Questions from General Accounting

Q: Horowitz Company is evaluating the purchase of a rebuilt spot-welding

Horowitz Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years, a...

Q: Indicate two behavioral principles that pertain to (a) the

Indicate two behavioral principles that pertain to (a) the manager being evaluated and (b) top management.

Q: What is a major disadvantage of using ROI to evaluate investment and

What is a major disadvantage of using ROI to evaluate investment and company performance?

Q: How may a budget report for the second quarter differ from a

How may a budget report for the second quarter differ from a budget report for the first quarter?

Q: Ken Bay questions the usefulness of a master sales budget in evaluating

Ken Bay questions the usefulness of a master sales budget in evaluating sales performance. Is there justification for Ken’s concern? Explain.

Q: Under what circumstances may a static budget be an appropriate basis for

Under what circumstances may a static budget be an appropriate basis for evaluating a manager’s effectiveness in controlling costs?

Q: “A flexible budget is really a series of static budgets.”

“A flexible budget is really a series of static budgets.” Is this true? Why?

Q: The static manufacturing overhead budget based on 40,000 direct labor

The static manufacturing overhead budget based on 40,000 direct labor hours shows budgeted indirect labor costs of $54,000. During March, the department incurs $64,000 of indirect labor while working...

Q: A static overhead budget based on 40,000 direct labor hours

A static overhead budget based on 40,000 direct labor hours shows Factory Insurance $6,500 as a fixed cost. At the 50,000 direct labor hours worked in March, factory insurance costs were $6,300. Is th...

Q: In each of the following formulas, supply the words that should

In each of the following formulas, supply the words that should be inserted for each number in parentheses. (a) (Actual quantity x (1)) - (Standard quantity x (2)) = Total materials variance (b) ((3)...