Discuss why managers estimate a cost function

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Reference no: EM133201519 , Length: Word count: 1 Page

Question 1: Analyze some examples of relevant and irrelevant Cash Flows for one Saudi Company?

Question 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?

Question 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:

Quarter	Number of units produced	Total 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.

Question 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?

Reference no: EM133201519

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