Mr. Zaid is an experienced cost accounting manager joined Oman Cement Company as a senior cost...

Mr. Zaid is an experienced cost accounting manager joined Oman Cement Company as a senior cost manager. After some days he came to know that the costing system of the company is not appropriate where semi-variable cost is not taken into consideration for cost control, due to which the production cost was too high. Hence he understood that this has to be brought in to notice of top-level managers and hence he prepared a report by taking one semi-variable cost element as an example with proper explanations, numerical examples, and graphical representations so that the top-level managers would understand the importance ofsemi-variable cost.

How Mr. Zaid would have explained the concept to top level managers?

Expert Solution

SEMI-VARIABLE COSTScontains both fixed and variable cost element. By treating a semi variable cost into fixed cost or variable cost results high or low Total cost.If the total cost is wrong it badly affets pricing of product and profitability.So while computing Total cost semi-variable cost must taken rightfully.

.

ekkarill92 answered 1 year ago

(B) Raysut Cement Company is a leading cement manufacturing company in Oman. It wants to expand...

(B) Raysut Cement Company is a leading cement manufacturing company in Oman. It wants to expand its business by establishing its branches in other parts of Oman. Since the investment is large, it requires long-term finance. For this purpose, the Company is looking for two alternatives- debt finance and equity finance that can be raised from the market. Requirement: (i) If company decides to raise debt finance, which market it should use and what are its features? Explain. (i) If...

Your friend Mr. Fawad has recently joined a multinational company as an Asst. Manager. He has...

Your friend Mr. Fawad has recently joined a multinational company as an Asst. Manager. He has observed his Manager indulging into taking bribe at times. Mr. Fawad overheard on the phone his manager leaking company’s private information with the competitors. Fawad’s promotion can be decided only by this Manager. If Mr. Fawad doesn’t keep him happy, he will have to forget his promotion. If new Manager comes, Fawad’s promotion will be postponed for a very long time till he satisfies...

Mr. Zakariya the new junior cost accountant joined your company and wants to follow ‘Absorption costing’,...

Mr. Zakariya the new junior cost accountant joined your company and wants to follow ‘Absorption costing’, but you as a senior cost manager rely on ‘Marginal costing’. How would you convince Mr. Zakariya in this situation? Explain. Use the below numerical figures of your company’s production unit along with the theoretical aspects during the convincing process to Mr. Zakariya about marginal costing. Particulars Products A B C OMR OMR OMR Direct material 30,000 120,000 12,000 Direct wages 36,000 36,000 6,000...

Spark Electrical Company manufactures electrical components. The plant manager – Mr. Uptight, has experienced difficulties with...

Spark Electrical Company manufactures electrical components. The plant manager – Mr. Uptight, has experienced difficulties with fluctuating monthly overhead costs. Mr. Uptight wants to be able to estimate overhead costs to plan its operations and financial needs. A trade association publication reports that for companies manufacturing electrical components, overhead tends to vary with machine hours. Monthly data was gathered on machine hours and overhead costs for the past two years. There were no major changes in operations over this period...

Case study 3 Mr. Hamood joined newly as a Marketing Manager in a famous Ibra Ice...

Case study 3 Mr. Hamood joined newly as a Marketing Manager in a famous Ibra Ice Cream Company in Oman. The company‟s ice cream had huge demand as the ice creams were tastier and had more flavours. The company introduced a New Ice Cream named “Taste Bites”, and wanted to market all over Oman. Mr. Hamood was made responsible for marketing the new product, He called his staff for a meeting and discussed the various strategies to market the new...

Case study 4 (10 marks) Mr. Salim is the Production Manager of Oman Pharmaceuticals LLC. There...

Case study 4 Mr. Salim is the Production Manager of Oman Pharmaceuticals LLC. There are 50 employees working in the department. It has been a long-standing practice in the department to hold a weekly departmental meeting every Thursday afternoon. Every time a meeting is conducted, about half of the employees are more than five minutes late, and two or three of them are usually late by 15 minutes or more. Though repeated announcements are made about being there on time,...

Mr. Smith, an Australian citizen, began working with a company in Oman in November 2015. As...

Mr. Smith, an Australian citizen, began working with a company in Oman in November 2015. As part of his work arrangement, he was required to work a 35 days on and 35 days off rotation. At the end of each rotation, Mr Smith departed from Oman and, on several occasions, returned to Australia to visit family and friends. While he was working in Oman, he lived in a single room apartment with an ensuite, bed, lounge area and a mini...

Assume you are the accounting manager of Kitten Ltd. being asked from your senior manager to...

Assume you are the accounting manager of Kitten Ltd. being asked from your senior manager to prepare inventory records and compute the closing value of inventory, cost of manufacturing, and cost of goods sold to be reported in the Financial Statements. Following are the inventory related activities that were performed during the period. 1 Purchased 960 units @ 56 per unit 2 Purchased 420 units @54 per unit 3 Issued 280 units to the manufacturing department 4 Manufacturing department worked...

Cost-Volume-Profit Analysis and Strategy Mr. Carter is the manager of Simmons Farm and Seed Company, a...

Cost-Volume-Profit Analysis and Strategy Mr. Carter is the manager of Simmons Farm and Seed Company, a wholesaler of fertilizer, seed, and other farm supplies. The company has been successful in recent years primarily because of great customer service—flexible credit terms, customized orders (quantities, seed mix, etc.), and on-time delivery, among others. Global Agricultural Products, Inc., Simmons' parent corporation, has informed Mr. Carter that his budgeted net income for the coming year will be $120,000. The budget was based on data...

You are an experienced audit manager at Samway Baker Fitzgerald (SBF), an accounting firm with offices...

You are an experienced audit manager at Samway Baker Fitzgerald (SBF), an accounting firm with offices in Orange, Wagga Wagga, Tamworth, Port Macquarie and Albury in NSW, Toowoomba in Queensland and Ballarat in Victoria. In the next 18 months, you hope to be promoted to partner at the Orange office. Although a medium-sized firm by national standards, SBF includes Australia’s largest regionally-based auditing practice. Most of SBF’s audit clients are in the mining, manufacturing and agriculture industries. For various reasons...

Question