Management Accounting

"Management accounting is an extension of managerial aspects of financial accounting and cost accounting" Discuss. 

From the following ratios and information relating to DCM Ltd; find out

(a) Sales for the year ending 31-03-2017 -

(b) Sundry debtors on 31-3-2017

(c) Sundry creditors on 31-3-2017

(d) Closing stock.

What is the purpose of preparing a Cash Flow Statement?, How is it prepared? Explain the difference between direct and indirect method of preparation of cash flow statement. 

A gang of workers usually consists of 10 men, 5 women and 5 boys in a factory. They are paid at standard hourly rates of Rs. 1.25, Rs. 0.80 and Rs. 0.70 respectively. In a normal working week of 40 hours, the gang is expected to produce 1000 units of output.

In a certain week, the gang consisted of 13 men, 4 women and 3 boys. Actual wage were paid at the rate of Rs. 1.20, Rs. 0.85 and Rs. 0.65 respectively. Two hours in the week were lost due to abnormal idle time and 960 units of output were produced Calculate various labour variances. 

A firm can purchase 20000 units p.a. of a spare part from an outside source @ Rs. 11 per unit. There is a proposal that the spare part be produced in the factory itself. For this purpose a machine costing Rs. 1,00,000 with annual capacity of 20,000 units will be required. A foreman with a monthly salary of Rs. 500 will also have to be engaged. Materials required will be Rs. 4.00 per unit and wages Rs. 2.00 per unit. Variable overheads are 150% of direct labour. The firm can easily raise funds @10% p.a.

Advise the firm whether the proposal should be accepted or not. 

You are given the following data:

Compute:

i) Profit volume ratio (P/V Ratio)

ii) Break even point

iii) Fixed Cost

iv) If sales for the year 2019 is projected to be Rs. 65,00,000 find out the corresponding profit.

3. Write short note on:

c) Difference between marginal costing and absorption costing.

3. Write short note on:

b) Zero base budgeting

3. Write short note on:

a) Common size financial statements

What do you mean by 'Flexible Budget? How is it drawn up and what difficulties would you expect to face in its compilation?

"Cost accounting is a system of foresight like pre-natal care, but financial accounting is just a post-mortem examination." Critically examine this statement.

Draw up a flexible budget for overhead expenses on the basis of the following data and determine the overhead rates at 70%, 80% and 90% plant capacity

The standard cost of a certain chemical mixture was: 40% Materials A at Rs.200 per ton 60% Materials B at Rs.300 per ton A standard loss of 10% is expected in production. During the period the following materials were used:

90 tons. Materials A at the cost of Rs. 180 per ton.

110 tons. Materials B at the cost of Rs.340 per ton.

The weight produced was 182 tons of good production.

Calculate: (1) Material price variance (ii) Material usage variance (1) Material mix variance (iv) Material yield variance

X Ltd. manufactures and markets a information is available: single product. The following

There is acute competition. Extra efforts are necessary to sell. Suggestions have been made for increasing sales: i) By reducing sales price by 5% ii) By increasing dealers margin by 25% over the existing rate.

Which of the two suggestions you would recommend if the company desires to maintain the profit? Give reasons.

A Ltd. maintains, a margin of safety of 37.5% with an overall contribution to sales ratio of 40%. Its fixed costs amount to Rs.5 Lakhs. Calculate the following:

1. Break-even sales. 

2.Total sales

3.Total variable costs.

4.Current profit.

5.New margin of safety if the sales value is increased by 7% %. 

Define Management Accounting. How does it help in effective decision making? Discuss the role and responsibilities of a management accountant in a modern organisation.

From the following balance sheets of Exe. Ltd. prepare the statement of sources and use of cash:

Additional information: (1) Depreciation of Rs.10,000 and Rs.20,000 have been charged on plant and land and buildings, respectively, in 2017.

(2) An interim dividend of Rs.20,000 has been paid in 2017.

(3) Rs.35,000 income tax was paid during the year 2017.

From the following information relating to Wise Limited, you are required to prepare its summarized balance sheet: