Questions from Management Accounting

Q: The accountant at Fighting Kites has always prepared a budget that is

The accountant at Fighting Kites has always prepared a budget that is calculated using only one estimated volume of sales. He has asked you to help him set up a spreadsheet that can be used for sensit...

Q: You are the accountant for Wok and Egg Roll Express. Following

You are the accountant for Wok and Egg Roll Express. Following are assumptions about sales for the coming month. Wok offers three basic meals: noodle bowls, egg rolls, and rice bowls. Each meal can be...

Q: Required (a) (i) Explain how

Required (a) (i) Explain how the budgeting process helps top managers articulate decisions about the use of resources. (ii) Explain how a budget identifies the resources available to individual depar...

Q: A family member asked you to review the accounting system used for

A family member asked you to review the accounting system used for Hanna’s, a custom stained glass manufacturing business. The owner currently uses a software package to keep track of her bank account...

Q: Dapper Dan Draperies manufactures and installs custom-ordered draperies.

Dapper Dan Draperies manufactures and installs custom-ordered draperies. Required (a) For all drapes, occasionally the sewing equipment malfunctions and the drape must be reworked. Explain how to acc...

Q: You are helping a friend, Jonah, set up a new

You are helping a friend, Jonah, set up a new accounting system for a small start-up construction company. He specialises in custom, energy efficient homes that are built on a cost-plus basis. Cost-pl...

Q: The Eastern Seaboard Company uses an estimated rate for allocating factory overhead

The Eastern Seaboard Company uses an estimated rate for allocating factory overhead to job orders based on machine hours for the machining department and on a direct labour cost basis for the finishin...

Q: Spencer and Church is a CPA entity engaged in local practice.

Spencer and Church is a CPA entity engaged in local practice. Some selected items from its chart of accounts are listed below. Required For each account, indicate whether the account represents a fix...

Q: Flexible Manufacturers produces small batches of customised products. The accounting system

Flexible Manufacturers produces small batches of customised products. The accounting system is set up to allocate plant overhead to each job using the following production cost pools and overhead allo...

Q: 'Our costs are out of control, our accounting system is screwed

'Our costs are out of control, our accounting system is screwed up, or both!' screamed the sales manager. 'We are simply non-competitive on a great many of the jobs we bid on. Just last week we lost a...