Cost Accounting / 301

The Assignment must be submitted on Blackboard (WORD format only) via allocatedfolder.Assignments submitted through email will not be accepted.Students are advised to make their work clear and well presented, marks may bereduced for poor presentation. This includes filling your information on the coverpage.Students must mention question number clearly in their answer.Late submission will NOT be accepted.Avoid plagiarism, the work should be in your own words, copying from students orother resources without proper referencing will result in ZERO marks. No exceptions.All answers must be typed using Times New Roman (size 12, double-spaced) font.No pictures containing text will be accepted and will be considered plagiarism.Submissions without this cover page will NOT be accepted.For Instructor’s Use onlyInstructor’s Name:Students’ Grade: /15College of Administration and Finance SciencesAssignment Question(s): (Marks 15)Q1. Discuss with suitable examples why activity-based costing (ABC) is better than thetraditional costing system. Provide a suitable numerical example of ABC in the manufacturingsector and show all the necessary calculations required under the ABC system.(3 Marks)Note: Your answer must include suitable numerical examples showing all the calculations of theABC system. You are required to assume values of numerical examples of your own and they shouldnot be copied from any sources. (Chapter 7)Answer:Q2. “A non-routine decision is one that is taken in response to a non-repetitive, operationalscenario.” Comment on this statement and explain with suitable examples the various types ofnon-routine operating decisions that a company makes under such a scenario. Support youranswer with numerical examples along with qualitative considerations involved in making suchdecisions. (4 Marks)Note: Your answer must include suitable numerical examples for various types of non-routineoperating decisions. You are required to assume values of numerical examples of your own and theyshould not be copied from any sources. (Chapter 4)Answer:College of Administration and Finance SciencesQ3. ADLG Company has two support departments, SS1 and SS2, and two operatingdepartments, OD1 and OD2. The company has decided to use the direct method and allocatevariable SS1 dept. costs based on the number of transactions and fixed SS1 dept. costs based onthe number of employees. SS2 dept. variable costs will be allocated based on the number ofservice requests and fixed costs will be allocated based on the number of computers. Thefollowing values have been extracted for the allocation:Support Departments(4 Marks)Operating DepartmentsSS1Total Department variable costs 16,000Total department fixed costs 19,500Number of transactions 50Number of employees 18Number of service requests 37Number of computers 20SS219,00034,00055242225OD1105,000120,000250472631OD268,00055,000140383237(Chapter 8)You are required to allocate variable and fixed costs.Answer:Q4. JKL Company processes a direct material and produces three products: P1, P2, and P3. Thejoint costs of the three products in 2018 were SAR 120,000. The total number of units for eachproduct and the selling price per unit is given below: (4 Marks)Product Units Selling Price per unitP1 55,000 SAR 70College of Administration and Finance SciencesP2 34,500 SAR 58P3 10,500 SAR 44You are required to use the physical volume method and sales value at the split-off method toallocate the joint costs to each product. (Chapter 9)Answer:

College of Administration and Finance Sciences

Assignment (2)
Deadline: Saturday 11/11/2023 @ 23:59
Course Name: Cost Accounting
Student’s Name:
Course Code: ACCT 301
Student’s ID Number:
Semester: 1st
CRN:
Academic Year: 1445 H

For Instructor’s Use only

Instructor’s Name:
Students’ Grade:
/15
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
•

• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.

College of Administration and Finance Sciences

Assignment Question(s):
(Marks 15)

Q1. Discuss with suitable examples why activity-based costing (ABC) is better than the
traditional costing system. Provide a suitable numerical example of ABC in the manufacturing
sector and show all the necessary calculations required under the ABC system.

(3 Marks)

Note: Your answer must include suitable numerical examples showing all the calculations of the
ABC system. You are required to assume values of numerical examples of your own and they should
not be copied from any sources.
(Chapter 7)

Answer:

Q2. “A non-routine decision is one that is taken in response to a non-repetitive, operational
scenario.” Comment on this statement and explain with suitable examples the various types of
non-routine operating decisions that a company makes under such a scenario. Support your
answer with numerical examples along with qualitative considerations involved in making such
decisions.

(4 Marks)

Note: Your answer must include suitable numerical examples for various types of non-routine
operating decisions. You are required to assume values of numerical examples of your own and they
should not be copied from any sources.

Answer:

(Chapter 4)

College of Administration and Finance Sciences

Q3. ADLG Company has two support departments, SS1 and SS2, and two operating
departments, OD1 and OD2. The company has decided to use the direct method and allocate
variable SS1 dept. costs based on the number of transactions and fixed SS1 dept. costs based on
the number of employees. SS2 dept. variable costs will be allocated based on the number of
service requests and fixed costs will be allocated based on the number of computers. The

following values have been extracted for the allocation:

(4 Marks)

Support Departments

Operating Departments

SS1

SS2

OD1

OD2

Total Department variable costs
16,000
19,000
105,000
68,000
Total department fixed costs
19,500
34,000
120,000
55,000
Number of transactions
50
55
250
140
Number of employees
18
24
47
38
Number of service requests
37
22
26
32
Number of computers
20
25
31
37
You are required to allocate variable and fixed costs.

(Chapter 8)

Answer:
Q4. JKL Company processes a direct material and produces three products: P1, P2, and P3. The
joint costs of the three products in 2018 were SAR 120,000. The total number of units for each
product and the selling price per unit is given below:
(4 Marks)
Product
Units
Selling Price per unit
P1
55,000
SAR 70
College of Administration and Finance Sciences
P2
34,500
SAR 58
P3
10,500
SAR 44
You are required to use the physical volume method and sales value at the split-off method to
allocate the joint costs to each product.
Answer:
(Chapter 9)