Questions from Cost Management

Q: Phelps Glass Inc. has reported the following financial data: net

Phelps Glass Inc. has reported the following financial data: net revenues of $10 million, variable costs of $5 million, controllable fixed costs of $2 million, noncontrollable fixed costs of $1 millio...

Q: Manuel Inc. produces textiles in many different forms. After recording

Manuel Inc. produces textiles in many different forms. After recording lower-than-anticipated profits last year, Manuel has decided to shut down one of its divisions that is not performing well. The a...

Q: Meargia Plastics is evaluating its plastic bottles division. The accounting manager

Meargia Plastics is evaluating its plastic bottles division. The accounting manager has come up with the following data for the year: contribution margin of $500,000, controllable fixed costs of $200,...

Q: Smith Branded Apparel designs T-shirts for businesses and corporations.

Smith Branded Apparel designs T-shirts for businesses and corporations. The accounting manager has presented the latest quarter’s return on sales of 10% and asset turnover of 1.5. What is the company’...

Q: Williams Manufacturing uses scrap metal to produce various tools, such as

Williams Manufacturing uses scrap metal to produce various tools, such as drill bits, hammer heads, saw blades, and nails. The CEO has asked you to analyze the saw blades division to determine asset t...

Q: Scott Healthcare provides a walk-in clinic for its patients and

Scott Healthcare provides a walk-in clinic for its patients and a pharmacy for any medication prescribed by the doctor. Last year, Scott generated total sales of $500,000 and $100,000 in profits. Scot...

Q: Matthews Produce harvests and sells Florida oranges. Matthews has hired you

Matthews Produce harvests and sells Florida oranges. Matthews has hired you to determine its return on investment (ROI) based on both net book value (NBV) and gross book value (GBV). Financial data fo...

Q: Moore Money is a financial services firm specializing in fixed-income

Moore Money is a financial services firm specializing in fixed-income investments. You have been asked by the accounting manager to analyze the company’s financial data from the last quarter. You find...

Q: King Mattresses sells both mattress sets and bed frames. Last quarter

King Mattresses sells both mattress sets and bed frames. Last quarter, total sales were $50,000 for mattress sets and $25,000 for bed frames. Return on investment (ROI) was 10% for both divisions, whi...

Q: Assume the following for White Top Inc. for the current fiscal

Assume the following for White Top Inc. for the current fiscal year. White Top applies overhead on the basis of units produced. Budgeted overhead ………………………………………..… $200,000 Actual overhead ………………………...