Questions from Management Accounting

Q: (a) Total fixed costs are $10 000 per week

(a) Total fixed costs are $10 000 per week and the variable cost per unit is $8. Write the algebraic expression for the cost function and graph it. What are the assumptions of the cost function? (b) T...

Q: For what purposes do organisations need cost information?

For what purposes do organisations need cost information?

Q: Outline the key steps in a costing framework.

Outline the key steps in a costing framework.

Q: What factors should be considered when choosing allocation bases?

What factors should be considered when choosing allocation bases?

Q: A product is started in department 1 and completed in department 2

A product is started in department 1 and completed in department 2. Is department 1 a support department or an operating department? Explain.

Q: Explain the difference between operating departments and support departments.

Explain the difference between operating departments and support departments.

Q: What are the advantages and disadvantages of using estimated support cost allocation

What are the advantages and disadvantages of using estimated support cost allocation rates?

Q: List at least three possible allocation bases that could be used to

List at least three possible allocation bases that could be used to allocate accounting department costs to other departments. Give one advantage and one disadvantage of using each allocation base.

Q: Refer to the Partridge Insurance example (comprehensive example 1) in

Refer to the Partridge Insurance example (comprehensive example 1) in the chapter. Explain how the support departments can be classified as both cost objects and cost pools in the costing system.

Q: During a recent management meeting at Sunset Consulting Services, a team

During a recent management meeting at Sunset Consulting Services, a team member questioned why the costing system had multiple indirect cost pools given it would be easier just to have one. Provide a...