Questions from Management Accounting

Q: Paper Bright Industries uses flexible budgeting to assess budgeted expectations against actual

Paper Bright Industries uses flexible budgeting to assess budgeted expectations against actual performance. Last month Paper Bright produced 12 000 units and incurred direct materials cost of $150 000...

Q: Using examples distinguish between value-added and non-value-

Using examples distinguish between value-added and non-value-added activities.

Q: Mannon Company’s accountant exclaimed, 'Our cost accounting system allocates overhead based

Mannon Company’s accountant exclaimed, 'Our cost accounting system allocates overhead based on direct labour hours, but our overhead costs appear to be more related to set-up activities than to the us...

Q: Describe the six ABC cost hierarchies.

Describe the six ABC cost hierarchies.

Q: The results from allocations using ABC are usually different from the results

The results from allocations using ABC are usually different from the results using conventional cost systems. Explain why these differences arise.

Q: Does it matter if the ABC-generated cost data is somewhat

Does it matter if the ABC-generated cost data is somewhat subjective?

Q: Does increasing the number of cost pools always increase the accuracy of

Does increasing the number of cost pools always increase the accuracy of allocations under an ABC system? Explain your answer.

Q: Is an ABC system appropriate for every industry and every type or

Is an ABC system appropriate for every industry and every type or organisation? Explain your answer.

Q: Should ABC be used in service industries? Why?

Should ABC be used in service industries? Why?

Q: What makes organisations such as local governments and universities suitable for ABC

What makes organisations such as local governments and universities suitable for ABC use?