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Take Home Final Exam1
Take Home Final Exam1
Instruction to Candidates:
You have 6 hours to complete the task given in the paper. The paper will be
made available on TIMES on the 11 of April 2020 at 11.50 am. A softcopy of
the paper will also be sent to you via e-mail.
When you receive the softcopy of your paper, you are required to reply
acknowledging receipt of the paper. By replying the email, you will be
effectively confirming that you are attending the examination.
Your answers should be submitted to the Turn-it-in link on the TIMES page on
the 11 of April 2020, no later than 6.15 pm. Please make sure you have read
through your final submission before you electronically submit your paper.
The answers should be word processed. Please ensure that the document you
submit, when submitting your soft copy, is in the form of an MS Word document.
note that your work will be submitted to the Academic Integrity Committee if your
work is found to be in violation of the plagiarism requirements.
If you fail to submit your report at the end of the examination period
(without a good cause, which will need to be certified in the usual way to be
considered), you will be deemed to have failed to complete the exam and
will be awarded a mark of zero.
You are responsible for ensuring that you save your written work on a regular
basis and that you keep backups in separate locations to protect against
hardware failures. You are also responsible for ensuring that you have adequate
time and access to Wi-Fi facilities.
In the event you have difficulties submitting your work through Turn-it-in through
TIMES, please send an email to siawturk.koo@taylors.edu.my for assistance.
The primary option for submission is through the Turn-it-in via TIMES. If this is
impossible for you because your home country does not allow access to TIMES,
you will be allowed to make an email submission. Once I receive your word
document, I will submit it into Turn-it-in for plagiarism on your behalf.
5. Additional Information
Questions Marks
Answer ALL Questions
Question 1: Calculation + Essay question 50 Marks
Question 2: Calculation + Essay question 50 Marks
100 Marks
The results from this exam will contribute to 40% of the course.
o MLO 5: Identify and develop risk reducing, financial policies and strategies.
ACC 70104 MANAGING DECISIONS: Final Examination – April 2020
B) Daron Sdn Bhd supplies cakes to two large supermarket chains. An activity
analysis of the indirect costs identified the following customer-related costs:
Activity cost Cost driver Estimated Total expected Use of cost drivers
Indirect use of cost Customer Customer
costs driver A B
Orders Number of 200,000 400 300 100
processing orders
Delivery Number of 100,000 500 350 150
deliveries
Sales visits Number of 20,000 100 75 25
visits
Total 320,000
The profit from the customers are as follows:
Customer A Customer B
Sales RM900,000 RM600,000
Less cost of goods sold RM600,000 RM400,000
Contribution per customer RM300,000 RM200,000
Allocated indirect costs: (base on sales)
Customer A: 900,000/1,500,000 x 320,000 RM192,000
Customer B: 600,000/1,500,000 x 320,000 RM128,000
Profit per customer RM108,000 RM72,000
The Management of Daron felt that since customer A contributed higher sales and
profits to the company, the company should put more emphasis on Customer A.
.
Required:
a) Calculate the activity cost rate for each activity, and assign the activity costs to
each customer
(11 marks)
b) Calculate the profit for each customer by allocating the assigned cost using
activity cost in part a)
(10 marks)
Required:
a) What is the contribution margin in unit and in percentage for Type A and Type B
respectively? Should Kerusi produce and sell the chairs as Type A, or process
further and sell as Type B?
(12marks)
c) How many units of Type A and Type B should Kerusi produce to maximise its
profit? What will be the profit for 2019 if your proposal was adopted? Support
your answer with appropriate calculation.
(7 marks)
d) Calculate the breakeven point in unit and RM for the company as a whole given
the current level of sales with 12,000 units of Type A and 3,000 units of Type B.
(13 marks)
e) Discuss the qualitative considerations that Kerusi need to take into account
before finalising its decision.
(13 marks)