MBA104 FINANCIAL AND MANAGEMENT ACCOUNTING

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

help.mbaassignments@gmail.com

or

call us at : 08263069601

ASSIGNMENT

DRIVE	SPRING 2017
PROGRAM	BBA
SEMESTER	IV
SUBJECT CODE & NAME	MBA104  FINANCIAL AND MANAGEMENT ACCOUNTING
BK ID	B1713
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Assignment Set -1

Questions

Question.1. Rainbow Ltd. sold goods for Rs. 30,00,000 in a year. In that year the variable costs were Rs. 6,00,000 and fixed costs were Rs. 8,00,000.

Find out :

i) MCSR or P/V Ratio

ii) Break-even sales, and

iii) Break-even Sales if Selling price was reduced by 10 % and Fixed costs were increased by Rs. 1,00,000.

Answer: i) P/V Ratio

Question. 2.  “The method of costing depends on the nature of the product, production method and specific business conditions”. Enumerate giving examples.

Answer: Cost control by management means a search for better and more economical ways of com­pleting each operation. Cost control is simply the prevention of waste within the existing environment. This environment is made up of agreed operating methods for which standards have been developed.

Business firms aim at producing the product at the minimum cost. It is necessary in order to achieve the goal of profit maximisation. The success of

Question. 3. A company making for stock in the first quarter of the year 2017 is assisted by its bankers with overdraft accommodation. The following are the relevant budget figures:

  

  

     Sale (Cr.)              Rs.

Purchases (Cr.)               Rs.

Wages &Expenses   (Cr.)              Rs. November 2016 1,20,000 83,000 10,000 December 2016 1,28,000 96,000 10,000 January 2017 72,000 1,62,000 11,000

February 2017 1,16,000 1,64,000 10,000 March 2017 84,000 40,000 12,000

Given the following further information you are required to prepare a Cash Budget for the quarter January to March 2017, showing the budgeted amount of bank facilities required, if any, in each month end:

a) Budgeted cash at bank on 1st January 2017 Rs. 20,000

b) Credit terms of sales are payment by the end of the month following the month of supply. On average one half of sale are paid on due date, while the other half are paid during the next month. Creditors are paid during the month following the month of supply.

c) Wages and expenses are paid twice a month on 1st and 16th respectively.

Answer: Businesses and professionals could soon have to pay salaries of Rs 10,000 or more to their employees through cheque or bank transfer if they want to claim tax credit, reported the Times of India on Friday.

Wages of people such as drivers or office boys are often Rs 10,000 or Rs 15,000, which used to be paid in cash. We will prefer it to go through non-cash channels. The person claiming it as expenses should make the payment by cheque or

Assignment Set -2

Questions

Question. 1 ton of material input yield standard output of 1,00,000 units. The standard price of materials is Rs. 20 per kg. The actual quantity of materials used is 10 tons and the actual price paid is Rs. 21 per kg. Actual output obtained is 9,00,000 units.

Compute Material Variances.

From the above particulars, compute :

(i) Material Cost Variance

(ii) Material Price Variance

(iii) Material Usage Variance

Answer: Basic data: Actual Output : 9,00,000 units.

                                                                                                                                             

Question. 2 . “There are errors which do not affect the Trial Balance and it is difficult to locate them”. Do you agree ? justify your agreement/ disagreement.

Answer: The location of errors of omissions, compensations and principles are slightly difficult because of the fact that such errors do not affect the agreement of trial balance. However, the locations of some errors of commission are comparatively easier because they affect the agreement of the trial balance. Thus, the errors can be classified into two categories from the point of view of locating them:

Question. 3 . From the following data prepare a Cost Sheet.

Rs.
Opening cost of Raw materials	30,000
Closing stock of Raw materials	20,000
Purchase of Raw materials	1,90,000
Sales	6,50,000
Prime Cost	4,10,000
Factory Overhead	1,20,000
Administration Overhead	90,000
10 % of the output remained unsold. There was no Direct Expenses

From the above information prepare a Cost Sheet

Answer: One Operation (Unit or Output) Costing: One operation costing method of costing by units of production and is adopted where production is uniform and a continuous affair, units of output are identical and the cost units are physical and natural. The cost per unit is determined by dividing the total cost during a given period by the number of units produced during that period.

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

help.mbaassignments@gmail.com

or

call us at : 08263069601