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ACCT 301 Fundamentals Of Cost Accounting

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Task:

Q1. Analyze some examples of relevant and irrelevant Cash Flows for one Saudi Company?  

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?  

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:

         Number of unitsTotal

               Quarter            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.  

 

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