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Question 2 Prince Sultan clothing company has two production departments (Weaving and Dying) and two service departments (Administration and Maintenance). The cost drivers are labour hours and space in Square Foot The weaving department's costs is allocated based on labour hours and the dying department's costs are allocated on the basis of space in square foot. Other information are as follows: Administration Maintenance Weaving Dying Total cost Department costs before allocation SAR 200000 SAR 80,000 SAR400000 SAR 100,000 SAR780000 Labour Hours 10,000 5,000 20,000 5,000 Space (sq. ft.) 15.000 500 60,000 20,000 Required: Allocate the cost-of-service departments to the production departments using: Direct method b. Step-down method c. Reciprocal method d. Compare the three costs allocation methods. Question 3 In order to survive in a competitive global economic environment, every organization use strategic management in planning, controlling and decision-making processes. Required: Critically examine the importance of planning, controlling and decision-making for the success and survival of an organizational in a competitive global economic environment. End of paper Question 2 Prince Sultan clothing company has two production departments (Weaving and Dying) and two service departments (Administration and Maintenance). The cost drivers are labour hours and space in Square Foot The weaving department's costs is allocated based on labour hours and the dying department's costs are allocated on the basis of space in square foot. Other information are as follows: Administration Maintenance Weaving Dying Total cost Department costs before allocation SAR 200000 SAR 80,000 SAR400000 SAR 100,000 SAR780000 Labour Hours 10,000 5,000 20,000 5,000 Space (sq. ft.) 15.000 500 60,000 20,000 Required: Allocate the cost-of-service departments to the production departments using: Direct method b. Step-down method c. Reciprocal method d. Compare the three costs allocation methods. Question 3 In order to survive in a competitive global economic environment, every organization use strategic management in planning, controlling and decision-making processes. Required: Critically examine the importance of planning, controlling and decision-making for the success and survival of an organizational in a competitive global economic environment. End of paper

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