Ask Question, Ask an Expert

+61-413 786 465

Ask Financial Management Expert

Attempt all the problems.


problem1) Discuss the various GAAPs that are mandatory to be followed briefly.
problem2) What are the different components of total cost.
problem3) What are the statements of financial information? Discuss two items from each.
problem4) describe statement of changes in financial positions, with the ex.

Case Study

M/s XYZ Ltd manufactures a product “PLVS” at its plant at Meerut, the maximum capacity of which is 200 units per month. Details of raw materials that go into making of 1 units of “PLVS” are provided to you below:-
Sl.No    Raw material description    Standard Qty per finished unit (No)    Standard purchase price per unit (Rs. 00)
1                     A                                                  1                                                             6
2.                    B                                                  2                                                             5
3.                    C                                                  3                                                             4
4.                    D                                                  4                                                             3
5.                    E                                                  5                                                             2
6.                    F                                                   6                                                            1
Standard fixed overheads are Rs. 20,00,000/- per month while the standard variable overhead rate has been estimated as equal to Rs.1,400/- per unit of finished goods.

You are required to compute the:

a) Standard cost of the product.
b) Compute the production volume variance in case the company produces and sells only 100 units of finished goods in the concerned month.
c) Compute the usage and material price variances considering the following actual data (actual production and sale: 100 units)

Raw material description    Actual quantity consumed (Nos)    Actual price (Rs.’00)
A                                                         102                                              7
B                                                         201                                              6
C                                                         310                                              5
D                                                         415                                              4
E                                                         540                                              3
F                                                         610                                              2

d) Assuming no deviation in actual selling price (Rs. 30,000/-) and the actual overheads from what was projected in Standards, you are required to compute actual profits.

Attempt all the problems.



prepare short notes on:

• P V Ratio
• Margin of Safety
• Material Variances
• Absorption Costing


describe the meaning of the term `variance analysis’.  What is its significance in controlling and monitoring costs?


a.) What are the pre-requisites of installation of responsibility accounting system?
b.) Distinguish between ‘cost centre’ and ‘profit centre’.


a) Distinguish between standard costing and budgetary control.
b) “Calculation of variances in standard costing is not an end in itself, but a means to an end” Discuss.


Case Study

Ramesh developed original specification of the product and founded Ramesh Manufacturing Ltd. In 2007 the firm manufactured 980 nos at the average price of Rs.900/- each. In 2008 due to continuous price rise of inputs, he raised his prices at the average of 12%, as he knew he could sell plant’s full capacity of 980 nos per year. In spite of price rise for the product, which sold for over Rs.1000/- for the first time. Ramesh was surprised to learn in late 2008 (as may be seen from the financial statements) that Ramesh Manufacturing Ltd show the decline in earnings and still worse, decline in cash flow.

His accountant has bought the following:

i) We are following FIFO system for purpose of issues.
ii) Costs are going up faster than 12% and they will go up further in 2009.
iii) We are not setting aside enough to replace the machinery; we need to set aside Rs.1,65,000/- not Rs.1,50,000/- so as to be able to buy new machinery.
iv) It is still not late to switch to the LIFO for 2008. This will reduce closing inventory to Rs.3,30,000/- and raise cost of goods sold

1893_manufacturing table.jpg


a) What is the weighted average inflation factor for the firm using LIFO?
b) If the firm desires a 15 percent profit margin on sales, how much should the firm charge for the product per unit?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M9444

Have any Question? 

Related Questions in Financial Management

Group projectinstructionyou and your team members should

Group Project Instruction: You and your team members should choose a problem statement and apply statistical techniques to solve it. The following step by step instruction will guide you to complete this activity: Step 1 ...

We have seen that there are 3 phases discussion making and

We have seen that there are 3 phases (Discussion; Making and accepting proposals; and closing the deal), in the process. Please respond in about 300 words. Do we need to follow them in sequence, or can we be flexible bet ...

Assignmentimagine you are the owner of a small business in

Assignment Imagine you are the owner of a small business in your hometown. Briefly describe your company in 3 to 5 sentences. Discuss the following in 525 to 700 words: Define the roles you play as a small business owner ...

Deliverable length 10-12 pages body of paper excluding

Deliverable Length: 10-12 pages (body of paper, excluding title page, abstract, references and appendices, if any) Comprehensive Analysis of a Fortune 500 Company For this Individual Project you will analyze publicly ava ...

Please respond to the followingnbsp under 300 wordsa

Please respond to the following:  UNDER 300 Words a) Justify why a small investor would benefit from investing in a mutual fund, as compared to the many other investments that exist. Provide support for your justificatio ...

This week will develop the theory and application of

This week will develop the theory and application of capital budget analysis. The theory was robust, the calculations mathematically and logically defined, and many of the real-world problems, likely to be encountered, w ...

Assignmentq1xyz company uses anbspperiodic inventory system

Assignment Q1. XYZ Company uses a periodic inventory system. The beginning balance of inventory and the purchases made by XYZ during the month of July are given below: Date Description Units Unit cost Total cost July 01 ...

Assignment for pogo managing government finances -the

Assignment for POGO Managing Government Finances - The assignment questions are drawn from topics that may ask you to integrate the topics covered across the entire course - or certainly link different topics together in ...

Module 2 - slpstock and bond valuationfor your second slp

Module 2 - SLP STOCK AND BOND VALUATION For your second SLP assignment, continue to do research on the company you chose to write about for your Module 1 SLP. This time you will be doing research about the valuation of t ...

Purpose of assignmentthis assignment situates students in

Purpose of Assignment This assignment situates students in the role of a consulting team for Best Game Productions. As a team, students analyze the culture, values, and ethics of Best Game Productions and each department ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As