# 301.1 Cash Flows, Cost Function, Process Costing and Job Costing

Q1- Analyze some examples of relevant and irrelevant Cash Flows for one Saudi Company?

Q2- 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?

Q2- B: Suppose actual costs are higher than estimated cost. Analyze why you may have this difference between actual and estimated costs?

Q3- 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.

Q4- Give one example of Saudi companies using job costing and one example of Saudi companies using process costing and discuss the difference between them? 