Questions from General Accounting

Q: You work for the strategy group of Adapt Inc., a firm

You work for the strategy group of Adapt Inc., a firm that designs and manufactures memory cards for digital cameras. Your task is to gather intelligence about Adapt’s key competitor, DigiMem, a priva...

Q: Geico is considering expanding an existing plant on a piece of land

Geico is considering expanding an existing plant on a piece of land it already owns. The land was purchased 15 years ago for $325,000 and its current market appraisal is $820,000. A capital budgeting...

Q: The Ogden plant makes Beanie Babies, small stuffed toys in a

The Ogden plant makes Beanie Babies, small stuffed toys in a variety of animal shapes. The toys are so popular that they have become collectors’ items. The plant uses a flexible budget and predetermin...

Q: Repro Corporation is the leading manufacturer and seller of office equipment.

Repro Corporation is the leading manufacturer and seller of office equipment. Its most profitable business segment is the production and sale of large copiers. The company is currently organized into...

Q: Logical Solutions reports the following overhead variances for 2010: Spending

Logical Solutions reports the following overhead variances for 2010: Spending variance …………………………………$100,000 F Efficiency variance …………………………………$100,000 F Volume variance …………………………………..$300,000 F In...

Q: ICB has four manufacturing divisions, each producing a particular type of

ICB has four manufacturing divisions, each producing a particular type of cosmetic or beauty aid. These products are then transferred to five marketing divisions, each covering a particular geographic...

Q: The Transfer Price Company has two divisions (Intermediate and Final)

The Transfer Price Company has two divisions (Intermediate and Final) that report to the corporate office (Corporate). The two divisions are profit centers. Intermediate produces a proprietary product...

Q: Madden International is a large ($7 billion sales), successful international

Madden International is a large ($7 billion sales), successful international pharmaceuticals firm operating in 23 countries with 15 autonomous subsidiaries. The corporate office consists of five vice...

Q: Commando Force is a new set of children’s action toys consisting of

Commando Force is a new set of children’s action toys consisting of three separately sold pieces: Matt, Kim, and the multi-terrain vehicle (MTV). The MTV can be used by itself or it...

Q: Robert S. Kaplan in “One Cost System Isn’t Enough”

Robert S. Kaplan in “One Cost System Isn’t Enough” (Harvard Business Review, January–February 1988, pp. 61–66) states, No single system can adequately answer the demands made by diverse functions of c...