Questions from Management Accounting

Q: Brave plc has the following standards for its only product:

Brave plc has the following standards for its only product: There were no inventories of any description at the beginning and end of May. Required: Prepare the original budget and a budget flexed...

Q: Lanyon and Co. is engaged in providing and marketing a standard

Lanyon and Co. is engaged in providing and marketing a standard advice service. Summarised results for the past two months reveal the following: There were no price changes of any description during...

Q: Arkwright Mills plc is considering expanding its production of a new yarn

Arkwright Mills plc is considering expanding its production of a new yarn, code name X15. The plant is expected to cost £1 million and have a life of five years and a nil residual value....

Q: C. George (Controls) Ltd manufactures a thermostat that can

C. George (Controls) Ltd manufactures a thermostat that can be used in a range of kitchen appliances. The manufacturing process is, at present, semi-automated. The equipment used cost £54...

Q: The accountant of your business has recently been taken ill through overwork

The accountant of your business has recently been taken ill through overwork. In his absence his assistant has prepared some calculations of the profitability of a project, which are to be discussed s...

Q: Plaything plc has just developed a new mechanical toy, the Nipper

Plaything plc has just developed a new mechanical toy, the Nipper. The development costs totaled £300,000. To assess the commercial viability of the Nipper, a market survey has been under...

Q: Computer Tuition Ltd (CT) specialises in providing courses for computer

Computer Tuition Ltd (CT) specialises in providing courses for computer users, often tailoring its courses to meet the specific needs of particular clients. CT’s primary financial objective is to maxi...

Q: Tufty plc produces a small range of industrial pumps using automated methods

Tufty plc produces a small range of industrial pumps using automated methods. The business is now considering production of a new model of pump, starting on 1 January 20X3. The business wishes to asse...

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

You have overheard the following statements: (a) ‘To maximise profit you need to sell your output at the highest price.’ (b) ‘Elasticity of demand deals with the extent to which costs increase as de...

Q: Pisces plc produced the following statement of financial position (balance sheet

Pisces plc produced the following statement of financial position (balance sheet) and income statement at the end of the third year of trading: An analysis of the underlying records reveals the foll...