Questions from Cost Accounting


Q: Emcee Inc. prepared the budget for 2017 assuming a 20%

Emcee Inc. prepared the budget for 2017 assuming a 20% market share based on total sales in the Midwest region of the United States. The total fruit drinks market was estimated to reach sales of 1.25...

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Q: Chocolat Inc. is a producer of premium chocolate based in Palo

Chocolat Inc. is a producer of premium chocolate based in Palo Alto. The company has a separate division for each of its two products: dark chocolate and milk chocolate. Chocolat purchases ingredients...

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Q: An analysis of Pineway’s operating-income changes between 2016 and 2017

An analysis of Pineway’s operating-income changes between 2016 and 2017 shows the following: Operating income for 2016…………………….$1, 500,000 Add growth component……………………………….91,000 Deduct price-recovery...

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Q: Chocolat Inc. decides to examine the effect of using the dual

Chocolat Inc. decides to examine the effect of using the dual-rate method for allocating truck costs to each roundtrip. At the start of 2017, the budgeted costs were: Variable cost per round-trip&aci...

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Q: Phoenix Partners provides management consulting services to government and corporate clients.

Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments—administrative services (AS) and information systems...

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Q: E-books, an online book retailer, has two operating

E-books, an online book retailer, has two operating departments— corporate sales and consumer sales—and two support departments—human resources an...

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Q: Consider E-books again. The controller of E-books

Consider E-books again. The controller of E-books reads a widely used textbook that states that “the reciprocal method is conceptually the most defensible.” He seeks your assistance. Required: 1. De...

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Q: Evan and Brett are students at Berkeley College. They share an

Evan and Brett are students at Berkeley College. They share an apartment that is owned by Brett. Brett is considering subscribing to an Internet provider that has the following packages available: Pa...

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Q: Gordon Grimes, a self-employed consultant near Atlanta, received

Gordon Grimes, a self-employed consultant near Atlanta, received an invitation to visit a prospective client in Seattle. A few days later, he received an invitation to make a presentation to a prospec...

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Q: Couture Corp sells Samsung 7 cases. It has a Men’s Division

Couture Corp sells Samsung 7 cases. It has a Men’s Division and a Women’s Division. Couture is now considering the sale of a bundled product called Dynamic Duo cons...

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