Questions from Managerial Accounting


Q: Farmville Regional Airport is modernizing its terminal facilities in anticipation of significant

Farmville Regional Airport is modernizing its terminal facilities in anticipation of significant growth in the number of passengers using the airport. A consultant’s study commissioned by the airport’...

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Q: Bill Zimmerman is evaluating two new business opportunities. Each of the

Bill Zimmerman is evaluating two new business opportunities. Each of the opportunities shown below has a ten-year life. Bill uses a 10% discount rate. Required: a. Calculate the net present value of...

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Q: TimeTrends integrated time clock and payroll system sells for $271,

TimeTrends integrated time clock and payroll system sells for $271,673. At this price, the annual cost savings that the system will generate for Building Keepers, a facilities management company, over...

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Q: Cindy Alexander, Turner, Inc.’s vice president of marketing

Cindy Alexander, Turner, Inc.’s vice president of marketing, has received a sales call from a vendor of customer relationship management (CRM) software. The vendor claims that the so...

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Q: Jonathan Lark’s lifelong dream is to own a restaurant. He owns

Jonathan Lark’s lifelong dream is to own a restaurant. He owns a premium site for a restaurant across the street from the local university. Now he needs to decide what kind of restaurant to open. Rece...

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Q: Jewel Pix currently uses a six-year-old molding machine

Jewel Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $85,000 for the machine, which was state of the art at the time of purchase. Although the...

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Q: Preston Plastics is about to wrap up its capital budgeting cycle,

Preston Plastics is about to wrap up its capital budgeting cycle, and department managers across the company have submitted 500 capital project requests for consideration in the next round of funding....

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Q: Thompson Manufacturing has been in business for over 50 years, making

Thompson Manufacturing has been in business for over 50 years, making a variety of consumer electronics products. Mary Felix recently joined the business as vice president of the Conley division, one...

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Q: Stratton, Inc., has collected the following information on its cost

Stratton, Inc., has collected the following information on its cost of electricity: Required: a. Prepare a scatter graph of Stratton’s electricity costs for the year. Plot the total...

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Q: Blakefield, Inc. has grown significantly over the past decade through

Blakefield, Inc. has grown significantly over the past decade through innovation and acquisition. Information on several of its divisions follows. • The OlliePods division sells children’s recreationa...

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