Management Accounting Assignment

Give a numerical example of non routine decision, Determine the relevant costs for this non routine decision and discuss the analysis (quantitative and qualitative) required to make the decision?

Which types of companies would most likely use a process costing system? Provide examples of two Saudi Companies. Explain the methods with which the cost per unit will be calculated for this type of companies.  Explain how the different items of inventory will be evaluated?

KLM Compagny has two departments, Assembly and Testing.  You are given the following information about the costs of 5 activities that occur at the manufacturing plant monthly:

Activity                                  Total Costs      Total number of  units of Cost Driver
Material handling                 SAR200, 000     400,000 parts
Supervision of direct labor   126,000             90 employees
Janitorial and cleaning          200,000           4,000 hours
Machining                            300,000            7,000 machine hours
Total costs                           SAR826,000

                                                 Assembly            Testing
Material handling                   200,000 parts      200,000 parts
Supervision of direct labor     40  employees    50 employees
Time spent cleaning               2,000 hours         2,000 hours
Number of machine hours     5,000                   2,000 machine hours

a. How much of the material handling cost will be allocated to Assembly?

b. What is the ABC allocation rate for supervision of direct labor?

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