Questions from Management Accounting


Q: SVC is a car manufacturer. SVC is planning the development of

SVC is a car manufacturer. SVC is planning the development of a prototype hydrogen-powered car, the Model Q. The prototype Model Q car will have a limited production run of 250 cars. Toensure that the...

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Q: Bellingwolde BV operates car rental agencies at over 20 airports. Customers

Bellingwolde BV operates car rental agencies at over 20 airports. Customers can choose from one of three contracts for car rentals of one day or less:  Contract 1: €50 for the day.  Contract 2: €30...

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Q: Given below are a number of charts, each indicating some relationship

Given below are a number of charts, each indicating some relationship between cost and a cost driver. No attempt has been made to draw these charts to any particular scale; the absolute numbers on eac...

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Q: Lorenzo-Netto, Srl, operates a brushless car wash.

Lorenzo-Netto, Srl, operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. Cars are washed as the conveyor belt carries the car from the start station...

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Q: Pierre Corneille, managing director of Marre-Quise Consultants SA,

Pierre Corneille, managing director of Marre-Quise Consultants SA, is examining how overhead costs behave with variations in monthly professional labour-hours billed to clients. Assume the following h...

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Q: Hans Mehrlich owns a catering company that prepares banquets and parties for

Hans Mehrlich owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Mehrlich’s business is seasonal, with a heavy...

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Q: Genève Défense Systèmes manufactures radar systems. It has just completed the

Genève Défense Systèmes manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. It took 3000 direct manufacturing labor-hours (DMLH) to produce thi...

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Q: Les Saturniens SA makes digital watches. Les Saturniens is preparing a

Les Saturniens SA makes digital watches. Les Saturniens is preparing a product life-cycle budget for a new watch, MX3. Development on the new watch with features such as a calculator and a daily diary...

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Q: Assume the same information for Genève Défense Systèmes as in Exercise 9

Assume the same information for Genève Défense Systèmes as in Exercise 9.17 except that Genève Défense Systèmes uses a 90% incremental unit-time learning curve as a basis for forecasting direct manuf...

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Q: Pauline Raphaël, executive assistant to the principal of Ecole Supérieure des

Pauline Raphaël, executive assistant to the principal of Ecole Supérieure des Mines de St Etienne,is concerned about the overhead costs at her university. Cost pressures are...

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