Questions from Cost Accounting


Q: What is the death spiral? How is it related to the

What is the death spiral? How is it related to the cost accounting system?

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Q: Why is it important for managers to assess whether activities are value

Why is it important for managers to assess whether activities are value-added or nonvalue added? What are some common nonvalue-added activities found in many businesses?

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Q: What are some ways in which customers affect a firm’s costs?

What are some ways in which customers affect a firm’s costs? What are some ways in which suppliers affect a firm’s costs?

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Q: What are two different ways of treating the difference between applied overhead

What are two different ways of treating the difference between applied overhead and actual overhead at the end of the accounting period?

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Q: What are the basic steps in computing costs using activity-based

What are the basic steps in computing costs using activity-based costing?

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Q: Why does it matter how capacity costs are assigned to products?

Why does it matter how capacity costs are assigned to products?

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Q: Interview the manager of a campus print shop or a print shop

Interview the manager of a campus print shop or a print shop in the local area about how the company bids on prospective jobs. Does it use cost information from former jobs that are similar to prospec...

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Q: Under what conditions should the cost of excess capacity be assigned to

Under what conditions should the cost of excess capacity be assigned to products or customers? When should excess capacity costs not be assigned to products or customers?

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Q: In what ways does quality affect cost?

In what ways does quality affect cost?

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Q: What is the difference between resources supplied and resources consumed? Why

What is the difference between resources supplied and resources consumed? Why is the difference important?

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