FM11
Financial & Management Accounting
(For CNM Cases)
Assignment - I
Assignment Code: 2016FM11A1 Last Date of Submission: 30th April 2016
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
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.
Financial & Management Accounting
(For CNM Cases)
Assignment - I
Assignment Code: 2016FM11A1 Last Date of Submission: 30th April 2016
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
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.
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