WE PROVIDE CASE STUDY ANSWERS, ASSIGNMENT SOLUTIONS, PROJECT REPORTS AND THESIS
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FINANCE
MANAGEMENT
a) What is meant by financing
decisions? Mention two limitations of accounting rate of return.
b) Explain Financial Risk.
c) Mention the utility of
public deposits as a source of fund.
D) Explain operating Lease.
e) Discuss the relation between
debt financing and financial leverage.
F) What is a letter of credit
g) Differentiate between Bonus
issue and stock split.
H) Define the term 'take over.'
i) What is Capital Asset
pricing model?
j) How cost of preference share
capital is calculated?
K) What is dividend pay-out
Ratio?
l) Explain the concept of
Capital Rationing.
m) Mention two advantages of
Lease financing.
n) Define Economic Value added
in relation to shareholder's value criteria.
Finance Management
1. How negatively
correlated investments behave in a market
2. What types of shares
available in the market
3. Explain why financial
planning is important to today’s chief executives
4. How risk and expected return
is compared in two distribution
5. What do you mean
by yield to maturity (YTM ) of a Bond ? Explain briefly
6. How does
interest coverage ratio affects the capital structure.
7. Why Capital budgeting
decisions are more important?.
8. What is Financial risk? How
does it arise?
Financial
& Cost Accounting
Q1. Differentiate between
Management Accounting and Financial Accounting.
Q2. What is the different
between cost accounting and management accounting?
Q3. State the objectives of
cost accounting briefly explain the advantages of cost accounting.
Q4. “Cost accounting is better
understood as a cost control and cost reduction exercise and not a more cost
ascertainment process”. Discuss.
Q5. “Cost accounting is a
system of foresight like pre-natal care, but financial accounting is just a
postmortem examination”. Critically examine this statement
Q6. Define “Costing”, “Cost”
and “Cost Accountancy”. Distinguish between cost accounting and financial
accounting.
Q7. “A Good system of costing
must place the same emphasize on cost control as on cost ascertainment”.
Comment on this statement.
Q8. What one the limitations of
financial accounting? How do you overcome item in cost accounting?
FINANCIAL
& COST ACCOUNTING
Q1) ABC Ltd. Produces room
coolers. The company is considering whether it should continue to
manufacture air circulating
fans itself or purchase them from outside. Its annual requirement is
25000 units. An outsider vendor
is prepared to supply fans for Rs 285 each. In addition, ABC Ltd
will have to incur costs of Rs
1.50 per unit for freight and Rs 10,000 per year for quality inspection,
storing etc of the product.
In the most recent year ABC
Ltd. Produced 25000 fans at the following total cost :
Material Rs. 50,00,000
Labour Rs. 20,00,000
Supervision & other
indirect labour Rs. 2,00,000
Power and Light Rs. 50,000
Depreciation Rs. 20,000
Factory Rent Rs. 5,000
Supplies Rs. 75,000
Power and light includes Rs
20,000 for general heating and lighting, which is an allocation based on
the light points. Indirect
labour is attributed mainly to the manufacturing of fans. About 75% of it
can be dispensed with along
with direct labour if manufacturing is discontinued. However, the
supervisor who receives annual
salary of Rs 75,000 will have to be retained. The machines used for
manufacturing fans which have a
book value of Rs 3,00,000 can be sold for Rs 1,25,000 and the
amount realized can be invested
at 15% return. Factory rent is allocated on the basis of area, and the
company is not able to see an
alternative use for the space which would be released. Should ABC
Ltd. Manufacture the fans or
buy them?
Q2) Usha Company produces three
consumer products : P, Q and R. The management of the
company wants to determine the
most profitable mix. The cost accountant has supplied the following
data.
Usha Company : Sales and Cost
Data
Description Product Total
P Q R
Material Cost per unit
Quantity (Kg) 1.0 1.2 1.4
Rate per Kg (Rs) 50 50 50
Cost per unit (Rs) 50 60 70
Labour Cost per unit 30 90 90
Variable Overheads per unit 15
10 25
Fixed Overheads (Rs .000) 9,175
Current Sales (Units ,000) 100
50 60 210
Projected Sales (Units ,000)
109 55 125 289
Selling Price per unit (Rs) 150
200 270
Raw material used by the firm
is in short supply and the firm can expect a maximum supply of 350
lakh kg for next year. Is the
company’s projected sales mix most profitable or can it be changed for
the better?
Q3) DSQ Company Ltd, a
diversified company, has three divisions, cement, fertilizers and
textiles. The summary of the
company’s profit is given below :
(Rs/Crore)
Cement Fertilizer Textiles
Total
Sales 20.0 12.0 18.0 50.0
Less : Variable Cost 8.0 9.6
5.4 23.0
Contribution 12.0 2.4 12.6 27.0
Less : Fixed Cost (allocated to
divisions in proportion to
volumes of Sales)
8.0 4.8 7.2 20.0
Profit (Loss) 4.0 (2.4) 5.4 7.0
After allocating the company’s
fixed overheads to products the Fertilizers, division incurs a loss of
Rs 2.4 crore. Should the
company drop this division?
WE PROVIDE CASE STUDY ANSWERS, ASSIGNMENT
SOLUTIONS, PROJECT REPORTS AND THESIS
ARAVIND - 09901366442 – 09902787224
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