JUNE 2011 EXAMINATION
FM01
Accounting & Finance for Manager
Time: Three Hrs. Maximum Marks: 100
Note:
1. The paper is divided into three sections: Section A, Section B and Section C.
2. There are seven questions in Section A of 10 marks each. Attempt any four.
3. Section B has 5 questions of 15 marks each. Attempt any three.
4. All the questions of Section C (Case Study) are compulsory. This section is of 15 marks.
Marks will be awarded for the right procedure also in numerical questions.
Section A
1 Financial Management deals with five major categories of Decision. What are the five decisions? Explain them. (10 marks)
2 What are the different functions performed by financial markets? (10 marks)
3 A typical financial market comprises many constituents. Name any five constituents of financial market and discuss there features. ( 10 marks )
4 What are the derivative instruments? Distinguish between futures and forward contracts.
. (10 marks )
5 What is the purpose of financial market? Discuss in detail the different type of money market instruments?. (10 marks )
6 What is cash flow statement? Discuss the information provided by cash flow statement of any company. (10 marks )
7 a) Define leverage and explain different types of leverage.
b) Compare and contrast between Bonus issue and stock splits. (5+5 marks )
Section B
8 Write short notes on (5x3 marks )
a) Standard cost
b) Cost Variance
c) Revenue variance
9 a) What are the merits and demerits of ratio Analysis.
b) Explain Value analysis
(10+5 marks )
10 Explain in detail ABC and VED models of inventory control. Give examples also (15 marks )
11 a) Define idle time? How is idle time classified?
b) A manufacturer purchases certain machinery from outside suppliers at Rs.120 per unit. Total annual needs are 1600 units. The additional information are:
Annual return on investments = 10%
Rent, insurance, taxes per unit per year= Rs.4/-
Cost of placing an order = Rs. 450/-
Determine Economic order unit.
c) Angle of incidence.
. (5x3 marks )
12 Distinguish between batch and contract costing. (15 marks )
Section C Case Study (Compulsory)
A factory engaged in manufacturing plastic toys is working at 40% capacity and produces 20,000 toys per annum. The present cost break up of the toy is as under:
Material 20
Labour 6
Overheads 10 ( 60% fixed )
The selling price of toy is Rs.40/- per toy.
It is decided to work the factory at 50% capacity, the selling price falls by 6%. At 90% capacity the selling price falls by 10% accompanied by a similar fall in the prices of materials.
Calculate the profit at 50% and 90% capacity and also calculate breakeven point for the same capacity production
(15 marks)
No comments:
Post a Comment