Get fully solved assignment.

Buy online from website

www.smuassignment.in
online store
or
plz drop a mail with your sub code
computeroperator4@gmail.com
we will revert you within 2-3 hour or immediate
Charges rs 125/subject

DRIVE SPRING 2017

PROGRAM MBA
SEMESTER I
SSUBJECT CODE &
NAME
MBA104
FINANCIAL AND MANAGEMENT ACCOUNTING

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
iii) Break-even sales, if the selling price was reduced by 10 % and fixed costs were
increased by Rs. 1,00,000.

Answer: i) It expresses the relationship between contribution and sales. It is also termed as
Marginal Contribution Sales Ratio (MCSR).

Profit

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

Answer: Methods of Costing

Costing refers to the techniques and processes of determining costs of a product manufactured or
a service rendered. The method of costing depends on the nature of product, production method,
and specific business conditions.
The different

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.
From the above information 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.

Assignment Set -2

1 1 ton of material input yields standard output of 1,00,000 units. The standard price of
material is Rs. 20 per kg. The actual quantity of material use 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 find:
i) Material Cost Variance
ii) Material Price Variance
iii) Material Usage Variance

Answer: Computation of Material Variances

Budgeted (100000) Standard (900000) Actual (900000)
Ton Rate Amount Ton Rate Amount Ton Rate Amount
1 20 20 9 20 180 10 21 210

(i) Material Cost Variance

It is the difference between the standard cost of materials allowed for the actual output and the
actual cost of materials used. It may be expressed as:
= standard cost of

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. Errors not disclosed by Trial Balance

Answer: Errors not disclosed by Trial Balance

There are four errors which do not affect trial balance and it is difficult to locate them. A brief
description of the four errors is offered in the following paragraphs.
1. Error of complete omission Error of omission occurs when a transaction is completely
omitted from the books of accounts.

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: Cost sheet

Get fully solved assignment. Buy online from website

www.smuassignment.in
online store
or
plz drop a mail with your sub code
computeroperator4@gmail.com
we will revert you within 2-3 hour or immediate
Charges rs 125/subject