Assignment Question(s): (Marks 15)
Q1. Define in Your words
a. Cost Centre [0.5 mark]
b. Profit Centre [0.5 mark]
c. Investment Centre [0.5 mark]
Answer:
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:
[2 marks]
10 % of next month sales units. [2 marks]
Answer:
Q3. Karim Corporation is considering two alternatives that are code-named A and B. Costs associated with the alternatives are listed below:
Alternative A | Alternative B | |
Supplies costs | SAR 33 000 | SAR 33 000 |
Assembly costs | SAR 48 000 | SAR 51 000 |
Power costs | SAR 32 000 | SAR 22 000 |
Inspection costs | SAR 11 000 | SAR 27 000 |
Required:
a. Which costs are relevant and which are not relevant in the choice between these two alternatives? [2 Mark]
b. What is the differential cost between the two alternatives? [2 Marks]
Answer
Q.4 Karim Industries is a division of a major corporation. Last year the division had total sales of SAR 43,380,000, net operating income of SAR 4,828,980, and average operating assets of SAR 9,000,000. The company’s minimum required rate of return is 12%.
Required:
a. What is the division’s margin? [1 mark]
b. What is the division’s turnover? [1 mark]
c. What is the division’s return on investment (ROI)? [1 mark]
Answer
Q5. Karim Corporation is considering investing in a new piece of equipment for SAR 100,000 that will provide annual cash flows of SAR 20,000 per year for seven years. Calculate the cash payback period. [2.5 marks]
Answer
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
Recent Comments