Financial & Management Accounting
Section-A
1. Discuss management accounting as an effective tool of financial control.
2. What do you mean by cash from operating activities? How is it calculated?
3. The “volume-cost-profit relationship provides management with a simplified framework for organizing its thinking on a number of problems.” Discuss
4. Recently a conference speaker discussing budgets & standard costs made the following statement- “Budgets & standard costs are not the same things, they have different purposes & are set up & used in different ways, yet a specific relationship exists between them.” In the light of above statement identify the similarities & differences between budgets & standards.
Section-B
Case Study
Batty & Co. is currently working at 50% capacity & produces 10,000 units. At 60% working raw material cost increases by 2% & selling price falls by 2%. At 80% working raw material cost increases by 5% & selling price falls by 5%.
At 50% capacity working the product costs Rs.180 per unit & is sold at Rs.200 per unit. The unit cost of Rs.180 is made up as follows: Material Rs.100 Wages Rs.30 Factory Overheads Rs.30 (40% fixed)
Administration Overheads Rs.20 (50% fixed)
Question: Prepare a marginal cost statement showing the estimated profit of the business when it is operated at 60% & 80% capacity. Also calculate break-even points at these levels.
FM11
Financial & Management Accounting Assignment - II
Assignment Code: 2013FM11B2 Last Date of Submission: 15th November 2013 Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. What is Responsibility accounting? How is it associated with the goal of controllability? Explain clearly main objectives & features of responsibility accounting.
2. Principal budget factor (or limiting factor) is of vital significance to management. Comment on this statement,
1. Discuss management accounting as an effective tool of financial control.
2. What do you mean by cash from operating activities? How is it calculated?
3. The “volume-cost-profit relationship provides management with a simplified framework for organizing its thinking on a number of problems.” Discuss
4. Recently a conference speaker discussing budgets & standard costs made the following statement- “Budgets & standard costs are not the same things, they have different purposes & are set up & used in different ways, yet a specific relationship exists between them.” In the light of above statement identify the similarities & differences between budgets & standards.
Section-B
Case Study
Batty & Co. is currently working at 50% capacity & produces 10,000 units. At 60% working raw material cost increases by 2% & selling price falls by 2%. At 80% working raw material cost increases by 5% & selling price falls by 5%.
At 50% capacity working the product costs Rs.180 per unit & is sold at Rs.200 per unit. The unit cost of Rs.180 is made up as follows: Material Rs.100 Wages Rs.30 Factory Overheads Rs.30 (40% fixed)
Administration Overheads Rs.20 (50% fixed)
Question: Prepare a marginal cost statement showing the estimated profit of the business when it is operated at 60% & 80% capacity. Also calculate break-even points at these levels.
FM11
Financial & Management Accounting Assignment - II
Assignment Code: 2013FM11B2 Last Date of Submission: 15th November 2013 Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. What is Responsibility accounting? How is it associated with the goal of controllability? Explain clearly main objectives & features of responsibility accounting.
2. Principal budget factor (or limiting factor) is of vital significance to management. Comment on this statement,