Accounting Question

TheAssignmentmustbesubmittedonBlackboard(WORDformatonly) via allocated folder.

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.

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 showingall 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 withqualitative 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.(Chapter 4)

Answer:

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)

SS1SS2OD1OD2

0

,000

,000

5055

0

2025

37

Support Departments	Operating Departments
Total Department variable costs	16,000	19,000	105,000	68,000
Total department fixed costs	19,	50	34,000	1	20		55
Number of transactions		25	140
Number of employees	18	24	47	38
Number of service requests		37	22	26	32
Number of computers	31

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)

P1

P2

P3

Product	Units	Selling Price per unit
55,000	SAR 70
34,500	SAR 58
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.(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: 14587
Academic Year: 1445 H
For Instructor’s Use only
Instructor’s Name: Dr. Mohammed Arshad Khan
Students’ Grade:
/15
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• 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)