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Accounting Management

Accounting Management

 

Accounting Management

Q1. (a) What is the logic in using contribution approach in pricing decisions? Explain with a help of an example.

Q1. (b) “The real justification for variable costing lies in its managerial use.” Explain.

Q2. (a) "The major defect of variable costing is that it ignores fixed costs, which are becoming increasingly important in business enterprises today." Do you agree? Explain.

Q2. (b) "Responsibility accounting, budgeting and reporting to organization and responsibilities". Explain.

Q3. (a) What is the significance of classifying manufacturing overheads as fixed, variable and semi-variable? Explain the behavior of them.

Q3. (b) Explain the formulae to calculate all possible kind of materials variances.

Q4. (a) Are standard costs applicable to non- manufacturing activities? Explain.

Q4. (b) "Budgets and standards are not the same thing. They have different relation hip exists between them". Elucidate.

Q5.(a) "Discounted payback ensures that you don't accept an investment with negative NPV, but it can't stop you from rejecting project with negative NPV, but it can't stop you from rejecting projects with a positive NPV." Illustrate why this can happen?

Q5. (b) Why is the attitude of top management crucial for the success of budgeting system? Explain.

Q6. (a) Explain the assumptions underlying the break-even analysis. How do they make the breakeven analysis unrealistic?

Q6. (b) Would it be really important for the cost volume-profit interrelations to allocate fixed costs to individual product lines.

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