Reference no: EM131808462

Assignment

Q1) Which kind of budgeting does not take into consideration previous figures as base.
a) Zero based budgeting
b) Sales budgeting
c) Fixed budgeting
d) Flexible budgeting

Q2) Which is the term used for internal transfers between profit centres.
a) Process costing
b) Standard costing
c) Transfer pricing
d) Marginal costing.

Q3) Labour cost variance means difference between
a) (Std. Time x Std Rate) - (Actual Time x Act Rate)
b) (Std. Time x Act Rate) - (Act Time x Act Rate)
c) (Std. Time x Std Rate) - (Act Time x Std Rate)
d) (Std. Time x Act Rate) - (Std Time x Std Rate)

Q4) Which of the factor is not relevant for cash flow :
a) Depreciation
b) Asset purchased.
c) Cash purchase made
d) Cash sales made

Q5) Calculate Fixed Cost when : P. V. Ratio = 50%
Variable cost = Rs 10,000 Break even point = Rs 15,000

Q6) Calculate Break even point in units.

When -
Fixed cost = Rs 20,000
Total units sold = 10,000 Nos.
Contribution per unit = Rs 2 per unit.

Q7) What is the formula to calculate current ratio.

Q8) Which method values stock at a variable cost level.
a) Absorption costing
b) Marginal costing
c) Target costing
d) Activity based costing.

Q9) Which of following plan summarises budget.
a) Master budget
b) Zero based budgeting
c) Fixed budget
d) Flexible budget

Q10) In which form of costing selling price is finalized first.
a) Target costing
b) Absorption costing
c) Total Quality Management
d) Activity based Costing

Q11) Differentiate between Absorption costing and Marginal costing.

Q12) Expenses of budgeted production of 20,000 units in Factory is as follows.

	Rs. Per Unit
Material	140
Labour	50
Variable Overheads	40
Fixed Overheads	20
Variable Expenses (Direct)	10
Selling Expenses (10% Fixed)	26
Distribution Expenses (20% Fixed)	14
Admin Expenses	10

Prepare flexible budget for production of 16,000 units and 12,000 units.
Also find out cost per unit at each level.

Q13) Following details of A G Ltd are furnished for year 1996.

	First 6 month	Balance 6 months
Sales	45,000	50,000
Total Cost	40,000	43,000

Assume there is no change in price and variable cost and fixed expenses are incurred equally in two half year periods. Calculate for year 1996.
1) Profit volume ratio.
2) Fixed expenses.
3) Break even sales
4) Margin of safety.

Q14) Labour budget of company for week is as follows:

20 men @ 50 paise p hr for 40 hr	=	400
40 men @ 30 paise p hr for 40 hrs	=	480
		880
Actual Labour was as follows :
30 men @ 50 paise for 40 hr	=	600
30 men @ 35 paise for 40 hrs	=	420
		1020

Analyse Labour Variances

Q15) Calculate break even point

1) S. price in Rs 20
2) Manufacturing vari cost Rs 10.
3) Selling variable cost Rs 5.
4) Fixed overheads = Rs 5,00,000
5) Selling overheads = Rs 2,00,000