Questions from Cost Accounting


Q: Chinese computer manufacturer Lenovo had an annual turnover of $45 billion

Chinese computer manufacturer Lenovo had an annual turnover of $45 billion for the year-ended 31 March 2016, of which 66 per cent was in the personal computer market. This market includes desktops, ta...

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Q: Allan Stratton is a cost management consultant with over 35 years of

Allan Stratton is a cost management consultant with over 35 years of experience, who shares the benefit of his experience providing tools and resources via the internet. In one of his articles he desc...

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Q: LF Ltd wishes to manufacture a new product. The company is

LF Ltd wishes to manufacture a new product. The company is evaluating two mutually exclusive machines, the Reclo and the Bunger. Each machine is expected to have a working life of four years and is ca...

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Q: Eckard plc is a large, all-equity financed, divisional

Eckard plc is a large, all-equity financed, divisional zed textile company whose shares are listed on the London Stock Exchange. It has a current cost of capital of 15 per cent. The annual performance...

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Q: Eltern plc is an unlisted company with a turnover of £6

Eltern plc is an unlisted company with a turnover of £6 million which runs a small fleet of taxis as part of its business. The managers of the company wish to estimate how regularly to re...

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Q: Pavgrange plc is considering expanding its operations. The company accountant has

Pavgrange plc is considering expanding its operations. The company accountant has produced pro forma profit and loss accounts for the next three years assuming that: (a). The company undertakes no new...

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Q: The general manager of the nationalized postal service of a small country

The general manager of the nationalized postal service of a small country, Zedland, wishes to introduce a new service. This service would offer same-day delivery of letters and parcels posted before 1...

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Q: Parsifal Ltd is a private company whose ordinary shares are all held

Parsifal Ltd is a private company whose ordinary shares are all held by its directors. The chairman has recently been impressed by the arguments advanced by a computer salesman, who has told him that...

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Q: The evidence of many recent studies suggests that there are major differences

The evidence of many recent studies suggests that there are major differences between current theories of investment appraisal and the methods which firms actually use in evaluating long-term investme...

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Q: D Limited is preparing its annual budgets for the year to 31

D Limited is preparing its annual budgets for the year to 31 December. It manufactures and sells one product, which has a selling price of £150. The marketing director believes that the price can be i...

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