Questions from Management Accounting


Q: The GB Company manufactures a variety of electric motors. The business

The GB Company manufactures a variety of electric motors. The business is currently operating at about 70 per cent of capacity and is earning a satisfactory return on investment. International Industr...

See Answer

Q: You have recently taken a management post in a large divisionalised business

You have recently taken a management post in a large divisionalised business. A substantial proportion of the business of your division is undertaken through inter-divisional transfers. Required: (...

See Answer

Q: Pieman Products Ltd makes road trailers to the precise specifications of individual

Pieman Products Ltd makes road trailers to the precise specifications of individual customers. The following are predicted to occur during the forthcoming year, which is about to start: All direct la...

See Answer

Q: The University of Devonport consists of six faculties and an administration unit

The University of Devonport consists of six faculties and an administration unit. Under the university’s management philosophy, each faculty is treated, as far as is reasonable, as a...

See Answer

Q: AB Ltd operates retail stores throughout the country. The business is

AB Ltd operates retail stores throughout the country. The business is divisionalised. Included in its business are Divisions A and B. A centralised and automated warehouse that replenishes inventories...

See Answer

Q: International Electric plc at present offers its customers 30 days’ credit.

International Electric plc at present offers its customers 30 days’ credit. Half of the customers, by value, pay on time. The other half takes an average of 70 days to pay. The business is considering...

See Answer

Q: Delphi plc has recently decided to enter the expanding market for digital

Delphi plc has recently decided to enter the expanding market for digital radios. The business will manufacture the radios and sell them to small TV and hi-fi specialists, medium sized music stores an...

See Answer

Q: SJ Services Ltd has been asked to quote a price for a

SJ Services Ltd has been asked to quote a price for a special contract to render a service that will take the business one week to complete. Information relating to labour for the contract is as follo...

See Answer

Q: A business in the food industry is currently holding 2,000

A business in the food industry is currently holding 2,000 tonnes of material in bulk storage. This material deteriorates with time. In the near future, it will, therefore, be necessary for it to be r...

See Answer

Q: The management of a business is concerned about its inability to obtain

The management of a business is concerned about its inability to obtain enough fully trained labour to enable it to meet its present budget projection, which is as follows: The amount of labour likel...

See Answer