IGNOU MMPC-04 - Accounting for Managers

1. During the current year AB Ltd. Should a profit of Rs. 1,80,000 on a sale of Rs. 30,00,000. The various expenses were Rs. 21,00,000. You are required to calculate: 1. The break even sales at present. 2. The break even sales if variable cost increased by 55. 3. The break even sales to maintain the profit as at present, if the selling price is reduced by 6 per cent. 2. XYZ Ltd. Is currently working at 50% capacity and produces 10,000 units. At 60% capacity raw material cost increased by 2% and selling price falls by 2 percent. At 8% capacity raw material cost increased by 5% and selling price falls by 5%. At 50% capacity the product costs Rs. 180 per unit and is sold at Rs. 200 per unit. The unit cost of Rs. 180 comprises the following. Prepare a marginal cost statement showing the estimated profit of the business when it is operating at 60% and 80% of capacity. 3. Explain the following (a) Business Entity Concept (b) Accrual Concept (c) Dual Aspect Concept (d) Cash and Cash equivalents 4. Explain the various Financial Statements. Which are parts of the Annual Report. How can Notes to the accounts help in better understanding of financial statements? 5. What is Human Resource Accounting? How it is used as management decision tool.

1. Explain the following accounting concepts (a) Business Entity concept (b) Money measurement concept (c) Continuity concept (d) Accrual concept 2. Explain the following (a) Marginal Costing (b) Activity Based Costing 3. What is CVP analysis? Does it differ from break even analysis? How is break-even point calculated? 4. Explain in detail the various contents of an Annual Report. 5. From the following calculate cash from operations: