Accounting Industrial Studies Questions

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Student ID:
200104
Coursework
SECTION – A (Total 30 Marks)
Q1. In this question each student is required to conduct a market survey and provide the following analysis. Critically evaluate any two products (name of the product, specifications of the
product, manufacturers details etc) of electronics goods or automobile goods and justify which brand product is the market leader in Oman and discuss what are the marketing strategies
required to make a good decision to be a market leader. (Using your analysis with 400-500 words approx.).
Each student should visit the local marketplace places, select any product (electronic / automobile/ any other consumer products) available in the Oman market, study the product in
detail and provide valid information.
[15 Marks]
Q2. Break-even analysis helps a manager to clearly understand the nature of relevant costs and their importance in managerial decision making, resulting in that the manager can take more
soundly decisions and is more confident about their eventual outcome’. Justify how it is relevant to any manufacturing industry, supporting your answer with an example.
(Using your sentences with 400-500 words approx.)
[15 Marks]
NOTE:
Section – The evaluation will be done based on the technical information, language skills and clarity in the contents with subje ct knowledge are essential. Students are advised to proof read the entire report
once completed before uploading it, and the report should be free from language errors and the similaruty shoul; not exceed 15% safe assign. CCE/NU Harvard reference sheet should be submitted along
with the report.
SECTION – B (Total 70 Marks)
Q3. ABC steel plant industry plans to manufacture a product. The product needs a special component. The industry has reviewed that the special component can be produced in the plant or
bought in. An investment is required to start the production of the component for which two mutually exclusive projects A and B representing different production processes are available.
The alternative option is to buy in from another company representing project C. The details of projects A and B are given in Table 3:
(i) Using the information from table 3 and Discount Cash Flow criteria, calculate Pay Back Period (PBP), Account Rate of Return (ARR), Net Present Value (NPV) and
Internal Rate Return (IRR) for project A & Project B if the industry plans to sale the unit cost of RO 350.
[28 Marks]
[Marking Rubrics: Back Period (PBP) for the project A & project B – 4 Marks, Account Rate of Return (ARR) for project A & project B – 4 Marks, Net Present Value (NPV)
for the project A & project B – 8 Marks, and Internal Rate Return (IRR) for the project A & project B – 12 Marks.]
(ii) Using the annual cost data from table 3, determine which project incurs less cost if the industry considers producing 7, 500 units per year.
[4 Marks]
(iii) Using the table 3, determine the Break-Even quantity and margin of safety (units and value) If the company sells 8,000 units of new product per year at a price of RO 50 per unit. [8 Marks]
Table 3
Description
Capital (RO)
Life (years)
Sales Quantity (units per year)
Salaries per year (RO)
Other fixed costs per year (RO)
Wages per year (RO)
Cost of materials per year (RO)
Project-A
363,900
15
10,000
45,000
40,000
70,000
248,440
Project-B
451,910
15
12,000
50,000
85,000
80,000
286,930
Other variable costs per year (RO)
35,000
40,000
Scrap value at the end of the year (RO)
33,560
44,660
Cost of capital (%)
13
13
Q4: M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a
purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front
and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, 24 spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub.
(i) Draw the Bill of Material (BOM) tree for the front and rear wheels.
[4 Marks]
(ii) Referring to table 4(i) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes.
[26 Marks]
Table 4 (i)
Week
12
13
14
15
16
Demand for the bikes
80
70
90
120
100
85
Demand of Front Rim
50
–
40
30
–
125
–
70
60
–
80
–
The demand of Rear Rim
Table 4 (ii)
Part/Component
Lead Time
Stock on Hand
Batch Size
Safety Stock
Bike
Front wheel
Rear wheel
Front Rim
Rear Rim
Front Hub
Rear Hub
Spokes
1
1
1
2
2
1
1
1
150
150
60
80
200
100
100
8100
100
120
150
150
100
150
100
3,000
0
100
125
100
100
50
50
1,100
17

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