Halfords Pvt Ltd Accounting Assignment Help With Solution

Halfords Pvt Ltd Accounting Assignment Help With Solution

Assuming the role of Naser Saad (MA), please answer the following questions while using Excel sheet when it is applicable:
1. The CFO (Hamad Al-Dosari) has asked you to compute bike cost and selling price (Selling Price is 120% of product cost) under methods suggested by Ahmed Almarri (FC) (absorption costing) and Sara Al-Emadi (MM) (variable costing) for each year. (20%)
2. The CFO (Hamad Al-Dosari) is coming from non-accounting background and he is seeking your advice regarding the main assumptions underpin variable and absorption costing methods? (10%)
3. You have been challenged by the MM (Sara Al-Emadi) to explain how net operating income of Halfords would be affected by bike cost and selling price that calculated in requirement (1). Support your explanation by computation for each method / per year. (20%)


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4. Prepare the numerical reconciliation (for each year) to explain the different operating incomes reported under the two costing methods used in requirement (3). Explain why the differences in the two operating incomes arise for each year? Support you explanation by computation. (20%)
5. Explain how the offered Quotation of Bike N-52 order for 2013 by Ahmad Al-Marri (see the first paragraph of the conversation for details) may result in profit/lose? Show your calculation. (20%)
6. The CFO (Hamad Al-Dosari) is seeking your advice for applications of variable and absorption costing methods in relation to
(a) pricing decision and
(b) reporting profit to stakeholders. (10%)

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