Questions from Management Accounting


Q: Lee SA manufactures various types of colour laser printer in a highly

Lee SA manufactures various types of colour laser printer in a highly automated facility with high fixed costs. The market for laser printers is competitive. The various colour laser printers on the m...

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Q: John Emburey, division manager of the Household Products Division, a

John Emburey, division manager of the Household Products Division, a maker of kitchen dishwashers, has just seen the balanced scorecard for his division for the year. He immediately calls Patricia Con...

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Q: Duff Co manufactures three products, X, Y and Z.

Duff Co manufactures three products, X, Y and Z. Demand for products X and Y is relatively elastic while demand for product Z is relatively inelastic. Each product uses the same materials and the same...

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Q: AlcazarquivirLda manufactures and sells industrial grinders. The following table presents financial

AlcazarquivirLda manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 2017 and 2018 (in €000): Required 1. Classify...

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Q: Krügsmann AG has a plant that manufactures transistor radios. The production

Krügsmann AG has a plant that manufactures transistor radios. The production time is only a few minutes per unit. The company uses a just-in-time production system and a back flush cost...

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Q: Grano BV and Henco BV manufacture fairly similar remote-controlled toy

Grano BV and Henco BV manufacture fairly similar remote-controlled toy cars. Sido BV, a retailer of children’s toys, expects to buy and sell 4000 of these cars each year. Both Grano...

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Q: TurunTelelaitosOy manufactures cordless telephones. TurunTelelaitos is planning to implement a JIT

TurunTelelaitosOy manufactures cordless telephones. TurunTelelaitos is planning to implement a JIT production system, which requires annual tooling costs of €150 000. TurunTelelaitos estimates that th...

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Q: Anna de Noailles, the plant manager at Electro-Sons,

Anna de Noailles, the plant manager at Electro-Sons, calls Pauline Eluard, the plant controller, into her office. She had just finished reviewing Eluard’s report on the financial ben...

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Q: RèveAndalou retails a broad line of Spanish merchandise at its Mont-

RèveAndalou retails a broad line of Spanish merchandise at its Mont-St-Michel store. It sells 26000 Juanita linen bedroom packages (two sheets and two pillow cases) each year. RèveAndalou pays Juanita...

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Q: Mannklein AG is a major manufacturer of metal-cutting machines.

Mannklein AG is a major manufacturer of metal-cutting machines. It has plants in Frankfurt and Stuttgart. The managers of these two plants have different manufacturing philosophies. LiisaKurunmÃ...

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