Question 1) Distinguish between Financial Accounting and Management Accounting
Question 2) VIMAAN Company
The VIMAAN Company produces and sells a line of Camcorders with the sales price and budgeted unit costs as follows:
Rs
Sales price 600
Direct materials costs per unit 170
Direct labor costs per unit 50
Factory overhead costs:
Variable per unit 90
Total Fixed 400,000
Selling and Adm. Costs:
Variable per unit sold 30
Total Fixed 120,000
Required:
(a) Find out VIMAAN Company's break-even point in units.
(b) Suppose a tax rate of twenty percent. Using cost volume profit analysis, find out the number of units that VIMAAN Company would have to produce and sell to generate net income of Rs78, 000 after taxes.