Questions from General Accounting


Q: Republic Insurance has a direct sales force that sells life insurance policies

Republic Insurance has a direct sales force that sells life insurance policies. All salespeople at the beginning of the year forecast the number of policies they expect to sell that year. At the end o...

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Q: Chris Maynard, one of Heath Metal Products’s three customer engineers,

Chris Maynard, one of Heath Metal Products’s three customer engineers, is reviewing the costs of the radar housings for Lingle Aerospace (LA). LA is one of Maynard’s largest accounts and the radar hou...

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Q: Transmation, with sales of over $2.2 billion,

Transmation, with sales of over $2.2 billion, builds and markets several of the world's leading brands of construction and agricultural equipment. Transmation has three operating divisions that are de...

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Q: A present investment of $50,000 is expected to yield

A present investment of $50,000 is expected to yield receipts of $8,330 a year for seven years. What is the internal rate of return on this investment?

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Q: Communities are frequently concerned about whether or not police are vigilant in

Communities are frequently concerned about whether or not police are vigilant in carrying out their responsibilities. Several communities have experimented with incentive compensation for police. In p...

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Q: Amos Doral owns a small store that rents punchbowls, dishes,

Amos Doral owns a small store that rents punchbowls, dishes, silverware, glassware, tables, and chairs to people having large parties. Amos runs the business by himself. He is considering adding power...

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Q: Fuller Aerosols manufactures six different aerosol can products (room deodorants,

Fuller Aerosols manufactures six different aerosol can products (room deodorants, hair sprays, furniture polish, and so forth) on its fill line. The fill line mixes the ingredients, adds the propellan...

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Q: Celtex is a large and very successful decentralized specialty chemical producer organized

Celtex is a large and very successful decentralized specialty chemical producer organized into five independent investment centers. Each of the five investment centers is free to buy products either i...

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Q: Chateau Napa purchased a small vineyard and is now producing magnum bottles

Chateau Napa purchased a small vineyard and is now producing magnum bottles (1.5 liters) of Redwood Cabernet Sauvignon. This wine is much sought after, and bottling the wine in larger bottles enhances...

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Q: Can opportunity costs be negative? Give an example.

Can opportunity costs be negative? Give an example.

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