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COLLEGE OF BANKING AND FINANCIAL STUDIES
DEPARTMENT OF UNDERGRADUATE PROGRAMME
B.Sc. in Accounting, Auditing and Finance
Student Name &
Life Cycle Costing ,Throughput Accounting & Make or Buy Decisions
ADVANCED MANAGERIAL ACCOUNTING
9th April 2020
Formative 23rd April 2020
February to June 2020
Ms. Shobhna/ Dr.
Summative 7th May 2020
Required Work, Format and Grading
You must submit the following by the assignment due date:
Completed answers to each task, making sure that you fully address each of the
Answer all questions separately.
Assignments without TURNITIN report will not be accepted.
You need to demonstrate a confident application of the theories to the assignment task. The
theoretical underpinning of your observations and deliberations should also demonstrate a good
understanding of the subject by the way that your analysis is structured.
You can access the Internet to research about the topic. You should demonstrate good academic
practice by the appropriate use of academic texts and journals that are properly referenced.
Guidelines and further information about assignment:
Assignment must be submitted with the “Turnitin” report. If the report generated indicates a
similarity index percentage of 20% or more, a review of your assignment is necessary to ensure
the same is reduced to less than 20%.
I certify that the work contained in this assignment was researched and prepared by me:
Grades given are subjected to Internal Verification. No grades are Final
The user ID and Password for submitting the soft copy of the report through TURNITIN is as
Note – Formative feedback will be given in general- Not for the calculations.
You should submit the assignment by the time and date mentioned otherwise a ‘NA’ will be
awarded. Fill in the form cover and staple it with your assignment. Make sure that all the relevant
details are complete. Assignments must be submitted by the due date. You may include
diagrams, figures etc without word penalty.
1. Plagiarism occurs if you use somebody else’s work in an assignment or exam answer, but
fail to state where you got the material from. You need to be also very careful about the
amount of words you are using from somebody else’s work.
2. It can happen in any type of assessment where you are given the questions or tasks in
3. If another student uses your work in his/her answer(s), both you and he/she will be
punished when caught.
4. Punishments for committing plagiarism can be very severe.
Plagiarism is a form of cheating in which students use the work of others and present it as their
own. It may include all or any one of the following –
1. Copy extensively from the work of others (from sources such as books, magazines,
journal, web-sites etc) and submit the work as your own.
2. Copy another students’ work and submit it for assessment under your own name.
3. Allow another student to copy your work and then submit it for assessment under their
What happens if you get caught?
The examining body of CBFS may punish offending students in any manner that they deem fit.
Typical punishments may range from reduction in grades, making students re-sit modules and
even failing students on a module or an entire award. The college considers this form of cheating
as a serious offence. Therefore be forewarned!
Scenario or Tasks
Racket is a manufacturing company produces a range of products for tennis goods market.
The company is developing a new type of tennis racquet for the middle-east market. The research
and development of the product will take one year; The Company is planning to launch the
product from the beginning of the 2nd year. The company is expecting that the life cycle of the
product will only be two years because of the new technological developments happening in the
sports goods market.
The estimated cost of the tennis racquet is as follows:
Variable cost per unit(OMR)
Fixed Production Cost(OMR)
Variable Cost per unit(OMR)
Fixed Distribution Cost(OMR)
Variable cost per unit(OMR)
Fixed Selling Cost(OMR)
Racquets manufactured and
Using the data provided above you are required to:
a) Calculate life cycle cost per racquet.
b) ‘Life cycle cost assess the profitability over the full life cycle of the product’. In relation
to the statement, discuss the benefits of the life cycle costing.
Volga Company is producing three types of products, V1 V2 and V3
All the products are produced in three processes Process1, Process2 and Process 3. Company is
facing a tough price competition in the market it operates.
In the production process, the product first goes through process1 then in process 2 and finally
completed in process 3. The total factory time available for the year is 22,500 Hours. One hour
of labour is needed for each hour of factory time. Labour cost per hour is OMR 19.5.
The following data is available about each process
Processing time in hour per unit
The selling price and cost details are as below:
Material cost per unit (OMR)
Selling Price per unit (OMR)
Fixed cost for the year excluding labour cost is OMR 2025,000
a) Using the above scenario of Volga Company showing the working clearly, identify which
process is bottleneck process and explain why this process is described as bottleneck.
b) Calculate TPAR (Throughput accounting ratio) for each product V1, V2 and V3 and rank the
products. Justify your answer by interpreting each Ratio.
Sun Company - Make or Buy
Sun Company produces 3 products SN, MN and ER. The following information is available. It uses
one type of material B to produce all the three products.
Variable cost to make ($ per unit)
Buy-in price ($ per unit)
Kg of B required per unit
(Included in variable cost)
Which products should the company make and which should it buy?
The availability of Material B is limited to 7000 kg. Based on the available material suggest if
the material is sufficient to produce all the products. (calculate surplus or shortfall.
Explain problems involving capacity utilization in make or buy decisions. Support your
answer based on the calculation done in part(b) above.
Contents of the Assignment should be:
➢ Title Page
➢ Question 1,2 and 3
Support your assignments with relevant graphs, charts, tables(quantitative data) if applicable. Maximum
1300 words (+ / - 10% margin )
END OF ASSIGNMENT