Questions from Management Accounting


Q: Serra-Mica Srl is a maker of ceramic coffee cups.

Serra-Mica Srl is a maker of ceramic coffee cups. It imprints company logos and other sayings on the cups for both commercial and wholesale markets. The firm has the capacity to produce 3 000 000 cups...

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Q: Thor-Equip AS specialises in the manufacture of medical equipment,

Thor-Equip AS specialises in the manufacture of medical equipment, a field that has become increasingly competitive. Approximately two years ago, Knut Solbær, president of Thor-Equip, d...

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Q: The Portimão Division of AmicaLda sells car batteries. Amica’s corporate management

The Portimão Division of AmicaLda sells car batteries. Amica’s corporate management gives Portimão management considerable operating and investment autonomy in running the division. Amica is consider...

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Q: MikkeliOy has three operating divisions. The managers of these divisions are

MikkeliOy has three operating divisions. The managers of these divisions are evaluated on their divisional operating profit, a figure that includes an allocation of corporate overhead proportional to...

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Q: Braganza manufactures and sells 20 000 copiers each year. The variable

Braganza manufactures and sells 20 000 copiers each year. The variable and fixed costs of reworking and repairing copiers are as follows: Braganza’s engineers are currently working t...

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Q: Carmody Ltd sells 300 000 V262 valves to the car and truck

Carmody Ltd sells 300 000 V262 valves to the car and truck industry. Carmody has a capacity of 110 000 machine-hours and can produce three valves per machine-hour. V262’s contributi...

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Q: Anna-Greta Lantto, the assistant controller of Kiruna AB had

Anna-Greta Lantto, the assistant controller of Kiruna AB had recently prepared the following quality report comparing 2018 and 2017 quality performances. Just two days after preparing the report, Lars...

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Q: Air Gascogne operates daily round-trip flights on the Toulouse–

Air Gascogne operates daily round-trip flights on the Toulouse–Stockholm route using a fleet of three 747s, the Eclair des Cévennes, the Eclair des Vosges and the Eclair...

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Q: There are a number of large supermarket chains in South Africa which

There are a number of large supermarket chains in South Africa which account for the majority of national retail food sales. They sell large quantities of groceries and other consumer goods, mostly on...

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Q: NuLife Limited is an investment holding company which operates through a number

NuLife Limited is an investment holding company which operates through a number of subsidiaries and employs over 20,000 people. NuLife operates private hospital, primary healthcare, emergency medical...

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