Questions and Answers of Financial And Management Accounting

Bright Views is a window manufacturer. It produces high-quality windows in a variety of sizes, shapes, and colors. One of the leaders in its industry, Bright Views offers a lifetime warranty on its
William Blake runs a local taxi service. Lately his phone has been flooded with customer complaints. He gives you the following list of complaints.REQUIRED:a. Draw a Pareto chart of these problems.b.
Magic, Inc., makes a number of magic tricks. Recently it has been experiencing problems in its manufacturing process, as the table below suggests:REQUIRED:a. Perform a Pareto analysis for each of the
Big Top Toys makes a variety of badminton and volleyball sets for people’s home use. The company sells 100,000 badminton sets and 75,000 volleyball sets per year. The company just hired a new
What does the term benchmarking mean and why is it used?
Susie Grace runs Grace Deli. She has set monthly sales goals for this year and is now trying to understand how well she is doing. The following table lists the goals by month and actual
List the four different types of benchmarking and explain their differences.
Robert Treadwell runs a medium- sized machine shop. He sets monthly sales goals for his salespeople, who get bonuses for exceeding their sales goals. Robert uses these goals to help him manage his
Hard Earth does plant maintenance for large industrial companies. It recently has faced a significant increase in customer complaints regarding the quality of its work. The company decides to pull
Define a performance standard. What are the ways it can be established?
Using the numbers in the following table for materials used in manufacturing, develop a variance analysis of price v s. efficiency (usage) variances for the two main materials in the product.
Blue Spruce Small Appliance Repair has well-defined time and material specifications for every type of job that comes into the shop. During April, while there was a lot of business, profitability was
What is the continuous improvement philosophy?
Using the numbers in the following table for materials used in manufacturing soap, develop a variance analysis of price vs. efficiency (usage) variances for the two main materials in the product.
Hang Ten is a small manufacturer of fasteners used in the manufacturing of hang gliders. It is a competitive business, with only a few major customers and a lot of machine shops like Hang Ten
Identify six tools that can be used to compare actual results to plan. What are the strengths and weaknesses of each?
There are two labor departments in the following business. Their results for January are in the following table. Please develop a price v s. efficiency variance for each of these two departments.
Bangor Industries makes staplers. It currently buys the parts that make up the casing of the stapler, only producing the internal mechanicals. It makes and sells 5,000,000 staplers per year.
In performing a variance analysis, what are the common dimensions used to isolate the causes for performance shortfalls?
Gypsum Powders makes four compounds for dogs o of one raw material, Just Gyp—tick powder, flea powder, itch powder, and talcum powder. The company makes 200,000 pounds of Just Gyp per year. It has
What are the primary differences between a Pareto and a gap analysis?
Tudor Associates currently makes its own parts for the microwaves it sells. It has recently been approached by a local machine shop that has offered to make the outer casing of the microwaves. The
Hard Rock Company currently offers several lines of decorative stone. It takes the larger rocks and splits them down into smaller pieces that it then sells by the pound in both bags and in bulk
What is the key difference between a favorable and unfavorable cost variance? Revenue variance?
Excell Corporation makes thumb drives for use by consumers and businesses. Right now, Excell performs all of the operations for making the thumb drives. It has recently been approached by a memory
Cedar Shakes, Inc., makes a variety of cedar siding materials for houses. It is facing a major problem with one of its key machines. Specifically, it will either have to overhaul the machine, at a
Yellowtail Manufacturing makes a product that is currently sold to health food stores. It recently has discovered it could sell its product, Real Yellow, at an earlier stage in its production to
What are the primary steps in doing an incremental analysis?
What role does subjective, or nonquantitative, information play in incremental analysis?
What is sensitivity analysis, and why is it used?
What are the primary features of a sound business case?
The Coffee Palace just had its third business anniversary. A lice Cornwell, the company ’s owner, has recently become concerned. Early in the year, she increased her prices to bring in more
You decide to take the analysis a bit further. Using the results you obtained in Problem 3 and the lessons you have learned about percentage change, do the following:REQUIRED:a. Calculate the
Reorganize the activities in the following sequences so that they match the four stages of the management process. Put “plan” activities first, followed by “do” activities, then “check”
Darby Computer Associates provides computer services to both small businesses and individuals. It has faced changing conditions in the marketplace, one characterized by constant changes in both
For the following list of activities, identify whether it is a “P” or “plan” activity, “D” or “do” activity, “C” or “check” activity, or an A or “adjust” activity. Only
Rontell, Inc., is a medium- sized producer of latex balloons that are filled by helium and given on special occasions. It distributes it s balloons in many styles and colors to the tri- state region
For each of the following activities, identify what aspect of the IMA Statement is being violated. Use “C” for competence, “N” for confidentiality, “O” for objectivity, and “I” for
For each of the following activities, identify what aspect of the IMA Statement is being violated. Use “C” for competence, “N” for confidentiality, “O” for objectivity, and “I” for
You recently enrolled in an advanced class in accounting, where you are expected to work on your own for many of the assignments. The professor relies on the honor code and makes you submit a signed
Go back to the table of proposed measures for McDonald’s in Table 2.3. What type of control measures are these? Please list them by type in your answer. TABLE 2.3 A SET OF HYPOTHETICAL MEASURES
Using the data in the following table, do a simple variance analysis for Don’s pizza shop for March. Make sure to mark your variances as favorable or unfavorable.REQUIRED:a. What appears to be the
Returning to Sam’s Golf Pro Shop in the chapter, Sam really wants to hone in on what part of his sales package is working and what is not. In talking about it, Sam notes, “The easiest solution
In Chapters 1 and 2, we have only had Easy Air’s profits in terms of revenue miles flown. Now we would like to expand this analysis to look at profitability both in terms of number of passengers
Please list the various types of continuous improvement-based action controls and provide a brief description of them.
Using the data provided for Sam’s Kayak, separate the variable and fixed costs using the cost variability formula, then use your results to develop Sam’s cost formula. Sam's Kayak Manufacturing
What is a cost pool? Give an example of one.
Redwood Grills makes a custom line of outdoor grills. It has a broad network of retail stores that distributes its products across the country. It has compiled the following information about its
Certainty Seedlings is a medium- sized nursery located in Western Pennsylvania. Recently, Joel Beale, the company’s owner, completed a course in business planning and analysis. He decided he would
Easy Air wants to get a handle on how effectively it is using its available capacity. Rudy has done a basic study, resulting in the information contained in the DB 4.1a and DB 4.1c templates in your
What does the term homogeneous mean? Heterogeneous? How do they impact the nature of cost pools?
Landry Associates produces a broad range of components for stereos and similar electronic products. It has been having problems with profitability over the past few years. It runs a number of
Franklin and Sons handles investment portfolios for a variety of customers. One unit of the company deals specifically with small investors. It has compiled the following information about its small
It was Monday morning at 8 a.m. John was pacing the front of the room, waiting for each of his key managers to make their way to a seat. As he glanced around, he saw a lot of weary and anxious
Chewy Treats, Inc., makes several lines of caramel-based candies and treats. Each product runs on its own set of machines. The lines Chewy makes are Wrapped Caramels, Chocolate-Covered Caramels,
Sherry has also made progress tackling many of Easy Air’s activity-based costs. The information contained in the DB 4.2a and DB 4.2c templates in your database is the result of her work. In
List and explain the features of accurate cost pools.
Hightower Enterprises manages apartment buildings for various small investors. It spends a significant amount of time on two activities: maintenance and rent collection. Sort the following costs into
Energetic Treadmills is a medium- sized company that makes three models of treadmills on one large machine. The products share this machine. The machine is run 4,000 hours per year. Other information
Define overhead. What problems does it create in cost analysis? Use the features of an accurate cost pool as the basis for your analysis.
Puff ’n Stuff makes various small toys for dogs and cats using a large machine that cuts the fabric and machine- stitches the seams. The toys are then hand- stuffed and packaged. For Step 1, sort
Majestic Toys makes three different types of stuffed animals for various arcades across the country. The information on the work done on the factory’s machines is contained in the following
Define a resource driver and give an example of one that could be used to create a machine-based cost pool.
Baby Care makes “Binkies,” a specialty line of pacifiers using one large machine that both makes and packages the pacifier. The machine’s managed capacity cost is $250,000 per year to run one
Daisy Bakeries is a medium- sized bakery producing four lines of products: bread, cakes, pies, and cookies. It is currently charging its $750,000 of overhead to the product lines based on the number
What does the term capacity mean? How do we use it in developing a cost estimate?
Sure Seed Company makes a lawn repair mixture that is sold in five-pound bags. One machine mixes the seed, soil, fertilizer, and special ingredients to make the lawn repair mix . The machine runs two
Clip-A - Long makes binder clips of various sizes. The clips are made on one machine that takes precut strips of metal, bends them, adds the flange that helps hold the papers, and then boxes them in
CalcOne makes small, solar-charged, 10-key handheld calculators from purchased parts. It is a manual operation consisting of three stages. Materials cost $1.25. Several back office employees handle
Define managed and committed capacity costs. What are their primary differences? Specifically, how does their activity driver change?
Bernelli Machining operates as a job shop making various metal parts for tractors. It has several large customers across the country who order parts when their own facilities run out of capacity.
What is productive capacity? Nonproductive? Idle capacity? Why are these different types of capacity utilization important?
Ajax Pool Services does a wide range of pool maintenance and repair jobs over the course of a swimming season in New England. The company has five vans and five work crews. Some crews consist of one
What does the term cost of preparedness mean? Which type of capacity cost (managed or committed) does it include?
Muldoon’s Window Washing Company handles basic window washing, power washing, and light window maintenance. It divides its company into the following activities and cost pools.REQUIRED:a. Calculate
What is the cost driver in capacity-based costing? How does it differ from the activity driver(s)?
Sullivan’s Auto Repair does small repair jobs on automobiles, including oil changes, brake jobs, and tire repair. It divides its company into the following activities and cost pools.REQUIRED:a.
Get Up ’n Go Fitness Club is an exercise club that offers four basic products: weight training, supervised fitness routines, aerobics, and swimming. It currently charges the firm’s $1,500,000
For the following list of control measures, please note whether it is an action (A ), results (R), or personnel (P) control.a. Number of exams givenb. Instructions on how a case should be writtenc.
Eastern Productions is a medium- sized maker of promotional films and advertisements for the beverage industry. It has six salespeople on pay roll. The following table shows the results against plan
Easy Air has put in place some very difficult or “stretch” goals for the upcoming year, as the table recreated from the chapter indicates.REQUIRED:a. Using the data above, as recreated for you in
Scott Randall operates a small manufacturing company that makes basic sound pre-amplifiers. Scott buys the wafer from one company, then does the slicing and packaging himself. He has several
Marty Smith recently graduated from college. He has been hired by Stevenson Associates as a sales associate. Stevenson provides payroll services for a broad range of manufacturing and service
Ernesto’s Sub Shop offers six different kinds of sandwiches. Using the data below, perform a simple gap analysis of Ernesto’s sales.REQUIRED:Perform a simple gap analysis of Ernesto’s sales.
Arthur Treidmont owns a small landscaping business in the Deep South. He can work most of the year, although in summer, his workforce slows down in response to the heat index—it is simply too hot.
You have just been hired as an intern by Easy Air and have been assigned to Sanjiv to help him with the major analysis of Easy Air’s operational and profit performance. As a first part of the task,
Free and Easy, a local window-cleaning operation, has been having trouble maintaining its profitability. The company president, June Williams, has asked you to come in and help her identify why she
Angie’s Repair Shop does custom sewing repairs for customers, including sewing on buttons and putting in new zippers. Angie went to business school, so she knows that she needs to keep an eye on
Basic Manufacturing, a maker of hose fittings, uses point of action controls on the plant floor to help its workforce stay on target to continuously improve performance. Two measures are made for
Singleterry Products makes rods and piston housings for various types of motors. Having a perfect fit is critical if an engine is going to work properly and not leak oil. If it is too tight a fit,
You have been hired by C&L Tools to evaluate its sales performance. You are given the following numbers for the company ’s four salespeople:Perform a gap analysis for these four salespeople,
Ajax Programming does freelance programming jobs, including blog and website design, for a wide variety of businesses and individual consumers. The company has grown from a simple start-up with only
Rapid Car Wash is a franchiser of car wash companies across the northeastern United States. It has grown from simply owning one car wash to now having more than 100 franchisees. Lately, top
Janice Dean teaches several accounting classes at Blank ton State University. She has always relied on her syllabus and its honor code to regulate the behavior of her students. Over the past few
For the following list of undesirable outcomes, please note whether it is an example of behavioral displacement (B), gamesmanship (G), operating delays (O), or negative attitudes (N).a. Salesman
Bryan Owens is a part- time manager at Rusty ’s Steak House. The owner of Rusty ’s spends his time split between Rusty ’s and three other restaurants he owns, so he has to rely on his managers
Using the template in the chapter workbook that contains the direct costs of flying passengers for Easy Air, do the following computations on the worksheet for DB 3.1:1. Calculate the average number
Adelle Watson owns a small manufacturing company, Easy Bake, which makes one product, a ceramic pie plate that features even heating that helps prevent pie shells from getting burnt in patches. It is
Create a table that compares the seven basic features of a resource to the following resources: raw materials, labor, machines, and buildings. Basically, set up a table that looks like this:For
Nestor Travel Services books airline flights, cruises, and various package tours for its customers. These booking operations use the same resources, in roughly the same quantities.REQUIRED:Using the

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