III YEAR VI SEMESTER COURSE CODE: 4BCO6C2 CORE COURSE XVII MANAGEMENT ACCOUNTING
|
|
- Martin Sharp
- 5 years ago
- Views:
Transcription
1 III YEAR VI SEMESTER COURSE CODE: 4BCO6C2 CORE COURSE XVII MANAGEMENT ACCOUNTING Unit I Management Accounting Meaning Definition Objectives Cost Accounting Vs Financial Accounting Vs Management Accounting Unit II Financial Statements Analysis and Interpretation Accounting Ratios Significance, Utility and Limitations Analysis for Liquidity, Profitability and Solvency Unit III Fund Flow and Cash Flow Analysis Forecasting of Fund Requirements Unit IV Budgets and Budgetary Control Objectives and Advantages Limitations Master Budget and Financial Budgets Flexible Budget Cash Budget Preparation of various types of Budgets Unit V Standard Costing and Variance Analysis (Simple problems only) Marginal Costing Meaning, Objectives, Advantages and Limitations Breakeven Point (Simple Problems only)
2 MANAGEMENT ACCOUNTING Unit-I Meaning: The term management accounting refers to accounting for the management. It provides necessary information to assist the management in the creation of policy and in the da-to-day operations. It enables the management to discharge all its functions efficiently with the help of accounting information. Definition: Anglo American Council of Productivity defines, Management accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and in the day- to-day operations of and undertaking. Objectives: 1. To assist the management in promoting efficiency. 2. To prepare budgets covering all functions of a business. 3. To analyse monetary and non-monetary transactions. 4. To compare the actual performance with budgeted performance. 5. To interpret financial statements to formulate future policies. 6. To arrange for the systematic allocation of responsibilities. 7. To provide a suitable organisation for discharging the responsibilities. Functions of management accounting: 1. Forecasting 2. Organising 3. Co-ordinating 4. Controlling 5. Analysis and Interpretation 6. Communicating Installation of Management Accounting System: 1. Organisational Manual for the entire organisation must be drafted and adopted. 2. Proforma for various types of statements and reports must be designed and prescribed. 3. Financial Accounts and cost Accounts should be classified, codified and integrated. 4. Cost centres, investment centres, profit centres and budget centres should be clearly set up. 5. The technique of standard costing are introduced for setting up standards. 6. The system of budget, budgeting, budgetary control should be introduced in the organisation.
3 Advantages: 1. Helps in decision making 2. Helps in planning 3. Helps in Organising 4. Facilitates Communication 5. Helps in Co-ordinating 6. Evaluation and control of performance 7. Interpretation of Financial Information 8. Economic Appraisal Limitations: 1. It derives information from past records. If past records are not reliable, it will affect the effectiveness of management accounting. 2. It has a wide scope.it will result in inaccuracy and other practical difficulties. 3. Installation of management accounting system requires large organisation. Hence it is very costly. 4. Management accounting is still in the initial stage. 5. Management accounting will not replace the management and accounting. Decisions are of management and not of the management accountant. Difference between management accounting and fianancial accounting: Content Management Accounting Financial Accounting 1. Objectives The objective of management accounting is to provide The aim of financial accounting is to supply information to information for the internal use outside parties. of management 2. Performance Analysis It is concerned with the departments or divisions. It is concerned with the overall performance of the business. 3. Data used It is concerned with future plans and policies. It is mainly concerned with the recording of past events. 4. Nature Management accounting is It is based on measurement. based on judgement. 5. Accuracy Approximations are widely used. Accuracy is very important 6. Legal Compulsion Management accounting is only optional 7. Monetary Transactions It includes both monetary and non-monetary transactions. Financial accounting is compulsory for all joint stock companies. It records only monetary transactions. Difference between Cost accounting and Management accounting:
4 Cost accounting Management accounting 1. It is to determine and record the cost of production of a product or service It is to provide information for planning and controlling. 2. It is based on past and present facts and figures It deals with future plans 3. It requires some principles and procedures No such proceedures 4. Only quantitative data are available Both quantitative and qualitative data are used 5. Facts provided are useful for outsiders and management Facts provided are useful to management only Tools of Management Accounting: Unit-II 1. Marginal costing 2. Standard costing 3. Budgetary control 4. Ratio analysis 5. Fund flow analysis 6. Cash flow analysis Fund Flow Statement: Meaning of Fund: The term fund refers to Net working capital. It is the difference between current assets and current liabilities. In a narrow sense it means cash only. Flow of Fund: The term flow means change.therefore flow of fund means change in funds or change in working capital. Any increase or decrease in working capital involves flow of funds. Fund Flow Statement: The Fund Flow Statement is a report on the movement of funds or working capital. It explains how working capital is raised and used during an accounting period. Definition: A Statement of sources and application of funds is a technical device designed to analyse the changes in the financial condition of a business enterprise between two dates. Objectives: 1. To show how the resources have been obtained and used.
5 2. To indicate the results of current financial management. 3. To show how the general expansion of the business has been financed. 4. To indicate the relationship between profits from operations. 5. To have an assessment of the working capital position of the concern Significance of Fund Flow Statement: 1. Analysis of financial operations. 2. Evaluation of the Firm s financing. 3. Allocation of scare resources. 4. Helps in working capital management. 5. Act as a guide to Future. 6. Helps Financial Institutions. Limitations: 1. It is not an original statement. It is only a re-arrangement of financial data. 2. It provides only some additional information regarding changes in working capital. 3. It shows only the past position and not the future. 4. Changes in cash are more important than the working capital. 5. It cannot reveal continuous changes. 6. It is not an ideal tool for financial analysis. The following are sources and application of funds: Sources of Fund Issue of shares and debentures Raising of long term loans Income from investment Sale of fixed assets and long term investment Funds from operation Public deposit accepted Application of Fund Redemption of shares and debentures Repayment of loans Purchase of long term investment Purchase of fixed assets Funds lost in operation Payment of dividend and taxes Drawings Steps for preparing Fund Flow Statement: 1. Statement showing changes in working capital 2. Preparation of various ledger accounts 3. Calculation of Funds from operation 4. Prepare Fund flow statement Cash Flow Statement: Cash flow means incoming and outgoing of cash in an organisation during a period. It is prepared from the analysis of cash transactions. It explains the changes in cash position between two balance sheet dates. Cash flow includes cash inflows and cash outflows.
6 Cash flow statement is a statement which portrays the changes in the cash position between two accounting periods. It provides different sources of cash inflows and different uses or application for which cash is needed. Advantages: 1. It is an essential tool for short-term planning. 2. It helps to evaluate the current cash position and plan for financial policies for the future. 3. It explains the reasons for low cash balance inspite of huge profits or vice versa. 4. It shows repaying capacity of the firm 5. It compares the projected cash flow with the actual cash flow for controlling and for taking remedial actions. 6. It is an essential tool for financial management. Limitations: 1. It ignores non-cash items, hence it should not equated with income statement. 2. It may not represent the true liquid position. 3. Working capital concept gives complete picture than cash flow concept. Difference between Cash flow statement and Fund flow statement: Cash flow statement Fund flow statement 1. It starts with opening balance and ends There no balances with closing balance. 2. It deals with cash receipts and payments It deals with increase or decrease in working capital 3. It shows the changes in cash It shows the changes in working capital 4. It is useful for short term financial analysis It is useful for long term financial analaysis 5. Flow of cash means definitely be flow of Flow of funds does not mean flow of cash funds 6. Cash is a part of working capital Working capital may not necessarily mean cash 7. It is useful to make short term estimates of It is useful to make medium term estimates for cash for the preparation of cash budget. the preparation of capital expenditure budget Unit III Marginal Costing: The amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit. Marginal costing is a technique where by only the variable cost are considered for calculating the cost of the product. Marginal cost is nothing but prime cost and total variableoverheads.it means direct materials, direct labour, direct expenses and variable overheads.
7 Advantages: 1. It reduces the degree of over or under recovery of overheads 2. It gives better result for taking decision regarding pricing and tender. 3. It is easy to understand cost-volume-profit analysis. 4. It enables the proper apportionment of fixed costs Disadvantages: 1. It is difficult to separate fixed and variable costs. 2. It is very difficult to fix selling price. 3. Price fixation cannot be done without considering fixed costs. 4. It is not suitable for industries where fixed costs,value of work in progress occupies a major role. 5. Comparison between two jobs cannot be done without considering fixed costs. Contribution: The difference between sales and variable costs.it is equal to fixed cost plus profit. Contribution = Sales Variable Costs Profit volume Ratio: Contribution = Fixed Cost + Profit Contribution = Sales *P/V Ratio It is the relationship between contribution and sales value. It is expressed in percentage. It shows profitability of the business. Higher the ratio means greater the profitability. P/V Ratio = Contribution /sales * 100 P/V Ratio = Changes in profit for two periods/changes in sales for two periods *100 Limiting Factor: The factor which will limit the volume of production. It may arise due to shortage of raw materils, labour,plant capacity, capital, demand. It is also known as principal factor factor or critical factor.the profitability can be measured by the following formula Profitability = Contribution/Key factor Break Even point: It is a point where total sales are equal to total cost.no profit or no loss.bep is a equilibrium point or balancing point. It is also called as Cost Volume Profit anlysis. BEP = Fixed cost/p/vratio BEP in units = Fixed cost/contribution per unit
8 Margin of Safety: The difference between the actual sales and Break sales. In other words sales over and above break even sales are known as margin of safety. Margin of Safety = Actual Sales Break Even Sales Unit IV: Margin of Safety = Profit /PV/Ratio Ratio Analysis: The relationship between two figures or variables expressed mathematically is called a Ratio. The two figures may be numerical or quantitative. It is calculated by dividing one by another. It can be expressed as simple fraction, integer, decimal fraction or percentage. Significance : 1. It summarises and simplifies the accounting data. 2. It acts as an index of the efficiency of the business. 3. It evaluate the performance over a period by comparing present and past ratio. 4. It helps the management to prepare budgets, formulate policies and prepare future plan of action. 5. It is an effective means of communication, since ratios have power to speak. 6. It can access the liquidity, solvency and profitability of the business. Classification of Ratios: 1. Current Ratio = Current Assets/Current Liabilities 2. Liquid Ratio = Liquid Assets/Liquid Liabilities 3. Gross profit Ratio = Gross profit /Sales * Net profit Ratio = Net profit /sales * Operating profit Ratio = Operating cost/sales * Proprietary Ratio = Proprietors fund/tangible Assets 7. Debt Equity Ratio = Long term debts / Shareholders Funds 8. Capital Gearing Ratio = Fixed Interest bearing securities/equity shareholders Funds 9. Stock Turnover Ratio = Cost of goods sold/average Stock 10. Debtors turnover Ratio = Net credit sales/average Debtors + Average bills Receivable 11. Creditors Turnover Ratio = Net credit purchases/average Creditors +Average bills payable 12. Fixed Assets Turnover Ratio = Net Sales/Net Fixed Assets Limitations: 1. Ratios are only indicators cannot be taken as final conclusions. 2. Lack of standard formula for working out ratios makes it difficult to compare them. 3. Limitations of financial statement affect the ratios. 4. It will not consider the effects of price level changes. 5. Different people interprets ratios in different ways.
9 6. Ratios computed from past records will not predict the future plan, because of change in the policies of the management. Unit V Budget and Budgetary control: Budget: Budget is a financial statement prepared prior to a defined period of time, of the policy to be pursued during that period for the purpose of a given objectives. It is plan of opertions integrated and coordinated, comprising all phases of business activities and summarised to show the financial results of carrying out the plan. Budgeting: Budgeting is a kind of future accounting in which the problems of future are met on the paper before the transactions actually occur. It is the formulation of plans for future activity that seek to substitute carefully considered objectives for hit and miss performances and provide yardsticks by which deviations from planned achievements can be measured. Budgetary control: Budgetary control is the establishment of budgets relating the responsibilities of executives to the requirements of policy and the conditions comparison of actual with budgeted results, either to secure by individual action the objectives of that policy or to provide a firm basis for its revision. Advantages: 1. It helps in maximising the profit through optimum utilisation of the available resources. 2. It gives a concrete shape to the objectives and policies of an organisation. 3. It results in co-ordinated effort of all persons involved. 4. It helps to identify the variances &pinpointing the centres of weakness and inefficiency. 5. It enables the organisation to estimate its credit requirements in advance. 6. It is a guide to the management in the field of research and development in future. 7. It can provide suitable basis for establishing incentive system and internal audit. Limitations: 1. It is an estimate only, which may or may be accurate. 2. It is time consuming, management cannot expect too much during development period. 3. Lack of coordination with in the organisation leads to failure. 4. It may loose its important under changing economic conditions. 5. It requires specialised staff which involves high cost. Steps involved in budgetary control:
10 1. Preparation of organisation chart. 2. Creation of budget centres. 3. Establishment of budget committee. 4. Preparation of budget manual. 5. Fixation of budget manual. 6. Locating the key factor. 7. Laying down the level of activity to be achieved. Classification of budgets: I On the basis of function: 1. Cash budget 2. Production budget 3. Material budget 4. Labour budget 5. Overhead budget 6. Sales budget 7. Capital expenditure budget 8. Plant utilisation budget 9. Research budget 10. Master budget II On the basis of Time : 1. Long term budget 2. Short term budget 3. Current budget 4. Interim budget III On the basis of flexibility: 1. Fixed budget 2. Flexible budget IV On the basis of Nature of transactions: 1. Operating budget 2. Capital budget Zero Base Budgeting: Zero Base budget is based on the idea that, there is no given base year for a budget.a fresh budgeted figure is to be determined keeping in view the circumstances andrequirements. A new technique is followed, no special budget is prepared but a different approach is followed. The concept of ZBB is a. Every budget starts with zero base b. No previous figures is to be examined afresh
11 c. Each activity is to be examined afresh d. Every budget allocation is to be justified in the light of anticipated circumstances e. Alternatives are to be given due consideration
Accounting for managers
Accounting for managers CALICUT UNIVERSITY 5 RD SEMESTER B.COM SHORT QUESTIONS/ 2 MARKS QUESTIONS 1. What is Acid test Ratio? This is the ratio of liquid assets to current/ liquid liabilities. It shows
More informationUNIT 11: STANDARD COSTING
UNIT 11: STANDARD COSTING Introduction One of the prime functions of management accounting is to facilitate managerial control and the important aspect of managerial control is cost control. The efficiency
More informationBudgets and Budgetary Control. By: CA Kapileshwar Bhalla
Budgets and Budgetary Control By: CA Kapileshwar Bhalla Learning Objectives Understand the objectives and importance of budgeting and budgetary control Understand the Advantages and disadvantages of budgetary
More informationBPC6C Cost and Management Accounting. Unit : I to V
BPC6C Cost and Management Accounting Unit : I to V UNIT -1 FUNDAMENTALS OF COST ACCOUNTING Nature and scope of Cost Accounting, Distinction between cost and financial accounting, Cost sheet, tenders Characteristics
More informationDepartment of B.Com (Bank Management) Management Accounting. Sub code: BM617
Department of B.Com (Bank Management) Management Accounting Sub code: BM617 Submitted by: Mr.R.Punniyaseelan Asst.Professor in Commerce Mrs.G.Bhuvaneswari Asst.Professor in Commerce PART : A 1. List out
More informationSYLLABUS Class: - B.B.A. IV Semester Subject: - Management Accounting
SYLLABUS Class: - B.B.A. IV Semester Subject: - Management Accounting UNIT I Basics of Management Accounting: Meaning and definition of Management Accounting, Evolution of Management Accounting, Nature
More information8. BUDGETARY CONTROL
1. DEFINE THE TERM BUDGET. 8. BUDGETARY CONTROL Definition: Budget is a financial and /or quantitative statement, prepared and approved prior to a defined Period of time of the policy to be pursued during
More informationWORKING CAPITAL ANALYSIS OF SELECT CEMENT COMPANIES IN INDIA
CHAPTER - IV WORKING CAPITAL ANALYSIS OF SELECT CEMENT COMPANIES IN INDIA CHAPTER IV WORKING CAPITAL ANALYSIS OF SELECT CEMENT COMPANIES IN INDIA In this chapter an attempt has been made to analyse the
More informationClass B.Com VI Sem. (Hons.)
SYLLABUS Class B.Com VI Sem. (Hons.) UNIT I UNIT II UNIT III UNIT IV UNIT V Subject Management Accounting Management Accounting: Meaning, nature, scope and functions of management accounting, Role of management
More informationMINISTRY OF PRIMARY AND SECONDARY EDUCATION
ZIMBABWE MINISTRY OF PRIMARY AND SECONDARY EDUCATION ACCOUNTING SYLLABUS FORMS 5-6 2015 2022 Curriculum Development Unit P.O. Box MP 133 Mount Pleasant Harare All rights reserved 2015 ACKNOWLEDGEMENT The
More informationINTRODUCTION TO FINANCIAL MANAGEMENT
INTRODUCTION TO FINANCIAL MANAGEMENT Meaning of Financial Management As we know finance is the lifeblood of every business, its management requires special attention. Financial management is that activity
More informationDecember CS Executive Programme Module - I Paper - 2
December - 2015 CS Executive Programme Module - I Paper - 2 (New Syllabus) Cost and Management Accounting Total number of questions: 100 Maximum marks: 100 Assertion A: 1. In management accounting, firm
More informationCost and Management Accounting
Paper 2 Cost and Management Accounting Syllabus................................................ 2.2 Line Chart Showing Relative Importance of Chapters............ 2.5 Table Showing Importance of Chapter
More informationBUDGETING. After studying this unit you will be able to know: different approaches for the preparation of budgets; 10.
UNIT 10 Structure APPROACHES TO BUDGETING 10.0 Objectives 10.1 Introduction 10.2 Fixed Budgeting 10.3 Flexible Budgeting 10.4 Difference between Fixed and Flexible Budgeting 10.5 Appropriation Budgeting
More informationMVSR ENGINEERING COLLEGE MBA DEPARTMNET FINANCIAL ACCOUNTING AND ANALYSIS
MVSR ENGINEERING COLLEGE MBA DEPARTMNET FINANCIAL ACCOUNTING AND ANALYSIS Accounting : The systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers
More informationReg. No. :... Code No. : B.B.A. (CBCS) DEGREE EXAMINATION, NOVEMBER Fifth Semester. Business Administration Main
Reg. No. :... Sub. Code : GMBA 5 A B.B.A. (CBCS) DEGREE EXAMINATION, NOVEMBER 2014. Fifth Semester Business Administration Main Elective MANAGEMENT ACCOUNTING (For those who joined in July 2012 onwards)
More informationUNIT 16 BREAK EVEN ANALYSIS
UNIT 16 BREAK EVEN ANALYSIS Structure 16.0 Objectives 16.1 Introduction 16.2 Break Even Analysis 16.3 Break Even Point 16.4 Impact of Changes in Sales Price, Volume, Variable Costs and on Profits 16.5
More informationB.Com II Cost Accounting
B.Com II Cost Accounting Chapter - 1 Cost Accounting: An Overview of Fundamental Aspects 2009 (1) Discuss the objectives of Cost Accounting. 2011 (1) Discuss importance of cost accounting. 2012 (1) What
More informationManagement Accounting. Pilot Paper 3 Questions and Suggested Solutions
Management Accounting Pilot Paper 3 Questions and Suggested Solutions NOTES TO USERS ABOUT PILOT PAPERS Pilot papers are published by Accounting Technicians Ireland. They are intended to provide guidance
More informationI B.Com PA [ ] Semester II Core: Management Accounting - 218A Multiple Choice Questions.
1 of 23 1/27/2018, 11:53 AM Dr.G.R.Damodaran College of Science (Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Reaccredited at the 'A' Grade Level by the NAAC and ISO 9001:2008
More informationUNIT IV CAPITAL BUDGETING
UNIT IV CAPITAL BUDGETING Capital Budgeting: Capital budgeting is the process of making investment decision in long-term assets or courses of action. Capital expenditure incurred today is expected to bring
More informationCost and Management Accounting
Paper 2 Cost and Management Accounting Syllabus......................................... 2.2 Line Chart Showing Relative Importance of Chapters...... 2.6 Table Showing Importance of Chapter on the Basis
More informationMTP_ Inter _Syllabus 2016_ Dec 2017_Set 2 Paper 10 Cost & Management Accounting and Financial Management
Paper 10 Cost & Management Accounting and Financial Management Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 10 Cost & Management
More informationManagement Accounting
Management Accounting Level 3 Model Answers Series 3 2008 (Code 3023) 1 ASE 3023 2 06 1 3023/2/06 >f0t@w9w2`?[i]bkbw5k# Management Accounting Level 3 Series 3 2008 How to use this booklet Model Answers
More informationAnswer to MTP_Intermediate_Syl2016_June2017_Set 1 Paper 10- Cost & Management Accounting and Financial Management
Paper 10- Cost & Management Accounting and Financial Management Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper-10: Cost & Management
More informationCost-Profit-Volume Analysis. Samir K Mahajan
Cost-Profit-Volume Analysis Samir K Mahajan BREAK -EVEN ANALYSIS Break even Analysis refer to a system of determination of activity where total cost equals total selling price. It is also known as cost-volume-
More informationFinancial statements aim at providing financial
Accounting Ratios 5 LEARNING OBJECTIVES After studying this chapter, you will be able to : Explain the meaning, objectives and limitations of analysis using accounting ratios; Identify the various types
More information= Shs 16,000,000. (ii) Break Even point in Sales = Fixed Cost = 8,000,000 Contribution Margin Ratio (120,000,000/24,000,000)
QUESTION ONE (a) Marginal costing refers to a method of costing products (goods and services) in which the cost per unit is only the variable costs. Thus, the current production and closing stocks are
More informationCOST ACCOUNTING INTERVIEW QUESTIONS
www.globalcma.in Learning Platform for Cost Accountants (CMA) Explain cost sheet? Cost Sheet is a periodical statement of cost designed to show in detail the various elements of cost of goods produced
More informationAnswer to MTP_Intermediate_Syllabus 2012_Jun2017_Set 1 Paper 8- Cost Accounting & Financial Management
Paper 8- Cost Accounting & Financial Management Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper-8: Cost Accounting & Financial
More informationCIMA defines planning as the establishment of objectives, and the formulation,
Chapter 8 Solutions Solution 8.1 a) Outline the main objectives of budgetary planning CIMA defines planning as the establishment of objectives, and the formulation, evaluation and selection of the policies,
More informationClass B.Com. V Sem. SYLLABUS. Subject Management Accounting
SYLLABUS Class B.Com. V Sem. Subject Management Accounting Unit-I Management accounting: meaning, nature, scope and functions of management accounting, role of management accounting in decision making,
More informationFINANCIAL STATEMENTS ANALYSIS - AN INTRODUCTION
Financial Statements Analysis - An Introduction 27 FINANCIAL STATEMENTS ANALYSIS - AN INTRODUCTION You have already learnt about the preparation of financial statements i.e. Balance Sheet and Trading and
More informationCost and Management Accounting
Paper 2 Cost and Management Accounting Syllabus... Q&A-2.2 Bird's-Eye View... Q&A-2.5 Line Chart Showing Relative Importance Chapters... Q&A-2.7 Table Showing Importance of Chapter on the Basis of Marks...
More informationFINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT Question 1: What is financial management? Explain the functions of financial management. (May 13, Nov 11) (Mark 7) Answer: Financial management is that specialized activity which is
More informationPaper P1 Performance Operations Post Exam Guide November 2012 Exam. General Comments
General Comments This sitting produced a reasonably good pass rate although lower than in the last two main exam sittings. Performance varied considerably by section and from previous sittings. There were
More informationBATCH All Batches. DATE: MAXIMUM MARKS: 100 TIMING: 3 Hours. PAPER 3 : Cost Accounting
BATCH All Batches DATE: 25.09.2017 MAXIMUM MARKS: 100 TIMING: 3 Hours PAPER 3 : Cost Accounting Q. No. 1 is compulsory. Wherever necessary suitable assumptions should be made by the candidates. Working
More informationInstitute of Certified Bookkeepers
Institute of Certified Bookkeepers Level III Diploma in Costing and Budgeting Introduction: Financial Accounting is the reporting of financial information to users of Financial Statements both internal
More informationACCOUNTING RATIOS II. MODULE - 6A Analysis of Financial Statements. Accounting Ratios II. Notes
MODULE - 6A Accounting Ratios II 29 ACCOUNTING RATIOS II You have learnt in the previous lesson that accounting ratios can be classified into five major groups viz. liquidity ratios, activity ratios, solvency
More informationFOREWORD... 1 ACCOUNTING... 2
FOREWORD... 1 ACCOUNTING... 2 GCE Advanced Level and GCE Advanced Subsidiary Level... 2 Paper 9706/01 Multiple Choice (Core)... 2 Paper 9706/02 Structured Questions... 3 Paper 9706/03 Multiple Choice (Extension)...
More informationLESSON 6 RATIO ANALYSIS CONTENTS
LESSON 6 RATIO ANALYSIS CONTENTS 6.0 Aims and Objectives 6.1 Introduction 6.2 Definition 6.3 How the Accounting Ratios are Expressed? 6.4 Purpose, Utility & Limitations of Ratio Analysis 6.5 Classification
More informationIntroduction to Finance. 1 March Examination Paper. Time: 3 hours
Introduction to Finance 1 March 2016 Examination Paper Answer any FOUR (4) questions. Clearly cross out surplus answers. Failure to do this will result in only the first FOUR (4) answers being marked.
More information29 ACCOUNTING RATIOS II You have learnt in the previous lesson that accounting ratios can be classified into five major groups viz. liquidity ratios, activity ratios, solvency ratios, profitability ratios
More informationLOYOLA COLLEGE (AUTONOMOUS), CHENNAI
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034 B.B.A. DEGREE EXAMINATION BUSINESS ADMINISTRATION SIXTH SEMESTER APRIL 2015 BU 6603/BU 6600 MANAGEMENT ACCOUNTING Date : 25/04/2015 Dept. No. Max. : 100 Marks
More informationScanner Appendix. IPCC Gr. I (Solution of May ) Paper - 3 : Cost Accounting and Financial Management. Paper - 3A : Cost Accounting
Solved Scanner Appendix IPCC Gr. I (Solution of May - 2016) Paper - 3 : Cost Accounting and Financial Management Paper - 3A : Cost Accounting Chapter - 1 : Basic Concepts 2016 - May [5] (a) Basis of Cost
More informationINDUSTRIAL BUDGETING AND COST ANALYSIS
C h a p t e r INDUSTRIAL BUDGETING AND COST ANALYSIS 10.1 INTRODUCTION Everybody is familiar with the idea of a plan. Not only in business, but in private life also people make plans though there are considerable
More informationChapter 4 Financial Strength Analysis
Chapter 4 Financial Strength Analysis 4.1 Meaning of Financial Strength Finance is an essential requirement for every business enterprise. Various type of finance was needed by the concern for their activity
More informationAnswer to PTP_Intermediate_Syllabus 2008_Jun2015_Set 1
Paper 8: Cost & Management Accounting Time Allowed: 3 Hours Full Marks: 100 Question No 1 is Compulsory. Answers any five Questions from the rest. Working Notes should form part of the answer. Question.1
More informationNATIONAL 5 Accounting
MADRAS COLLEGE FACULTY OF TECHNOLOGIES DEPARTMENT OF BUSINESS AND ENTERPRISE NATIONAL 5 Accounting Course Information Name: ACCOUNTING NATIONAL 5 COURSE AIMS AND STRUCTURE The course aims to enable learners
More information(Solution of May ) IPCC Gr. I. Paper - 3: Cost Accounting and Financial Management. Paper - 3A: Cost Accounting
ISBN: 9789351594345 Solved Scanner (Solution of May 2017) IPCC Gr. I Paper 3: Cost Accounting and Financial Management [Chapter 3] Employee Cost Paper 3A: Cost Accounting 1. (a) (5 marks) 1. Average Number
More informationCOMMERCE & LAW PROGRAM DIVISION (CLPD) ANSWER KEY TO CS-EXECUTIVE DECEMBER-2014 (ATTEMPT) CODE-C SUBJECT : COST & MANAGEMENT ACCOUNTING
COMMERCE & LAW PROGRAM DIVISION (CLPD) ANSWER KEY TO CS-EXECUTIVE DECEMBER-2014 (ATTEMPT) CODE-C SUBJECT : COST & MANAGEMENT ACCOUNTING 1. If the minimum stock level and average stock level of raw material
More informationVI SEM BCOM STUDY MATERIAL MANAGEMENT ACCOUNTING. Prepared By SREEJA NAIR PADMA NANDANAN
NEW HORIZON COLLEGE MARATHALLI, BANGALORE (Affiliated to Bangalore University) A Recipient of Prestigious Rajyotsava State Award 2012 conferred by the Government of Karnataka VI SEM BCOM STUDY MATERIAL
More informationINTERMEDIATE EXAMINATION
INTERMEDIATE EXAMINATION GROUP II (SYLLABUS 2008) SUGGESTED ANSWERS TO QUESTIONS DECEMBER 2011 Paper-8 : COST AND MANAGEMENT ACCOUNTING Time Allowed : 3 Hours Full Marks : 100 The figures in the margin
More informationP1 Performance Operations September 2014 examination
Operational Level Paper P1 Performance Operations September 2014 examination Examiner s Answers Note: Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared
More informationTheme 2: Managing business activities. Chapter 33 and 34 March, 2017
Theme 2: Managing business activities Chapter 33 and 34 March, 2017 PURPOSE OF budget: financial plan that is agreed in advance budget forecast! in general, budgets are set up for 12 months and coincide
More informationCHAPTER :- 4 CONCEPTUAL FRAMEWORK OF FINANCIAL PERFORMANCE.
CHAPTER :- 4 CONCEPTUAL FRAMEWORK OF FINANCIAL PERFORMANCE. 4.1 INTRODUCTION. 4.2 FINANCIAL PERFORMANCE. 4.3 FINANCIAL STATEMENT. 4.4 FINANCIAL STATEMENT ANALYSIS. 4.5 METHODS OF ANALYSIS OF FINANCIAL
More information1 Introduction to Cost and
1 Introduction to Cost and Management Accounting This Chapter Includes Concept of Cost; Management Accounting and its Evolution of Cost Accounting evolution, Meaning, Objectives, Costing, Cost Accounting
More informationTRADITIONAL ABSORPTION V ACTIVITY BASED COSTING
TRADITIONAL ABSORPTION V ACTIVITY BASED COSTING A company manufactures two products: X and Y. Information is available as follows: (a) Product Total production Labour time per unit X 1,000 0.5 hours Y
More informationLevel 3 Certificate in Accounting (IAS) Effective for examinations to be held after January 2008
LCCI International Qualifications Level 3 Certificate in Accounting (IAS) Syllabus Effective for examinations to be held after January 2008 For further information contact us: Tel. +44 (0) 8707 202909
More informationFINANCE FOR STRATEGIC MANAGERS
FINANCE FOR STRATEGIC MANAGERS 1 P age FINANCE FOR STRATEGIC MANAGERS S. No Description Page No I UNDERSTAND THE ROLE OF FINANCIAL INFORMATION IN BUSINESS STRATEGY 1. Need for Financial Information 1.1
More informationPRACTICE TEST PAPER - 2 INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT
PRACTICE TEST PAPER - 2 INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT Question No. 1 is compulsory. Attempt any five questions from the remaining six questions. Working
More informationPlasma TVs ,000 A LCD TVs ,500 A 21,500 A
Answers Fundamentals Level Skills Module, Paper F5 Performance Management December 2010 Answers 1 (a) (i) Sales price variance and sales volume variance Sales price variance = (actual price standard price)
More information6.1 Introduction. 6.2 Meaning of Ratio
6.1 Introduction Ratio analysis has emerged as the principal technique of analysis of financial statements. The system of analysis of financial statements by means of ratio was first made in 1919 be Alexander
More informationnot to be republished NCERT You have learnt about the financial statements Analysis of Financial Statements 4
Analysis of Financial Statements 4 LEARNING OBJECTIVES After studying this chapter, you will be able to : explain the nature and significance of financial analysis; identify the objectives of financial
More informationINTERMEDIATE EXAMINATION
INTERMEDIATE EXAMINATION GROUP II (SYLLABUS 2008) SUGGESTED ANSWERS TO QUESTIONS JUNE 2012 Paper- 8 : COST AND MANAGEMENT ACCOUNTING Time Allowed : 3 Hours Full Marks : 100 The figures in the margin on
More informationUnit 4: Elements of Managerial Accounting Syllabus Section Absorption (Total) costing
www.xtremepapers.com Unit 4: Elements of Managerial Accounting Syllabus Section Absorption (Total) costing Learning Outcomes Suggested Teaching Activities Resources Online Resources Students will learn
More informationThe Conceptual Framework for Financial Reporting
The Conceptual Framework for Financial Reporting The Conceptual Framework was issued by the International Accounting Standards Board in September 2010. It superseded the Framework for the Preparation and
More informationEOQ = = = 8,000 units Reorder level Reorder level = Safety stock + Lead time consumption Reorder level = (ii)
Model Test Paper - 1 IPCC Group- I Paper - 3 Cost Accounting and Financial Management May - 2017 1. (a) Primex Limited produces product P. It uses annually 60,000 units of a material Rex costing ` 10 per
More informationThe Conceptual Framework for Financial Reporting
The Conceptual Framework for Financial Reporting The Conceptual Framework for Financial Reporting (the Conceptual Framework) was issued by the International Accounting Standards Board in September 2010.
More informationP1 Performance Operations
Operational Level Paper P1 Performance Operations Examiner s Answers SECTION A Answer to Question One 1.1 The correct answer is B. 1.2 The minimum contribution at a selling price of $40 is $20,000 The
More informationModel Answers. Subject Accounting for Managerial Decisions. Paper code-as-2366
Model Answers Subject Accounting for Managerial Decisions Paper code-as-2366 (Prepared by: Gnyana Ranjan Bal, Asst. Professor, Dept. of Commerce, GGV) (Note-These models answers are only depiction of important
More informationUS03FBCA01- Financial Accounting and Management. Liquidity ratios Leverage ratios Activity ratios Profitability ratios
Unit 4 Ratio Analysis and Cost-Volume- Profit (CVP) Analysis Types of Ratio Several ratios, calculated from the accounting data, can be grouped into various classes according to financial activity or function
More informationBUSINESS AND MANAGEMENT ACCOUNTING AND FINANCE
BUSINESS AND MANAGEMENT ACCOUNTING AND FINANCE Unit 3.4 Budgeting (Higher Level) Content and Learning Outcomes Content! Types and purpose of budgets! Cash Flow Forecasts! Variance Analysis Learning Outcomes!
More informationUNIT 3 RATIO ANALYSIS
Understanding and Analysis of Financial Statements UNIT 3 RATIO ANALYSIS Structure Page Nos. 3.0 Introduction 52 3.1 Objectives 54 3.2 Categories of Ratios 54 3.2.1 Long-term Solvency Ratios 3.2.2 Liquidity
More informationMOCK TEST PAPER INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT
MOCK TEST PAPER INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT Test Series: March 2018 Answers are to be given only in English except in the case of the candidates who have
More informationManagement Accounting
Management Accounting Course map This document outlines the course structure. ACCA: FMA-F2.x Management Accounting Introduction course orientation Lesson 1: Welcome Lesson 2: What, when and why? Lesson
More information(b) Flexible Budget For The Year Ended 31 May 2003
Paper 2 Section A Question 1 Flexible budgets recognise the difference in cost behaviour (1) between fixed and variable costs in relation to fluctuations in output, (1) turnover, or other variable factors.
More informationRatio Analysis An Accounting Technique of Analysis and Interpretation of Financial Statements
Ratio Analysis An Accounting Technique of Analysis and Interpretation of Financial Statements IDRISH ALLAD Research Scholar, Rai University, Saroda, Ahmedabad. DR. MAHENDRA H. MAISURIA Research Supervisor,
More informationSYLLABUS Class: - B.Com Hons II Year. Subject: - Financial Management
SYLLABUS Class: - B.Com Hons II Year Subject: - Financial Management UNIT I UNIT II UNIT II UNIT IV Introduction: Concepts, Nature, Scope, Function and Objectives of Financial Management. Basic Financial
More informationManagement Accounting (MA)/FMA September 2018 to August 2019
Management Accounting (MA)/FMA September 2018 to August 2019 Guide to structure of the syllabus and Study guide This syllabus and study guide are designed to help with teaching and learning and is intended
More informationAnswer to MTP_Intermediate_Syllabus 2008_Jun2014_Set 1
Paper-8: COST & MANAGEMENT ACCOUNTING SECTION - A Answer Q No. 1 (Compulsory) and any 5 from the rest Question.1 (a) Match the statement in Column 1 with the most appropriate statement in Column 2 : [1
More informationUCM 62 MANAGEMENT ACCOUNTING Unit-1 Introduction to Management Accounting Type:20% Theory 80% Problem Question & Answers
UCM 62 MANAGEMENT ACCOUNTING Unit-1 Introduction to Management Accounting Type:20% Theory 80% Problem Question & Answers PART A QUESTIONS 1. Define Management Accounting. (April 2012) According to Anglo-American
More informationRATIO ANALYSIS. Inventories + Debtors + Cash & Bank + Receivables / Accruals + Short terms Loans + Marketable Investments
A. LIQUIDITY RATIOS - Short Term Solvency RATIO ANALYSIS Ratio Formula Numerator Denominator Significance/Indicator 1. Current Ratio Current Assets Current Liabilities Inventories + Debtors + Cash & Bank
More informationMANAGEMENT ACCOUNTING (PART-6) UNIT- V BUDGETING FOR PROFIT PLANNING & CONTROL (PART-2)
MANAGEMENT ACCOUNTING (PART-6) UNIT- V BUDGETING FOR PROFIT PLANNING & CONTROL (PART-2) 1. INTRODUCTION Dear students, I welcome to you on lecture series of management accounting. Today we shall take up
More informationManagement Accounting
Management Accounting Course map This document outlines the course structure. Duration 10 weeks ACCA: FMA-F2.x Management Accounting Course orientation Start of course survey Lesson 1: Welcome Lesson 2:
More informationMTP_Intermediate_Syllabus 2012_Jun2017_Set 1 Paper 8- Cost Accounting & Financial Management
Paper 8- Cost Accounting & Financial Management Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper-8: Cost Accounting & Financial
More informationPAPER 3 : COST ACCOUNTING AND FINANCIAL MANAGEMENT PART I : COST ACCOUNTING QUESTIONS
PAPER 3 : COST ACCOUNTING AND FINANCIAL MANAGEMENT PART I : COST ACCOUNTING QUESTIONS Material 1. The following information has been extracted from the records of a cotton merchant, for the month of March,
More informationP1 - Performance operations May-10 Sep-10 Nov-10 Mar-11 May-11 Sep-11 Nov-11 Mar-12 May-12 Sep-12 A - Cost accounting systems (30%) Q3a 4 marks
A - Cost accounting systems (30%) 1. Discuss costing methods and their results (i) (ii) (a) compare and contrast marginal (or variable), throughput and absorption accounting methods in respect of profit
More informationLevel 3 Management Accounting
Level 3 Management Accounting Syllabus Effective for examinations to be held after 1 January 2008 ASPE0483 >f0t@wjy9w2`4s3dpd# Vision Statement Our vision is to contribute to the achievements of learners
More informationGurukripa s Guideline Answers to Nov 2016 Exam Questions CA Inter (IPC) Cost Accounting & Financial Management Working Notes should form part of the answers. Question No.1 is compulsory (4 5 20 Marks).
More informationCOST & MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT
SYLLABUS - 2016 INTERMEDIATE : PAPER - 10 COST & MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT INTERMEDIATE STUDY NOTES The Institute of Cost Accountants of India CMA Bhawan, 12, Sudder Street, Kolkata
More informationCOST ACCOUNTING AND FINANCIAL MANAGEMENT
STUDY MATERIAL Intermediate (IPC) Course PAPER : 3 COST ACCOUNTING AND FINANCIAL MANAGEMENT Part 1 : Cost Accounting VOLUME I BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA This study
More informationCBSE Quick Revision Notes and Chapter Summary Class-12 Accountancy Part B Accounting Ratios
Book Recommended: ULTIMATE BOOK OF ACCOUNTANCY (By Dr. Vinod Kumar, Vishvas Publications) Warning: This is copyrighted content of Dr. Vinod Kumar. Not to be reproduced in any form, anywhere else. Introduction
More informationMOCK TEST PAPER 2 INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT PART I : COST ACCOUNTING. Suggested Answers/ Hints
MOCK TEST PAPER 2 INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT PART I : COST ACCOUNTING Suggested Answers/ Hints 1. (a) (i) Standard input (kg.) of Material SW: Test Series:
More informationPaper 10 Cost & Management Accounting and Financial Management
Paper 10 Cost & Management Accounting and Financial Management Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 10 Cost & Management
More informationControl: Actual results can be compared against the budget and action is taken as appropriate.
Understanding Budgeting Budgeting is a key aspect of management accounting and particularly impacts on the areas of planning, control and performance management. A budget is a quantitative plan prepared
More informationLevel 3 Certificate in Accounting
Level 3 Certificate in Accounting Syllabus Effective for examinations to be held after 1 January 2008 (UK Accreditation No: 100/1450/0) ASP 0047 ALSG >f0t@wjy2`?h:y3]0t9]@w>q0z# Vision Statement Our vision
More information1 NATURE, SIGNIFICANCE AND SCOPE OF FINANCIAL MANAGEMENT
1 NATURE, SIGNIFICANCE AND SCOPE OF FINANCIAL MANAGEMENT THIS CHAPTER INCLUDES! Introduction! N a t u r e, S i g n i f i c a n c e, Objectives and Scope (Traditional, Modern and Transitional Approach)!
More informationSYLLABUS Class: - B.B.A. II Semester. Subject: - Financial Management
SYLLABUS Class: - B.B.A. II Semester Subject: - Financial Management UNIT I UNIT II UNIT III UNIT IV Introduction: Concepts, Nature, Scope, Function and Objectives of Financial Management. Basic Financial
More informationIPCC November COSTING & FM Test Code 8051 Branch (MULTIPLE) (Date : ) All questions are compulsory.
IPCC November 2017 COSTING & FM Test Code 8051 Branch (MULTIPLE) (Date : 09.07.2017) (50 Marks) Note: All questions are compulsory. Question 1 (8 marks) Cash Flow Statement As on 31 st March, 2015 A. Cash
More information