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Sunday, April 29, 2012

CA IPCC – FM 15 days Regular Class

PREMIER ACADEMY 



No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9940623954


CA Exams-Nov'12  


15 days Regular Class


CA IPCC – Financial Management



 


Starts on : 2nd May'12


Timing: 2pm-5pm 


Days : Mon to Fri day.


Faculty: CA.K.Hariharan;


Fees: Rs.2500; (including course material, FM Book + 7 model exams)


Venue: PREMIER ACADEMY, No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9841661405


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ICWA Exams-June’12 - Costing Two days Crash course

PREMIER ACADEMY 



No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9940623954


ICWA Exams-June'12


 Two days Crash course


COST & MANAGEMENT ACCOUNTING


 


 Starts on : 2nd june'12


Timing: 9.30am- 6pm 


Days : Sat. & Sun day.


Faculty: CA.K.Hariharan;


Fees: Rs.2500; (including course material, costing Book + model exam)


Venue: PREMIER ACADEMY, No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9841661405


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ICWA COSTING IMPORTANT THEORY QUESTIONS

PREMIER ACADEMY 



No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9940623954


COST & MANAGEMENT ACCOUNTING


 


IMPORTANT THEORY QUESTIONS


FOR ICWA Inter – June 2012 EXAM


 


1)     Difference between cost reduction and cost control


2)     Cost centre vs. Cost unit


3)     Differential cost


4)     Opportunity cost


5)     Sunk costs


6)     Conversion cost


7)     Relevant cost


8)     Profit centre


9)     Distinguish between bin cards and stores ledger


10)                        ABC analysis


11)                        Accounting and control of waste, scrap, spoilage and defectives


12)                        Material Transfer Note


13)                        VED Analysis


14)                        Basic assumptions under EOQ


15)                        Idle time


16)                        Accounting treatment of overtime premium in cost accounting


17)                        Causes of labour turnover & Steps to minimise labour turnover


18)                        Difference between job evaluation & merit rating


19)                        Learning curve


20)  Differences between allocation and apportionment


21)                        Blanket overhead rates


22)                        Treatment of under-absorbed and over-absorbed overheads Non-integrated accounting system


23)                        Advantages & Pre-requisites of integrated accounting system


24)                        Causes which give rise to differences in the cost and financial accountsDifference between job costing & batch costing


25)                        Retention money


26)                        Cost plus contract & its advantages


27)                        Escalation clause


28)                        Difference between job & contract costing


29)                         Accounting treatment of by-product       


30)                        Distinction between joint-product and by-product


31)                        Split off point


32)                        Reverse cost method in by-product cost accounting


33)                        Equivalent production


34)                        Difference between operation cost and operating cost


35)                         Difference between marginal costing and absorption costing


36)                        Cost-volume-profit analysis


37)                        Angle of incidence


38)                        Key factor


39)                        Margin of safety (MOS)


40)                        Break even analyses


41)                        Sensitivity Analysis


42)                        How to improve PV ratio


43)                        Difference between fixed and flexible budget


44)                        Zero Based Budget (ZBB)


45)                         Difference between standard costing and budgetary control


46)                         Variance analysis


47)                         Activity Based Management


48)                         Activity Based Costing


49)                         Cost Drivers


50)                        Types of Transfer Pricing


51)                        Principles of Management


52)                        Balanced scorecard


53)                         Management control system in non-profit organisation


54)                         Features of performance measurement system


55)                        Performance management


56)                         Bench marking


57)                         Performance budgeting


58)                         Functions of organization


59)                         Features of management


60)                         MRP


61)                         Value analysis


62)                         ERP


63)                         MRP II


64)                         Value engineering


65)                         Target costing


66)                         TQM


67)                         JIT


68)                         Supply chain Analysis


69)                         Uniform costing


70)                         Inter firm comparison


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Saturday, April 21, 2012

Live Program – Kalangiar TV

Live Program – Kalangiar TV

Topic: "Career Guidelines and Opportunities for CA / CWA / CS Courses".

Date:21/04/2012;

 Timing 10am to 11pm

 Speaker: CA.K.HARIHARAN, Faculty member of ICAI

FINAL– Regular Class Schedule

PREMIER ACADEMY 

No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9940623954

 

FINAL– Regular Class

IDT, Cost Mgt. & QT

(For Nov '12 CA Exams)

Indirect Tax

Cost Mgt. & QT

Starts on : 25th June

Timing: 5.30pm-8.30pm 

Days : Mon to Fri day

Duration : 1 Month

Fee: 4,500

(including a Book, course materials + model exams)

BATCH – I

Starts on : 7th June

Timing: 6.15 -8.45am 

Days : T/T/Sat.

Duration : 3 Months

BATCH – II

Starts on : 25th June

Timing: 1.45 -5.15pm 

Days : Mon to Fri day

Duration : 1 ½  Months

Fee:Costing Rs.4500; QT Rs.1500

(including course materials + 7 model exams)

Faculty

Costing – CA.K.Hariharan;

QT – Dr.P.R. Vittal

IDT-CA.N.Raja Sekhar

Venue

 

PREMIER ACADEMY, No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9940623954


Model Exam Qtn paper - May'12 - CA IPCC - Costing & FM

PREMIER ACADEMY

No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9841661405 visit www.cahariharan.blogspot.com

 

COST ACCOUNTING AND FINANCIAL MANAGEMENT

Question no.1 is compulsory.

Answer any five from the remaining six questions.

Working notes should form part of the answer.

 

(Time allowed = 3 hours)                                                                                (Maxi. Marks= 100)

Question 1

a. The annual carrying cost of material 'X' is Rs. 3.6 per unit and its total carrying cost is Rs.9,000 per annum. What would be the Economic order quantity for material 'X', if there is no safety stock of material X ?

b.  Short notes on

i. Perpetual inventory

ii. Retention money

iii. Stores layout

c. TQM Ltd. has furnished the following information for the month ending 30th June, 2007:

 

Master Budget

Actual

Variance

 

 

Units produced and sold

80,000

72,000

 

 

 

Sales (Rs.)

3,20,000

2,80,000

40,000 (A)

 

 

Direct material (Rs.)

80,000

73,600

6,400 (F)

 

 

Direct wages (Rs.)

1,20,000

1,04,800

15,200 (F)

 

 

Variable overheads (Rs.)

40,000

37,600

2,400 (F)

 

 

Fixed overhead (Rs.)

40,000

39,200

800 (F)

 

 

Total Cost

2,80,000

2,55,200

 

 

 

 

 

 

 

 

 

The Standard costs of the products are as follows:

 

 

 

 

 

 

Per unit

 

 

 

 

 

(Rs.)

 

 

Direct materials (1 kg. at the rate of Re. 1 per kg.) 1.00

1.00

 

 

 

Direct wages (1 hour at the rate of Rs. 1.50)

1.50

 

 

 

Variable overheads (1 hour at the rate of Re. .50)

0.50

 

 

 

Actual results for the month showed that 78,400 kg. of material were used and 70,400 labour hours were recorded.

 

Required:

 

 

 

 

 

 

(i) Prepare Flexible budget for the month and compare with actual results.

 

 

(ii) Calculate material, labour, variable overhead, fixed overhead and Sales variance.

 













 

(2+6+12=20 Marks)

Question 2

a. From the following data calculate which material is the fast moving material.

Particular

Material A (Rs)

Material B (Rs)

Opening stock

10,000

9,000

Purchase during the year

52,000

27,000

Closing Stock

6,000

11,000

 

b. Two hours allowed to a worker to produce 5 units and wages has been paid at Rs.25 per hour. In a 48 hour week , the worker produced 170 units. Calculate the total earnings and effectively hourly rate of earning of the worker under the following incentive wage systems- (a) Halsey 50% system, (b) Rowan system, (c) Emerson's Efficiency system, and (d) Barth system.

 

C) Explain and illustrate cash break-even chart.

d) In manufacturing the main product A, a company processes the resulting waste material into two byproducts X1 and X2. Using the method of working back from sales value to an estimated cost prepare a comparative profit and loss statement of the three products from the following data.

Total cost up to separation point was Rs.1,36,000

 

A

X1

X2

Sale – Rs.

3,28,000

32,000

48,000

Costs after separation – Rs.

 

9,600

14,400

Estimated net profit % to   Sales value

 

20%

30%

Estimated selling expenses as % of sale vale

20%

20%

20%

 

                                                                                                                 (3+4+3+6=16 marks)

Question 3

a. A company has a P/V ratio of 40%. By what percentage must sales be increased to offset: 20% reduction in selling price?

 

b. A skilled worker in XYZ Ltd. is paid a guaranteed wage rate of `30 per hour. The standard time per unit for a particular product is 4 hours. P, a machineman, has been paid wages under the Rowan Incentive Plan and he had earned an effective hourly rate of `37.50 on the manufacture of that particular product.

Required What could have been his total earnings and effective hourly rate, had he been put on Halsey Incentive Scheme (50%)?

 

C.  If P/V ratio is 60% and the Marginal cost of the product is Rs.20. What will be the selling price?

 

d. A Company produces a component, which passes through two processes. During the month of April, 2006, materials for 40,000 components were put into Process I of which 30,000 were completed and transferred to Process II. Those not transferred to Process II were 100% complete as to materials cost and 50% complete as to labour and overheads cost. The Process I costs incurred were as follows:

Direct Materials            Rs.15,000

Direct Wages                Rs.18,000

Factory Overheads        Rs.12,000

 

Of those transferred to Process II, 28,000 units were completed and transferred to finished goods stores. There was a normal loss with no salvage value of 200 units in Process II.

 

There were 1,800 units, remained unfinished in the process with 100% complete as to materials and 25% complete as regard to wages and overheads.

 

No further process material costs occur after introduction at the first process until the end of the second process, when protective packing is applied to the completed components. The process and packing costs incurred at the end of the Process II were:

 

Packing Materials Rs.4,000

Direct Wages Rs.3,500

Factory Overheads Rs.4,500

 

Required:

(i) Prepare Statement of Equivalent Production, Cost per unit and Process I A/c.

(ii) Prepare statement of Equivalent Production, Cost per unit and Process II A/c.

 (2+3+2+9=16 marks)

 

Question 4

  1. Distinguish between Job evaluation and Merit rating.
  2.  Pass journal entries in the cost books, maintained on integrated system, for the following:

      (i)   Issue of materials                      Direct Rs.5,50,000;        Indirect Rs.1,50,000

      (ii)  Allocation of wages                   Direct Rs.2,00,000;        Indirect Rs.40,000

      (iii) Under/over absorbed Factory (over)                               Rs.20,000;

            overheads Administration (under)                                   Rs.10,000.

 

 

c. Following information is forecasted by the CS Limited for the year ending 31st March, 2010:

 

Balance as at

1st April, 2009

Balance as at 31st

March, 2010

Raw Material

Work-in-progress

Finished goods

Debtors

Creditors

45,000

35,000

60,181

1,12,123

50,079

65,356

51,300

70,175

1,35,000

70,469

Annual purchases of raw material (all credit)

Annual cost of production

Annual cost of goods sold

Annual operating cost

Annual sales (all credit)

4,00,000

7,50,000

9,15,000

9,50,000

11,00,000

You are required to calculate:

(i) Net operating cycle period.

(ii) Number of operating cycles in the year.

(iii) Amount of working capital requirement.

(4+6+6=16 marks)

 

Question 5

a.         The following figures and ratios are related to a company:

(i) Sales for the year (all credit)                                      Rs. 30,00,000

(ii) Gross Profit ratio                                                                  25 percent

(iii) Fixed assets turnover (based on cost of goods sold)   1.5

(iv) Stock turnover (based on cost of goods sold)                         6

(v) Liquid ratio                                                              1 : 1

(vi) Current ratio                                                                       1.5 : 1

(vii) Debtors collection period                                         2 months

(viii) Reserves and surplus to Share capital                                  0.6 : 1

(ix) Capital gearing ratio                                                             0.5

(x) Fixed assets to net worth                                                      1.20 : 1

 

You are required to prepare:

(a) Balance Sheet of the company on the basis of above details.

(b) The statement showing working capital requirement, if the company wants to make a provision for contingencies @ 10 percent of net working capital including such provision.

 

b. The following information for P.L. Forgings is given for your consideration:

                                                                                                 Rs. in lakhs

Earnings before interest and tax (EBIT)                                                2,240

Profit before tax (PBT)                                                                          640

Fixed cost                                                                                           1,400

You are required to calculate the percentage change in earnings per share if sales increased by 7 per cent.

 

 

c. The following is the capital structure of a Company:

Source of capital

Book Value (Rs.)

Market Value (Rs.)

Equity Share @Rs.100 each

80,00,000

1,60,00,000

9% cumulative preference Shares @ Rs.100 each

20,00,000

24,00,000

11% debentures

60,00,000

66,00,000

Retained earnings

40,00,000

---

The current market price of the company's equity share is Rs.200. for the last year the company had paid equity dividend at 25 per cent and its dividend is likely to grow 5 per cent every year. The corporate tax rate is 30 per cent and share holders personal income tax rate is 20 per cent.

 

You are required to calculate:

(i)      Cost of capital for each source of capital.

(ii)    Weighted average cost of capital on the basis of book value weights.

(iii)   Weighted average cost of capital on the basis of market value weights.

 

d. Explain briefly the features of External Commercial Borrowings. (ECB)

(6+2+5+3=16 marks)

Question 6

a. The Sales Manager of AB Limited suggests that if credit period is given for 1.5 months then sales may likely to increase by Rs. 1,20,000 per annum. Cost of sales amounted to 90% of sales. The risk of non-payment is 5%. Income tax rate is 30%. The expected return on investment is Rs. 3,375 (after tax). Should the company accept the suggestion of Sales Manager?

 

b. A company operates at a production level of 5,000 units. The contribution is Rs. 60 per unit, operating leverage is 6, combined leverage is 24. If tax rate is 30%, what would be its earnings after tax?

 

c. What is meant by Venture capital financing?

 

d. A company is evaluating its credit policy. The company sells the product on terms of net 30 days. Cost of goods sold is 87% of sales and fixed cost are further 5% sals. The company classifies its customers on a scale of 1 to 4. The experience of the company in the past are as below.

Classification                               Default as% of sales            Average collection period in

                                                                                          days for non defaulting accounts

         1                                                       0                                             50

         2                                                       3                                             48

         3                                                       8                                             45

         4                                                      18                                             75

The average rate of interest is 16%. What conclusion do you draw about the company's credit,policy?

(4+3+3+6=16 marks)

Question 7

a. There are two firms P and Q which are identical except P does not use any debt in its capital structure, while Q has Rs.8,00,000, 9% Debentures in its capital structure. Both firms have EBIT of Rs.2,60,000 p.a and the capitalization rate is 10%. Assuming corporate tax 30%, calculate the value of these firm according to M&M hypothesis.

b.   Name the various financial instruments dealt with in the International market.

c.   A doctor is planning to buy an X-ray machine for his hospital. He has two options. He can either purchase it by making a cash payment of Rs.5 lacs or Rs.6,15,000 are to be paid in six equal annual installments. Which option do you suggest to the doctor assuming the rate of return is 12%? Present value of Re.1 at 12% rate of discount for 6 years is 4.111.

 

d.         PR engineering Ltd is considering the purchase of a new machine which will carry out some operations which are at present performed by manual labour. The following information related to two alternative models- 'MX' and 'MY' are available:

Particulars

Machine 'MX'

Machine 'MY'

Cost of machine

Expected value

Scrap value

Rs.8,00,000

     6 years

Rs.20,000

Rs.10.20.000

   6 years

Rs.30,000

Estimated Net Income before Depreciation and taxes are as under:

 

Year1

Year2

Year3

Year4

Year5

Year6

Machine 'MX'

Machine 'MY'

2,50,000

2,70,000

2,30,000

3,60,000

1,80,000

3,80,000

2,00,000

2,80,000

1,80,000

2,60,000

1,60,000

1,85,000

Corporate tax rate this company is 30% and the company's required rate of return on investment proposals is 10%. Depreciation on straight line basis. You are required to:

1.       Calculate the pay back period on each proposal.

2.       Calculate the net present value on each proposal, if the PV factor at 10% is 0.909, 0.826, 0.751, 0.683, 0.621, and 0.564.

3.       Which proposal would you recommend and why?

                                                                                (4+3+3+6 = 16 marks)

 

 

 

 

 

WINNERS NEVER QUIT & QUITTERS NEVER WIN

ALL THE VERY BEST

For suggested ans for this model Exam Qtns mail cahariharan@rediffmail.com  &

For important theory Qtns for Nov.11 CA Exam - visit www.cahariharan.blogspot.com

 

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