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Q1 Provide example of one Saudi Company and analyze two examples of organizational strategies and operating plans for this example. (1 Mark)
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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:
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MonthUnitsTotal Costs
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January3,560$242,400
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February3,800$252,000
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March4,000$260,000
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April3,600$244,000
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May3,200$228,000
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June3,040 $221,600
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Compute a cost function using the high-low method.
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(1 Mark)
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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:
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a.Degree of operating leverage
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b.Margin of safety in units
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c.Margin of safety in revenues
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(1 Mark)
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Q 4 Provide one numerical example for allocation of overhead of one job and analyze this example?
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(1 Mark)
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Q 5 Discuss the concept of Equivalent Units in process costing and give numerical example? (1 Mark)
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