Q1. Differentiate with suitable examples the traditional costing systems and activity-based costing. Explain how ABC is used in manufacturing by providing a numerical example.
(3 Marks)
Note: Your answer must include suitable numerical examples. You are required to assume values of your own and they should not be copied from any sources. (Week 7, Chapter 7)
Answer:
Q3. Provide a numerical example of special order decisions and make or buy decisions and explain how these decisions are backed by quantitative and qualitative considerations.
(4 Marks)
Note: Your answer must include suitable numerical examples. You are required to assume values of your own and they should not be copied from any sources.
Answer:
Q4. K&C Ltd. is working on a budget for the current year. The following information is linked to budget preparation: (4 Marks)
Budgeted selling price per unit = SAR 450 per unit
Total fixed costs = SAR 275,000
Variable costs = SAR 150 per unit
Required:
You are required to prepare a flexible budget for 1,000, 1,500, 2,000, and 2,500 units.
Answer: