Questions from General Accounting

Q: It has been suggested that although contribution analysis is fine in theory

It has been suggested that although contribution analysis is fine in theory, fixed costs cannot be ignored in practice.’ Discuss this statement.

Q: Contribution analysis described in textbooks is too simplistic and is of little

Contribution analysis described in textbooks is too simplistic and is of little relevance to management.’ How far do you agree with this statement?

Q: What are the limitations of regulation?

What are the limitations of regulation?

Q: Do break-even charts and profit graphs help management to make

Do break-even charts and profit graphs help management to make more meaningful decisions?

Q: The following information applies to Ayre Limited for the two years to

The following information applies to Ayre Limited for the two years to 31 March 2021 and 2022 respectively: Required: Assuming that the cost relationships had remained as given in the question, calcu...

Q: The following information relates to Carter Limited for the year to 30

The following information relates to Carter Limited for the year to 30 April 2021: During 2022 the company would like to increase its sales substantially, but to do so it would have to reduce the sell...

Q: Puzzled Limited would like to increase its sales during the year to

Puzzled Limited would like to increase its sales during the year to 3l May 2021. To do so, it has several mutually exclusive options open to it: ● reduce the selling price per unit b...

Q: The following information relates to Mere’s budget for the year to 31

The following information relates to Mere’s budget for the year to 31 December 2021: Note: Fixed overheads are apportioned on the basis of direct labour hours. The directors are wor...

Q: This chapter has emphasized that it is managers that make decisions and

This chapter has emphasized that it is managers that make decisions and not management accountants. How far do you agree with this assertion? Answer: 1. Management accountants are employed to pro...

Q: Many of the solutions to the problems posed in this chapter depend

Many of the solutions to the problems posed in this chapter depend on being able to isolate the variable cost associated with a particular decision. In practice, is it realistic to expect that such co...