Questions from Cost Accounting


Q: Modern day aircraft are complex pieces of engineering, increasingly using more

Modern day aircraft are complex pieces of engineering, increasingly using more technology, composite materials and more efficient engines. Aircraft engines are in particular improving not only in fuel...

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Q: The Boeing 737 jet is the world’s most popular and reliable commercial

The Boeing 737 jet is the world’s most popular and reliable commercial airliner. The company has manufactured over 8000 jets in the 737 family. In 2005, the 737-900ER was launched, which can carry mor...

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Q: Safety or buffer stocks are held for many reasons. For example Safety or buffer stocks are held for many reasons. For example

Safety or buffer stocks are held for many reasons. For example, road authorities might want to hold sufficient stock of grit salt in case of bad weather, or firms might build stock of key materials if...

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Q: Butterfield Ltd manufactures a single brand of dog food called ‘Lots

Butterfield Ltd manufactures a single brand of dog food called ‘Lots O Grissle’ (LOG). Sales have stabilized for several years at a level of £20 million per annum at current prices. This level is not...

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Q: Cassidy Computers plc sells one of its products, a plug-

Cassidy Computers plc sells one of its products, a plug-in card for personal computer systems, in both the UK and Ruritania. The relationship between price and demand is different in the two markets,...

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Q: Short flower Ltd currently publish, print and distribute a range of

Short flower Ltd currently publish, print and distribute a range of catalogues and instruction manuals. The management has now decided to discontinue printing and distribution and concentrate solely o...

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Q: The following information relates to three possible capital expenditure projects. Because

The following information relates to three possible capital expenditure projects. Because of capital rationing only one project can be accepted: The company estimates its cost of capital is 18 per c...

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Q: Garrett Automative Ltd (GAL) is a UK subsidiary of a Garrett Automative Ltd (GAL) is a UK subsidiary of a

Garrett Automative Ltd (GAL) is a UK subsidiary of a American parent company that manufactures turbochargers for the automative industry. GAL decided to begin its profit improvement programme by exami...

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Q: Your company is considering investing in its own transport fleet. The

Your company is considering investing in its own transport fleet. The present position is that carriage is contracted to an outside organization. The life of the transport fleet would be five years, a...

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Q: You are employed as the assistant accountant in your company and you

You are employed as the assistant accountant in your company and you are currently working on an appraisal of a project to purchase a new machine. The machine will cost £55 000 and will h...

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