Instructions:
• All Questions carry equal marks.
• All Questions are compulsory
• All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3in not more than 500 words for each subsection. Use relevant examples, illustrations as far aspossible.
• All answers to be written individually. Discussion and group work is not advisable.
• Students are free to refer to any books/reference material/website/internet for attempting theirassignments, but are not allowed to copy the matter as it is from the source of reference.
• Students should write the assignment in their own words. Copying of assignments from otherstudents is not allowed.
Question. 1. The board of directors of your company asked you to prepare certain projections, reports and present certain information so that they can take decision regarding whether to continue a particular venture or not. Discuss the tools you will be using to extract and present the necessary accounting information to the management. (10 Marks)
Question.2. M Ltd introduces 5000 units in a process at a cost of Rs 20000. The wages and overhead incurred are Rs 12000 and Rs15000 respectively. In normal course 10 % of the units introduced are defective. Actual output of goods is 4400 units. The rectification cost of defective units is Rs 5 per unit.
Calculate
The cost per unit
Value of abnormal loss
Process Account
Question.3. a) It is very necessary for an organization to analyses the cost drivers in order to control cost and to maximize overall value. You are the cost accountant in Cipla Ltd, suggest the major components for analysis, so that the company can lower its costs and also create strategic competitive advantages. (5 Marks)
b) As this is the season of festivals employees of Mumbai Rayon fashion ltd are getting the overtime premium because they are working beyond the working hours in order to meet the market demand. You are the cost accountant of the company, the management wants to discuss with you the effects of overtime on productivity and how the same will be treated in cost accounting. Discuss at least five points. (5 Marks)