Q1 Provide example of one Saudi Company and analyze two examples of organizationalstrategies 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.
(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)
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