Category: Accounting

Using American resources complete the foloowing discussion post
The following is based on a case from your textbook:
Forestcrest Woolen Mills is a closely held North Carolina company that has existed since 1920. The company manufactures high-quality woolen cloth for men’s and women’s outerwear. Your firm has audited Forestcrest for 15 years.
Five years ago, Forestcrest signed a consent decree with the North Carolina Environmental Protection Agency. The company had been convicted of dumping pollutants (such as bleaching and dyeing chemicals) into the local river. The consent decree provided that Forestcrest construct a water treatment facility within eight years.
You are conducting the current-year audit, and you notice that there has been virtually no activity in the water treatment facility construction account. Your discussion with the controller produces the following comment: “Because of increased competition and lower sales volume, our cash flow has decreased below normal levels. You had better talk to the president about the treatment facility.”
The president (and majority shareholder) tells you the following: “Given the current cash flow levels, we had two choices: lay off people or stop work on the facility. This is a poor rural area of North Carolina with few other job opportunities for our people. I decided to stop work on the water treatment facility. I don’t think that the state will fine us or close us down.” When you ask the president if the company will be able to comply with the consent decree, he informs you that he is uncertain.  
In your discussion posting, address the following points:
Discuss the implications of this situation for the audit and audit report.
Would your answer change if these events occurred in the seventh year after the signing of the consent decree? Why or why not?
As an audit practitioner, what are some other ways that you might evaluate a client’s environmental obligations and responsibilities?

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.

3028.1.1 : Tax Planning
The graduate applies knowledge of tax laws for planning and compliance purposes.
3028.1.2 : Multijurisdictional Tax Issues
The graduate analyzes the impact of multijurisdictional taxes including federal, state, local, and international taxes.
3028.1.4 : Federal Taxation of Property Transactions
The graduate determines the proper tax treatment for business transactions such as capital gains, the sale of a residence, and gifts.
3028.1.6 : Tax Return Preparation
The graduate prepares federal tax returns with IRS forms, schedules, and related reporting requirements.
INTRODUCTION
This task will allow you to apply your tax knowledge to a real-world tax scenario. To complete this task, you will generate and submit Form 1040 with all supporting forms, schedules, and statements. The tax forms required to complete this task need to be retrieved using tax software. Intuit ProConnect can be accessed through the “Intuit ProConnect Registration and Log-In” web link.
You may use the “IRS Forms and Publication” web link as a reference.
Please reference the attachment “Intuit ProConnect Tax Software Log-In Instructions” for help creating an Intuit ProConnect account.
SCENARIO
Basic Information
•   Jack and Judith Aollinger have hired you to prepare their 2021 federal income tax return.
•   Jack is a self-employed artist with a studio at the Aollinger’s home, address: 1234 Main St., Key West, FL 33040.
•   Jack has provided the spreadsheet titled “Artist Studio” for his business in the “Client Organizer Aollinger” attachment.
•   Jack properly accounted for all art income in his bookkeeping system.
•   As you help the Aollingers with their taxes, use tax methods that minimize taxable income.
•   Jack and Judith’s Social Security numbers (SSN) and date of birth (DOB) are as follows:
•   Jack: SSN 500-00-1003; DOB 6/27/1966
•   Judith: SSN 543-21-0986; DOB 9/18/1973
Judith’s Income
•   Judith works full time for Imelda Company, an architectural firm and S corporation.
•   She owns 20% of the company and her basis in stock is zero.
•   Imelda Company’s tax ID is 12-3456789 and is located at 4801 South Commercial, Key West, FL 33040. Judith’s W-2 for 2021 listed her earnings as $78,000 in wages, of which $19,500 was withheld for federal income tax, $4,836 for Social Security tax, and $1,131 for Medicare tax.
•   She also received a K-1 from the company for 2021. The K-1 lists the following items:
•   Line 1: Ordinary business income: $35,567
•   Line 11: Section 179 deduction: $9,000
•   Line 13 A: Charitable contributions: $450
•   Line 16 A: Post-1986 depreciation adjustment: $9,791
•   Line 17 C: Nondeductible expenses: $560
Children
•   The Aollingers have three children:
•   Janey: SSN 345-67-8901; DOB 7/1/2003
•   Johnny: SSN 234-56-7891; DOB 2/4/2011
•   Jeremy: SSN 456-78-9012; DOB 9/30/2015
•   Janey is a full-time student at a local college, Strime Institute. Strime Institute’s EIN is 12-3458888 and the address is 1 Florida Orange Lane, Sunshine, FL 33040.
•   Janey is a dependent of her parents, so she received a Form 1098-T with a Box 1 amount of $4,800.
•   Jeremy goes to a day care after school at Ms. Sophia Garcia’s home located at 123 Balmy Drive, Key West, FL 33040.
•   Ms. Garcia’s SSN is 541-77-7777.
•   The Aollingers paid Ms. Garcia $4,500 in 2021.
•   The couple also paid their son Johnny $2,000 to watch Jeremy while school was out during the summer.
The Mother
•   Judith’s mother, Mary Renault, lived with the family until November 2021.
•   Mary’s income was a $112 monthly pension and $660 in Social Security benefits, after deductions for full Medicare health insurance coverage.
•   Her SSN is 123-12-4567, and her DOB is June 25,1935.
•   Mary’s social security benefits were deposited directly to a savings account, which she did not spend.
•   Mary spent her pension income as she chose and did not reimburse Judith for any of the costs associated with her stay.
•   Judith paid more than 50% of Mary’s support for the year.
Health Insurance
•   Judith’s employee health insurance plan covered her and the three children.
•   The total cost for insurance was $13,000 for the year.
•   During 2021, Judith paid $3,400 in medical expenses through her health savings account (HSA).
•   Jack enrolled in a Health Insurance Marketplace high-deductible health insurance plan and paid $1,385 per month from January 2021 through August 2021.
•   Jack’s 1095-A reflects a marketplace identifier of 500001003FL, his marketplace assigned policy number is 500001003FLJ and his policy issuer’s name is Alliah.
•   He also received an advance payment of premium tax credit in the amount of $1,454 per month from January to August. When he signed up through the Marketplace, Jack underestimated his income and therefore received too large of a subsidy from January 2021 through August 2021.
•   On September 1, 2021, Jack changed to a private high-deductible health insurance plan that covered him for the rest of the year.
•   This private plan cost $1,385 per month for September, October, November, and December 2021, but it was not listed in his bookkeeping.
Residence
•   The couple rents out a former home at 3456 Abbey Road, Key West, FL 33040.
•   They purchased the house on November 30, 2005, and lived in it until March 20, 2018, when they began renting the property.
•   The property was rented for all of 2021 with a total income of $14,400.
•   When the Aollingers purchased the house and land in 2005, they paid $175,000.
•   The value of the land at that time was $40,000. At the time the house was rented, the estimated fair market value (FMV) minus the land was $135,000.
•   The home is 1,330 square feet. The mortgage interest is $5,850, and real estate taxes are $3,200 for the year.
•   The current family home was purchased on March 21, 2018, for $320,000 for the house and land combined.
•   They believe the land was worth $90,000 at that time.
•   The home is 2,850 square feet with a sunroom Jack uses as his studio. The sunroom is 320 square feet.
•   The Aollingers received Form 1098: Mortgage Interest Statement from the Bank of Southern Savannah with a Box 1 amount of $14,400. Real estate taxes on the home were $4,100.
Dividends
•   Judith received the following dividends from two companies during 2021:
Qualified Ordinary
Whole Pine, Inc.
$140
$140
West Florida Electric Power
$100
$113
•   Judith purchased 2,000 shares of Whole Pine Inc. stock on July 31, 2009, at $14 per share. She sold them on June 30, 2021, at $20 per share and paid a $49 transaction fee.
•   The couple had a long-term capital loss carryover from their 2020 tax return of $23,000.
•   The couple would like to contribute the maximum amount to their HSAs during the year. Additionally, Jack contributes 25% of his Schedule C net earnings to a SEP IRA.
Tax Payments
•   For his art studio, Jack made estimated tax payments of $300 per quarter. All tax payments were made on time.
•   The Florida sales tax rate is 6%, and the local sales tax rate for Key West is 1.5%.
•   See the attachment “Client Organizer Aollinger” for income and expense details.
REQUIREMENTS
Your submission must be your original work. No more than a combined total of 30% of the submission and no more than a 10% match to any one individual source can be directly quoted or closely paraphrased from sources, even if cited correctly. The similarity report that is provided when you submit your task can be used as a guide.
You must use the rubric to direct the creation of your submission because it provides detailed criteria that will be used to evaluate your work. Each requirement below may be evaluated by more than one rubric aspect. The rubric aspect titles may contain hyperlinks to relevant portions of the course. 
Tasks may not be submitted as cloud links, such as links to Google Docs, Google Slides, OneDrive, etc., unless specified in the task requirements. All other submissions must be file types that are uploaded and submitted as attachments (e.g., .docx, .pdf, .ppt). 
A.  Complete Form 1040 for the Aollingers’ 2021 federal income tax return, using the information from the scenario and the attached “Client Organizer Aollinger” spreadsheet. Include all supporting forms and statements.
Note: Please save the entire return as a .pdf file and submit that file. Worksheets are not included in the IRS submission and therefore do not need to be included.
1.  Provide the dividend information on Form 1040 by doing the following:
a.  Complete Line 3a “Qualified dividends” using the correct information.
b.  Complete Line 3b “Ordinary dividends” using the correct information.
2.  Provide the completed Schedule 1 of Form 1040 by doing the following:
a.  Complete Line 3 “Business income or loss” using the correct information.
b.  Complete Line 13 “Health savings account deduction” using the correct information.
c.  Complete Line 16 “Self-employed SEP, SIMPLE, and qualified plans” using the correct information.
d.  Complete Line 17 “Self-employed health insurance deduction” using the correct information.
3.  Provide the completed Schedule 2 of Form 1040, Schedule 2 by doing the following:
a.  Complete Line 2 “Excess advance premium tax credit repayment” using the correct information.
4.  Provide the completed Schedule 3 of Form 1040 by doing the following:
a.  Complete Line 13g “Credit for child and dependent care expenses” using the correct information.
b.  Complete Line 3 “Education credits” using the correct information.
B.  Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized.
C.  Demonstrate professional communication in the content and presentation of your submission.
File Restrictions
File name may contain only letters, numbers, spaces, and these symbols: ! – _ . * ‘ ( )
File size limit: 200 MB
File types allowed: doc, docx, rtf, xls, xlsx, ppt, pptx, odt, pdf, csv, txt, qt, mov, mpg, avi, mp3, wav, mp4, wma, flv, asf, mpeg, wmv, m4v, svg, tif, tiff, jpeg, jpg, gif, png, zip, rar, tar, 7z
RUBRIC
A: FORM 1040:
NOT EVIDENT
The Form 1040 is not provided.
APPROACHING COMPETENCE
The Form 1040 is missing 1 or more supporting forms and statements.
COMPETENT
The Form 1040 is complete with all supporting forms and statements.
A1A: LINE 3A:
NOT EVIDENT
Line 3a is not completed.
APPROACHING COMPETENCE
Line 3a is complete but the number provided is incorrect.
COMPETENT
Line 3a is complete and the number provided is correct.
A1B: LINE 3B:
NOT EVIDENT
Line 3b is not completed.
APPROACHING COMPETENCE
Line 3b is complete but the number provided is incorrect.
COMPETENT
Line 3b is complete and the number provided is correct.
A2A: SCHEDULE 1, LINE 3:
NOT EVIDENT
Line 3 on Schedule 1 is not completed.
APPROACHING COMPETENCE
Line 3 on Schedule 1 is complete but the number provided is incorrect.
COMPETENT
Line 3 on Schedule 1 is complete and the number provided is correct.
A2B: FORM 1040, SCHEDULE 1, LINE 13:
NOT EVIDENT
Line 13 on Schedule 1 is not completed.
APPROACHING COMPETENCE
Line 13 on Schedule 1 is complete but the number provided is incorrect.
COMPETENT
Line 13 on Schedule 1 is complete and the number provided is correct.
A2C: FORM 1040, SCHEDULE 1, LINE 16:
NOT EVIDENT
Line 16 on Schedule 1 is not completed.
APPROACHING COMPETENCE
Line 16 on Schedule 1 is complete but the number provided is incorrect.
COMPETENT
Line 16 on Schedule 1 is complete and the number provided is correct.
A2D: FORM 1040, SCHEDULE 1, LINE 17:
NOT EVIDENT
Line 17 on Schedule 1 is not completed.
APPROACHING COMPETENCE
Line 17 on Schedule 1 is complete but the number provided is incorrect.
COMPETENT
Line 17 on Schedule 1 is complete and the number provided is correct.
A3A: FORM 1040, SCHEDULE 2, LINE 2:
NOT EVIDENT
Line 2 on Schedule 2 is not completed.
APPROACHING COMPETENCE
Line 2 on Schedule 2 is complete but the number provided is incorrect.
COMPETENT
Line 2 on Schedule 2 is complete and the number provided is correct.
A4A: FORM 1040, SCHEDULE 3, LINE 13G:
NOT EVIDENT
Line 13g on Schedule 3 is not completed.
APPROACHING COMPETENCE
Line 13g on Schedule 3 is complete but the number provided is incorrect.
COMPETENT
Line 13g on Schedule 3 is complete and the number provided is correct.
A4B: FORM 1040, SCHEDULE 3, LINE 3:
NOT EVIDENT
Line 3 on Schedule 3 is not completed.
APPROACHING COMPETENCE
Line 3 on Schedule 3 is complete but the number provided is incorrect.
COMPETENT
Line 3 on Schedule 3 is complete and the number provided is correct.
B:SOURCES
NOT EVIDENT
The submission does not include both in-text citations and a reference list for sources that are quoted, paraphrased, or summarized.
APPROACHING COMPETENCE
The submission includes in-text citations for sources that are quoted, paraphrased, or summarized and a reference list; however, the citations or reference list is incomplete or inaccurate.
COMPETENT
The submission includes in-text citations for sources that are properly quoted, paraphrased, or summarized and a reference list that accurately identifies the author, date, title, and source location as available.
C:PROFESSIONAL COMMUNICATION
NOT EVIDENT
Content is unstructured, is disjointed, or contains pervasive errors in mechanics, usage, or grammar. Vocabulary or tone is unprofessional or distracts from the topic.
APPROACHING COMPETENCE
Content is poorly organized, is difficult to follow, or contains errors in mechanics, usage, or grammar that cause confusion. Terminology is misused or ineffective.
COMPETENT
Content reflects attention to detail, is organized, and focuses on the main ideas as prescribed in the task or chosen by the candidate. Terminology is pertinent, is used correctly, and effectively conveys the intended meaning. Mechanics, usage, and grammar promote accurate interpretation and understanding.
WEB LINKS
Intuit ProConnect Registration and Log-In
IRS Forms and Publication
For reference only
SUPPORTING DOCUMENTS
Intuit ProConnect Tax Software Login instructions.pdf
Client Organizer Aollinger.xlsx

this is a final project, please finished the introduction related to the topic and the conclusion of the topic. the document its attached. 

Safeparts
Corporation is Jon Johnson’s audit and tax client. The short story:
The Cast of Characters
Safeparts
Corporation’s three directors are the officers and only stockholders of the
company. Each holds 1/3 of the shares. President Raul Rambo founded the company
and is now retired. As an individual, he is also Johnson’s tax client. Vice
President Jana Smith manages the day-to-day operations. She has been
instrumental in increasing the business and its profits. Smith’s individual tax
work is done by CPA Corin Ware. Treasurer Chris Fletch has been a long-term,
loyal employee responsible for many innovative financial transactions of great
benefit to the business. He is Johnson’s close, personal friend and an
individual tax client.
The Conflict
President
Rambo discussed with CPA Johnson the tax consequences to him as an individual
of selling his one-third interest in the Safeparts Corporation to Vice
President Smith. Later, meeting with Fletch to discuss his individual tax
problems, Johnson learns that Fletch fears that Rambo and Smith will make a
deal, put him in a minority position, and force him out of the company. Fletch
says, “Jon, we’ve been friends a long time. Please keep me informed about
Rambo’s plans, even rumors. My interest in Safeparts Corporation represents my
life savings and my resources for the kid’s college. Remember, you’re little
Otto’s godfather.” Thinking back, Johnson realized that Vice President Smith
has always been rather hostile. Chances are that Johnson will lose the Safeparts
engagement (to CPA Ware) if Smith acquires Rambo’s shares and controls the
corporation. Nevertheless, Fletch will probably suffer a great deal if he
cannot learn about Rambo’s plan, and Johnson’s unwillingness to keep him
informed will probably permanently ruin their friendship.
Later, Johnson’s Dilemma 
Johnson
ponders the problem. “Safeparts Corporation is my client, but a corporation is
a fiction-only form. The stockholders personify the real entity, so they are
collectively my clients, and I can transmit information among them as though
they were one person. Right? On the other hand, Rambo and Fletch engage me for
individual tax work, and information about one’s personal affairs is really no
business of the other. What to do? I could be sued and lose my CPA license if I
get this wrong, so whatever should I do?
Required:
Prepare a paper discussion on the advice you would give to Johnson about
his professional ethics issue(s) with complete details. 
Include the appropriate
constraints that you believe are governing factors that Johnson must consider
per the AICPA Code of Professional Conduct as highlighted in Module B. 
Your paper should include a letter to each stockholder informing them about your decision concerning your ongoing ability to provide services as a CPA to the Safeparts Corporation and to each of them individually. 
Use proper business terms and refer to the AICPA Code of Professional Ethics as required.
Please see the PDF Textbook – Module B. 
If you are using outside source, please ensure its easly acesss (.gov, or .com)
Please do not use AI as it can be easly detected. 

Financial Analysis of Oman Oil Marketing Co. (OOMS): Ratio analysis, Vertical and horizontal analysis, Cash flow analysis, all details provided in the document attached, please focus on the font size and reference method. NOTE: Just do the report the report only, and use more than 10 references.

Project Overview & Instructions
OBJECTIVE
This project gives students the opportunity to apply the AMPS Framework to address a relevant
business question. In doing so, this assignment will contribute towards the development of an
“analytics mindset”, which is the ability to:
► Ask the right questions,
► Extract, transform and load relevant data,
► Apply appropriate data analytics techniques, and
► Interpret and share the results with stakeholders.
You have the choice to complete the semester project individually or in pairs. If you wish to
work with a partner, you must inform your instructor as soon as you begin working on the
project and no later than May 3, 2023. If you do not declare a partner by the deadline, you
must complete the project on your own.
BACKGROUND
This project is based on the Capstone Project 1 of the textbook used in this course (Richardson,
V. J., Teeter, R., & Terrell, K. (2023). Data Analytics for Accounting. New York, NY: McGraw-Hill
Education). You will be using real-world data from Lending Club – a US based peer-to-peer
lending company (www.lendingclub.com) – to analyze loan approvals and repayments.
REQUIREMENTS
You work for Lending Club as an accounting data analyst and you have been tasked with
developing a diagnostic model of loan repayment. Your task is to use appropriate software
tools, including Microsoft Office Excel and Tableau, to analyze data provided by the company.
Your ultimate goal is to understand the link between loan characteristics, initial loan approval,
and future loan repayment.
a. Part 1 – Written Report: The report should cover all five deliverables as described on p. 280
of the textbook (link available on Blackboard) and follow the guidelines outlined on the next
page.
a. Deliverable 1: Create and start working on your reportb. Deliverable 2: Prepare a Desсrіptive Statistics of the Independent and Dependent
Variables
c. Deliverable 3: Transform Data and Prepare another Set of Desсrіptive Statistics
d. Deliverable 4: Perform the Analysis
e. Deliverable 5: Create the Final Report
IMPORTANT: You must follow all instructions and formatting requirements, carefully and
exactly. If in doubt, reach out to your instructor.
b. Part 2 – Presentation: Prepare a professional presentation to the Chief Loan Officer of
Lending Club discussing your analysis. This presentation should be about 10 minutes in
length and summarize the main findings and recommendations from your written report. It
should be professional-looking, informative, and must include outputs, charts, and
visualizations from Microsoft Office Excel and/or Tableau.
c. You can use either PowerPoint or Tableau to prepare the presentation. You will need to
record your presentation and submit it before the deadline. Please note that you must turn
on the camera when you record your presentation! In other words, your recording should
include your slides and your face. Failure to comply will result in a significant reduction of
points.
d. Part 3 – Work Papers (Files): Prepare all your analysis, including visualizations, in Microsoft
Office Excel and/or Tableau. All your work papers must be submitted with your report and
should be organized in a professional, easy-to-follow way. Add explanations to your
visualizations where necessary
I certify that I am the author of this work and that any assistance I have received in its
preparation is fully acknowledged and disclosed. I have also cited any sources from which I used
data, ideas or words, directly quoted or paraphrased. This work was prepared by me specifically
for this course.
 Include a Table of Content with relevant section headings to organize your report
 Create at least four (4) visualizations (bar graphs, line charts, etc.) and discuss them in your
report
 Font: Times New Roman; Font size: 12; Line Spacing: 1.5; Normal Margins (1’’ on each side)
 Appendix: include a bibliography (https://www.plagiarism.org/article/whats-a-bibliography)
in APA style (http://www.easybib.com/guides/citation-guides/apa-format/) and additional
information, charts, sources, etc. as necessary
Important Info
The order was placed through a short procedure (customer skipped some order details).
Please clarify some paper details before starting to work on the order.
Type of paper and subject
Number of sources and formatting style
Type of service (writing, rewriting, etc)

ACCT 102
Financial Statement Analysis
Term Paper Project
This term project requires you to analyze trends in corporate performance and to perform a financial statement analysis on a company of your choosing.
(I choose SEPHORA)
Choose a publicly held company, who reports their financial data in US dollars.  They should be traded on either the New York Stock Exchange or the NASDAQ.  
The title page of your paper should include the name of your company, and any logo that     the company uses and your name.
A table of contents is encouraged but not mandatory. Charts or graphs are encouraged but not mandatory.
Based on the most recent financial report available (only Annual 10K reports filed with the SEC should be used ), perform the following:
A horizontal analysis of the  complete Income Statement and Balance Sheet comparing the data from the two most recent years.**
A vertical analysis of the complete  Income Statement and Balance Sheet utilizing the data for the two most recent years. **
Compute the following ratios for the two most recent years AND COMMENT ON THE RESULTS.  (List the formula in words, then amounts, and then comment on the results. What do they mean, were the changes favorable or unfavorable. I highly recommend Excel for all numerical computations. )
Current Ratio
Acid Test Ratio
Accounts Receivable Ratio
Number of Day’s sales in receivables
Inventory Turnover
Number of Day’s sales in inventory
Return on Total Assets
Basic Earnings per share (This is computed at bottom of the income statement. Just disclose the amounts.)
Price Earnings ratio
Dividend Yield
Debt Ratio
Equity Ratio
Before presenting the financial data, prepare a narrative on your company.  You should consider not only using the formal 10K, but other sites as well to gather the data needed. (ALL OF THE FINANCIAL DATA ABOVE SHOULD BE TAKEN ONLY OUT OF THE AUDITED 10K REPORT.) Within the body of your narrative, make sure you include the following:
The nature of the operations. (How did the company get started, what products or services they sell, what companies are consolidated into the financial statements, how they distribute products, and whether they experience seasonal business.  Also include the state of incorporation within your narrative.)
The ticker symbol the company uses and what stock exchange they are sold on
Significant changes that have taken place
Significant future plans
What “Risk Factors”
Accounting methods related to costing inventory and recording depreciation
Any business combinations
How has technology changed their business
High and low stock prices for the years reported on. (Please also include what the current stock price is.
Any recent news after the date of your balance sheet.
COMMENT ON RESULTS of the financial analyses above in your paper.
You can include any other data as you see fit.
I STRONGLY SUGGEST that you have someone proofread your paper before submitting it.  You may want to exchange papers with a classmate and have each other proof your work (and learn about another company in the process.)
Your project should be typed (in Word)  and should include all of the above.  (Excel attachments are ok but I prefer you export data into Word if you know how. Otherwise, you can attach excel files and refer to them in the Word document.  No handwritten data will be accepted. All work must be uploaded in Canvas prior to the due date.  Try your best to include all data In ONE FILE.
** This can be done using ONE line of FORMULAS in Excel. Just copy the formula down.  
I prefer WORD better.

No plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
Assignment Question(s): (Marks 15)
Q1. What is the process of identifying activities in an organisation and assigning costs under the Activity Based Costing (ABC) system? Elucidate. You will need to include the right numerical examples to support your answer. (2 Marks) (Chapter 7, Week 7)
Answer:
Q2. PPLC Company has two support departments, SD1 and SD2, and two operating departments, OD1 and OD2. The company decided to use the direct method and allocate variable SD1 dept. costs based on the number of transactions and fixed SD1 dept. costs based on the number of employees. SD2 dept. variable costs will be allocated based on the number of service requests, and fixed costs will be allocated based on the number of computers. The following information is provided: (4 Marks) (Chapter 8, Week 10)
Support Departments
Operating Departments
SD1
SD2
OD1
OD2
Total Department variable costs
18,000
19,000
51,000
35,000
Total department fixed costs
20,000
24,000
56,000
30,000
Number of transactions
30
40
200
100
Number of employees
14
18
35
30
Number of service requests
28
18
35
25
Number of computers
15
20
24
28
You are required to allocate variable and fixed costs using direct method. Answer:
Q3. What are an organization’s “outsourcing decisions” and “constrained resource decisions?” Provide a suitable numerical example of these decisions and explain how quantitative and qualitative considerations support a company’s decision-making process.
(2 Marks) (Chapter 4, Week 9)
Note: Your answer must include suitable numerical examples. You are required to assume values of your own, and they should not be copied from any sources. Answer:
Q4. VBN plastic industry makes three plastic toys: T1, T2, and T3. The joint costs of the three products in 2017 were SAR 120,000. The total number of units for each product and the selling price per unit is given below:(3 Marks) (Chapter 9, Week 11)
Product
Units
Selling Price per unit
T1
45,000
SAR 15
T2
26,000
SAR 14
T3
18,000
SAR 10
You are required to allocate the joint costs to each product using the physical volume method and sales value at the split-off method.
Answer:
Q5. MN&M Corporation is preparing a budget for 2018. The company provides you with the following details which will help you to prepare the budget: (4 Marks) (Chapter 10, Week 12)
Budgeted selling price per unit = SAR 500 per unit
Total fixed costs = SAR 150,000
Variable costs = SAR 100 per unit
Required:
You are required to prepare a flexible budget for 1,000, 1,100, 1,200 and 1,300 units. Answer:

Read Instructions VERY Carefully, for the 2 organizations I want to select Pfizer as the profit organization and Mayo Clinic as the Non-Profit.