Differentiate between Variable and Absorption costing with a suitable numerical example and explain what would be the changes in Net Operating Income under both the costing methods

accounting question

Assignment 2 ACCT 322 managerial accounting
5 questions
Requirements: Clear answer
Assignment (2)
Deadline: Saturday 18/2/2023 @ 23:59
For Instructors Use only
Instructions PLEASE READ THEM CAREFULLY
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation.
Students must mention question number clearly in their answer.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
Assignment Question(s): (Marks 15)
Q1. Differentiate between Variable and Absorption costing with a suitable numerical example and explain what would be the changes in Net Operating Income under both the costing methods.
Answer
Q2. ABC prepares budgets for the quarter ending June 30. Sales in units: April 20,000, May 50,000, June 30,000, July 25,000. Selling price is SR 10 per unit. , inventory in March 31, is 4,000 units. Desired inventory is 20% of the next month sales.
Required: Prepare sales and production budgets.
ANSWER:
Q3. The Net Present Value Method uses the concept of Time Value of Money when evaluating Capital Budgeting Decisions.
Required: Explain criteria to accept or reject investment projects based on net present value method.
ANSWER:
Q4. ABC Company has a car and it considers whether to sell it directly at a price of SR 100,000 or to make some modifications costing SR 10,000 to sell it at a price of SR 120,000.
Required: using the differential analysis which alternative do you recommend about the car.
Answer:
Q5. Use the following information about the calendar-year cash flows of MacArthur Company to prepare a statement of cash flows (direct method) and a schedule of noncash investing and financing activities.

Answer: