Q1. Differentiate between routine operating decisions and non-routine operating decisions with appropriate examples. Record all non-routine operating decisions and clarify any two decisions with appropriate examples.
Word: Your reply should embody numerical examples for every technique together with qualitative consideration.
Reply:
Q2. Suppose that you’re working in an organization as a price supervisor that has two help departments and two operating departments. Decide the whole division price and allocation base for these departments and allocate the help division price to the operating division based mostly on the next strategies: Assume you’re a price supervisor in an organization with two help departments and two operating departments. Decide the whole division price and allocation base for these departments, after which distribute the help division price to the operational division utilizing the methods listed beneath: (four Marks)
• The direct technique
• The step-down technique
Word: You might be required to imagine values of your individual they usually shouldn’t be copied from any sources.
Reply:
Q3. SFC Firm is within the manufacturing technique of wood merchandise and makes a number of wood gadgets. The next is the data associated to 3 merchandise manufactured by SFC firm: Product X, Y, and Z. The joint prices of the three merchandise in 2015 have been SAR 110,000. The whole variety of items for every product and the promoting worth per unit is given beneath:
Merchandise Items Promoting Value per unit
X 5,000 SAR 150
Y three,500 SAR 125
Z 2,200 SAR 100
Utilizing the bodily quantity technique and gross sales worth on the split-off technique, allocate the joint prices to every product:
Reply:
This fall. An organization is planning to arrange a finances for the yr 2017 and supplies you with the next data relating to the preparation of the finances:
Particulars Quantity
Budgeted promoting worth per unit $650 per unit
Whole fastened prices $155,000
Variable prices $175 per unit
You might be required to arrange a versatile finances for 500, 600, 700, and 800 items.
Reply:
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