Q1.
Analyze some examples of relevant and irrelevant Cash Flows for one Saudi Company?
(1.5 Marks)
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?
(1.5 Marks)
Page 1 of 3
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:
Quarter
Number of units
Total
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.
(1 Mark)
Page 2 of 3
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?
(1 Mark)
Page 3 of 3
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