Questions from General Accounting

Q: Can management of a company such as Samsung use cycle time and

Can management of a company such as Samsung use cycle time and cycle efficiency as useful measures of performance? Explain.

Q: Is it possible to evaluate a cost center’s profitability? Explain.

Is it possible to evaluate a cost center’s profitability? Explain.

Q: Google has many types of costs. What is an out-

Google has many types of costs. What is an out-of-pocket cost? What is an opportunity cost? Are opportunity costs recorded in the accounting records?

Q: Samsung must confront sunk costs. Why are sunk costs irrelevant in

Samsung must confront sunk costs. Why are sunk costs irrelevant in deciding whether to sell a product in its present condition or to make it into a new product through additional processing?

Q: Apple is considering expanding a store. Identify three methods management can

Apple is considering expanding a store. Identify three methods management can use to evaluate whether to expand.

Q: Identify four reasons that capital budgeting decisions by managers are risky.

Identify four reasons that capital budgeting decisions by managers are risky.

Q: Identify two disadvantages of using the payback period for comparing investments.

Identify two disadvantages of using the payback period for comparing investments.

Q: What is the average amount invested in a machine during its predicted

What is the average amount invested in a machine during its predicted five-year life if it costs $200,000 and has a $20,000 salvage value? Assume that net income is received evenly throughout each yea...

Q: Why is it possible for direct labor in process operations to include

Why is it possible for direct labor in process operations to include the labor of employees who do not work directly on products or services?

Q: If a potential investment’s internal rate of return is above the company’s

If a potential investment’s internal rate of return is above the company’s hurdle rate, should the investment be made?