Homework: Cost Accounting
• Examine with suitable examples, how "Vision and Mission statement" influence the organization's decision making process? Also provide vision and mission statement of any two Saudi companies.
• The following data has been taken from the records of ABC Company for the year 2015:
|
Month
|
Units Produced
|
Total Cost (SAR)
|
|
January
|
3,500
|
35,500
|
|
February
|
3,750
|
35,750
|
|
March
|
4,000
|
36,000
|
|
April
|
4,250
|
36,250
|
|
May
|
4,500
|
38,000
|
|
June
|
4,750
|
43,000
|
|
July
|
2,750
|
32,000
|
|
August
|
3,250
|
32,500
|
o Using the high-low method of analysis, find out variable cost, fixed cost and determine a cost function.
• MNM Corporation provides you the following accounting information related with a particular product:
|
Particulars
|
Amount (SAR)
|
|
Selling price per unit
|
500
|
|
Variable cost per unit
|
200
|
|
Total fixed cost
|
240,000
|
Use cost volume profit analysis to answer the following questions:
o Determine the break-even point in units?
o Determine the break-even point in sales value SAR?
o What will be the pretax profit if company sells 1,200 units of the product?
o How many units the company will be required to sell to reach a target pretax profit of SAR 150,000?
• X Ltd. makes metal products and sells a metal product for SAR 150 per units. The company's variable cost is SAR 35 per units and total fixed cost are SAR 51,750. The company's estimated next year budgeted sales are 1,500 units. You are required to calculate:
o Degree of operating leverage
o Margin of safety in units
o Margin of safety in SAR value
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.