Questions from Cost Accounting

Q: La Mia’s Casas builds replicas of residences of famous and infamous people

La Mia’s Casas builds replicas of residences of famous and infamous people. The company is highly automated, and the new accountant owner has decided to use machine hours as the basis for predicting m...

Q: Why does variable costing provide more useful information than absorption costing for

Why does variable costing provide more useful information than absorption costing for making internal decisions?

Q: What are the income relationships between absorption and variable costing when production

What are the income relationships between absorption and variable costing when production volume differs from sales volume? What causes these relationships to occur?

Q: What is the difference between variable and mixed costs, considering that

What is the difference between variable and mixed costs, considering that both change in total with changes in activity levels?

Q: The high–low method of analyzing mixed costs uses only two

The high–low method of analyzing mixed costs uses only two observation points: the high and the low points of activity. Are these always the best points for prediction purposes? Why or why not?

Q: Discuss the reasons a company would use a predetermined overhead rate rather

Discuss the reasons a company would use a predetermined overhead rate rather than actual overhead to determine cost of products or services.

Q: Why are departmental predetermined OH rates more useful for managerial decision making

Why are departmental predetermined OH rates more useful for managerial decision making than plantwide OH rates? Why do firms use separate variable and fixed rates rather than total rates?

Q: Why would regression analysis provide a more accurate cost formula than the

Why would regression analysis provide a more accurate cost formula than the high– low method for a mixed cost?

Q: The Sioux City Storage System’s plant prepared the following flexible overhead budget

The Sioux City Storage System’s plant prepared the following flexible overhead budget for three levels of activity within the plant’s relevant range. After discussi...

Q: Lin Products manufactures special-order office cubicle systems. Production time

Lin Products manufactures special-order office cubicle systems. Production time is two days, but the average cycle time for any order is three weeks. The company president has asked you, as the new co...