Discuss management accounting as an effective tool of financial control. 2.
What do you mean by cash from operating activities? How is it calculated? 3.
The “volume-cost-profit relationship provides management with a simplified framework for
organizing its thinking on a number of problems.” Discuss 4.
Recently a conference speaker discussing budgets & standard costs made the following
statement- “Budgets & standard costs are not the same things, they have different purposes &
are set up & used in different ways, yet a specific relationship exists between them.”
In the light of above statement identify the similarities & differences between budgets &
Batty & Co. is currently working at 50% capacity & produces 10,000 units. At 60% working raw material cost increases by 2% & selling price falls by 2%. At 80% working raw material cost increases by 5% & selling price falls by 5%. At 50% capacity working the product costs Rs.180 per unit & is sold at Rs.200 per unit. The unit cost of Rs.180 is made up as follows:
Rs.30 (40% fixed)
Rs.20 (50% fixed)
Prepare a marginal cost statement showing the estimated profit of the business
when it is operated at 60% & 80% capacity. Also calculate break-even points at
Financial & Management Accounting
Assignment - II
Assignment Code: 2013FM11B2 Last Date of Submission: 15th November 2013
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks. Section-A
What is Responsibility accounting? How is it associated with the goal of controllability?
Explain clearly main objectives & features of responsibility accounting. 2.
Principal budget factor (or limiting factor) is of vital significance to management.
this statement, giving...
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