Questions from Management Accounting


Q: The Suzuki Company in Japan has a division that manufactures two-

The Suzuki Company in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2016 is 800 000 units. Suzuki’s target closing stock is 100 000 units, and its ope...

See Answer

Q: CasteloBrancoLda is a manufacturer of video-conferencing products. Regular units

CasteloBrancoLda is a manufacturer of video-conferencing products. Regular units are manufactured to meet marketing projections, and specialized units are made after an order is received. Maintaining...

See Answer

Q: Wolfgang Iser, the accountant of Starkuchen, wants to further examine

Wolfgang Iser, the accountant of Starkuchen, wants to further examine the relative profitability of raisin cake and layered carrot cake. He questions the accuracy of the activity-based normal costing...

See Answer

Q: ÁgústKarlsson is the purchasing agent for the Akureyri Manufacturing Company. Bjarni

ÁgústKarlsson is the purchasing agent for the Akureyri Manufacturing Company. Bjarni Jóhannesson is head of the Production Planning and Control Department. Every six months, Bjarni gives Ágúst a gene...

See Answer

Q: AbulafiaSrl manufactures tyres for the Formula 1 motor racing circuit. For

AbulafiaSrl manufactures tyres for the Formula 1 motor racing circuit. For August 2018 Abulafia budgeted to manufacture and sell 3000 tyres at a variable cost of €74 per tyre and a total fixed cost of...

See Answer

Q: Sam Chase is the Finance Director of Flowers.co.ke

Sam Chase is the Finance Director of Flowers.co.ke, an internet company that enables customers to order home deliveries of flowers by accessing its website. Flowers.co.ke has a network of florists (&a...

See Answer

Q: Sam Chase of Flowers.co.ke receives a brochure from

Sam Chase of Flowers.co.ke receives a brochure from the Hackett Group, a consulting firm specializing in benchmarking. He asks the Hackett Group to provide benchmark data from its recent study of the...

See Answer

Q: Poitou-Chemises SARL manufactures shirts for retail chains. Armand Plessis

Poitou-Chemises SARL manufactures shirts for retail chains. Armand Plessis, the accountant, is becoming increasingly disenchanted with Poitou-Chemises’ six-month-old standard costing...

See Answer

Q: A company manufactures and sells a single product. The company operates

A company manufactures and sells a single product. The company operates a standard marginal costing system that enables the reporting of planning and operational variances. The original standard contr...

See Answer

Q: Sharmila Khan is manager of TaxExperts.co.uk, a

Sharmila Khan is manager of TaxExperts.co.uk, a firm that provides assistance in the preparation of individual tax returns via the internet. Because of the highly seasonal nature of her business, Shar...

See Answer