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Cost and Management Accounting-NMIMS-June-17

Cost and  Management Accounting-NMIMS-June-17

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Question 1: Massachusetts Mutual Life Insurance Company has high Labour Turnover ratio. Labour Turnover is costly, lowers productivity, morale of employee and tends to get worse if not dealt with. Discuss any five factors that can be controlled by the management so as to have the least of Labour Turnover.

Question 2: Thhakar Supplies Ltd is the manufacturer and supplier of protein powder. The company wants to start up with the manufacturing of the tin cans needed to supply the powder instead of buying it from outside. Discuss the probable reasons, why the company wants to manufacture the tin cans on its own?

Question 3a): Dettol being identified as the leading brand of antiseptics. For promoting its various products like hand sanitizer, shaving creams, soap etc. the company spends a lot in the form of selling and distribution expenses. At times, company finds it difficult to control these costs. Discuss the problems associated with controlling these selling and distribution overheads.

Question 3b): From the data given below, calculate

Raw material Standard        Actual

A          250 [email protected]            200 [email protected] 55

•          the material price variance,

•          the materials usage variance and

•          material cost variance

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