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Posted: May 15th, 2022
How does risk impact decision-making?
Q1. How does risk impact decision-making? List the types of risk that impact business decision-making and provide suitable examples for each type of risk in the context of an organization.
(3 Marks)
Note: Your answer must include suitable examples for each type of risk. (Week 2, Chapter 1)
Answer:
Q2. Suppose that you are working in a company as a cost manager that is making a single product. Determine the following values of your own for this product: (3 Marks)
Selling price per unit
Variable cost per unit
Fixed cost
Target profit for next year
After determining the values for the above, find out:
Break-even point in units.
Break-even point in sales value.
Units needed to reach target pretax profit (as decided by you in your example).
Sales value required to reach target pretax profit (as decided by you in your example).
Note: You are required to assume values of your own and they should not be copied from any sources. (Week 4, Chapter 3)
Answer:
Q3. Critically analyze the differences between the “Account Analysis Method” and the “Two-Point Method” of estimating a cost function. Provide suitable examples for each method by assuming the values of your own.(3 Marks)(Week 3, Chapter 2)
Answer:
Q4. Referring to the concept of job costing in the manufacturing sector, identify how you will record the following journal entries:(3 Marks)
When raw materials are received.
When raw materials are sent to the factory floor.
When labor costs are incurred.
When a job is completed.
When a job is shipped to a customer.
Note: You must assume significant values for each transaction of your own and prepare the journal entries for each case. (Week 5, Chapter 5)
Answer:
Q5. Alpa Ltd. uses a process costing system for its sole processing department. There were 24,000 units in beginning WIP inventory for March and 216,000 units were started in March. The beginning WIP units were 60% complete and the 19,500 units in ending WIP were 40% complete. All materials are added at the start of processing.(3 Mark)
Required:
a) Compute the no. of units started & completed.
b) Compute the EUP for DM and CC using FIFO and WA methods.(Week 5, Chapter 6)
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