Questions from Cost Accounting

Q: Many if not most schools in the United States have large excess

Many if not most schools in the United States have large excess capacity cost because they are underutilized in the summer months. The dean at the local business school is developing a cost of custome...

Q: Can you think of any products for which one or several of

Can you think of any products for which one or several of the elements of service, quality, and cost are not important to the customer? If so, explain why.

Q: How might a manufacturing system differ under a quality-based view

How might a manufacturing system differ under a quality-based view versus the traditional view of managing quality?

Q: Consider the Business Application “Fraudulent Reporting of Project Completion to Improve

Consider the Business Application “Fraudulent Reporting of Project Completion to Improve Financial Performance.” Would a solution to the problem of misreporting in the case of projects be solved by wr...

Q: One of the issues we identified with traditional costing systems is that

One of the issues we identified with traditional costing systems is that all costs are allocated using volume-related drivers, such as direct labor-hours. How is time-driven ABC, which relies on minut...

Q: The cost accounting manager at your business says that he is trying

The cost accounting manager at your business says that he is trying to choose between a job costing system and an ABC system. How would you respond?

Q: Consider the Business Application feature “Technology, Data Analysis, Customer

Consider the Business Application feature “Technology, Data Analysis, Customer Profitability, and Cost of Quality.” What does it mean to “fire a customer”? Why would a firm want to do this? How would...

Q: I have to pay for capacity whether it is used or not

I have to pay for capacity whether it is used or not. Therefore, excess or idle capacity really doesn’t cost me anything.” Do you agree? Why?

Q: Would process costing work well for a service firm? Why or

Would process costing work well for a service firm? Why or why not?

Q: Consider the Business Application “Managing Excess Capacity Resources—The Case

Consider the Business Application “Managing Excess Capacity Resources—The Case of Employees.” In a related article, the authors write that manufacturers would “probably not try to pass them [excess ca...