Overview
Q1. Analyze some examples of relevant and irrelevant Cash Flows for one Saudi Company?
Q 2 a - Discuss why managers estimate a cost function and use Cost volume Profit analysis? Give numerical example of cost function and Cost Volume Profit Analysis and analyze how it will be used by managers?
b- Suppose actual costs are higher than estimated cost. Analyze why you may have this difference between actual and estimated costs?
Q 3 Altawfik Corporation is estimating the cost function for total cost of production of product A using the two points method. The data collected for the past year is as following:
Number of units Total
Quarter produced Costs
1 4,000 $ 1,000
2 5,400 1,280
3 7,000 1,600
4 9,000 2,000
Using the two points methods, choose two points with which you estimate the cost function.
Q 4 Give one example of Saudi companies using job costing and one example of Saudi companies using process costing and discuss the difference between them?