Questions from Cost Accounting


Q: Give two examples of financial performance measures and two examples of nonfinancial

Give two examples of financial performance measures and two examples of nonfinancial performance measures.

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Q: What are the six steps in designing an accounting-based performance

What are the six steps in designing an accounting-based performance measure?

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Q: Fluffy Cupcake Company is considering expanding by buying a new (additional

Fluffy Cupcake Company is considering expanding by buying a new (additional) machine that costs $42,000, has zero terminal disposal value, and has a 10-year useful life. It expects the annual increase...

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Q: The Strubel Company currently makes as many units of Part No.

The Strubel Company currently makes as many units of Part No. 789 as it needs. David Lin, general manager of the Strubel Company, has received a bid from the Gabriella Company for making Part No. 789....

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Q: Describe three criteria you would use to evaluate whether a management control

Describe three criteria you would use to evaluate whether a management control system is effective.

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Q: What are the three general methods for determining transfer prices?

What are the three general methods for determining transfer prices?

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Q: Why should managers consider income tax issues when choosing a transfer-

Why should managers consider income tax issues when choosing a transfer-pricing method?

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Q: Describe economic value added.

Describe economic value added.

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Q: What factors affecting ROI does the DuPont method highlight?

What factors affecting ROI does the DuPont method highlight?

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Q: Residual income is not identical to ROI, although both measures incorporate

Residual income is not identical to ROI, although both measures incorporate income and investment into their computations.” Do you agree? Explain.

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