relevant and irrelevant cash flows

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

Quarterproduced Costs





Using the two points methods, choose two points with which you estimate the cost function.

Q 4 Give one example of Saudi companies using job costing and one example of Saudi companies using process costing and discuss the difference between them?

Instructions –

  • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation.
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