Questions from General Accounting

Q: Critically discuss the following quotation: ABC (activity-based

Critically discuss the following quotation: ABC (activity-based cost) information, by itself, does not invoke actions and decisions leading to improved profits and operating performance. . . . For ABC...

Q: Rogers Petersen and Cabots are two of the five largest investment banks

Rogers Petersen and Cabots are two of the five largest investment banks in the United States. Last year there was a major scandal at Cabots involving manipulation of some auctions for government bonds...

Q: Slawson is a publicly traded Argentine company with three operating companies located

Slawson is a publicly traded Argentine company with three operating companies located in Argentina, the United States, and Germany. Slawson’s corporate headquarters in Buenos Aires o...

Q: Outback Opals mines and processes opals from its Australian opal mines.

Outback Opals mines and processes opals from its Australian opal mines. The process consists of removing large chunks of stones, carefully splitting the stones and removing the opals, and then cutting...

Q: Zeflax manufactures insulated plastic bottles for bikes that the company sells for

Zeflax manufactures insulated plastic bottles for bikes that the company sells for $4.00 per bottle. Last year the company produced 230,000 bottles and sold 200,000 bottles. This year Zeflax produced...

Q: You are a new consultant with the Boston Group and have been

You are a new consultant with the Boston Group and have been sent to advise the executives of Penury Company. The company recently acquired product line L from an out-of-state concern and now plans to...

Q: Old Town Roasters (OTR) owns and operates a chain of

Old Town Roasters (OTR) owns and operates a chain of 12 coffee shops around town. OTR’s strategy is to provide the highest-quality coffee and baked goods in a warm, friendly environment. Each OTR prov...

Q: Discretionary costs are defined as “costs that (1) arise

Discretionary costs are defined as “costs that (1) arise from periodic (usually yearly) appropriation decisions regarding the maximum amounts to be incurred and (2) have no well-specified function rel...

Q: IPX is a specialized packaging company that packages other manufacturers’ products.

IPX is a specialized packaging company that packages other manufacturers’ products. Other manufacturers ship their products to IPX in bulk. IPX then packages the products using high-speed, stateof-the...

Q: The owner of a small software company felt his accounting system was

The owner of a small software company felt his accounting system was useless. He stated, “Accounting systems only generate historical costs. Historical costs are useless in my business because everyth...