Questions from Management Accounting

Q: S plc produces and sells three products, X, Y and

S plc produces and sells three products, X, Y and Z. It has contracts to supply products X and Y, which will utilise all of the specific materials that are available to make these two products during...

Q: GF is a company that manufactures clothes for the fashion industry.

GF is a company that manufactures clothes for the fashion industry. The fashion industry is fast moving and consumer demand can change quickly due to the emergence of new trends. GF manufactures three...

Q: Bomuldstaft AS is considering two new colours for their umbrella products –

Bomuldstaft AS is considering two new colours for their umbrella products – emerald green and shocking pink. Either can be produced using present facilities. Each product requires an...

Q: Air Chanson changes its commission structure to travel agents. Up to

Air Chanson changes its commission structure to travel agents. Up to a ticket price of €600, the 8% commission applies. For tickets costing €600 or more, there is a fixed commission of €48. Assume Sol...

Q: Grünberg Lehrmittelverlag GmbH manufactures and sells pens. Present sales output is

Grünberg Lehrmittelverlag GmbH manufactures and sells pens. Present sales output is 5 million annually at a selling price of €0.50 per unit. Fixed costs are €900 000 per year. Variable costs are €0.30...

Q: Maria Kabaliki is planning to sell a vegetable slicer-dicer for

Maria Kabaliki is planning to sell a vegetable slicer-dicer for €15 per unit at a country fair. She purchases units from a local distributor for €6 each. She can return any unsold units for a full ref...

Q: Ella Ltd recently started to manufacture and sell product DG. The

Ella Ltd recently started to manufacture and sell product DG. The variable cost of product DG is £4 per unit and the total weekly fixed costs are £18 000. The company has se...

Q: Knitwear Ltd is considering three countries for the sole manufacturing site of

Knitwear Ltd is considering three countries for the sole manufacturing site of its new sweater: Cyprus, Turkey and Ireland. All sweaters are to be sold to retail outlets in Ireland at â‚&no...

Q: Koninklijke BolsWessanen NV has fixed costs of €300 000 and a

Koninklijke BolsWessanen NV has fixed costs of €300 000 and a variable-cost percentage of 80%. The company earns net profit of €84 000 in 2018. The income tax rate is 40%. Required Calculate: (1) ope...

Q: Espasso SA has just finished production of Tornado, the latest action

Espasso SA has just finished production of Tornado, the latest action film directed by Domingos Vieira and starring Arnaldo Moura and Victoria Rebello. The total production cost to Espasso was €5 mill...