Questions from Management Accounting

Q: Dreamtime produces two products: regular boomerangs and premium boomerangs. Last

Dreamtime produces two products: regular boomerangs and premium boomerangs. Last month 1200 units of regular and 2400 units of premium were produced and sold. Average prices and costs per unit for the...

Q: A neighbour asked for your help preparing a grant for a not

A neighbour asked for your help preparing a grant for a not-for-profit after-school art program that would benefit primary school children in the neighbourhood. He wants to charge low fees for most ch...

Q: Ersatz manufactures a single product. The following income statement shows two

Ersatz manufactures a single product. The following income statement shows two different levels of activity, which are assumed to be within Ersatz’s relevant range. You may want to u...

Q: Joe Davies is thinking about starting a company to produce carved wooden

Joe Davies is thinking about starting a company to produce carved wooden clocks. He loves making the clocks. He sees it as an opportunity to be his own boss, making a living doing what he likes best....

Q: Jasmine Krishnan has been taking entrepreneurship courses as part of her business

Jasmine Krishnan has been taking entrepreneurship courses as part of her business degree. She developed a plan to start a travel agency specialising in semester break trips for students. She learned h...

Q: The following is the description of a cost: total fixed costs

The following is the description of a cost: total fixed costs are $50 000 per month and the variable cost per unit is $10 when production is under 1000 units. The variable cost drops to $9 per unit af...

Q: The Elder Clinic, a not-for-profit entity,

The Elder Clinic, a not-for-profit entity, provides limited medical services to low-income elderly patients. The manager’s summary report for the past four months of operations is re...

Q: Trang Nguyen owns Trang’s Stained Glass in Sydney. The business produces

Trang Nguyen owns Trang’s Stained Glass in Sydney. The business produces and sells three different types of stained glass windows: small, medium, and large. Trang has two full-time employees who work...

Q: Toddler Toy Company sells baby dolls, teddy bears, and toy

Toddler Toy Company sells baby dolls, teddy bears, and toy cars. The managers established a preliminary budget using the following assumptions. They would now like to evaluate the sensitivity of budge...

Q: Cowmilka is a dairy products producer. Its logistics cost centre has

Cowmilka is a dairy products producer. Its logistics cost centre has 65 employees and a fleet of 25 milk tankers. It is a cross-functional cost centre with administrative staff (customer service and o...