ASSIGNMENTS ON COST AND MANAGEMENT ACCOUNTING

1.     Write short note with the aid of diagram:

a.     Variable Cost

b.    Fixed Cost

c.   Semi-Variable Cost

2.   (a) What do you understand by Cost-Volume-Profit Analysis Technique?

(b)  List five each usefulness and assumptions of Cost-Volume-Profit Analysis

       Technique.

(c)  The following information has been summarised from the records of Alajeju

      Limited.

                                                          Period 1                Period 2

                                                               N                          N

          Sales                                          30,000                         38,000

          Profit                                            800                             2,300

            You are required to calculate using any assumption reasonable thought:

(i)                The Profit/ Volume Ratio

(ii)             The Loss when sales are 24,000

(iii)           The Profit when sales are 60,000

(iv)           The sales required to earn a profit of N4,000

(v)             The Break-Even Point

(vi)           The Margin of safety for period 1 and period 2.

 


3.    Ojutonsoro recently convinced her friends and relatives to grant her a loan of

N2,400,000 which she intends to invest in a farming project.

She estimates that the project will yield the following returns annually as follow:

Year                     N`000

1                               100

2-5                            300

6                               400

7                               700

8-10                      1,000

Ojutonsoro`s cost of capital is 20%.

As a student of Southwestern University of Nigeria, HND to B.SC conversion programme, you are require to calculate using the following methods of capital budgeting techniques under certainty:

a.     Accounting Rate of Return (ARR)

b.     Discounted Payback Period (DPBP), assumed the initial investment to be half of the loan granted to Ojutonsoro.

c.      Net Present Value (NPV)

d.     Internal Rate of Return (IRR)

Advice Ojutonsoro based on your results in (a-d) above

4.  Bamishaye  Nigeria Limited produces and sells Red Soft Drinks. The standard direct cost per crate is as follows:

Material:

100 litres of concentrated juice at N2.00 per litre.

200 litres of carbonated water at N2.50 per litre

10 labour hours at N9.00 per hour.

The budgeted monthly production and sales is 500 crates and the selling price is N1,000 per crate.

The following details relate to October 2017, when 510 crates of Red Soft Drinks were produced and sold:

                                                                                  N

Sales                                                                     506,500

Materials used:

Concentrated juice- 51,600 litres                          102,500

Carbonated water- 101,500 litres                         258,800

Labour:

5,000 hours cost                                                    45,750

Required:

a.      Compute the price and usage variance for each material.

b.     Calculate the wage rate and efficiency variances.

c.      Comment briefly upon the information revealed by each of the variances you have computed.

5.  Write short note on the following:

a. Master Budget

b. Cash Budget

c. Sales Budget

d. Production Budget

e. Personnel Budget

 
         

IN ALL YOUR GETTING, GET WISDOM!  ^{BRITS LINKS}