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 following informations were collected:
Month Units Total Costs
January 3,560 $242,400
February 3,800 $252,000
March 4,000 $260,000
April 3,600 $244,000
May 3,200 $228,000
June 3,040 $221,600
Compute a cost function using the high-low method.
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
Q 4 Provide one numerical example for allocation of overhead of one job and analyze this example?
Q 5 Discuss the concept of Equivalent Units in process costing and give numerical example? (1 Mark)
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