Questions from Management Accounting

Q: Describe the differences between mass production and custom production of goods and

Describe the differences between mass production and custom production of goods and services. Explain how these differences influence the costing method.

Q: In processes involving pipeline operations or assembly line operations, if the

In processes involving pipeline operations or assembly line operations, if the pipeline or assembly line is always full, then beginning and ending WIP inventories are always 50 per cent complete with...

Q: When units are transferred from one department to another, how are

When units are transferred from one department to another, how are normal spoilage costs recorded?

Q: An entity has one machine through which is drawn a standard type

An entity has one machine through which is drawn a standard type of wire to make nails. With minor adjustments, different sized nails are produced with different sized wire. Would you recommend that t...

Q: List two factors that could affect managers’ choices for the number of

List two factors that could affect managers’ choices for the number of times and points in processing to inspect units.

Q: List three factors that managers might consider in deciding whether to expend

List three factors that managers might consider in deciding whether to expend resources to reduce spoilage.

Q: Explain the difference between the weighted average and FIFO methods for process

Explain the difference between the weighted average and FIFO methods for process costing. Explain why an entity might choose one method over the other.

Q: Under what conditions will weighted average and FIFO process costing consistently produce

Under what conditions will weighted average and FIFO process costing consistently produce similar equivalent unit costs?

Q: Under what conditions could a process complete more units during the period

Under what conditions could a process complete more units during the period than it started?

Q: The Brown and Brinkley Brokerage firm is organised into two major sales

The Brown and Brinkley Brokerage firm is organised into two major sales divisions: institutional clients and retail clients. The firm also has two support departments: research and administration. The...