Questions from Management Accounting


Q: Svenborg AS manufactures and sells wide-screen television sets. It

Svenborg AS manufactures and sells wide-screen television sets. It uses an actual-costing system, in which unit costs are calculated on a monthly basis. Data relating to January, February and March of...

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Q: Espasso is negotiating for Tornado 2, a sequel to its mega

Espasso is negotiating for Tornado 2, a sequel to its mega-blockbuster Tornado. This negotiation is proving more difficult than for the original movie. The budgeted production cost (excluding payments...

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Q: Bières Ronsard SA recently purchased a brewing plant from a bankrupt company

Bières Ronsard SA recently purchased a brewing plant from a bankrupt company. The brewery is in Montpazier, France. It was constructed only two years ago. The plant has budgeted fixed manu...

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Q: In 2018, the Montpazier brewery of Bières Ronsard showed these results

In 2018, the Montpazier brewery of Bières Ronsard showed these results: The Montpazier brewery had actual costs of: The sales division of Bières Ronsard purchased 2 400 000 bar...

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Q: It is the end of 2019. Ginnungagap Oy began operations in

It is the end of 2019. Ginnungagap Oy began operations in January 2018. The company is so named because it has no variable costs. All its costs are fixed; they do not vary with output. Ginnungagap is...

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Q: CombraiInformatique (CI) manufactures and sells computers and computer peripherals to

CombraiInformatique (CI) manufactures and sells computers and computer peripherals to several nationwide retail chains. Marcel Proust is the manager of the printer division. Its two largest selling pr...

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Q: Kristina Larsson is the Stockholm promoter for Gustav Häglund Larsson is promoting

Kristina Larsson is the Stockholm promoter for Gustav Häglund Larsson is promoting a new world championship fight for Häglund The key area of uncertainty is the size of t...

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Q: The manager of a tourist attraction is considering whether to open on

The manager of a tourist attraction is considering whether to open on 1 January, a day when the attraction has, in previous years, been closed. The attraction has a daily capacity of 1000 visitors. If...

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Q: A company sells three products: D, E and F.

A company sells three products: D, E and F. The market for the products dictates that the numbers of products sold are always in the ratio of 3D:4E:5F. Budgeted sales volumes and prices, and cost deta...

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Q: The Ville de Genève, Switzerland, makes a SFr 400 000

The Ville de Genève, Switzerland, makes a SFr 400 000 lump-sum budget appropriation to an agency to conduct a counseling programmed for drug addicts for a year. All of the appropriation is to be spent...

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