Assignment (2)
Cost accounting 301
Instructions :
void 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.
ll 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.
Assignment Question(s):
15)
(Marks
Q1. Differentiate between routine operating decisions and non-routine operating decisions with
suitable examples. List all non-routine operating decisions and explain any two decisions with
suitable examples.
(3 Marks)
Note: Your answer must include numerical examples for each method along with qualitative
consideration.
Answer:
Q2. Suppose that you are working in a company as a cost manager that has two support
departments and two operating departments. Determine the total department cost and
allocation base for these departments and allocate the support department cost to the
operating
department
(4 Marks)
”he direct method
”he step-down method
based
on
the
following
methods:
Note: You are required to assume values of your own and they should not be copied from any
sources.
Answer:
Q3. SFC Company is in the manufacturing process of wooden products and makes several
wooden items. The following is the information related to three products manufactured by
SFC company: Product X, Y, and Z. The joint costs of the three products in 2015 were SAR
110,000. The total number of units for each product and the selling price per unit is given
below:
Products
Units
Selling Price per unit
X
5,000
SAR 150
Y
3,500
SAR 125
Z
2,200
SAR 100
Using the physical volume method and sales value at the split-off method, allocate the joint
costs to each product.
(4
Marks)
Answer:
Q4. A company is planning to prepare a budget for the year 2017 and provides you with the
following information regarding the preparation of the budget:
(4
Marks)
Particulars
Amount
Budgeted selling price per unit
$650 per unit
Total fixed costs
$155,000
Variable costs
$175 per unit
You are required to prepare a flexible budget for 500, 600, 700, and 800 units.
Answer:

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