Problem: Cost Accounting
I. Provide example of one Saudi Company and analyze two examples of organizational strategies and operating plans for this example.
II. 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 information 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.
III. Hashim Corporation sells its product for $17 per unit. Its variable cost is $10 per unit, and total fixed cost are $800.
Assuming next period's estimated sales are 300, calculate the following amounts:
i. Degree of operating leverage
ii. Margin of safety in units
iii. Margin of safety in revenues
IV. Provide one numerical example for allocation of overhead of one job and analyze this example?
V. Discuss the concept of Equivalent Units in process costing and give numerical example?
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.