Cost AccountingABS – BBA
Assignment
STUDENT ID
UNIT TITLE:
___________________________________________________
NAME (in Full):
___________________________________________________
GENERAL INSTRUCTIONS
•
All assignments are to be submitted on 4th July 2024 on
https://lms.atmsstudentgateway.com/
•
Any Assignment submission extension request must come to Azra Fatima (Head:
Examination | Academic) afatima@atmsedu.org 5 days before the date of submission
with a valid reason and supported documentary evidence.
•
APA 7th edition referencing guidelines need to be followed.
• Similarity between student’s work is strictly not accepted, any student found with similar
work will be graded Zero and fail for the course. However, Plagiarism is an academic
offence and will not be tolerated.
• Any revaluation request should come in 5 days of grade release. Any late request will
not be obliged. (Form and other details shall be shared based on request)
• Revaluation cannot be requested for plagiarized assignments as the assignment stands as an
academic misconduct.
• If a program participant submits the assignment late, but within 1 week after the
submission date a 20%penalty will be applied.
• Re-evaluation request is NOT applicable for any failed courses provided the mark ranges
from 59 to 69. Any grade which is below the range is, however, not applicable for this
request.
• Any rescheduling request can be fulfilled within one week after the actual date of the
assessment. Any late request will not be obliged.
• Assignment once submitted to exam board is final for marking.
• Second extension cannot be provided without supporting documentary evidence. Program
participants are strongly advised to keep a copy of their work in case the submitted copy
should go astray.
PS. Kindly note to adhere to all the above instructions. Failing to read this, ATMS will not be
responsible for any actions taken.
Total Marks _/ 90
PLAGIARISM
Plagiarism is defined as providing material from an uncredited source, or without the acknowledgement of
the original author. For longer submissions and reports, students are required to provide an Assignment
Cover Sheet, which states that submission is their original work, and has not been submitted for another
assignment, either in that course, or another
Plagiarism may have many forms including but not limited to:
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Outright copying another author’s work without acknowledgement
Cut and paste without the correct citation and acknowledgement.
Copying key words but changing the sentence structure without
crediting the original source
Copying the sentence structure but changing some words without
crediting the original source
Following the structure or organization of another author’s work, or
order of presentation of ideas
Submitting work that was created by an unacknowledged third party (i.e.,
writing service, or another student)
Copying from published authorities without acknowledgement
Failure to correctly use quotation marks when expressing another author’s idea
Incorrect or improper use of in-text citation and referencing
Missing or incorrectly presented bibliography or reference list
Pretending ownership of another author’s ideas
Making work available to another person for copying
Falsifying results
The plagiarism tolerance for MBA is 8 %.
In cases where the plagiarism percentage exceeds the tolerance, students are given a second
chance to rework on their assignments and submit. However, if the percentage continues to
exceed the tolerance percentage the student will be awarded one grade lower than the original
grade achieved.
Question 1
Critically evaluate and discuss the role of Management and Cost accounting in decision making
for a business?
(10 marks)
Question 2
Outline and explain three types of cost classification and why their behaviour is important for
the following types of business:
High Volume, low margin e.g. a fast-food business; and
Low volume, high margin. e.g. a luxury goods manufacturer
Explain which of the above will be more concerned with identifying variable costs and which
will be more concerned with covering fixed costs?
(10 marks)
Question 3
The Financial Manager of the Grand KSA Hotel has prepared the following flexed budget for
2024. The Grand KSA is a large hotel, which can provide up to a maximum of 48,000 guest
nights per year.
Capacity
No of Guests
30,800
38,200
42,600
AED
AED
AED
Direct Costs
770,000
955,000
1,065,000
Selling overhead
2,386,800
2,719,000
2,917,000
Administration overhead
1,500,000
1,500,000
1,500,000
Total Cost
4,656,800
5,174,000
5482
Due to the recent excessively hot weather, the Sales Manager has suggested that 46,000
guests is a more realistic target for 2024. Based on this, what are the expected total costs for
2024?
(5 marks)
Critically evaluate why flexing the budget is so important in the planning and control process?
(15 marks)
Question 4
Birds Ltd
Bird Ltd makes 3 types of products: Pidgeon, Dove and Sparrow. Extracts from the budget for
the next year are as follows:
Pidgeon
Dove
Sparrow
1,000
1,500
2,000
Pidgeon
Dove
Sparrow
AED
AED
AED
Selling price
87
170
154
Materials
15
40
30
Demand and production (units)
The following information is per unit of each product
Per unit
Labour
Variable overhead
20
50
12
40
30
24
Labour will be paid at AED 10 per hour
The company expects the total fixed cost budget to be £120,000
Required:
Part (a).
It has now been realised that there will only be 15,000 labour hours available next year.
Calculate the production plan that will maximise profit for Bird Ltd for the next year. State
what that plan will be (All workings must be shown)
(15 marks)
Part (b)
Alternativelythe company is interested in ONLY producing the product with the highest gross
profit.
Calculate which product has the highest gross profit.
What would be the Break Even Point?
Can the company cover its fixed cost with the existing demand? How many products would
the company need to sell to make 50,000 profits?
(10 marks)
Question 5
Bahrain Trading Co. is preparing budgets for next year.
Sales
Selling price per unit
240,000 units
£1000
Opening stock of finished goods
28,000 units
Closing stock of finished goods
20,000 units
Direct labour
£15 per hour
Direct labour hours
4 hours per unit
Prepare the following budgets:
1. Sales revenue budget
2. Production units’ budget
3. Labour hours and cost budget
(15 marks)
Question 6
A) When comparing actual results with the forecast/budget, evaluate and explain why it is
necessary to ‘flex’ the budget for the actual output?
(5 marks)
B) What is meant by the term margin of safety when calculating the break-even point for
a product? Is this the same as the profit margin?
(5 marks)
Total 90 Marks.
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