assigns 1,2,3,4and5

Assignment 1

Deadline: 27/02/2021 @ 23:59 (End of week 6)

For Instructor’s Use only

Instructions – PLEASE

· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

· Submissions without this cover page will NOT be accepted.

Q1 Provide example of one Saudi Company and analyze two examples of organizational strategies and operating plans for this example. (1 Mark)

The Saudi Telecom Company is one of several telecommunications and information technology companies that provide wireless and internet connectivity and connectivity to individuals and institutions in the Kingdom of Saudi Arabia. The company's organizational strategies and plans are digital communication systems and their efficiency. The company has created a platform that customers use to monitor communications and internet consumption, create and follow orders and invoices. The company has invested in research and development to ensure that customers receive high-quality services in a timely manner.

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)

VC = (Highest TC – Lowest TC)/(Highest units – Lowest units) Variable Cost = (260,000−221,600)

(4,000−3,040)

V. C =38,400 = $40 960

FC = Highest total cost – highest units*variable cost Fixed Cost = $260,000 – 4,000units *$40 = $100,000

Cost function = $100,000 + 40* Variable Cost .

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: (1 Mark)

a. Degree of operating leverage

Degree of operating leverage = 300($17−$10) = 1.62

b. Margin of safety in units

Margin of safety in units = 300 units – ($800/ ($17- $10) The Margin of safety in units = 300 units – 114 units = 186 units

c. Margin of safety in revenues

Margin of safety in revenues = $17*(300 units -114 units) Margin of safety in revenues = $17*(186 units) = $3,162

Q 4 Provide one numerical example for allocation of overhead of one job and analyze this example?

(1 Mark)

Overhead allocation considers the total cost incurred by an individual or organization in completing a specific task.

For example, an organization May 65% of total cost to overhead cost. For example, the construction of a classroom costs $65,000. The overhead allocation is $42,250. Organizations use different methods in allocating the overhead costs.

Q 5 Discuss the concept of Equivalent Units in process costing and give numerical example? (1 Mark)

Equivalent units are the total number of complete units that are the same as the total unfinished products at the end of the trading period. The equivalent units are expressed as percentages of the total units in an organization . For example, the equivalent units are 60% of the total units. The equivalent units with 45,000 incomplete units are 27,000compete units (60%*45,000).

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