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.
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First 6 month
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Balance 6 months
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Sales
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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
|
=
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400
|
|
40 men @ 30 paise p hr for 40 hrs
|
=
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480
|
|
|
|
880
|
|
Actual Labour was as follows :
|
|
|
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30 men @ 50 paise for 40 hr
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=
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600
|
|
30 men @ 35 paise for 40 hrs
|
=
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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