Questions from Managerial Accounting

Q: The following information is available for Dunworth Canoes, a company that

The following information is available for Dunworth Canoes, a company that builds inexpensive aluminum canoes: In its first year of operation, the company produced 21,000 units but was able to sell o...

Q: Miller Heating is a small manufacturer of auxiliary heaters. The units

Miller Heating is a small manufacturer of auxiliary heaters. The units sell for $300 each. In 2017, the company produced 1,000 units and sold 800 units. There was no beginning inventory. Below are var...

Q: The Octavius Company produces a 10-inch chef knife used by

The Octavius Company produces a 10-inch chef knife used by commercial chefs. The knives sell for $50 each. In 2017, the company produced 50,000 units and sold 45,000 units. There was no beginning inve...

Q: Explain why the ending inventory balance (assuming it is not zero

Explain why the ending inventory balance (assuming it is not zero) computed under full costing will always be greater than the ending inventory balance computed under variable costing.

Q: Explain how a manufacturing company can “bury” fixed production

Explain how a manufacturing company can “bury” fixed production costs in ending inventory under full costing.

Q: Explain why income computed under full costing will exceed income computed under

Explain why income computed under full costing will exceed income computed under variable costing if production exceeds sales.

Q: A key idea in this book is that “You get what

A key idea in this book is that “You get what you measure!” Essentially, this means that performance measures have a great influence on the behavior of managers. Required: Select a company with whic...

Q: If a company produces 50,000 units and sells 46,

If a company produces 50,000 units and sells 46,000 units during a period, which method of computing net income will result in the higher net income? Why?

Q: If a company produces less than it sells (the extra units

If a company produces less than it sells (the extra units sold are from beginning inventory), which method of computing net income will result in the higher net income? Why?

Q: Explain how fixed manufacturing costs are treated under variable costing. How

Explain how fixed manufacturing costs are treated under variable costing. How are fixed manufacturing costs treated under full costing?