ACCT-301: Cost Accounting

please find the attachment below

College of Administration and Finance Sciences
Assignment (1)
Deadline: Saturday 07/10/2023 @ 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
• 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. “Strategic management and decision-making are fundamental elements in the effective
operation of an organization.” Discuss this statement considering the process of strategic
management and decision-making. Provide an example of one Saudi Company to support your
answer.
(3 Marks)
Note: Your answer must include a suitable example showing the process of strategic management
and decision-making.
(Chapter 1)
Answer:
Q2. The following details were extracted from the records of KCL Company for the year 2020:
(4 Marks)
Month
March
April
May
June
July
August
September
October
Units Produced
40,000
42,000
45,000
47,000
51,000
54,000
32,000
38,000
Total Cost (SAR)
405,000
408,000
410,000
414,000
503,000
524,000
370,000
375,000
Required:
a) Using the high-low analysis method, find out variable and fixed costs and determine a
cost function.
College of Administration and Finance Sciences
b) Take the data for July and August and using the two-point method, find out variable and
fixed costs and determine a cost function.
(Chapter 2)
Answer:
Q3. A&T Company makes a product that sells for SAR 300 per unit. The other details related
to this product are as follows:
(4 Marks)
Variable costs = SAR 60 per unit
Fixed costs = SAR 144,000
You are required to calculate:
a) Contribution margin per unit and contribution margin ratio.
b) Break-even point in units and sales SAR.
c) Pretax profit if the company sells 1200 units.
d) Units needed to reach target pretax profit of SAR 120,000.
e) Sales SAR needed to reach the target pretax profit of SAR 120,000.
f) The margin of safety in units for budgeted next year’s sales at 1,800 units.
g) The margin of safety in SAR for budgeted next year’s sales at 1,800 units.
(Chapter 3)
Answer:
College of Administration and Finance Sciences
Q4. a) How is job costing used in the service sector and manufacturing sector?
(1 Marks)
b) Referring to the concept of job costing in the manufacturing sector, what are the journal
entries a manufacturing company must record to show the flow of costs? Explain and analyze
your answer by providing examples of one Saudi company that uses job costing.
(3 Marks)
Note: Your answer must include a suitable example showing all the necessary journal entries.
(Chapter 5)
Answer: