Questions from General Accounting

Q: Explain the difference between a full product cost and an inventoriable product

Explain the difference between a full product cost and an inventoriable product cost.

Q: Discuss the importance of selecting an appropriate cost driver in the cost

Discuss the importance of selecting an appropriate cost driver in the cost allocation process.

Q: Explain cost-based pricing and give an example that shows how

Explain cost-based pricing and give an example that shows how prices would be determined using this method.

Q: Explain market-based pricing and give an example that shows how

Explain market-based pricing and give an example that shows how prices would be determined using this method.

Q: Cost drivers can be based on either volume or activity. Provide

Cost drivers can be based on either volume or activity. Provide an example of each.

Q: When is it necessary to calculate the contribution margin per limiting factor

When is it necessary to calculate the contribution margin per limiting factor?

Q: An organisation is currently operating at full capacity. Should it accept

An organisation is currently operating at full capacity. Should it accept a request for a special order based on variable costs plus 40 per cent? Explain.

Q: Explain the similarities and differences between the cash budget and the statement

Explain the similarities and differences between the cash budget and the statement of cash flows discussed in the statement of cash flows chapter.

Q: Explain the difference between planning and control.

Explain the difference between planning and control.

Q: Discuss the typical role of the accountant in the budget process.

Discuss the typical role of the accountant in the budget process.