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

Reflection papernbsp instructionsas you continue on your

Reflection Paper  : Instructions As you continue on your quest for academic success, it is important to share your knowledge with others. In fact, you have been asked to provide advice to future students on academic inte ...

Hedging assignment -your portfolio a stock is currently

Hedging Assignment - Your portfolio: A stock is currently trading at 55. You hold a portfolio of the following instruments: Long 200 shares of stock Long 200 puts with a strike of 50 and maturity of three months (T=13/52 ...

As we learned about in our lecture there are three types of

As we learned about in our lecture, there are three types of exercise: Aerobic exercises, e.g. running, cycling, walking, and skiing, are performed for longer intervals and require oxygen. Aerobic exercise primarily uses ...

Assignment problems1 on the day harry was born his parents

Assignment Problems 1. On the day Harry was born, his parents put $1600 into an investment account that promises to pay a fixed interest rate of 5 percent per year. How much money will Harry have in this account when he ...

Your assignment consists of three parts1go to the internet

Your assignment consists of three parts: 1. Go to the internet and find a news article published within the last one year that discusses capital expenditures of the company, summarize key points and post in the Discussio ...

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 ...

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 ...

Management control systems and national cultures and

Management Control Systems and National Cultures and Corporate Social Responsibility o What steps, if any, is Amazon taking to be sensitive to the national culture. o What is Amazon doing with regard to Corporate Social ...

Assignment - capital asset pricing model and required

Assignment - Capital asset pricing model and required returns 1. Select two stocks that have prices available for the last ten years. (You may find it more interesting if you select one stock that is relatively risky and ...

Response 1 nancymergers or acquisitions m amp a - this

Response #1 (Nancy) Mergers or Acquisitions (M & A) - this publication: Mergers and acquisitions covers all aspects of mergers and acquisitions. Beginning with the pre-combination phase (the period between the deal's ann ...

  • 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