Questions from General Accounting


Q: A company recently raised the pay of employees by 20 percent.

A company recently raised the pay of employees by 20 percent. The productivity of the employees, however, remained the same. The CEO of the company was quoted as saying, “It just goes to show that mon...

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Q: Old Turkey Mash is a whiskey manufactured by distilling grains and

Old Turkey Mash is a whiskey manufactured by distilling grains and corn and then aging the mixture for five years in 50-gallon oak barrels. Distilling requires about a week and aging takes place in c...

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Q: Scanners Plus manufactures and sells two types of scanners for personal computers

Scanners Plus manufactures and sells two types of scanners for personal computers, the Home Scanner and the Pro Scanner. The Home model is a low resolution model for small office applications. The Pro...

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Q: Microelectronics is a large electronics firm with multiple divisions. The circuit

Microelectronics is a large electronics firm with multiple divisions. The circuit board division manufactures circuit boards, which it sells externally and internally. The phone division assembles cel...

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Q: Robin Jensen, manager of market planning for Viral Products of the

Robin Jensen, manager of market planning for Viral Products of the IDP Pharmaceutical Co., is responsible for advertising a class of products. She has designed a three-year marketing plan to increase...

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Q: The Winterton Group is an investment advisory firm specializing in high-

The Winterton Group is an investment advisory firm specializing in high-income investors in upstate New York. Winterton has offices in Rochester, Syracuse, and Buffalo. Operating as a profit center, e...

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Q: Dakota Mining is considering operating a strip mine, the cost of

Dakota Mining is considering operating a strip mine, the cost of which is $4.4 million. Cash returns will be $27.7 million, all received at the end of the first year. The land must be returned to its...

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Q: Department 100 is the first step in the firm’s manufacturing process.

Department 100 is the first step in the firm’s manufacturing process. Data for the current quarter’s operations are as follows:...

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Q: Royal Resort and Casino (RRC), a publicly traded company,

Royal Resort and Casino (RRC), a publicly traded company, caters to affluent customers seeking plush surroundings, high-quality food and entertainment, and all the “glitzâ€...

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Q: Murray Hill was preparing the monthly report that allocates the three service

Murray Hill was preparing the monthly report that allocates the three service department’s (A, B, and C) costs to the three operating divisions (D1, D2, and D3) when he choked to dea...

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