|
FM11
FINANCIAL & MANAGEMENT ACCOUNTING
Assignment ‐ II
Assignment Code: 2014FM11A2 Last Date of Submission: 15th May 2014
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section‐A
1. Define Standard Costing. Draw the system of standard costing.
2. Discuss the role of cost analysis in managerial decision making. What are the steps involved in managerial decision making?
3. “Certain costs are controllable & certain other costs are non‐controllable.” This is a meaningless statement unless we define what portion of the organisation is being discussed. Explain.
4. “What management does, or at least what it attempts to do, is to control the action of the people who are responsible for incurring costs” Comment.
Section‐B
Case Study
Product‐wise Income Statement of AAL for most recent month
|
|
Gagan Vanaspati (Amount in Rs.)
|
Gagan Cheese (Amount in Rs.)
|
Gagan Chips (Amount in Rs.)
|
Total (Amount in Rs.)
|
|
Sales
(‐)Variable Costs
|
2,00,000 80,000
|
80,000 50,000
|
12,000 5,000
|
2,92,000 1,35,000
|
|
Contribution margin
(‐)Fixed costs for product line
|
1,20,000 10,000
|
30,000 5,000
|
7,000 4,000
|
1,57,000 19,000
|
|
Segment/product margin (‐)Firm‐related fixed costs
|
1,10,000 10,000
|
25,000 8,000
|
3,000 4,000
|
1,38,000 22,000
|
|
Net income
|
1,00,000
|
17,000
|
(1,000)
|
1,16,000
|
Unit Sale price & cost of AAL
|
|
Gagan Vanaspati (Amount in Rs.)
|
Gagan Cheese (Amount in Rs.)
|
Gagan Chips (Amount in Rs.)
|
|
Sales price per unit
Direct material cost per unit Direct labour cost per unit Variable overheads per unit
|
40
6
20
4
|
25
3
16
2
|
15
3
8
1
|
The projected output for a month is Vanaspati 7,000 units, Cheese 4,000 units & Chips 10,000 units. Due to employee turnover in recent months, AAL is now left with only 350 workers. They work 24 days in a month & 8 hours per day. The direct wage rate is Rs.4 per hour.
5. Case Question: Determine the optimal product mix.
|
Member Sign-In 
Register Now 
