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.

/in /by

Assignment Question(s): (Marks 15)

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.
(Week 8, Chapter 4)
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 based on the following methods: (4 Marks)
The direct method
The step-down method
Note: You are required to assume values of your own and they should not be copied from any sources. (Week 9, Chapter 8)

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:
(Week 10, Chapter 9)

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

What steps must the Teamsters Union follow to cause an election to occur? During the union campaign, how should the managers conduct themselves to avoid being accused of committing unfair labor practices?

/in /by

Teamsters union campaign

A specialty clinic, with four unions representing 40 percent of the employees, has learned that the Teamsters Union has been contacted by an employee group to conduct a unionization campaign to represent some of the employees, including service workers, clerical workers, and all levels in the accounting department. The clinic’s labor-relations philosophy would be characterized as traditional and non collaborative. It has decided to resist the union’s attempt to organize the employees.The four groups of employees who are currently represented by unions include: technical employees, registered nurses, pharmacists, and maintenance workers. Some 70 employees are represented by the current contracts. The registered nurses constitute 40 percent of the 70 union members. The group that has been proposed in the organizing attempt includes 45 employees, and the service workers (housekeeping, food service, and nursing assistants) constitute 75 percent of the proposed members.Management is concerned about the organizing campaign. Relationships with the current unions have not been very productive, and further unionization will lead to more distrust between management and employees. Management is concerned about the union’s ability to call strikes in the future, which may require the organization to severely limit services and could greatly affect its financial stability.Management must decide whether to mount a campaign to prevent the union from organizing. If it decides to mount a campaign, management must develop a strategy to present arguments to the employees for not having union representation.

Questions

  1. What steps must the Teamsters Union follow to cause an election to occur?
  2. During the union campaign, how should the managers conduct themselves to avoid being accused of committing unfair labor practices?

 

Describe the four perspectives that will be used when creating a balanced scorecard for this organization. Identify at least four significant performance measures for your organization within each perspective.

/in /by

Financial networking

You have just been elected as president of your city’s nationally chartered financial networking organization. The group is a chapter of a national organization that has the following mission statement: “To encourage the profession of finance as a career and to provide a platform that emphasizes and employs high ethical standards within the profession and community.”

Respond to the following four (4) prompts based on your knowledge from this unit’s material.

  1. Describe the four perspectives that will be used when creating a balanced scorecard for this organization.
  2. Identify at least four significant performance measures for your organization within each perspective.
  3. Create standards that will be used to compare your professional chartered chapter to others of the national networking association. State each standard with a goal in mind.
  4. Explain how standard costs and a balanced scorecard will be used to evaluate your organization’s performance and why both financial and non-financial metrics should be integrated when evaluating an organization’s tasks and goals.

 

Identify the company you selected and provide a brief overview of its business. Compare the job order and process costing methods, and explain how each of these can be applied to the company.

/in /by

McDonalds Costing Methods

Overview:

Companies choose their costing method based on their business activities and processes, as well as the products and services they offer. A company can be a manufacturing, merchandising, or service organization; this also impacts which costing method will be most useful for its purposes. As a part of costing, the company also needs to decide how to classify overhead costs using either traditional or activity-based costing (ABC).

In this written assignment, you will choose a company, consider its business and costing requirements, and recommend a costing system that will work best for the business.

Prompt:
Think about a company you know. This could be a current or past employer or a company you admire. Consider its business activities and the type of products and services offered. Based on what you have learned so far, write a short paper that reflects on the different costing methods and speculates on how they might apply to your selected company.

Specifically, you must address the following rubric criteria:

Company Overview: Identify the company you selected and provide a brief overview of its business.
Is it a manufacturing, merchandising, or service organization?

Costing Methods: Compare the job order and process costing methods, and explain how each of these can be applied to the company.
How could the costs differ if one method is chosen over the other?

Factory Overhead: Outline possible indirect or overhead costs the company may need to account for, and identify the type of costing the company might use for these costs.

If the company decides to use activity-based costing (ABC), what are some activity bases (cost drivers) it might use to allocate these costs?

Recommendation: Based on your analysis, recommend a costing method for the company, and explain why you think this method will work best for the business.

Guidelines for Submission
Submit your assignment as a 2- to 4-page Word document. Sources should be cited according to APA style.

Compare the different depreciation methods. Give an example of how companies depreciate their plant assets under each method. Why is it important for companies to implement good internal control? What are the principles of internal control? Explain your answer.

/in /by

Assignment Question(s): (Marks15)

Q1. Compare the different depreciation methods. Give an example of how companies depreciate their plant assets under each method.  (Marks5)

Q2. Why is it important for companies to implement good internal control? What are the principles of internal control? Explain your answer.   (Marks5)

Q3. A company wants to use the allowance method to account for bad debts. You are assigned to explain to the company the different ways it can use to estimate bad debts.  (Marks5)

 

 

Compare the different depreciation methods. Give an example of how companies depreciate their plant assets under each method. Why is it important for companies to implement good internal control? What are the principles of internal control? Explain your answer.

/in /by

Assignment Question(s): (Marks15)

Q1. Compare the different depreciation methods. Give an example of how companies depreciate their plant assets under each method. (Marks5)

Q2. Why is it important for companies to implement good internal control? What are the principles of internal control? Explain your answer. (Marks5)

Q3. A company wants to use the allowance method to account for bad debts. You are assigned to explain to the company the different ways it can use to estimate bad debts.

 

Compare and contrast a cost-benefit analysis and cost-effectiveness analysis. Summarize the purpose, strengths, limitations, and assumptions that underlie each approach.

/in /by

Cost-benefit analysis and cost-effectiveness analysis

Compare and contrast a cost-benefit analysis and cost-effectiveness analysis. Summarize the purpose, strengths, limitations, and assumptions that underlie each approach.

Discuss how to apply these approaches in public health policy development, citing an example for each from the research literature. Please cite any and all referencesused.

 

What are the Approaches that Financial Statement and Financial Condition can be analyzed?

/in /by

Q1. (Preparation of governmental funds financial statements)

Following are December 31, 2013 pre-closing trial balances (budgetary accounts excluded) for the General Fund, Debt Service Fund, and Capital Projects Fund for Hebert County. Prepare a governmental funds balance sheet and a statement of revenues, expenditures, and changes in fund balances as of and for the year ended December 31, 2013. The General Fund had encumbrances of $25 outstanding on December 31, 2013. (All amounts are in thousands of dollars.)                                                                                                      (2.5 marks)

Debits         Credits

General Fund

Cash                                                                                                         $1,900

Property taxes receivable – delinquent                                                         330

Allowance for uncollectible property taxes                                                                   $   10

Accounts payable                                                                                                              120

Deferred revenues                                                                                                             250

Unassigned fund balance, January 1, 2013                                                                    1,720

Revenues – property taxes                                                                                              3,200

Revenues – licenses and fees                                                                                             350

Revenues – parks admissions fees                                                                                       40

Investment income                                                                                                            220

Expenditures – general government                                                             360

Expenditures – public safety                                                                      1,800

Expenditures – public works                                                                        840

Expenditures – parks and culture                                                                  350

Transfer out to Debt Service Fund                                                               250

Transfer out to Capital Projects Fund                                                           80             ____                        Totals         $5,910                                                                                   $5,910

Debt Service Fund

Cash                                                                                                              $70

Assigned fund balance, January 1, 2013                                                                           $60

Expenditures – bond principal                                                                      110

Expenditures – interest                                                                                 130

Transfer in from General Fund                                                                    ___               250

Totals                                                                                                   $310             $310

Capital Projects Fund

Cash                                                                                                            $240

Expenditures – capital outlay                                                                       420

Transfer in from General Fund                                                                                         $80

Proceeds of bonds                                                                                        ___               580

Totals                                                                                                               $660             $660 

QUESTION-2

The following transactions relate to the Scott Business venture. Which two of the following six possibilities occurred as a result of each transaction – an asset increased, an asset decreased, a Liability increased, a liability decreased, equity increased, or equity decreased:

(SHOW INCREASE (+) DECREASE (-)  (5 marks)

  1. Scott invests $20,000 cash to start the business in return for stock.
  2. Purchased supplies paying $1,000 cash.
  3. Purchased equipment for $15,000 cash.
  4. Purchased Supplies of $200 and Equipment of $1,000 on account.
  5. Borrowed $4,000 from 1st American Bank.
  6. Provided consulting services receiving $3,000 cash.
  7. Paid salaries of $800 to employees.
  8. Dividends of $500 are paid to shareholders
  9. $ 1000 amount paid to the creditor against equipment purchase
  10. Paid outstanding electricity bills $ 500

Q3. From the below statement whether the following are true or false. For the false items, explain why they are false.   (2.5 marks)

  • Enterprise Funds are used only when all services are provided to non-governmental entities, and Internal Service Funds are used only when all services are provided to governmental agencies that are a part of the reporting government.
  • Enterprise Funds use the economic resources measurement focus and full accrual basis of accounting only when they want to compute the costs of services; otherwise, they use the current financial resources measurement focus and modified accrual basis of accounting.
  • The primary activities of the State Office of General Services and the State Parks Department are financed from General Fund appropriations. The former department also operates a governmental motor pool and the latter operates a public swimming pool. Because their primary activities are financed from the General Fund, they may not under any circumstances account for other activities in proprietary funds.

Question no. 4

What are the Approaches that Financial Statement and Financial Condition can be analyzed?

(2.5 marks)

Answer

Question 5

X Y Z football association uses the following types of funds for the football team’s   purposes: Using General Fund; Specific Purpose Funds; Plant Replacement and Expansion Fund; and Endowment Fund. State which fund (or funds) would be used to account for each of these transactions or events. (2.5 marks)

a-His Excellency has given 5 million SR an additional amount as an aid to the football team to promote the football game.

b- Minister has given fund an amount 10 Million SR, to be used exclusively making a new football ground for adding new place and location for practicing football.

c- An amount of 20 Million SR, paid to a foreign football coach for special training to the players to be used exclusively for training.

d-An amount of 3 million SR has been paid to the star players of the years as a reward.

e-As per the government plan, an amount of 20 million will be paid to the football teams to encourage the newcomer’s football players.

 

Answer:

 

Prepare Sales budget for April, May & June assuming selling price per unit is SR 15. Prepare production budget for April, May & June if the company wishes ending inventory as 10 % of next month sales units.

/in /by

Assignment Question(s):    (Marks 15)

 Q1. Define in Your words

  1. Cost Centre      [0.5 mark]
  2. Profit Centre    [0.5 mark]
  3. Investment Centre   [0.5 mark]

Answer:

Q2. Hamed Company is preparing budgets for the quarter ending June 30, 2019.

Budgeted sales in units for the next five months are:

April May   June July
20,000 50,000 30,000 25,000

Required:

  1. Prepare Sales budget for April, May & June assuming selling price per unit is SR 15.

[2 marks]

  1. Prepare production budget for April, May & June if the company wishes ending inventory as 10 % of next month sales units.  [2 marks]

Answer:

Q3. Karim Corporation is considering two alternatives that are code-named A and B. Costs associated with the alternatives are listed below:

 

  Alternative A Alternative B
Supplies costs SAR 33 000 SAR 33 000
Assembly costs SAR 48 000 SAR 51 000
Power costs SAR 32 000 SAR 22 000
Inspection costs SAR 11 000 SAR 27 000

Required:

  1. Which costs are relevant and which are not relevant in the choice between these two alternatives?                                                                                                                                                                                   [2 Mark]
  2. What is the differential cost between the two alternatives?                                      [2 Marks]

 

Answer

Q.4 Karim Industries is a division of a major corporation. Last year the division had total sales of SAR 43,380,000, net operating income of SAR 4,828,980, and average operating assets of SAR 9,000,000. The company’s minimum required rate of return is 12%.

Required:

  1. What is the division’s margin?                                                                                    [1 mark]
  2. What is the division’s turnover?                                                                                  [1 mark]
  3. What is the division’s return on investment (ROI)?                                                        [1 mark]

Answer

Q5. Karim Corporation is considering investing in a new piece of equipment for SAR 100,000 that will provide annual cash flows of SAR 20,000 per year for seven years. Calculate the cash payback period.                                                                                                                                [2.5 marks]

Answer

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.

/in /by

Accounting Question

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.

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 based on the following methods:    (4 Marks)

  • The direct method
  • The step-down method

Note: You are required to assume values of your own and they should not be copied from any sources.    (Week 9, Chapter 8)