Question Description
Q1 Give example of company using ABC costing and explain the process used in this company to assign costs in an ABC system? (Week 7: Chapter 7, ABC costing)
Answer:
Q 2 Give examples of questions managers could ask to help them identify relevant qualitative factors that will be used before making decision? (Week 9: Chapter 4, Relevant information for decision making)
Answer:
Q 3 Kadhim Co. manufactures product B which is a part of its main product. Kadhim Co makes 50,000 units of product B per year. The production costs are detailed below. An outside supplier has offered to supply 50,000 units of product B per year at $ 2.45 each. Fixed production cost of $ 40,000 associated with the product B are unavoidable. Should Kadhim Co make or buy the product B?
The production cost per unit for manufacturing a unit of product B are:
Direct Materials |
0.85 |
Direct Labor |
0.65 |
Variable Manufacturing Overhead |
0.40 |
(Week 9: Chapter 4, Relevant information for decision making)