Questions from Managerial Accounting


Q: What is the difference between the unit cost of a product under

What is the difference between the unit cost of a product under absorption costing and variable costing?

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Q: Under the weighted average method, how are prior period costs and

Under the weighted average method, how are prior period costs and output treated? How are they treated under the FIFO method?

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Q: What is the economic order quantity?

What is the economic order quantity?

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Q: Explain how safety stock is used to deal with demand uncertainty.

Explain how safety stock is used to deal with demand uncertainty.

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Q: What approach does JIT take to minimize total inventory costs?

What approach does JIT take to minimize total inventory costs?

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Q: If a company produces 10,000 units and sells 8,

If a company produces 10,000 units and sells 8,000 units during a period, which method of computing operating income (absorption costing or variable costing) will result in the higher operating income...

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Q: What is a segment?

What is a segment?

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Q: What is the difference between contribution margin and segment margin?

What is the difference between contribution margin and segment margin?

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Q: What are ordering costs? Carrying costs? Give examples of each

What are ordering costs? Carrying costs? Give examples of each.

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Q: What are stockout costs?

What are stockout costs?

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