Questions from Survey Accounting

Q: Explain the limitations of using operating leverage to predict profitability.

Explain the limitations of using operating leverage to predict profitability.

Q: Give an example of why the statement “All direct costs are

Give an example of why the statement “All direct costs are avoidable” is incorrect.

Q: Explain the risk and rewards to a company that result from having

Explain the risk and rewards to a company that result from having fixed costs.

Q: How is an allocation rate determined? How is an allocation made

How is an allocation rate determined? How is an allocation made?

Q: In a manufacturing environment, which costs are direct and which are

In a manufacturing environment, which costs are direct and which are indirect in product costing?

Q: Are all fixed costs unavoidable?

Are all fixed costs unavoidable?

Q: “It all comes down to the bottom line. The numbers

“It all comes down to the bottom line. The numbers never lie.” Do you agree with this conclusion? Explain your position.

Q: With 2014 sales and revenues of $55.184 billion,

With 2014 sales and revenues of $55.184 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, ind...

Q: Which of the following would not be relevant to a make-

Which of the following would not be relevant to a make-or-buy decision? (a) Allocated portion of depreciation expense on existing facilities. (b) Variable cost of labor used to produce products curren...

Q: What two factors should be considered in deciding how to allocate shelf

What two factors should be considered in deciding how to allocate shelf space in a retail establishment?