Questions from Management Accounting

Q: Monteagudo-Playa SA is a take-away food store at

Monteagudo-Playa SA is a take-away food store at a popular beach resort. Consuelo Herreros, owner of Monteagudo-Playa, is deciding how much refrigerator space to devote to four different drinks. Perti...

Q: Jours-Daim SA operates a printing press with a monthly capacity

Jours-Daim SA operates a printing press with a monthly capacity of 2000 machine-hours. Jours-Daim has two main customers, Harpes-à Gonds, SNC and Fourbe-Riz SA. Data on each customer for...

Q: Jääskinen Oy has just today paid for and installed a special machine

Jääskinen Oy has just today paid for and installed a special machine for polishing cars at one of its several outlets. It is the first day of the company’s fiscal year. The machine cost €20 000. Its a...

Q: Fiordi-Ligi Srl assembles and sells two products: printers and

Fiordi-Ligi Srl assembles and sells two products: printers and desktop computers. Customers can purchase either (a) a computer, or (b) a computer plus a printer. The printers are not sold without the...

Q: Vier-und-Zwanzig GmbH operates a chain of food stores

Vier-und-Zwanzig GmbH operates a chain of food stores open 24 hours a day. Each store has a standard 4000 square meter of floor space available for merchandise. Merchandise is grouped in two categorie...

Q: Ennerdale Ltd has been asked to quote a price for a one

Ennerdale Ltd has been asked to quote a price for a one-off contract. The company’s management accountant has asked for your advice on the relevant costs for the contract. The follow...

Q: Haselbach GmbH sells its razors at €3 per unit. The

Haselbach GmbH sells its razors at €3 per unit. The company uses a first-in, first-out actual costing system. A new fixed manufacturing overhead allocation rate is calculated each yea...

Q: Soleil Voyages SA is a travel agency specializing in flights between Paris

Soleil Voyages SA is a travel agency specializing in flights between Paris and London. It books passengers on Air Chanson. Air Chanson charges passengers €1000 per round-trip ticket. Soleil Voyages re...

Q: Bayern-Bauwerk is thinking of buying, at a cost of

Bayern-Bauwerk is thinking of buying, at a cost of €220 000, some new packaging equipment that is expected to save €50 000 in cash-operating costs per year. Its estimated useful life is 10 years, and...

Q: Pinafore Ltd manufactures and sells a single product. The budgeted profit

Pinafore Ltd manufactures and sells a single product. The budgeted profit statement for this month, which has been prepared using marginal costing principles, is as follows: The normal monthly level o...