MGT402

  SEMESTER SPRING 2013 COST AND MANAGEMENT ACCOUNTING (MGT402) ASSIGNMENT NO. 01 Solution DUE DATE: 2ndMAY 2013                                                                                       …

1- Differentiate between incremental cost and avoidable cost. (M – 3)   2-   Margin of safety Rs. 75000 Budgeted sales Rs. 650000 Calculate Margin of safety Ratio. —– (M – 3)   3- Give the formulas of the following: Production budget Sales budget —– (M – 3)   4- Hussain Corporation annually produces 10,000 units of assembly part number 206. …

All Indirect cost is charged/record in the head of Select correct option: Prime cost FOH cost Direct labor cost None of the given options Closing work in process Inventory of last year: Select correct option: Is treated as Opening inventory for current year Is not carried forward to next year Become expense in the next year Charge to Profit & …

Question # 1   Which of the following is correct? Select correct option:   Units sold=Opening finished goods units + Units produced – Closing finished goods units   Units Sold = Units produced + Closing finished goods units – Opening finished goods units Units sold = Sales + Average units of finished goods inventory   Units sold = Sales – …

No: 1 All of the following are a part of Planning Process EXCEPT: ► Identifying the objectives ► Search for alternative actions ► Data gathering for alternatives ► Selection of a fixed action Question No: 2 All of the following indicate the problems in traditional budget EXCEPT: ► Programmes and activities involving wasteful expenditure are identified, resulting in unavoidable financial …

Question “Taking steps for the fresh purchase of those stocks which have been exhausted and for which requisitions are to be honored in future” is an easy explanation of: Select correct option: Overstocking Under stocking Replenishment of stock Acquisition of stock   Question If, COGS = Rs. 50,000 GP Margin = 25% of sales What will be the value of …

Total 27 question 22 MCQS (Mostly from Past Papers) Question of 3 Marks:- Explain equivalent production. There are two wage rate principles i.e. time wage and piece rate. Explain these systems. ABC company’s data is as under: 400 units already in inventory @ Rs. 5 Additional 500 units purchased @ Rs. 6 ABC Company sold 800 units @ Rs. 8 …

Answer:         Economic Order Quantity in Previous Proposal:        Required Quantity= Rq= 12,500       Ordering Cost        = Co= 2,000       Inventory Unit cost =Uc= 500 per bail      Carrying & Storage Cost 10% Uc=Cc= 50      As Economic Ordering Quantity;  EOQ = (2(Rq*Co/Uc*Cc) ^ (1/2)                           = (2(12,500*2,000)/ (500*s50) ^ (1/2)                          = (2000) ^ (1/2) …