Assignment Question(s):(Marks 15) Q1. Assume yourself to be a cost manager of A

Assignment Question(s):(Marks 15)

Q1. Assume yourself to be a cost manager of ARAMCO and you are in the task of Cost Classifications. Explain how the following costs would help you as cost manager to make decision. (2 Marks)

  • Product Vs Period Cost
  • Prime Vs Conversion Cost
  • Committed Vs Discretionary Cost

Answer:

Q2: A fresh graduate employed as an accountant of a manufacturing company and is working on over applied and under applied overheads.

Explain how you would assist him/her in computing over applied and under applied overheads. Give numerical examples (2 Marks)

Answer:

Q3.a. Latif Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company’s three activity cost pools are as follows:

Required:

  • Compute POHR per activity (Round off to two decimal places)
  • Calculate the overhead cost per unit, if the company produces 1,000 units of product A and 500 units of product B. (5 MARKS)

Answer:

Q4. Explain Equivalent Units of Production and its computation using weighted average method and FIFO method. (2 Marks)

Answer

Q5a. ‘Cost Structure and Profit Stability’ is one of the most import strategy of a corporations. Explain how managers, maintain cost structure for stability in profit during both good and bad years. (2 Marks)

Answer:

Q5b.The following is Allison Corporation’s contribution format income statement for last month:

Account title

Amount in SR

Sales

850,000

Variable Cost

250,000

Contribution Margin

600,000

Fixed Expenses

450,000

Net operating Income

150,000

The company has no beginning or ending inventories. The company produced and sold 15,000 units last month.

Required: (2 Marks)

  • Compute Margin of Safety.
  • What is the company’s degree of operating leverage?

Answer:

About the author

Lisa, a seasoned tutor, uses her decade-long experience to assist students in their academic struggles. With a knack for simplifying complex topics, Lisa offers writing and proofreading services at Essaynook.com. Her goal is to ensure every student has the tools to conquer their homework assignments.

Leave a Comment