Questions from General Accounting

Q: J. P. Alexander claims that the relevant range concept is

J. P. Alexander claims that the relevant range concept is important only for variable costs. (a) Explain the relevant range concept. (b) Do you agree with J. P.’s claim? Explain.

Q: Huegel Hollow Resort has ordered 20 rotomolded kayaks from Current Designs.

Huegel Hollow Resort has ordered 20 rotomolded kayaks from Current Designs. Each kayak will be formed in the rotomolded oven, cooled, and then the excess plastic trimmed away. Then, the hatches, seat,...

Q: Faune Furniture Co. consists of two divisions, Bedroom Division and

Faune Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. The results of operations for the most recent quarter are: (a) Determine the company’s sal...

Q: Adam Antal is confused. He does not understand why rent on

Adam Antal is confused. He does not understand why rent on his apartment is a fixed cost and rent on a Hertz rental truck is a mixed cost. Explain the difference to Adam.

Q: Explain the purpose and use of a “materials requisition slip”

Explain the purpose and use of a “materials requisition slip” as used in a job order cost system.

Q: What is the theory of constraints? Provide some examples of possible

What is the theory of constraints? Provide some examples of possible constraints for a manufacturer.

Q: Peggy Turnbull asks your help in constructing a CVP graph. Explain

Peggy Turnbull asks your help in constructing a CVP graph. Explain to Peggy (a) how the break-even point is plotted, and (b) how the level of activity and dollar sales at the break-even point are de...

Q: How can the agreement of Work in Process Inventory and job cost

How can the agreement of Work in Process Inventory and job cost sheets be verified?

Q: Under what conditions is ABC generally the superior overhead costing system?

Under what conditions is ABC generally the superior overhead costing system?

Q: Matt Litkee is confused about under- and overapplied manufacturing overhead.

Matt Litkee is confused about under- and overapplied manufacturing overhead. Define the terms for Matt, and indicate the balance in the manufacturing overhead account applicable to each term.