Questions from Cost Accounting

Q: (a). Discuss the use of the following as aids to

(a). Discuss the use of the following as aids to each of planning and control: (i). rolling budgets; (ii). flexible budgets; (iii). planning and operational variances. (b). Discuss the extent to which...

Q: In the context of budgetary control, certain costs are not amenable

In the context of budgetary control, certain costs are not amenable to the use of flexible budgets. These include some costs which are often called ‘discretionary’ (or ‘programmed’). You are required...

Q: The chief executive of your organization has recently seen a reference to

The chief executive of your organization has recently seen a reference to zero-based budgeting. He has asked for more details of the technique. You are required to prepare a report for him explaining:...

Q: An article written by Ben Chu published in The Independent newspaper in

An article written by Ben Chu published in The Independent newspaper in 2016 demonstrated why the classical economic view of humans as rational decision-makers is often very wide of the mark. When ind...

Q: QR Limited operates a chemical process that produces four different products Q

QR Limited operates a chemical process that produces four different products Q, R, S and T from the input of one raw material plus water. Budget information for the forthcoming financial year is as fo...

Q: A budgetary planning and control system may include many individual budgets which

A budgetary planning and control system may include many individual budgets which are integrated into a ‘master budget’. You are required to outline and briefly explain with reasons the steps that sho...

Q: The managing director of your company believes that the existing annual budget

The managing director of your company believes that the existing annual budget system is costly to operate and produces unsatisfactory results due to: long preparation period; business decisions being...

Q: The board of directors of Portend Ltd are considering two mutually exclusive

The board of directors of Portend Ltd are considering two mutually exclusive investments each of which is expected to have a life of five years. The company does not have the physical capacity to unde...

Q: (a). Discuss the behavioural arguments for and against involving those

(a). Discuss the behavioural arguments for and against involving those members of management who are responsible for the implementation of the budget in the annual budget setting process. (b). Explai...

Q: (a). JB plc operates a standard marginal cost accounting system

(a). JB plc operates a standard marginal cost accounting system. Information relating to product J, which is made in one of the company departments, is given below: Standard marginal product cost Pro...