Q 3 Kadhim Co. manufactures product B which is a part of its main product. Kadhim Co makes 50,000 units of product B per year. The production costs are detailed below. An outside supplier has offered to supply 50,000 units of product B per year at $ 2.45 each. Fixed production cost of $ 40,000 associated with the product B are unavoidable. Should Kadhim Co make or buy the product B?

The production cost per unit for manufacturing a unit of product B are:

Direct Materials 0.85

Direct Labor 0.65

Variable Manufacturing Overhead 0.40

(Week 9: Chapter 4, Relevant information for decision making)

Zain KSA 5:34 PM 54% Page 1 QI Give example of company using ABC costing and explain the process used in this company to assign costs in an ABC system? (Week 7: Chapter 7. ABC costing) Answer: Q 2 Give examples of questions managers could ask to help them identify relevant qualitative factors that will be used before making decision? (Week 9: Chapter 4, Relevant information for decision making) Answer: Q3 Kabup Co, manufactures product which is a part of its main product. Badbi. Co makes 50,000 units of products per year. The production costs are detailed below. An outside supplier has offered to supply 50,000 units of product B per year at $ 2.45 cach. Fixed production cost of 40,000 associated with the product Bare unavoidable. Should Balbina. Co make or buy the product = The production cost per unit for manufacturing a unit of product Bare: Direct Materials Direct Labor 065 Variable Manufacturing Overhead (Week 9: Chapter 4. Relevant information for decision making) Answer: Page 2