Questions and Answers of Management And Cost Accounting

Embutidos Vallina SA has two direct-cost categories: direct materials and direct manufacturing labour. Its single indirect-costcategory (manufacturing overhead) is allocated on the basis of
Lux-Ernster expects 2018 sales of 100,000 units of serving trays. Lux-Ernster’s opening stock for 2018 is 7000 trays; target closing stock, 11,000 trays. Required Calculate the number of trays
Europa-Dyonisos SA produces wine. The company expects to produce 1.5 million two-litre bottles of Chablis in 2018. Europa-Dyonisos purchases empty glass bottles from an outside supplier. Its target
Jacek Zielinski, the budget manager at Jelenia-Silesia, a manufacturer of child furniture and carriages, is working on the 2018 annual budget. In discussions with Sylwester Czereszewski, the sales
Castelo Branco Lda is a manufacturer of video-conferencing products. Regular units are manufactured to meet marketing projections, and specialised units are made after an order is received.
On 1 December 2018, Tire-Lire, SNC, is attempting to project cash receipts and disbursements to 31 January 2019. On this latter date, a note will be payable in the amount of €100,000. This amount
M plc designs, manufactures and assembles furniture. The furniture is for home use and therefore varies considerably in size, complexity and value. One of the departments in the company is the
Nyborg Supermarkets AS is preparing its activity-based budget for January 2018 for its operating costs (that is, its non-cost of goods purchased for resale costs). Its current concern is with its
Nyborg Supermarkets has a kaizen (continuous improvement) approach to budgeting monthly activity area costs for each month of 2018. February’s budgeted cost driver rate is 0.998 times the budgeted
Poitou-Chemises SARL manufactures shirts for retail chains. Armand Plessis, the accountant, is becoming increasingly disenchanted with Poitou-Chemises’ six-month-old standard costing system. The
FG is preparing its cash budgets for January, February and March. Budgeted data are as follows: The selling price per unit is £200. The purchase price per kg of raw material is £25. Each unit
PB is a car production company. PB uses a system of standard costing to set its budgets. Budgets are set annually by the Finance Department and approved by the Board of Directors of PB. The Finance
British Beverages bottles two soft drinks under licence to Cadbury Schweppes at its Manchester plant. Bottling at this plant is a highly repetitive, automated process. Empty bottles are removed from
How might the continuous improvement theme be incorporated into the process of setting budgeted costs?
Abulafia Srl manufactures tyres for the Formula 1 motor racing circuit. For August 2018 Abulafia budgeted to manufacture and sell 3000 tyres at a variable cost of €74 per tyre and a total fixed
Consider the following data collected for Helsingør: Required Calculate the price, efficiency and flexible-budget variances for direct materials and direct manufacturing labour. Direct
Sharmila Khan is manager of TaxExperts.co.uk, a firm that provides assistance in the preparation of individual tax returns via the internet. Because of the highly seasonal nature of her business,
AKEI is an elite desk manufacturer. At the start of May 2018, the following budgeted unit amounts (based on a standard costing system) related to its manufacture of executive desks (made out of
Ched Ltd manufactures Cheddar cheese pies. For January 2018, it budgeted to purchase and use 15,000 kg of Cheddar cheese at £0.89 per kg; budgeted output was 60,000 pies. Actual purchase and use for
Norland-Norge AS produces corporate notebooks. Each notebook is designed for an individual customer. The company’s operating budget for September 2018 included these data: Number of notebooks
Drogheda Chemical Ltd has set-up the following standards per finished output unit for direct materials and direct manufacturing labour. Direct materials: 10 kg at €3.00 per kg
Drogheda Chemical adopts a continuous improvement approach to setting monthly standards’ costs. Assume the direct materials standard quantity input of 10 kg per output unit and the direct
The managing partner of Hoofdorp Music Box Fabricators has become aware of the disadvantages of static budgets. She asks you to prepare a flexible budget for October 2018 for the main style of music
Sam Chase is the Finance Director of Flowers.co.ke, an internet company that enables customers to order home deliveries of flowers by accessing its website. Flowers.co.ke has a network of florists
Münzel GmbH helps prospective homeowners of substantial means to find low-cost financing and assists existing homeowners in refinancing their current loans at lower interest rates. Münzel works
Lavertezzo Srl is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct material costs, direct manufacturing labour costs and manufacturing overhead
A company manufactures and sells a single product. The company operates a standard marginal costing system that enables the reporting of planning and operational variances. The original standard
Assume variable manufacturing overhead is allocated using machine-hours. Give three possible reasons for a €25,000 favourable variable-overhead efficiency variance.
Lavertezzo allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours per suit. Data pertaining to fixed manufacturing overhead costs for June 2018 are
L’Evénement du Dimanche budgets to produce 300,000 copies of its monthly newspaper for August 2018. It is budgeted to run 1,5000,000 print pages in August with 50 print pages per newspaper. Actual
Murgatroyd Ltd, which manufactures a single product, uses standard absorption costing.A summary of the standard product cost is as follows: Required 1. Prepare a statement that reconciles the
Coledale Ltd manufactures and sells product CC. The company operates a standard marginal costing system. The standard cost card for CC includes the following: Required 1. Calculate the total
Braithwaite Ltd manufactures and sells a single product. The following data have been extracted from the current year’s budget: The company’s production capacity is not being fully utilised
PP Ltd operates a standard absorption costing system. The following information has been extracted from the standard cost card for one of its products: Budgeted production
Mondragon SA assembles its CardioX product at its Toledo plant. Manufacturing overhead (both variable and fixed) is allocated to each CardioX unit using budgeted assembly-time hours. Budgeted
Paix-Trolls SARL produces a petrol additive, Elysium, which increases engine efficiency and reduces petrol consumption. The actual and budgeted quantities (in litres) of materials required to produce
Liberaki SA has two divisions, A and B, which manufacture bicycles. Division A produces the bicycle frame, and Division B assembles the bicycle components onto the frame. There is a market for both
ZP Plc operates two subsidiaries, X and Y. X is a component manufacturing subsidiary and Y is an assembly and final product subsidiary. Both subsidiaries produce one type of output only. Subsidiary Y
The ZZ Group has two divisions, X and Y. Each division produces only one type of product: X produces a component, C and Y produces a finished product, FP. Each FP needs one C. It is the current
Refer to Exercise 18.19. Data From Exercise 18.19 Liberaki SA has two divisions, A and B, which manufacture bicycles. Division A produces the bicycle frame, and Division B assembles the
A company, which operates from a number of different locations, uses a system of centralised purchasing. The directors of the company are considering whether to change to a system of decentralised
AA and BB are two divisions of the ZZ Group. The AA division manufactures electrical components, which it sells to other divisions and external customers. The BB division has designed a new
Why is it important to distinguish between the performance of a manager and the performance of the organisation subunit for which the manager is responsible? Give examples.
Serra-Mica Srl is a maker of ceramic coffee cups. It imprints company logos and other sayings on the cups for both commercial and wholesale markets. The firm has the capacity to produce 3,000,000
Intervilles SA operates two divisions, a Lorry Rental Division that rents to individuals and a Transportation Division that transports goods from one city to another. Results reported for the last
Thor-Equip AS specialises in the manufacture of medical equipment, a field that has become increasingly competitive. Approximately two years ago, Knut Solbær, president of Thor-Equip, decided to
Mikkeli Oy has three operating divisions. The managers of these divisions are evaluated on their divisional operating profit, a figure that includes an allocation of corporate overhead proportional
User Friendly Computer is one of the largest personal computer companies in the world. The board of directors was recently (March 2019) informed that User Friendly’s president, Felix Lechat, was
Faulkenheim GmbH is a manufacturer of tool and die machinery. Faulkenheim is a vertically integrated company that is organised into two divisions. The Frankfurt Steel Division manufactures alloy
Describe two generic strategies.
What are the four key perspectives in the balanced scorecard?
What is strategic management accounting?
Describe some of the benefits of improving quality.
La Quinta Ltd manufactures corrugated cardboard boxes. It competes and plans to grow by producing high-quality boxes at a low cost that are delivered to customers in a timely manner. There are many
Meredith Ltd makes a special-purpose machine D4H used in the textile industry. Meredith has designed the D4H machine for 2018 to be distinct from its competitors. It has been generally regarded as a
Snyder & Partners is a small information systems consulting firm that specialises in helping companies implement sales management software. The market for Snyder’s products is very competitive.
Caltex GmbH refines petrol and sells it through its own Caltex petrol stations. On the basis of market research, Caltex determines that 60% of the overall petrol market consists of
Lee SA manufactures various types of colour laser printer in a highly automated facility with high fixed costs. The market for laser printers is competitive. The various colour laser printers on the
Alcazarquivir Lda manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 2017 and 2018 (in €000): Required 1. Classify the
Anna-Greta Lantto, the assistant controller of Kiruna AB had recently prepared the following quality report comparing 2018 and 2017 quality performances. Just two days after preparing the
Air Gascogne operates daily round-trip flights on the Toulouse–Stockholm route using a fleet of three 747s, the Eclair des Cévennes, the Eclair des Vosges and the Eclair des Alpilles. The budgeted
Jamair was founded in September 2007 and is one of a growing number of low-cost airlines in the country of Shania. Jamair’s strategy is to operate as a low-cost, high-eciency airline, and it does
YY is a large banking organisation. It has a branch in most of the towns in the country in which it operates. The bank’s business is mainly concerned with private individuals. It is a very
TSH provides courses for students who are studying for accountancy examinations. The accountancy education sector is extremely competitive; it is dominated by a small number of national organisations
AST is a grocery and general merchandise retail group. AST has supermarkets located in most towns and cities in its home country. Over the last few years, profits have fallen and AST has recognised
PB is a car production company. PB uses a system of standard costing to set its budgets. Budgets are set annually by the Finance department and approved by the Board of Directors of PB. The Finance
Distinguish a demand-pull from a push-through system.
Give two reasons why waiting lines and delays occur.
Papadopoulou SA manufactures electrical meters. For August, there were no opening stocks of direct (raw) materials and no opening and closing work in progress. Papadopoulou uses a JIT production
Assume the same facts as in Exercise 21.11. Assume that the second trigger point for Papadopoulou is the sale – rather than the production – of finished units. Also, the Stock Control account is
Range-Tout SARL builds and distributes industrial storage racks using a just-in-time system and maintaining minimal stocks. Range-Tout’s earnings increased sharply in 2017 and earnings-based
Refer to the information in Exercise 21.18 in answering the following requirements; there is no connection between the situations. Data From Exercise 21.18Salamanca SA manufactures filing
Refer to the information in Exercise 21.18 in answering the following requirements; there is no connection between the situations. Data From Exercise 21.18Salamanca SA manufactures filing
Mannklein AG is a major manufacturer of metal-cutting machines. It has plants in Frankfurt and Stuttgart. The managers of these two plants have different manufacturing philosophies. Liisa
Jane plc purchases its requirements for component RB at a price of £80 per unit. Its annual usage of component RB is 8760 units. The annual holding cost of one unit of component RB is 5% of its
The following conversation occurred between Nicos Stavrou, plant manager at Sarantis Engineering, and Thanasis Bakogiorgos, plant controller. Sarantis manufactures automotive component parts such as
Autronic AG manufactures electronic testing equipment. Autronic also installs the equipment at the customer’s site and ensures that it functions smoothly. Additional information on the
Sloan Moving Ltd transports household goods from one city to another within the UK. It measures quality of service in terms of (1) time required to transport goods, (2) on-time delivery (within 2
Ronald van Hooijdonk is the owner of a truck repair shop. He uses an EOQ model for each of his truck parts. He initially predicts the annual demand for heavy-duty tyres to be 2000. Each tyre has a
What impact is digitisation having on firms?
How is data affected by digitisation?
What are some key technologies producing data?
What differentiates a digitally advanced firm from a traditional industrial one?
What is the digitally advanced enterprise control loop?
Describe dimensions of the strategic scorecard?
What does the strategic scorecard force board members to do?
What are the OECD’s corporate governance principles?
What does environmental management accounting capture?
What must management accounting system designers be careful to do?
Gardini Chocolates makes custom-labelled, high-quality, specialty candy bars for special events and advertising purposes. The company employs several chocolatiers who were trained in Germany. The
Comtex Company provides cable and internet services in the Greater Boston area. There are many competitors that provide similar services. Comtex believes that the key to financial success is to offer
WrightAir is a no-frills airline that services the Midwest. Its mission is to be the only short-haul, low-fare, high-frequency, point-to-point carrier in the Midwest. However, there are several large
Danskmat AS operates a home meal delivery service. It has agreements with 20 restaurants to pick up and deliver meals to customers who phone or fax in orders. Danskmat is currently examining its
Nolton-Ragnvald AS uses a standard costing system. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labour-hours (DLH). Nolton
Madetoja Oy’s job-costing system has two direct-cost categories: direct materials and direct manufacturing labour. Manufacturing overhead (both variable and fixed) is allocated to products on the
Explain why a favourable sales-quantity variance occurs.
X Ltd uses an automated manufacturing process to produce an industrial chemical, Product P. X Ltd operates a standard marginal costing system. The standard cost data for Product P is as
Deadeye Ltd operates a standard costing system in which all stocks are valued at standard cost. The standard direct material cost of one unit of product MS is £36, made up of 4.8 kg of material H at
The Antwerp Lions play in the Flemish Football League. The Lions play in the Antwerp Stadium (owned and managed by the City of Antwerp), which has a capacity of 30,000 seats (10,000 lower- tier seats
Les Cliniques du Parc reports the following information for July 2018 regarding its nursing staff consisting of nurses, nursing assistants and orderlies.Required 1. Calculate the total direct nursing

Showing 300 - 400 of 448