Cost & Management Accounting (VV2) We Also Provide SYNOPSIS AND PROJECT. Contact www.kimsharma.co.in for best and lowest cost solution or Email: solvedstudymaterial@gmail.com Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only) 1 . Batla Ltd. is currently preparing its cash budget for the year to 31 March 2014. An extract from its sales budget for the same year shows the following sales values. Rs March 60,000 April 70,000 May 55,000 June 65,000 40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 2013 would be how much? 2 . A company manufactures 5,000 units of a product per month. The cost of placing an order is 100. Purchase price of the raw material is 10 per kg. Average consumption of raw material is 275 kgs. per week. The carrying cost of inventory is 20% per annum. Calculate economic order quantity? 3 . What is a ‘cost plus contract’? What are its disadvantages ? 4 . What remedial measures would you suggest to minimize the labour turnover ? 5 . Explain ABC analysis and Economic Order Quantity (EOQ) techniques of inventory control? 6 . Why the flexible budgets are considered superior to the fixed budgets ? 7 . Distinguish between ‘job costing’ and ‘contract costing’? We Also Provide SYNOPSIS AND PROJECT. Contact www.kimsharma.co.in for best and lowest cost solution or Email: solvedstudymaterial@gmail.com Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only) Case Detail : Accounting Adds Up to a Challenging and Rewarding Career What factor do many of the nation’s top CEOs, government leaders and most influential business advisers have in common? Many of them launched their careers with a degree in accounting. That’s right - accounting. The popular stereotype of the accountant is the solitary “bean counter” who quietly works behind the scenes recording financial transactions and balancing the books. The reality is that accountants are on the front lines helping businesses succeed, keeping cities and states running, and protecting the financial health and security of organizations and individuals. Accountants are responsible for maintaining an organization’s financial records and protecting its assets which requires strict adherence to accounting rules, tax codes and regulations as well as the ability to analyze data, question assumptions and resolve discrepancies. In addition to being comfortable working with numbers, accountants must be good with words; they must be able to read business documents critically and make compelling presentations. Given the sensitive nature of the financial information being handled, personal integrity, honesty and the highest standard of ethics are essential. The accounting profession offers a variety of career paths. Many accountants work within public accounting firms, which can range from large, multinational firms to local accounting practices. Within the firm, accountants can specialize in areas such as audit, tax and management consulting as well as serve a range of industries and clients. On the corporate side, careers are available in businesses of all sizes, working in areas including financial accounting and reporting, financial management and information systems. Accountants, especially those certified in Forensic Accounting, are also in demand at the FBI and the Treasury Department where they work with investigators to track down accounting fraud. Pursuing a college degree in accounting requires a strong personal commitment, persistence, and hard work. All states require students to complete 150 credit hours to obtain a state license for the CPA, which is 30 hours more than the usual four-year bachelor’s degree. 1. What’s the issue in the case? 2. What are the responsibilities of accountants? 3. What are the essentials to become a good accountant? We Also Provide SYNOPSIS AND PROJECT. Contact www.kimsharma.co.in for best and lowest cost solution or Email: solvedstudymaterial@gmail.com Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only) 1. ABC technique refers to ………….. based costing. Average Abnormal Activity Absorption 2. The fixed cost which cannot be avoided during the temporary closure of a plant is known as …………… cost. Closure Shutdown Break down Stoppage 3. Any factor that causes a change in the cost of an activity or output. Forexample, the quality of parts received by an activity, or the degree of complexity of tax returns to be reviewed. Cost Absorption Cost Verification Cost allocation Cost Driver 4. The cost which varies with the level of production is called …………….. Cost. Moving unstable Variable Fixed 5. Profit centres whose expenditure are reported on amarginal cost basis, are called ……………….. centres. Contributors Average Deposit Subsidised 6. ICWA stands for The Institute of Cost and …………….. Accountants. Waste Works Weightage Weblink 7. It is the process of absorbing the overhead costs (indirect costs)allocated to or apportioned over a particular cost centre. Cost Consumprion Cost Absorption Cost Verification Cost allocation 8. ………………. cost represents the indirect cost which is incurred for seekingto create and stimulate demand and securing orders. Buying Procurement Selling Opportunity Cost 9. It is the cost incurred for converting the raw material intofinished product Average Deposit Subsidised Conversion 10. Sales minus total cost is called ………………. . Margin Profit Contribution EBIT 11. They have the capacity of contributing to the production of therevenue in the future. Cost Absorption Cost Verification Unexpired Cost Conversion Cost 12. Any segment or element for which cost information is desired is known as ……………. Object. Cost Margin Profit Contribution 13. Committed resources or Resources that generate cost based on the amount acquired rather than the amount used such as Buildings and equipment are termed as ………….. Related resource. Goodwill Capacity Asset Production 14. ………….. products are a sub-category of joint products that have relatively insignificant sales values as a proportion of the value of the entire group from which they are derived. Associated Sub By Subsidised 15. Cost of an activity that is required or performed each time a batch of products or services is produced is called ……………. Level cost. Original Net Unit Batch 16. The cost of testing and inspecting both the materials and finished products is ………………. Cost. Marginal Appraisal Appreciation Unit We Also Provide SYNOPSIS AND PROJECT. Contact www.kimsharma.co.in for best and lowest cost solution or Email: solvedstudymaterial@gmail.com Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only) 17. Cost of one more item, unit or customer. Appraisal Appreciation Unit Incremental 18. Can be increased or decreased at the discretion of the decision maker. Appraisal Appreciation Unit Discretionary 19. After making deductions. Net Gross Actual Factual 20. Unstated and unrecorded cost is also called ………………. Cost. Explicit Implicit Unit Incremental 21. Combination of budgeted profit and loss account, cash flow statement and balance sheet, created from detailed budgets brought together within a finance plan is ………………. Budget. Actual Master Real Combined 22. Investment projects that are competing for scarce resources, where choosing one eliminates another. Explicit Mutually Inclusive Mutually Exclusive Implicit 23. FIFO stands for First in ………… out. First Fast Foremost Feasible 24. One which is not capable of being regulated by a manager within a defined boundary of responsibility, although it may be a cost incurred so that the responsibility may be exercised. Controllable Adjustable Fixed Non-controllable 25. The cost difference expected if one course of action is adopted instead of others is called ……. Cost. Differential Common Unit Motivated 26. In the month of January, 300 labour hours were worked for a total cost of Rs 4800. The variable overhead expenditure variance was Rs 600 (A). Overheads are assumed to be related to direct labour hours of active working. What was the standard cost per labour hour? 14 16 18 34 27. An activity, output, or item whose cost is to be measured. Cost Budgeting Cost Audit Cost Suspension Cost Object 28. It is a fixed cost which results from decisions of prior period andis not subject to managerial control in the present. Absolute Absorption Administratrive Committed 29. A liability that is expected to be repaid within a short period of time say 9 or 12 months. Capital Liability Net Liability Current Liability Fixed Liability We Also Provide SYNOPSIS AND PROJECT. Contact www.kimsharma.co.in for best and lowest cost solution or Email: solvedstudymaterial@gmail.com Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only) 30. The way of describing and analysing the sequence of activities that bring on product/service from initial stage of production to final stage of delivery. Task determination Rationing Value Chain budgeting 31. ………….. Cost is associated with an activity that would not be incurred if the activity were not performed. Rejected Accepted Avoidable Suspended 32. …………… activity is performed each time a product is produced. Marginal Unit Fixed Variable 33. It is the indirect cost pertaining to the administrative function which involves formulation of policies, directing the organisation and controlling the operations of an undertaking is …………. Cost. Abnormal Absolute Absorption Administratrive 34. The sales of a business or other form of revenue from operations of the business. Profit Contribution Turnover Margin 35. Any materials that have no value. Waste Junk Both None 36. An agenda, layout, blue print or a plan setting out the actions and resources needed to achieve a stated objective of the long-term plan. Consideration Strategy Thinktank Planning 37. It is the total cost of any product or process. For e.g.: in a costsheet, both absolute cost and cost per unit are depicted. Average Abnormal Absolute Absorption 38. A fixed cost which increases in steps over a period of several years. Absolute Absorption Cost Budgeted Step Cost 39. The amount of work achievable, at standard efficiency levels, in one hour. Standard Hour Non-Standard Hour Fixed Hour Incremental Hour 40. Those future costs which will be affected by a decision to be taken are ………….. Costs. Relevant Irrelevant Incremental Judgemental We Also Provide SYNOPSIS AND PROJECT. Contact www.kimsharma.co.in for best and lowest cost solution or Email: solvedstudymaterial@gmail.com Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only)