Questions from Managerial Accounting

Q: What are the disadvantages of the cost-plus approach to pricing

What are the disadvantages of the cost-plus approach to pricing?

Q: According to economic theory, how would a manager determine the profit

According to economic theory, how would a manager determine the profit-maximizing price for a product or service?

Q: To implement target costing for a new product, companies often set

To implement target costing for a new product, companies often set up a cross-functional team with members from engineering, marketing, and cost accounting. Why is a cross- functional team desirable w...

Q: How is cost allocation used in customer profitability analysis?

How is cost allocation used in customer profitability analysis?

Q: Explain how the profit-maximizing price is calculated. Why is

Explain how the profit-maximizing price is calculated. Why is the profit-maximizing price extremely difficult to calculate for an actual product?

Q: What is a “special order”? How does whether a company

What is a “special order”? How does whether a company is operating at capacity or not matter in deciding whether to accept the special order?

Q: How is the internal rate of return (IRR) determined if

How is the internal rate of return (IRR) determined if there are uneven cash flows?

Q: What are the advantages of evaluating projects using the net present value

What are the advantages of evaluating projects using the net present value and internal rate of return methods instead of the payback and accounting rate of return methods?

Q: Sergo Games produces a variety of action games including a flight simulation

Sergo Games produces a variety of action games including a flight simulation game, Airport 10, which sold more than 800,000 copies in the past year. The programs are run on computers, and the company...

Q: Juniper Packaging Solutions provides custom packaging products to companies all over the

Juniper Packaging Solutions provides custom packaging products to companies all over the United States. With five production facilities, the company produces cardboard boxes, plastic and steel drums,...