Questions from Managerial Accounting

Q: Starfax, Inc. manufactures a small part that is widely used

Starfax, Inc. manufactures a small part that is widely used in various electronic products such as home computers. Results for the first three years of operations were as follows (absorption costing b...

Q: Millard Corporation is a wholesale distributor of office products. It purchases

Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions is...

Q: Financial data for Joel de Paris, Inc., for last year

Financial data for Joel de Paris, Inc., for last year follow: The company paid dividends of $15,000 last year. The “Investment in Buisson, S.A.,” on the balance s...

Q: Tasman Products, Ltd., of Australia has a Maintenance Department that

Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing i...

Q: Kilmer Company has demand for its only product that exceeds its manufacturing

Kilmer Company has demand for its only product that exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company...

Q: Tombro Industries is in the process of automating one of its plants

Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures. Pr...

Q: Would a sale of equipment for cash be considered a financing activity

Would a sale of equipment for cash be considered a financing activity or an investing activity? Why?

Q: DataSpan, Inc., automated its plant at the start of the

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many...

Q: Milano Pizza is a small neighborhood pizzeria that has a small area

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determi...

Q: Tip Top Flight School offers flying lessons at a small municipal airport

Tip Top Flight School offers flying lessons at a small municipal airport. The school’s owner and manager has been attempting to evaluate performance and control costs using a varianc...