Questions from Cost Accounting

Q: XY Limited commenced trading on 1 February with fully paid issued share

XY Limited commenced trading on 1 February with fully paid issued share capital of £500 000, Fixed Assets of £275 000 and Cash at Bank of £225 000. By the end of...

Q: For the relevant cost data in items (1) – (

For the relevant cost data in items (1) – (7), indicate which of the following is the best classification. (a). sunk cost; (b). incremental cost; (c). variable cost; (d). fixed cost; (e). semi-variabl...

Q: Usine Ltd is a company whose objective is to maximize profits.

Usine Ltd is a company whose objective is to maximize profits. It manufactures two speciality chemical powders, gamma and delta, using three processes: heating, refining and blending. The powders can...

Q: ‘Attributing direct costs and absorbing overhead costs to the product/

‘Attributing direct costs and absorbing overhead costs to the product/service through an activity-based costing approach will result in a better understanding of the true cost of the final output.’ (S...

Q: (a). The Argonaut Company makes three products, Xylos,

(a). The Argonaut Company makes three products, Xylos, Yo-yos and Zicons. These are assembled from two components, Agrons and Bovons, which can be produced internally at a variable cost of Â&pou...

Q: Hint: Reverse the signs and ignore entries of 0 and 1

Hint: Reverse the signs and ignore entries of 0 and 1. The Kaolene Co. Ltd has six different products all made from fabricated steel. Each product passes through a combination of five production opera...

Q: A company needs to hold a stock of item X for sale

A company needs to hold a stock of item X for sale to customers. Although the item is of relatively small value per unit, the customers’ quality control requirements and the need to obtain competitive...

Q: The financial controller of Mexet plc is reviewing the company’s stock management

The financial controller of Mexet plc is reviewing the company’s stock management procedures. Stock has gradually increased to 25 per cent of the company’s total as...

Q: Rainbow Ltd is a manufacturer that uses alkahest in many of its

Rainbow Ltd is a manufacturer that uses alkahest in many of its products. At present the company has an alkahest plant on a site close to the company’s main factory. A summary of the alkahest plants b...

Q: You have been provided with the following operating statement, which represents

You have been provided with the following operating statement, which represents an attempt to compare the actual performance for the quarter which has just ended with the budget: Required: (a). Usi...