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NMIMS – Cost and Management Account – Mr. Tilak established a factory for manufacturing chairs. But he does not know much about Cost accounting. Also, he doesn’t know the importance of Cost acco

October 29, 2015
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Mr. Tilak established a factory

Cost and Management Account

 

Q1: Mr. Tilak established a factory for manufacturing chairs. But he does not know much about Cost accounting. Also, he doesn’t know the importance of Cost accounting. Discuss, about Cost Accounting and its Significance. Also explains how Cost Accounting is different than Financial Accounting?

Q2: A company had incurred fixed expenses of Rs. 450,000 with sales of Rs. 15,00,000/- and earned a profit of Rs. 300,000/- during first half of year. In the second half, it suffered a loss of Rs. 150,000.

 

Calculate:

 

1) The Profit-volume ratio, break-even point and Margin of Safety for the first half of year.

 

2) Expected sales volume for the second half year assuming seeping price & fixed cost remained unchanged in second half of year.

 

3) The BEP (Break-even point) and MOS (Margin of Safety) for whole of year.

 

Mr. Tilak established a factory

 

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Mr. Tilak established a factory

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