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Cost and Management Accounting-NMIMS Sep 17

Cost and Management Accounting-NMIMS Sep 17

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Question 1: You are the CEO of Patta Noodles Ltd and want to appoint Mr. Milind as management accountant so there can be adequate coordination between accounts, finance and management functions. Please brief him about his responsibilities and the necessary qualities which he should reflect as a management accountant so as to enable him to sincerely perform the job.

 

Question 2: Nokia recently launched N3310 model. The company is quite optimistic to continue with producing NOKIA 3310 in the near future. The management of the company prudently takes all decisions and they are analyzing their decision to continue to manufacture the product. As an accountant discusses the necessary factors the management should analyze in order to continue or to shut down any production operation.

 

Question 3:

a) Calculate total earning as per Emerson's plan-

  • Standard output in 5 hours = 30 units
  • Actual output in 5 hours = 27 units
  • Actual rate paid for each hour = Rs 50 per hour

 

b) Calculate the earnings and bonus as per Rowan's plan

  • Standard time allocated to complete job = 10 hours
  • Wage rate per hour = Rs 50
  • Actual time taken to complete the job = 8 hours
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