Questions from Management Accounting

Q: What is a cost object? Give three examples.

What is a cost object? Give three examples.

Q: Why do managers need to measure, monitor and motivate performance?

Why do managers need to measure, monitor and motivate performance?

Q: Express Lunch operates a small food van that sells a variety of

Express Lunch operates a small food van that sells a variety of sandwiches and beverages. Total fixed costs are $20 000 per month. Last month total variable costs were $8000 when total sales were $32...

Q: How do organisations identify the costs of a cost object?

How do organisations identify the costs of a cost object?

Q: Explain the difference between a direct cost and an indirect cost.

Explain the difference between a direct cost and an indirect cost.

Q: Discuss the importance of selecting an appropriate cost driver for cost allocation

Discuss the importance of selecting an appropriate cost driver for cost allocation.

Q: Explain the differences and similarities among the direct, step-down

Explain the differences and similarities among the direct, step-down and reciprocal methods.

Q: Explain the similarities and differences between support department costs and manufacturing

Explain the similarities and differences between support department costs and manufacturing overhead costs.

Q: What should determine the choice of cost allocation method (direct,

What should determine the choice of cost allocation method (direct, step-down and reciprocal) discussed in this chapter?

Q: Explain how cost data is sourced in a costing framework.

Explain how cost data is sourced in a costing framework.