Questions from Management Accounting

Q: Jane plc purchases its requirements for component RB at a price of

Jane plc purchases its requirements for component RB at a price of £80 per unit. Its annual usage of component RB is 8760 units. The annual holding cost of one unit of component RB is 5% of its purcha...

Q: Assume the same facts as in Exercise 21.11. Assume

Assume the same facts as in Exercise 21.11. Assume that the second trigger point for Papadopoulos is the sale – rather than the production – of finished units. Also, the Stock Control account is confi...

Q: LappalainenOy manufactures pharmaceutical products in two departments: Mixing and Tablet

LappalainenOy manufactures pharmaceutical products in two departments: Mixing and Tablet Making. Additional information on the two departments follows. Each tablet contains 0.5 gram of direct materia...

Q: Overloon BV is a repair-service company specializing in the rapid

Overloon BV is a repair-service company specializing in the rapid repair of photocopying machines. Each of its 10 clients pays a fixed monthly service fee (based on the type of photocopying machines o...

Q: Sloan Moving Ltd transports household goods from one city to another within

Sloan Moving Ltd transports household goods from one city to another within the UK. It measures quality of service in terms of (1) time required to transport goods, (2) on-time delivery (within 2 days...

Q: Assume the same facts as in Exercise 21.11. Now

Assume the same facts as in Exercise 21.11. Now assume that there is only one trigger point, the completion of good finished units of product, which are debited to Finished Goods Control at standard c...

Q: Kari-Klær AS buys and sells fabrics to a wide range

Kari-Klær AS buys and sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags....

Q: Keep-Kool makes air conditioners. It purchases 12 000 units

Keep-Kool makes air conditioners. It purchases 12 000 units of a particular type of compressor part, CU29, each year at a cost of £50 per unit. Keep-Kool requires a 12% annual return on investment. In...

Q: Arjun Manraj runs a print shop. Manraj requires 100 000 boxes

Arjun Manraj runs a print shop. Manraj requires 100 000 boxes of printing paper each year. He wants his suppliers to deliver the boxes on a JIT basis in order quantities of 400 boxes. Papyrus Ltd cu...

Q: Range-Tout SARL builds and distributes industrial storage racks using a

Range-Tout SARL builds and distributes industrial storage racks using a just-in-time system and maintaining minimal stocks. Range-Tout’s earnings increased sharply in 2017 and earnings-based bonuses w...