Questions from General Accounting

Q: What general guidelines can you provide for interpreting the statement of cash

What general guidelines can you provide for interpreting the statement of cash flows?

Q: Should a company allocate its common fixed costs to business segments when

Should a company allocate its common fixed costs to business segments when computing the break-even point for those segments? Why?

Q: Why aren’t transactions involving accounts payable considered to be financing activities?

Why aren’t transactions involving accounts payable considered to be financing activities?

Q: If the units produced equals the units sold, which method would

If the units produced equals the units sold, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?

Q: What are the two stages of allocation in activity-based costing

What are the two stages of allocation in activity-based costing?

Q: Why is it a good idea to create a “Budgeting Assumptions

Why is it a good idea to create a “Budgeting Assumptions” tab when creating a master budget in Microsoft Excel?

Q: What does a manufacturing cycle efficiency (MCE) of less than

What does a manufacturing cycle efficiency (MCE) of less than 1 mean? How would you interpret an MCE of 0.40?

Q: Division A manufactures electronic circuit boards. The boards can be sold

Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: S...

Q: In each of the cases below, assume Division X has a

In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the div...

Q: Hrubec Products, Inc., operates a Pulp Division that manufactures wood

Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow: Hrubec Products h...