Questions from Managerial Accounting

Q: Distinguish between a service department and a production department. Give an

Distinguish between a service department and a production department. Give an example of the counterpart of a manufacturer’s “production” department in a bank.

Q: Explain briefly the main differences between the direct, step-down

Explain briefly the main differences between the direct, step-down, and reciprocal-services methods of service department cost allocation.

Q: How does the managerial accountant determine the department sequence in the step

How does the managerial accountant determine the department sequence in the step-down method? How are ties handled?

Q: Explain the difference between two-stage allocation with departmental overhead rates

Explain the difference between two-stage allocation with departmental overhead rates and activity-based costing. Which approach generally results in more accurate product costs?

Q: Define the following terms: joint production process, joint costs,

Define the following terms: joint production process, joint costs, joint products, split-off point, separable costs, and by-product.

Q: Edmonton Chemical Company manufactures two industrial chemical products in a joint process

Edmonton Chemical Company manufactures two industrial chemical products in a joint process. In May, 10,000 gallons of input costing $180,000 were processed at a cost of $450,000. The joint process res...

Q: Refer to the data given in the preceding exercise.

Refer to the data given in the preceding exercise. Data given in preceding exercise: Aurora National Bank has two service departments, the Human Resources (HR) Department and the Computing Department...

Q: Tropics Fruit Company, based on Oahu, grows, processes,

Tropics Fruit Company, based on Oahu, grows, processes, cans, and sells three main pineapple products: sliced, crushed, and juice. The outside skin is cut off in the Cutting Department and processed a...

Q: (Appendix B) Briefly describe two correct methods of net-

(Appendix B) Briefly describe two correct methods of net-present-value analysis in an inflationary period. Appendix B: The sales-price variance is the difference between the actual and budgeted sales...

Q: “Time is money!” is an old saying. Relate this

“Time is money!” is an old saying. Relate this statement to the evaluation of capital-investment projects.