Al Zahra College for Women Cost Accounting Assignment Help
Question 1: Provide brief written responses for the following questions
A) Define the cost accounting and identify 2 objected for cost accounting
Cost accounting is _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Objectives:
(1) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
(2) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
B) classify the cost according to :
1- nature: a) _ _ _ _ _ _ _ _ _ _ _ _ _ _ b) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2- Behavior: a) _ _ _ _ _ _ _ _ _ b) _ _ _ _ _ _ _ _ c) _ _ _ _ _ _ _ _ _ _ _
c) complete the following sentence:
1) ——- ——– —————–is the cash or cash equivalent value sacrificed for goods & service that are
expected to bring a current or future benefit to the organization.
2) ———– ————–product cost that can be feasibly identified with units of production.
3) ————- —————————sum of direct material and direct labor.
4) ———– —————sum of direct labor and OH.
5) —————- —————-any end to which a cost is assigned.
Question 2 :
A) Oasis training center in Murtfat al Matar charges OR200 per participant. The estimated fixed cost of
oasis for the period is OR 80,000. the variable cost per participant is expected to be OR 120, the variable
cost consist of printed materials, stationary and refreshments. As the consultant of Oasis , find out the
number of participants needed to break even in unit and in OR.
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B) Suppose that Super Bikes wants to produce a new mountain bike called Hero1 and has forecast the
following information:
Price per bike = $800
Variable cost per bike = $300
Fixed costs related to bike production = $55,000
We want you to help us to determine the needed bikes to break even in Q and $.
C) Suppose Rana company has two products, wallets (W) and key chain (K) , and the following
budget:
Wallet Keychain Total
Expected Sales 60 40 100
Revenue $200 & $100 per unit $12,000 $4,000 $16,000
Variable costs, $120 & $70 per
unit
$7,200 $2,800 $10,000
Contribution Margin, $80 & $30
per unit
$4,800 $1,200 $6,000
Fixed Costs $4,500
WHAT IS THE BEP FOR RANA, S COMPANY NOW?
D) Classification of costs can be made according to the following basis.
A. Classification according to elements B. Classification according to nature C. Classification
according to behavior (explain the 3 of it briefly).
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Q3: From the following information compute Raw Material requestioned cost and COGS.
Q4: compare between Gross Margin and Contribution Margin ?
Q5: The manager of food services trying to decide whether to rent a line of snack vending
machines. Although individual snack items have various acquisition (variable) costs and selling
prices. She decided that an average selling price of $1.50 per unit and an average acquisition
(variable) costs of 1.20 per unit will suffice for purpose of this analysis. She expected the
following revenue and expense relationship.
Q6: Ahmad company has total variable cost of 80% of total revenues and fixed cost of $20
million per year. There are 70.000 patient -day estimated for next year. What is the break-
even point expressed in total revenue?
Q7: fill in the blanks for each independent case
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Case SP per unit VC per unit Total unit sold Total CM Total FC Net income
1 $26 _ 125,000 $750,000 675,000 – 2 10 6 100,000 _ 320,000
3 21 18 63,000 49,000 __
Q8: Assume that SP is $.50 per unit , VC is $.40 per unit and FC is $6000 .Assume that target after tax is
$288, find the number of units to be sold to achieve the after tax income target of $288 is as follows and
tax rate is 40%:
Q8-1 if the target cost increase from $ 288 to $480 what is the new number of units ?
Q8-2 X company purchased a new piece of machinery to expand the production output of its top of the
line car model. They predicts sales revenue of $500,000 . Fixed cost is $ 300,000 and CM % is 75%
how much margin of safety?
Q8-3 X company purchased a new piece of machinery to expand the production output of its top of the
line car model. They predicts sales revenue of $600,000 . Fixed cost is $ 300,000 and CM % is 75%
how much margin of safety?
Q8-4 Suppose a Holiday Inn Hotel has annual fixed costs applicable to its rooms of $1.2 million for
its150-room hotel, average daily room rents of $50, and average variable costs of $10 for each room
rented. It operates 365 days per year. The amount of net income on rooms that will be generated if the
hotel is completely full throughout the entire year is _.
Q8-5 What is the BEP in $ for Z-Boxes company if you know the CM% = 60% and the total FC are $1,200,
000.
Q9. X Hospital has total variable costs of 80% of total revenues and fixed costs of $20 million per year.
There are 70,000 patient-days estimated for next year. What is the break-even point expressed in total
revenue?
a. $100 million is the break-even point.
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b. $10 million is the break-even point.
c. $12.5 million is the break-even point.
d. None of these answers is correct.
Q9.1: If the sales price per unit is $34, the unit variable cost is $19, and the break‑even point is 12,000
units, then the total fixed costs are . a. $340,000 b. $190,000 c. $180,000 d.$530,000 Q9.2: Al Rustaq Company currently sells 19,000 units. Total fixed costs are $84,000, and the contribution margin per unit is $6.00. al- Rustaq’s tax rate is 40%. The margin of safety in units is .
a.3,000 units b. 5,000 units c.7,500 units d.14,000 units
Q9.3: _ is the ratio of fixed costs to variable costs a. Contribution margin b. Break-even point c. Operating leverage d. The margin of safety Q9.4 : is a range of activity over which a variable cost per unit remains constant or a fixed cost
remains fixed in total.
a. Margin of Safety b. BEP c. Operating leverage d. Relevant Range
Q9.5 : is the excess of sales over the cost of goods sold.
A. Gross margin B. contribution-margin ratio C. variable-cost ratio D. The sales mix
Q9.6 is the relative proportions or combinations of quantities of products that comprise total
sales.
a. Sales mix b. Gross margin c. Contribution-margin ratio d. Variable-cost ratio
Q9,7 a firm’s ratio of fixed and variable costs
a. Contribution margin b. Break-even point c. Operating leverage d. The margin of safety
Q9.8 If total fixed costs are $84,000, contribution margin per unit is $6.20, and targeted after‑tax net
income is $18,000 with a 40% tax rate, then the number of units that must be sold is _.
a. 14,223 units b. 17,853 units c. 18,387 units d.21,504 units
Q9-9: complete the following sentence
_ _ _ _ _ is a cost attribution to cost units on the basis of benefit received from indirect activities.
An activity is an event that incurs costs.
_ _ _ _ _ _ is defined as anything for which a separate measure of cost is desired/required.
_ _ _ _ _ _ _ _ _ _ : The overheads cost allocated to a distinct type of activity or related activities.
_ _ _ _ _ _ _ is any factor or activity that has a direct cause and effect relationship with the
resources consumed.
_ _ _ _ _ _ _ _ An item of production or a service for which it is useful to have cost information.
_ _ _ _ _ _ _ _ _ : The process of identifying, analyzing, summarizing, recording and reporting costs associated with business operations. _ _ _ _ _ _ _ _ Those costs that are directly associated with the manufacturing process.
Indirect/overheads costs: Those costs that are not directly identifiable with a unit of production.
Q9.10 Write down 3 advantages and disadvantages for ABC system