Differentiate with suitable examples the relevant cash flows and irrelevant cash flows. What relevant role do these cash flows provide in management decision?

/in /by

ACCT-301: Cost Accounting

Assignment Question(s):    (Marks 15)

Q1. Differentiate with suitable examples the relevant cash flows and irrelevant cash flows. What relevant role do these cash flows provide in management decision?

Note: Your answer must include suitable examples of relevant and irrelevant cash flows for management decision-making. (Week 2, Chapter 1)

 

 

Q2. What are the various methods of estimating cost functions? Explain each method with suitable numerical examples.   (4Marks)

Note: You are required to assume values for numerical examples of your own, and they should not be copied from any sources.   (Week 3, Chapter 2)

 

 

Q3. ALC ltd. manufactures a product ‘X’ for which the selling price per unit, variables cost per unit, and fixed costs are as follows:   (4 Marks)

Selling price per unit SAR 750
Variable cost per unit SAR 225
Total Fixed Costs SAR 425,000

 

Answer the following questions using cost volume profit analysis:

  1. Determine the break-even point in units.
  2. Determine the break-even point in sales SAR.
  3. What will be the pretax profit if the company sells 1,400 units of the product?
  4. How many units the company will be required to sell to reach a target pretax profit of SAR 200,000?
  5. The margin of safety in units if the company’s estimated next year budgeted sales are 1,500 units.        (Week 4, Chapter 3)

 

 

 

Q4. KCC Ltd. uses a process costing system for its sole processing department. There were 35,000 units in the beginning WIP inventory for June and 325,000 units were started in June. The beginning WIP units were 50% complete and the 30,000 units in the ending WIP were 40% complete. All materials are added at the start of processing.       (4 Marks)

You are required to:

  1. a) Compute the no. of units started & completed.
  2. b) Compute the EUP for DM and CC using FIFO and WA methods.
  3. c) Calculate total manufacturing cost/EUP under both methods with the following details:
  FIFO WA
Direct Material Cost SAR 850,000 SAR 1,000,000
Conversion Cost SAR 1,025,000 SAR 1,350,000

(Week 5, Chapter 6)

 

 

 

 

What is the relationship between Parsley’s Net Income and Consolidated Net Income? Why?

/in /by

CASE STUDY

PROBLEM 1: Parsley Parent acquired 100% of Sage Subsidiary on January 1, 2018. The purchase price was $370,000 in excess of Sage’s book value of Stockholders Equity on the acquisition date. Such excess was assigned to the following assets:

Original Amount       Original  Useful Life

Property, Plant & Equipment (PP&E), net         $80,000                       8 years

License Agreement                                                  $90,000                        6 years

Goodwill                                                                     $200,000                     Indefinite

$370,000

Selected accounts from the parent, subsidiary and consolidated financial statements for the year ended December 31, 2022 can be found in the accompanying Excel file.

Questions:

c. Show the detailed calculations arriving at each of the following accounts at December 31, 2022:

  • i. Consolidated Property, Plant and Equipment, net
  • ii. Consolidated License Agreement
  • iii. Consolidated Retained Earnings

d. What is the relationship between Parsley’s Net Income and Consolidated Net Income? Why?

Differentiate with suitable examples the relevant cash flows and irrelevant cash flows. What relevant role do these cash flows provide in management decision-making?

/in /by

Accounting Question

Q1 Differentiate with suitable examples the relevant cash flows and irrelevant cash flows. What relevant role do these cash flows provide in management decision-making? Provide a suitable example in context to an organization to support your answer.

Note: Your answer must include suitable examples of relevant and irrelevant cash flows for management decision-making.

 

Q2 What are the various methods of estimating cost functions? Explain each method with suitable numerical examples.

Note: You are required to assume values for numerical examples of your own, and they should not be copied from any sources.

 

Q3 ALC ltd. manufactures a product ‘X’ for which the selling price per unit, variables cost per unit, and fixed costs are as follows:

Selling price per unit          SAR 750

Variable cost per unit         SAR 225

Total Fixed Costs     SAR 425,000

Answer the following questions using cost volume profit analysis: 

  1. a) Determine the break-even point in units.
  2. b) Determine the break-even point in sales SAR.
  3. c) What will be the pretax profit if the company sells 1,400 units of the product?
  4. d) How many units the company will be required to sell to reach a target pretax profit of SAR 200,000?
  5. e) The margin of safety in units if the company’s estimated next year budgeted sales are 1,500 units.

 

Q4 KCC Ltd. uses a process costing system for its sole processing department. There were 35,000 units in the beginning WIP inventory for June and 325,000 units were started in June. The beginning WIP units were 50% complete and the 30,000 units in the ending WIP were 40% complete. All materials are added at the start of processing.

You are required to:

  1. a) Compute the no. of units started & completed.
  2. b) Compute the EUP for DM and CC using FIFO and WA methods.
  3. c) Calculate total manufacturing cost/EUP under both methods with the following details:

FIFO.          WA

Direct Material Cost:          SAR 850,000   ||  SAR 1,000,000

Conversion Cost:    SAR 1,025,000                  ||  SAR 1,350,000

Explain what an AIS is, describe the basic tasks it performs in an organization using examples of Saudi Companies. Give examples of Saudi companies that using ERP and what are the advantages of implementing the ERP?

/in /by

Accounting Information Systems

Assignment Question(s):   (Marks 15)

Question 1:   (04 Marks)

Explain what an AIS is, describe the basic tasks it performs in an organization using examples of Saudi Companies.

 

Question 2:     (03 Marks)

Give examples of Saudi companies that using ERP and what are the advantages of implementing the ERP?

 

Question 3:  (04 Marks)

What motives do people have for hacking? Why has hacking become so popular in recent years?  Do you regard it as a crime?  Explain your position.

 

Question 4:   (02 Marks)

Describe at least four ways a company can make fraud less likely to occur.

 

Question 5: (02 Marks)

Personal information about customers is collected, used, disclosed, and maintained only in compliance with internal policies and external regulatory requirements and is protected from unauthorized disclosure. With reference to Privacy Concern how would you deal with SPAM and Identify Theft problem of your business organization?

 

A fresh graduate employed as an accountant of a manufacturing company and is working on over applied and under applied overheads. Explain how you would assist him/her in computing over applied and under applied overheads. Give numerical examples.

/in /by

Managerial Accounting

Assignment Question(s):  (Marks 15)

Q1. Assume yourself to be a cost manager of ARAMCO and you are in the task of Cost Classifications. Explain how the following costs would help you as cost manager to make decision. (2 Marks)

  1. Product Vs Period Cost
  2. Prime Vs Conversion Cost
  3. Committed Vs Discretionary Cost

 

Q2: A fresh graduate employed as an accountant of a manufacturing company and is working on over applied and under applied overheads.

Explain how you would assist him/her in computing over applied and under applied overheads. Give numerical examples (2 Marks)

 

Q3.a. Latif Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company’s three activity cost pools are as follows:

Required:

  1. Compute POHR per activity (Round off to two decimal places)
  2. Calculate the overhead cost per unit, if the company produces 1,000 units of product A and 500 units of product B. (5 MARKS)

 

Q4. Explain Equivalent Units of Production and its computation using weighted average method and FIFO method. (2 Marks)

 

Q5a. ‘Cost Structure and Profit Stability’ is one of the most import strategy of a corporations. Explain how managers, maintain cost structure for stability in profit during both good and bad years. (2 Marks)

Q5b.The following is Allison Corporation’s contribution format income statement for last month:

Account title Amount in SR
Sales 850,000
Variable Cost 250,000
Contribution Margin 600,000
Fixed Expenses 450,000
Net operating Income 150,000

The company has no beginning or ending inventories. The company produced and sold 15,000 units last month.

Required: (2 Marks)

  1. Compute Margin of Safety.
  2. What is the company’s degree of operating leverage?

 

What is the difference between audit, attestation, and assurance services? And how do the answers provide value to stakeholders?

/in /by

Assignment (1)

Assignment Question(s):   (Marks 15)

IMPORTANT NOTES: Answer in your OWN words, DO NOT COPY from slides, fellow students, or internet sources without proper citation.

Q1. What is the difference between audit, attestation, and assurance services? And how do the answers provide value to stakeholders?

Your answer should have a minimum of 400 words. (5 Marks)

 

 

Q2. How can auditors effectively plan an audit in a dynamic and uncertain environment? Provide an example to describe your answer.

Your answer should have a minimum of 400 words. (5 Marks)

 

 

Q3. In your opinion, what are the benefits of assessing the effectiveness of internal controls over financial statements ICFR to the audit process, other than being a requirement of PCAOB?

Your answer should have a minimum of 300 words. (5 Marks)

Briefly explain the system factually with appropriate definitions and explanations. Explain the different transactions you can perform under this module.

/in /by

Accounting- Poster1

The poster should include the following:

  • Introduce and explain SAP: Briefly explain the system factually with appropriate definitions and explanations.
  • Transactions: Explain the different transactions you can perform under this module. ( with examples )
  • Advantages: Explain the advantages the company will get as a result of using this SAP module.

Consolidated financial statements present the financial position and results of operations for controlling entity and one or more controlled entities. ‘Consolidated Financial Statement has some advantages but at the same time it is not free from limitations.’ Elaborate this statement.

/in /by

Acct 302- 6469

  • Assume Large Corporation Invested $ 600,000 for Small Corporation and the estimated Fair Market Values of Assets, Liabilities and Equity Accounts are as follows:
              Assets Amount $ Liabilities Amount $
Account Receivable

Inventory

LT Marketable Securities

PP & E

 125,000

50,000

55,000

170,000

400,000

 

 Account Payables

Retained Earnings

Commons Stock

 180,000

120,000

100,000

 

400,000

 

Required:    (2+3 Marks)

  1. Determine the Amount of Goodwill or Bargain Purchase.
  2. What is the Journal Entry in the book of Large Corporation?

 

  • From the following Table pass Basic Elimination Entry under Equity Method in the book of Parent Company:        (5 Marks)
  Total

Book Value

 = Common

Stock

 + Additional

Paid in Capital

 + Retained

Earnings
Beginning Book Value

+ Net Income

–         Dividend

 600

 

200

(50)

 150 550 (100)

 

200

(50)
Ending

Book Value

 750 150 550 50

 

  • Consolidated financial statements present the financial position and results of operations for controlling entity and one or more controlled entities. ‘Consolidated Financial Statement has some advantages but at the same time it is not free from limitations.’ Elaborate this statement. (5 Marks)

What motives do people have for hacking? Why has hacking become so popular in recent years? Do you regard it as a crime? Explain your position.

/in /by

Accounting Information Systems

Assignment Question(s):     (Marks 15)

Question 1: (04 Marks)

Explain what an AIS is, describe the basic tasks it performs in an organization using examples of Saudi Companies.

 

Question 2:   (03 Marks)

Give examples of Saudi companies that using ERP and what are the advantages of implementing the ERP?

 

Question 3:  (04 Marks)

  • What motives do people have for hacking? Why has hacking become so popular in recent years?  Do you regard it as a crime?  Explain your position.

 

Question 4:    (02 Marks)

Describe at least four ways a company can make fraud less likely to occur.

 

Question 5:     (02 Marks)

Personal information about customers is collected, used, disclosed, and maintained only in compliance with internal policies and external regulatory requirements and is protected from unauthorized disclosure. With reference to Privacy Concern how would you deal with SPAM and Identify Theft problem of your business organization?

Calculate the normal cost to complete the project given that the fixed cost amounts to $150 per day. Management may be under pressure to finish the project within 27 days. What would be the minimum cost for the project in this instance?

/in /by

Network analysis

QUESTION 3

Munyash construction has tabled the following activities to be rolled out for the up-coming project in Midlands.

Activity Preceding Activity Normal time in days Crash time in days Normal costs S Crash costs $ A-B 5 3 650 850 A-C – 6 3 750 1 050 A-E – 8 7 950 1 050 B-C A 7 7 850 850 C-E A,B 11 8 1 250 1 550 B-D A,B 9 9 1 050 1 050 C-F A,B 10 10 1 150 1 150 D-F A,B,D 12 10 1 350 1 550 E-F A,B,C 13 10 1 450 1 750

Required:
a) Draw a network diagram and establish the Critical Path. (12 marks)

b) Calculate the normal cost to complete the project given that the fixed cost amounts to $150 per day. (4 marks)

c) Management may be under pressure to finish the project within 27 days. What would be the minimum cost for the project in this instance? (7 marks)