BAAC 2204 Modern College of Business and Science Accounting Management Study Cases seeee file attached …………………………………………….

BAAC 2204 Modern College of Business and Science Accounting Management Study Cases seeee file attached ………………………………………………………………. HIGHER COLLEGE OF TECHNOLOGY
DEPARTMENT: BUSINESS STUDIES
Final Examination
Assignment Based Assessment
Semester: II
A. Y.: 2019 / 2020
Diploma: II Year
Start Date: 04.06.2020
Time: 9:00 AM
Due Date: 06.06.2020
Time: 9:00 AM
Student Name
Student ID
Specialization
Section
Accounting
Level
Diploma II Year
Course Name
MANAGEMENT ACCOUNTING 1
Course Code
BAAC2204
For official Use Only
Question No.
Max. Marks
CS 1 – Q1
CS 1 – Q2
CS 2 – Q1
CS 2 – Q2
CS 2 – Q3
CS 3 – Q1
CS 4 – Q1
CS 5 – Q1
CS 5 – Q2
CS 5 – Q3
Grand Total
Marks
5
5
5
5
5
5
10
4
4
2
Obtained
Marks
Question No.
CS 1 – Q1
CS 1 – Q2
CS 2 – Q1
CS 2 – Q2
CS 2 – Q3
CS 3 – Q1
CS 4 – Q1
CS 5 – Q1
CS 5 – Q2
CS 5 – Q3
50
Max.
Marks
5
5
5
5
5
5
10
4
4
2
50
First Marker:
Second Marker:
Date:
Date:
Obtained
Marks
Guidelines for Students to Submit the Assignment:
1) The final assessment for semester 2, 2019-20 will be done through comprehensive
assignment for a maximum of 50 marks. The schedule of the final assessment is available
in the college website.
https://www.hct.edu.om/about/the-college/announcements/final-assessment-timetable041620
2) All the students are expected to have only one assignment at one time. In case, if the
students have more than one assignment on the same day, please report to the exam
committee through the following mail id. exam.bus@hct.edu.om as soon as possible.
3) All students are given 48 hours to complete and submit each assignment from the day, date
and time the assignment is uploaded. Students are advised not to wait till the last moment
of the deadline to submit the assignment.
4) The students can check the assignment anytime and any number of times from the opening
of the assignment. The answer to the assignment needs to be uploaded in e-learning within
48 hours.
5) The answer to the assignment can be uploaded only one time. No requests for
resubmission of the assignment will be entertained.
6) The students may contact the following mail Ids if they face any difficulties while related
to final assignment.
For Academic related support :
Business Courses
anand.kalimani@hct.edu.om
karri.krishna@hct.edu.om
For Technical Writing 1
ramil-ecot@hct.edu.om
For Technical Writing 2
khulood.aiadi@hct.edu.om
For Technical Communication
jocelyn.balili@hct.edu.om
For issues related to e-mail
accounts and Microsoft Teams
office365support@hct.edu.om
Any issues related to E-Learning
Moodle
support.elearning@hct.edu.om
Any other IT Troubleshooting
helpdesk2@hct.edu.om
7) Student may contact their respective lecturer through email (within the 48-hour period
given) if they have any doubts and clarifications on the assignments.
8) Student should be aware that this assignment is an independent assessment. Students are
not allowed to get help from any other person during the assessment period.
9) Student’s assignment will be checked for plagiarism through Turnitin software. This
assignment will be assessed as per the College Assessment Policy. Student will be
investigated in case of plagiarism as per the College policy and procedures.
10) In case the students face any technical issues regarding the submission of assignment, the
answer to the assignment can be mailed to the concerned lecturer within the 48-hour period.
11) Any assignment submitted after the 48-hour period will not be considered for evaluation.
12) The assignment should be submitted only the file in MS Word document. No other format
is acceptable at all (e.g. pictures, JPEG, PDF, etc.).
13) The students need to answer the assignment in the prescribed number of words as
mentioned in the assignment.
14) The students need to follow the following format while preparing the assignment:
Font Style: Times New Roman
Font Size: 12 point for body and 14 point for Headings
Line Spacing: 1.5
Margin: 2.54cm (One inch) on all the sides
Page Number: At the bottom right hand corner of each page
Colour: All words should be in black colour
15) Students who will fail to submit their assignment as per the deadline given are required to
make an online appeal along with the valid excuses as the guidelines which will be
announced through the college website or e-learning portal.
Case Study 1
The management in Unilever plant in Ontario is preparing for a change. The company plans to
improve energy efficiency to help manage rising and unpredictable energy prices. The plant
produces margarine and other vegetable oil products. The cost of energy represents 15% of all
production costs. The company expects that the cost will increase further in the coming years, as
the energy price are expected to increase further. To meet an aggressive goal of reducing energy
consumption by at least 6% per year, the plant’s energy team has implemented, and carefully
documented, 120 projects since 1999, saving more than OMR 4.2 million in costs (based on 2012
prices), and avoiding about 23,000 tons of greenhouse gases.
One of the solutions was to invest in new technology – a Reverse Osmosis (RO) system that would
enable significant, measurable improvements in the efficiency of the steam plant operations. In the
first year of operation, Unilever calculated that the project would lead to net savings of RO 378,166
(based on 2012 prices), even after accounting for the full cost of operating and maintaining the RO
system. It is expected that the technology will pay for itself in less than 16 months.
Based on the above case, answer the following questions.
Question: a. Briefly explain the role of management accountant in the above case. (The answer should
explain the functions of management accountant).
[3 Marks]
b. Do financial accountant and cost accountant have a role to support management in the
above case? Explain.
[2 Marks]
Question: a. What type of information is required for the junior level, middle level and top-level
management in the above case, for decision making?
[5 Marks]
Case Study 2
Fahmy Furniture, LLC is producing different range of furniture such as sofa set, cupboard, dining
table set and showcases.
Assume you are senior accountant of Fahmy Furniture, LLC and comparing between both the
methods of costing absorption and ABC system on the basis of following information:
Production detail: In the month of June Company expected to produce 50 units of sofa set; 75 units of cupboard; 125
units of dining table set and 25 units of showcases.
Overheads, Activity and Cost Driver Details: (i)
The overhead costs on production incurred RO 15,000. Machines run 2,500 hours (800
hours for sofa sets; 400 hours for cupboard; 600 hours for dining table set; 700 hours
for showcases.
(ii)
The overhead costs incurred on set-up RO 8,000. Number of set-up used 150 times (40
times for sofa sets; 30 times for cupboards; 45 times for dining table sets; 35 times for
showcases.
(iii)
The overhead costs on assembly on material incurred RO 5,000. Labor on assembly of
materials worked for 3,000 hours; 900 hours for sofa set; 600 hours for cupboards; 700
hours dining table sets; 800 hours for showcases.
(iv)
The overhead costs incurred on packaging RO 3,400. It is incurred for all brands such
as sofa sets, cupboard, dining table sets and showcases.
(v)
The overhead costs incurred on delivery RO 2,200. It is incurred for all brands such as
sofa sets, cupboard, dining table sets and showcases.
Note: – Labor hours given for assembly of materials will be the basis of apportionment and other
calculation.
Prime Cost Details: (i)
RO 75.00 per unit on direct materials and RO 50.00 per unit on direct labour paid for
sofa set.
(ii)
RO 25.00 per unit on direct materials and RO 15.00 per unit on direct labour paid for
cupboard.
(iii)
RO 35.00 per unit on direct materials and RO 25.000 per unit on direct labour paid for
dining table.
(iv)
RO 50.00 per unit on direct materials and RO 35.0 per unit on direct labour paid for
showcases.
Requirements: 1. Calculate total cost and cost per unit of each brand of furniture by applying absorption
costing.
[5 Marks]
2. Calculate the total cost and cost per unit of each brand of furniture by applying ABC
system.
[5 Marks]
3. Calculate the selling price by adding 30% mark up on cost for each product. Also, analyze
over costing and under costing for each brand.
[2.5 + 2.5 Marks]
Case Study 3
Mohammed LLC Trading Company has produced 15,000 units which is 50% capacity level in the
factory. The company has used raw material to make the production worth of RO 65 per unit. The
company has incurred direct labour cost at RO 32 per unit along with direct expenses RO 25 per
unit. The company spent RO 150,000 on fixed expenses in the factory with per unit cost of RO 10.
Other factor expenses for the total production of 15,000 units has arrived at RO 8 per unit.
Administration expenses were incurred RO 5 per unit and fixed expenses belongs to 65%.
Company has appointed a salesman for selling the products produced in the company at RO 9 per
unit produced out of which 20% belongs to fixed. The company has also incurred distribution
expenses of RO 7 per unit out of which 40% are variable.
Requirements: The company has approached the you and ask to prepare the flexible budgets for
two more required capacity levels; 1. 20,000 units and
[2.5 Marks]
2. 30,000 units
[2.5 Marks]
Case Study 4
Husam Trading Company is in the business of buying and selling of different types of electronics
products in Nizwa region and provided the following data to understand the cash position every
month start from January to July. The sales book reported the sales amount for seven months as
below: January
February
125,000
135,000
March
April
May
June
148,200
175,800
125,900
129,100
July
115,200
The sales reported every month including cash sales and credit sales. Cash sales constitute 50% of
total sales collected in the month of sales and the balance is credit sales received in two months
following the month of sales.
The detail of goods purchased in cash during seven months reported in purchase book as below: January
February
10,000
12,000
March
14,000
April
16,000
May
18,000
June
20,000
July
22,000
Company also purchased goods on credit from different suppliers. The detail of credit purchase
from the month January to July is given below: January
February
78,500
68,750
March
April
62,500
72,600
May
59,800
June
July
49,600
55,000
Cash purchases payable in the month of purchases and credit purchases are payable to supplier in
two months following the month of credit purchase.
It is also found from the accounting records that the company purchased plant and equipment for
RO 15,000 in the month of March and it is payable in three equal instalments starting from April.
Tax department has sent a notice to the company to pay taxes of RO 2,000 each in the month from
May, June and July.
The wages and office expenses are paid in the month following the month in which wages and
office expenses incurred. The detail of wages and office expenses is given below: January
February
March
April
May
June
July
Wages
8,000
7,500
6,500
7,980
6,500
8,900
6,600
Office Expenses
5,000
5,750
5,850
5,500
7,500
2,300
4,500
The selling expenses of the company recorded for the seven months are as follows: January
February
3,850
2,500
March
April
6,500
5,500
May
6,500
June
3,300
July
4,500
The company also incurred administrative expenses for the period January to July. The detail of
administrative expenses is given as below: January
February
3,500
2,200
March
4,500
April
1,600
May
3,300
June
3,000
July
2,300
The company is paying the selling expenses in one month following the month in which such
expenses incurred and administration expenses in two months following the month in which such
expenses incurred.
The cash balance as on 1st April is RO 27,500.
Requirement: The Company has requested you to prepare Cash budget for the period of April to
June.
[10 Marks]
Case Study 5
Ahmed Company Ltd. is a wholesaler of electrical parts in Sharqiyah region. The following
information is furnished by company in order to assess its performance by using different ratios
for the year 2019: Company started its business with a share capital and debts of RO 2,000,000 consisting of 160,000
shares of RO 10 each and bank loans RO 400,000. Company’s assets including building worth RO
900,000, machinery worth RO 135,000, cash available in the office RO 42,500 and at bank
135,500. At the end of 2019, the inventory reported worth RO 134,750. Later in the year company
purchased furniture worth of RO 20,450. In the year 2019, company has made the sale of RO
1,350,400 by incurring cost of goods sold RO 690,250 and operating expenses RO 320,500. The
income from other sources reported RO 15,800. Company paid interest of RO 8,400 on bank loans
in the year 2019. The total outstanding expenses and accounts payable reported RO 4,400 and RO
124,500 at the end of the year 2019.
Company also paid taxes at 15% on net profit. The dividend declared and paid 9.5% on PAT. The
market value of the shares at the end of the year RO 13.250 each.
Requirements: – Calculate the following ratios: a. Shareholder’s Ratios by showing all required calculations and formulas.
[4 Marks]
b. Profitability Ratios by showing all required calculations and formulas.
[4 Marks]
c. Current and Quick Ratio by showing all required calculations and formulas.
[2 Marks]

Purchase answer to see full
attachment