Questions from Management Accounting

Q: Suppose you have the responsibility of creating a cost function for the

Suppose you have the responsibility of creating a cost function for the costs of an internet service provider’s help line. Required (a) What is the cost object? Identify where you might obtain inform...

Q: Smeyer Industries is a large entity with more than 40 departments,

Smeyer Industries is a large entity with more than 40 departments, each employing 35 to 100 people. Recent experience suggests that the cost function used to estimate overhead in department IP-14 is n...

Q: Classify the following reports as internal or external. (a

Classify the following reports as internal or external. (a) Operating budget (b) Credit reports (c) Financial statements (d) Capital budget (e) Tax returns (f) Analysis of product mix

Q: Wentworth Ltd sold 100 000 1 litre bottles of mineral water last

Wentworth Ltd sold 100 000 1 litre bottles of mineral water last year at $4 per unit and made a profit of $50 000. This year the costs for Wentworth Ltd remained the same, it sold 120 000 units at the...

Q: Mernda Health Care Centre recently began to offer day surgery procedures.

Mernda Health Care Centre recently began to offer day surgery procedures. The Centre was not experienced in the costing of such services and, as a temporary measure, the subsidised patientday charge w...

Q: Following are sales and administrative cost data for Big Jack Burgers for

Following are sales and administrative cost data for Big Jack Burgers for four months: Administrative cost is a mixed cost, and sales is a potential cost driver. Required (a) Using the high-low met...

Q: The following scatter plot and simple regression results used revenue as a

The following scatter plot and simple regression results used revenue as a potential cost driver for research and development costs. Required (a) Discuss whether the scatter plot suggests that reve...

Q: Susan looked at her long-distance telephone bill with dismay.

Susan looked at her long-distance telephone bill with dismay. After leaving her job last year to become a self-employed consultant, her long-distance charges had grown considerably. She had not change...

Q: The Leyland Hospital Café has been reporting losses in past months.

The Leyland Hospital Café has been reporting losses in past months. In July, for example, the loss was $5000. The café purchases prepared food directly from Hospital Food S...

Q: Polar Bear Ski Wear is a shop that sells skiwear at a

Polar Bear Ski Wear is a shop that sells skiwear at a ski resort. Its cost accountant developed the following scatter plot for the cost of electricity for lights, heating and cooling against retail sa...