Questions from General Accounting


Q: Terrace Company currently manufactures a sub-assembly for its main product

Terrace Company currently manufactures a sub-assembly for its main product. The costs per unit are as follows. Direct materials …………………………………. $ 4.00 Direct labour ………………………………………. 30.00 Variable over...

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Q: Blitz Nails has provided the following financial data for the last two

Blitz Nails has provided the following financial data for the last two financial periods. The manager, Jonie Matte, is beginning her planning for next year and requires the following information. Re...

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Q: Flash Pty Ltd manufactures handheld egg-beaters. For the first

Flash Pty Ltd manufactures handheld egg-beaters. For the first eight months of 2020, the company reports the following operating results while operating at 80 per cent capacity. Sales (400 000 units)...

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Q: Elm Ltd has been manufacturing its own shades for its camping chairs

Elm Ltd has been manufacturing its own shades for its camping chairs. The company is currently operating at 100 per cent capacity. Variable manufacturing overhead is charged to production at the rate...

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Q: Mansfield Ltd has recently expanded its production facility to satisfy a new

Mansfield Ltd has recently expanded its production facility to satisfy a new customer order that will start in six months. As a consequence, it has the opportunity to make use of the spare capacity fo...

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Q: Advantage Tennis Coaching (ATC) has been engaged to provide tennis

Advantage Tennis Coaching (ATC) has been engaged to provide tennis coaching services to students at a local private girls’ college. ATC has put forward a proposal to the University o...

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Q: The following information has been extracted from the financial statements of Vivid

The following information has been extracted from the financial statements of Vivid, a social media company. Revenue is generated through advertising on the social media platform, where the number of...

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Q: ‘If an entity has the objective of profit maximisation, break

‘If an entity has the objective of profit maximisation, break-even analysis is not necessary.’ Discuss this assertion.

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Q: Explain the meaning of the term ‘fixed cost’ and give five

Explain the meaning of the term ‘fixed cost’ and give five examples of fixed costs.

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Q: Briefly outline some of the key qualitative risk considerations with respect to

Briefly outline some of the key qualitative risk considerations with respect to outsourcing decisions.

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