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College of Administrative and Financial Sciences



Assignment 1

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



Course Name: Cost accounting Student’s Name:
Course Code: ACCT 301 Student’s ID Number:
Semester: 1 CRN:
Academic Year: 1441/1442 H



For Instructor’s Use only

Instructor’s Name:
Students’ Grade: Marks Obtained/Out of Level of Marks: High/Middle/Low


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)


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)

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:

a. Degree of operating leverage

b. Margin of safety in units

c. Margin of safety in revenues


(1 Mark)

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

(1 Mark)

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












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