Assignment Question(s): [100 marks]
Q1. Discus how static budget failed to analyze cost and revenues variances and how flexible budget has overcame static budgets’ deficiencies and explain how does the flexible budget actually work?
[15 marks]
Note: do not copy and paste from other sources, you can use other sources but formulate your own answers.
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:
a. Prepare Sales budget for April, May & June assuming selling price per unit is SR 15.
[10 marks]
b. Prepare production budget for April, May & June if the company wishes ending inventory as
10 % of next month sales units. [10 marks]
Q3.Oraby Industries is a division of a major corporation. Last year the division had total sales of SAR 23,380,000, operating income of SAR 2,828,980, and invested assets of SAR 10,000,000.
Required:
a. What is the division’s profit margin? [5 marks]
b. What is the division’s investment turnover? [5 marks]
c. What is the division’s return on investment (ROI) using DuPont formula? [5 marks]
d. What is the residual income if investors require a minimum return of 20%? [5 marks]
Q4. Taha Company produces joint three products: Product A, Product B, and Product C.
During the year, joint costs of processing the three products were SAR400, 000. The following information were given to you as follows:
Product
Units
Produced
Selling price per unit at split-off point(SR)
Expenses per unit after split-off point ( (SR)
Selling price per unit after split-off point(SR)
A
400,000
20
20
40
B
400,000
18
15
28
C
800,000
12
14
17
Required:
a. Allocate the joint costs using the physical output method. [15 marks]
b. Allocate the joint costs using the net realizable value method. [15 marks]
c. Allocate the joint costs using sales value at split-off point method. [15 marks]
2
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more