Questions from Managerial Accounting


Q: Digitech, Ltd. manufactures various computer components in its Tokyo plant

Digitech, Ltd. manufactures various computer components in its Tokyo plant. The following costs are budgeted for January. (Yen is the Japanese monetary unit.) Insurance, plant ...........................

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Q: What will happen to a company’s break-even point if the

What will happen to a company’s break-even point if the sales price and unit variable cost of its only product increase by the same dollar amount?

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Q: SofTech, Inc., a developer and distributor of business applications software

SofTech, Inc., a developer and distributor of business applications software, has been in business for five years. SofTech’s sales have increased steadily to the current level of $25 million per year....

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Q: Rainbow Spray Paints, Inc. has used a traditional cost accounting

Rainbow Spray Paints, Inc. has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 16 percent of direct-labor cost. Monthly direct-labor cos...

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Q: Wheelco, Inc. manufactures automobile and truck wheels. The company

Wheelco, Inc. manufactures automobile and truck wheels. The company produces four basic, h ighvolume wheels used by each of the large automobile and pickup truck manufacturers. Wheelco also has two sp...

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Q: Refer to the description given for Wheelco, Inc., in the

Refer to the description given for Wheelco, Inc., in the preceding exercise. Suppose the firm’s president has decided to implement an activity-based costing system. Description for Wheelco, Inc.: Wh...

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Q: Seneca Falls Winery is a small, family-run operation in

Seneca Falls Winery is a small, family-run operation in upstate New York. The winery produces two varieties of wine: riesling and chardonnay. Among the activities engaged in by the winery are the foll...

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Q: Zodiac Model Rocketry Company sells model rocketry kits and supplies to retail

Zodiac Model Rocketry Company sells model rocketry kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Zodiac, while others are purchased for resale. For...

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Q: United Technologies Corporation is using activity-based costing in two of

United Technologies Corporation is using activity-based costing in two of its subsidiaries: Otis Elevator Company and Carrier Corporation. The following table shows 27 activities and eight accounts id...

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Q: Non-value-added costs occur in nonmanufacturing organizations, just

Non-value-added costs occur in nonmanufacturing organizations, just as they do in manufacturing firms. Required: Identify four potential non-value-added costs in (1) an airline, (2) a bank, and (3)...

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