Questions from Management Accounting

Q: Explain the similarities and differences among absorption and variable costing.

Explain the similarities and differences among absorption and variable costing.

Q: An entity uses variable costing for internal reports. It must convert

An entity uses variable costing for internal reports. It must convert the variable costing results to absorption costing results for external reports. How can this conversion be accomplished?

Q: Cardinal Products hired a new marketing manager early this year. After

Cardinal Products hired a new marketing manager early this year. After an informal consumer survey, the marketing manager decided to lower the firm’s selling price by 10 per cent and...

Q: Variance analysis reflects information about actual performance relative to a standard.

Variance analysis reflects information about actual performance relative to a standard. Variance analysis reports provide managers with information about the performance of employees, from direct labo...

Q: Benerux Industries has been in business for 30 years. The entity’s

Benerux Industries has been in business for 30 years. The entity’s major product is a control unit for elevators. The entity has a reputation for manufacturing products of exceptionally high quality,...

Q: Consider the following information for Morgan’s Cheese and Butter Division.

Consider the following information for Morgan’s Cheese and Butter Division. Additional information: Required (a) Calculate the market size and market share variances. (b) Comment...

Q: Fasteners Company has several divisions, and just built a new plant

Fasteners Company has several divisions, and just built a new plant with a capacity of 20 000 units of a new product. A standard costing system has been introduced to aid in evaluating man...

Q: Raging Sage Coffee is a franchise that sells cups of coffee from

Raging Sage Coffee is a franchise that sells cups of coffee from a cart in shopping centres. A computerised standard costing system is provided as a part of the franchise package. A portion of the sta...

Q: Sunglass Guys produces two types of wraparound sunglasses on one assembly line

Sunglass Guys produces two types of wraparound sunglasses on one assembly line. The monthly fixed overhead is estimated at $235 707, and the variable overhead is estimated at $8.15 per Reg...

Q: Data Processors Ltd performs credit card services for banks. The entity

Data Processors Ltd performs credit card services for banks. The entity uses an ABC system. Following is information for the past year: Required (a) Using standard values for costs and activity, ca...