Questions from Cost Accounting


Q: Evergreen Transportation is a domestic logistics company offering warehousing and transportation services

Evergreen Transportation is a domestic logistics company offering warehousing and transportation services. It is organized along product lines with three sectors: Agricultural, Manufactured Goods, and...

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Q: Mackenzie Mining has two operating divisions, Northern and Southern, that

Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company’s human resources (HR) department. The annual costs of the HR departme...

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Q: Refer to data for Mackenzie Mining in Exercise 12-35.

Refer to data for Mackenzie Mining in Exercise 12-35. Required Determine the cost allocation if $9.5 million of the HR costs are fixed and allocated on the basis of employees, and the remaining costs,...

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Q: Dawes Designs buys T-shirts for clubs, teams, and

Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization’s logo. Because of the uncertainty in the timing of the sales...

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Q: Refer to data for Giardin Outdoors in Exercise 12-37.

Refer to data for Giardin Outdoors in Exercise 12-37. Required Determine the cost allocation if $3.8 million of the F&A costs are fixed and allocated on the basis of revenues, and the remaining co...

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Q: Our cash budget shows a surplus for the quarter so we do

Our cash budget shows a surplus for the quarter so we do not have to think about arranging any bank financing.” Comment on this statement.

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Q: Evergreen Furniture, a retailing company, is preparing the cash budget

Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following inventory information is available: Required What are the estimated cash disbursements in August?

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Q: Refer to data for Kentfield Advisory Services in Exercise 12-39

Refer to data for Kentfield Advisory Services in Exercise 12-39. Required What is the cost allocation if fixed IT costs of $22.4 million are allocated on the basis of utilization and the remaining cos...

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Q: Refer to the data in Exercise 14-40. The division

Refer to the data in Exercise 14-40. The division manager learns that there is an option to lease the asset on a year-to-year lease for $1,162,000 per year. All depreciation and other tax benefits wou...

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Q: Refer to data for Dill Shipyards in Exercise 12-41.

Refer to data for Dill Shipyards in Exercise 12-41. Required What is the cost allocation if fixed Payroll costs of $5.6 million are allocated on the basis of number of employees and the remaining cost...

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