Questions from Cost Accounting


Q: Pineway Electric manufactures electric motors. It competes and plans to grow

Pineway Electric manufactures electric motors. It competes and plans to grow by selling high-quality motors at a low price and by delivering them to customers in a reasonable time after receiving cust...

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Q: An analysis of Pineway’s operating-income changes between 2019 and 2020

An analysis of Pineway’s operating-income changes between 2019 and 2020 shows the following: The industry market size for electric motors did not grow in 2020, input prices did not c...

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Q: Dominic & Sons buys T-shirts in bulk, applies its

Dominic & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Dominic wants to be known for its trendsetting designs...

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Q: Refer to Exercise 13-21. Required 1.

Refer to Exercise 13-21. Required 1. Calculate Dominic’s operating income in both 2019 and 2020. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operat...

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Q: Refer to Exercise 13-22. Suppose that the market for

Refer to Exercise 13-22. Suppose that the market for silk-screened T-shirts grew by 10% during 2020. All increases in sales greater than 10% are the result of Dominic’s strategic actions. Required Ca...

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Q: Refer to Exercise 13-21. Required 1.

Refer to Exercise 13-21. Required 1. Calculate the amount and cost of unused administrative capacity at the beginning of 2020, based on the actual number of customers Dominic served in 2020. 2. Suppo...

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Q: Methuen Corporation makes a special-purpose machine, D4H, used

Methuen Corporation makes a special-purpose machine, D4H, used in the textile industry. Methuen has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarde...

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Q: Refer to Exercise 13-25. Required 1.

Refer to Exercise 13-25. Required 1. Calculate the operating income of Methuen Corporation in 2019 and 2020. 2. Calculate the growth, price-recovery, and productivity components that explain the chan...

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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: Suppose that during 2020, the market for Methuen’s special-purpose

Suppose that during 2020, the market for Methuen’s special-purpose machines grew by 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Methuen’s strategic a...

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