NMIMS – Management Accounting
NMIMS MBA Management Accounting Solved Assignment
Q.1 Riyaz Company is excepting to maintaining balance of cash in hand Rs 40000 as on 1st January 2021. From the following information given below. Prepare a cash Budget for 3 months from January to March 2021.
| Months | Sales ( in Rs) | Purchase ( in Rs) | Wages ( in Rs) |
| November | 20000 | 30000 | 8000 |
| December | 30000 | 25000 | 10000 |
| January | 36000 | 22000 | 15000 |
| February | 40000 | 40000 | 20000 |
| March | 42000 | 32000 | 10000 |
Additional Information:
1) Credit allowed by supplier is 2 months.
2) Wages is paid in the following month
3) Dividend paid in the month of March Rs 10000
4) Interest received Rs 5000 in the month of January.
5) Cash sales is 20 % and remaining credit sales is received in the following month. (10 Marks)
Q 2 “Cost Reduction is to be understood as the achievement of real and permanent reduction in the unit cost of goods manufactured or services rendered without impairing their suitability for the use intended or diminution in the quality of the product”. The above definition highlights the concept and characteristics so briefly discuss on it. (10 Marks)
Q3a. Shirin Ltd furnished the following information regarding sales and profit/loss from year 2020 to 2021
| Year | Sales | Profit/loss |
| 2020 | 400000 | ( 20000) |
| 2021 | 700000 | 10000 |
Explain the concept of profit volume ratio and calculate P/v ratio and Breakeven point (5 Marks)
Q3b. Kanchan Ltd gives you the following information as standard rate is Rs 15, Actual rate is Rs 10. Actual output is 2500 and standard output is 3000. Compute variable overhead efficiency variance and variable overhead expenditure variance and interpret on it. (5 Marks)