Questions from Managerial Accounting


Q: What is the difference between delivery cycle time and throughput time?

What is the difference between delivery cycle time and throughput time? What four elements make up throughput time? Into what two classes can these four elements be placed?

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Q: The materials price variance can be computed at what two different points

The materials price variance can be computed at what two different points in time? Which point is better? Why?

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Q: “Our workers are all under labor contracts; therefore, our

“Our workers are all under labor contracts; therefore, our labor rate variance is bound to be zero.” Discuss.

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Q: If variable manufacturing overhead is applied to production on the basis of

If variable manufacturing overhead is applied to production on the basis of direct labor hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance b...

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Q: Hannibal Steel Company has a Transport Services Department that provides trucks to

Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for...

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Q: Konig Enterprises, Ltd., owns and operates three restaurants in Vancouver

Konig Enterprises, Ltd., owns and operates three restaurants in Vancouver, B.C. The company allocates its fixed administrative expenses to the three restaurants on the basis of sales dollars. During 2...

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Q: Korvanis Corporation operates a Medical Services Department for its employees. Charges

Korvanis Corporation operates a Medical Services Department for its employees. Charges to thecompany’s operating departments for the variable costs of the Medical Services Department...

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Q: Lane Company manufactures a single product that requires a great deal of

Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. Variable manufacturing overhead should be $2...

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Q: Sharp Motor Company has two operating divisions—an Auto Division and

Sharp Motor Company has two operating divisions—an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are...

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Q: The Regal Cycle Company manufactures three types of bicycles—a dirt

The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, anda racing bike. Data on sales and expenses for the past quarter follow: Management is con...

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