Questions from Cost Accounting

Q: The directors of the Healthy Eating Group (HEG), a successful

The directors of the Healthy Eating Group (HEG), a successful restaurant chain that commenced trading several years ago, have decided to enter the sandwich market in Homeland, its country of operation...

Q: Scenario Frantisek Precision Engineering plc (FPE) is an engineering company

Scenario Frantisek Precision Engineering plc (FPE) is an engineering company that makes tools and equipment for a wide range of applications. FPE has 12 operating divisions, each of which is responsib...

Q: (a). Spiro Division is part of a vertically integrated group

(a). Spiro Division is part of a vertically integrated group of divisions allocated in one country. All divisions sell externally and also transfer goods to other divisions within the group. Spiro Div...

Q: (a). The transfer pricing method used for the transfer of

(a). The transfer pricing method used for the transfer of an intermediate product between two divisions in a group has been agreed at standard cost plus 30 per cent profit mark-up. The transfer price...

Q: Duit plc has recently acquired Ucando Ltd which is a regional builders’

Duit plc has recently acquired Ucando Ltd which is a regional builders’ merchants/DIY company with three outlets all within a radius of 40 miles. Duit plc is building up its national...

Q: (a). In control theory, a ‘feedback control’ mechanism

(a). In control theory, a ‘feedback control’ mechanism is one which supplies information to determine whether corrective action should be taken to re-establish control of a system. You are required to...

Q: Bushworks Ltd convert synthetic slabs into components AX and BX for use

Bushworks Ltd convert synthetic slabs into components AX and BX for use in the car industry. Bushworks Ltd is planning a quality management programme at a cost of £250 000. The following...

Q: Two Australian firms, one with three divisions (HC1, HC2

Two Australian firms, one with three divisions (HC1, HC2 and HC3), and the second with two divisions (FT1 and FT2) were studied. HC1 and FT1 had the simplest costing systems with all of the overheads...

Q: HKI plc has an Engineering Division and a Motorcycle Division. The

HKI plc has an Engineering Division and a Motorcycle Division. The Engineering Division produces engines that it sells to ‘outside’ customers and transfers to the Motorcycle Division. The Motorcycle D...

Q: Limitation plc commenced the manufacture and sale of a new product in

Limitation plc commenced the manufacture and sale of a new product in the fourth quarter of the previous year. In order to facilitate the budgeting process for quarters 1 and 2 of the next year, the f...