Q1 Provide example of one Saudi Company and analyze two examples of organizational strategies and operating plans for this example. (1 Mark)
Q2 Abdulkrim Company manufactures a product A.The company estimates the cost function for the total costs. The cost driver is number of units.The followinginformations were collected:
MonthUnitsTotal Costs
January3,560$242,400
February3,800$252,000
March4,000$260,000
April3,600$244,000
May3,200$228,000
June3,040 $221,600
Compute a cost function using the high-low method.
(1 Mark)
Q3 Hashim Corporation sells its product for $17 per unit.Its variable cost is $10 per unit, and total fixed costs are $800.Assuming next period’s estimated sales are 300, calculate the following amounts:
a.Degree of operating leverage
b.Margin of safety in units
c.Margin of safety in revenues
(1 Mark)
Q 4 Provide one numerical example for allocation of overhead of one job and analyze this example?
(1 Mark)
Q 5 Discuss the concept of Equivalent Units in process costing and give numerical example? (1 Mark)
Sample Solution