ACCT 301 Activity Based Costing Method Questions
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ACCT 301 Activity Based Costing Method Questions
Q1. Examine with suitable examples, how “organization strategy provides a valuable contribution in achieving organization vision?” Give an example of a Saudi company and assess two examples of organizational strategies and operating plans.
Q2. X Ltd. manufactures plastic products and sells them for SAR 350 per unit. The firm’s variable cost per unit is SAR 90, while its total fixed costs are SAR 110,000. The company expects to sell 1,800 units in the coming year. Calculate the following:(2 Marks)
Degree of operating leverage
Margin of safety in units
Margin of safety in SAR value
Margin of safety in percentage
Q3. What is regression analysis and how does it help in estimating a cost function? Interpret your results with a numerical example.(2 Marks)
Answer:
Q4. A plastic product is manufactured by SLT Company. For total costs, the company estimates the cost function. The number of units is the cost driver. The following details were gathered:
(2 Marks)
Month Units Total Cost (SAR) March 4,370 44,300 April 4,680 44,600 May 5,000 45,000 June 5,300 45,400 July 5,600 47,500 August 5,900 57,500 September 3,400 40,000 October 4,100 40,625 Use the high-low analysis method and answer the following:
Calculate Variable Costs and fixed costs.
Determine the cost function
Q5. The following information is related to CTH Corporation which manufactures a single product: (2 Marks) Selling price per unit: SAR 800 Variable cost per unit: SAR 240 Total fixed cost: SAR 400,000 You are required to calculate: a) Contribution margin per unit and contribution margin ratio. b) The break-even point in units and break-even point is sales value SAR. c) Pretax profit of the company if it sells 1,400 units of the product. d) The number of units required to sell to reach a target pretax profit of SAR 200,000?
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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ACCT 301 Activity Based Costing Method Questions