Questions from General Accounting


Q: Distinguish among the three types of responsibility centers.

Distinguish among the three types of responsibility centers.

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Q: (a) Explain the basic features of a standard cost accounting

(a) Explain the basic features of a standard cost accounting system. (b) What type of balance will exist in the variance account when (1) the materials price variance is unfavorable and (2) the lab...

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Q: How do direct fixed costs differ from indirect fixed costs? Are

How do direct fixed costs differ from indirect fixed costs? Are both types of fixed costs controllable?

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Q: (a) How are variances reported in income statements prepared for

(a) How are variances reported in income statements prepared for management? (b) May standard costs be used in preparing financial statements for stockholders? Explain.

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Q: Describe the process a company may use in screening and approving the

Describe the process a company may use in screening and approving the capital expenditure budget

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Q: For the year ending December 31, 2014, Cobb Company accumulates

For the year ending December 31, 2014, Cobb Company accumulates the following data for the Plastics Division which it operates as an investment center: contribution margin—$700,000 budget, $710,000 ac...

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Q: John Hsu is attempting to outline the important points about overhead variances

John Hsu is attempting to outline the important points about overhead variances on a class examination. List four points that John should include in his outline.

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Q: El Cajon Company uses the internal rate of return method. What

El Cajon Company uses the internal rate of return method. What is the decision rule for this method?

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Q: What are the strengths of the annual rate of return approach?

What are the strengths of the annual rate of return approach? What are its weaknesses?

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Q: What is residual income, and what is one of its major

What is residual income, and what is one of its major weaknesses?

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