition of CIMA’s Financial Management journal, Lawrie Homes interviewed Noel Togoe, CIMA’S director of Education. Togoe stated that value measurement has been an area of dramatic ch...

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Q: SAP, the global leader in enterprise resource planning (ERP)

SAP, the global leader in enterprise resource planning (ERP) systems, offers several tools to help a business find an optimal solution to scheduling and planning problems. The advanced planner and opt...

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Q: Bubble tea cafés are becoming increasingly popular across Malaysia and in recent

Bubble tea cafés are becoming increasingly popular across Malaysia and in recent years, many new chains have been formed, opening cafés in mainly urban locations. Leading bubble tea firms provide som...

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Q: The Airbus A380 was the world’s first double decker aircraft. It

The Airbus A380 was the world’s first double decker aircraft. It can accommodate from 555 to 853 passengers depending on the class configuration. Long haul airlines such as Singapore Airlines were ear...

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