Questions from Management Accounting


Q: The chief executive officer of Spark rite Ltd, a trading business

The chief executive officer of Spark rite Ltd, a trading business, has just received summary sets of financial statements for last year and this year: The chief financial officer has expressed concer...

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Q: Athena Ltd is an engineering business doing work for its customers to

Athena Ltd is an engineering business doing work for its customers to their particular requirements and specifications. It determines the full cost of each job taking a ‘job-costing&...

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Q: Jerry’s Taxis Ltd operates a taxi service in a large provincial city

Jerry’s Taxis Ltd operates a taxi service in a large provincial city. All of the taxis are owned by the business and all the drivers are employees rather than owner drivers. The managers wish to bench...

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Q: Comment critically on the following statements that you have overheard:

Comment critically on the following statements that you have overheard: (a) ‘Direct labour hours are the most appropriate basis to use to charge indirect cost (overheads) to jobs in the modern manufa...

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Q: A business manufactures refrigerators for domestic use. There are three models

A business manufactures refrigerators for domestic use. There are three models: Lo, Mid and Hi. The models, their quality and their price are aimed at different markets. Product costs are computed on...

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Q: You have overheard the following statements: (a) ‘

You have overheard the following statements: (a) ‘A budget is a forecast of what is expected to happen in a business during the next year.’ (b) ‘Monthly budgets must be prepared with a column for ea...

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Q: Daniel Chu Ltd, a new business, will start production on

Daniel Chu Ltd, a new business, will start production on 1 April, but sales will not start until 1 May. Planned sales for the next nine months are as follows: The selling price of a unit will be a co...

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Q: Brown and Jeffreys, a West Midlands business, makes one standard

Brown and Jeffreys, a West Midlands business, makes one standard product for use in the motor trade. The product, known as the Fuel Miser, for which the business holds the patent, when fitted to the f...

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Q: Antonio plc makes Product X, the standard costs of which are

Antonio plc makes Product X, the standard costs of which are:v The budgeted output for March was 1,000 units of Product X; the actual output was 1,100 units, which was sold for £34,950....

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Q: Mowbray Ltd makes and sells one product, the standard costs of

Mowbray Ltd makes and sells one product, the standard costs of which are as follows The monthly production and sales are planned to be 1,200 units. The actual results for May were as follows: There...

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