Questions from Management Accounting


Q: Jyvaskyla Oyo is a retail chain of supermarkets. For many years

Jyvaskyla Oyo is a retail chain of supermarkets. For many years, it has used gross margin (selling price minus cost of goods sold) to guide it in deciding on which products to emphasize or de-emphasiz...

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Q: Brian McGarrigle went to Les Arcs for his annual winter vacation.

Brian McGarrigle went to Les Arcs for his annual winter vacation. Unfortunately, he suffered a broken ankle while skiing and had to spend two days at the Hôpital de Grasse. McGarrigle&ac...

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Q: The Fredensborg power plant that services all manufacturing departments of Fabri-

The Fredensborg power plant that services all manufacturing departments of Fabri-Danmark AS has a budget for the coming year. This budget has been expressed in the following terms on a monthly basis:...

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Q: Rolf, Ilse and Ulrich are members of the Frankfurt Fire Brigade

Rolf, Ilse and Ulrich are members of the Frankfurt Fire Brigade. They share an apartment that has a lounge with the latest wide-screen TV. Ulrich owns the apartment, its furniture and the wide-screen...

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Q: Catherine MacDougall, a third-year undergraduate student at a university

Catherine MacDougall, a third-year undergraduate student at a university near Edinburgh, received an invitation to visit a prospective employer in Nice. A few days later, she received an invitation fr...

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Q: Meer has been offered a special-purpose metal-cutting machine

Meer has been offered a special-purpose metal-cutting machine for €110 000. The machine is expected to have a useful life of eight years with a terminal disposal value of €30 000. Savings in cash-oper...

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Q: Olympiakos SA provides outsourcing services and advice to both government and corporate

Olympiakos SA provides outsourcing services and advice to both government and corporate clients. For costing purposes, Olympiakos classifies its departments into two support departments The Administra...

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Q: A student association has hired a music group for a graduation party

A student association has hired a music group for a graduation party. The cost will be a fixed amount of €40 000. Required 1. Suppose 500 people attend the party. What will be the total cost of the m...

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Q: Zimmermann GmbH is an international consulting firm. Its annual budget includes

Zimmermann GmbH is an international consulting firm. Its annual budget includes the following for each category of professional labor: Required 1. Calculate the budgeted direct-cost rate for professi...

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Q: Compaq Computer incurs the following costs: a. Electricity costs

Compaq Computer incurs the following costs: a. Electricity costs for the plant assembling the Presario computer line of products. b. Transportation costs for shipping Presario software to a retail cha...

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