Accounting Examples of Relevant and Irrelevant Cash Flows Questions

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Q1. Company? (1.5 Marks) Analyze some examples of relevant and irrelevant Cash Flows for one Saudi ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… 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? (1.5 Marks) ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Page 1 of 3 ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… 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: Quarter Number of units Total produced 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. (1 Mark) ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Page 2 of 3 ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… 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? (1 Mark) ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Page 3 of 3
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Q1.
Company?
(1.5 Marks)

Analyze some examples of relevant and irrelevant Cash Flows for one Saudi

Relevant costs are costs that differentiated among various alternatives.in the Saudi
Electricity Company, the relevant costs include the future cash flows which include purchasing of
electrical transformers, avoidable costs which include downsizing employees providing unnecessary
labor, opportunity costs which include the purchase of electricity wires instead of electricity posts
and incremental costs that includes additional of 10 units.
Irreverent costs are the costs that are not affected by the decisions of the management. They
include sunk costs which include the already purchased vehicle and bought electricity posts,
committed costs which include the cost of purchasing a generator and its maintenance costs of 5
years, non-cash expenses which include depreciation of company assets and there are overheads
which include legal fees, telephone bills and repairs ("Difference Between Relevant Cost and
Irrelevant Cost | Difference Between", 2020).

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 ...

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Accounting Examples of Relevant and Irrelevant Cash Flows Questions

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Accounting Examples of Relevant and Irrelevant Cash Flows Questions

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Explanation & Answer

24/7 Homework Help

Death Of A Salesmen

The Two Towers

The Curious Case of the Dog in the Night Time

One Flew Over the Cuckoos Nest

Hidden Figures

The 7 Habits of Highly Effective People

The Awakening

Their Eyes Were Watching God

The Jade Peony

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