MBA Semister 01

Name : Prasad Hegde

Roll No : 1702000502

Subject : MBA 104 ( Finance & Accounting )

UNIT - 1

1)
Rainbow Ltd. sold goods for Rs. 30,00,000 in a year. In that year, the variable costs
were Rs. 6,00,000 and fixed costs were Rs. 8,00,000.
Find out:
1) MCSR : Total Sales Total Variable Cost x 100
--------------------------------------------
Total Sales

MCSR= (3000000 600000 /3000000) x 100

= 80%

2) Break Even Sales : Fixed Cost / MCSR

= 800000 / 80
= 10000

3) Break-even sales, if the

selling price was reduced by
10 % and Fixed Costs were
increased by Rs. 1,00,000.

= sales variables
= 0.8 0.6
= 0.2
= 100000/0.2
= Rs.500000

2)

Costing Methods
 1) Job Costing : Under this method costs are collected and accumulated for each order or project
separately . Each job can be identified separated & hence become essenetial to analyse the
each job.
2) Contract Costing : It Doesnt in principle differ from job costing, when the job is big and spread
over long period of time.this will be used.
3) Batch Costing : This is an extension of job costing,a batch may represents batch number of small
orders or groupof identical passed through factor in batch. Ex: manufacture of Choclates
4) Process Costing : is the method refer to stage of production if product passes through different
stages.each distinct & well defined then ij order to each stage of process. Ex : Textile Industry
5) Operation Costing : It is the further refinement process costing, it is suitable industries suitable
to mass productionis carried out where goods have to be stocked. Ex :Automobile Industry
6) Unit Costing : This is single output costing,
7) Operating Costing : Where vender services as distinct from those which manufacture goods.
Including transfortation & power supply companies etc.
8) Multiple Costing : Application of more than one method costing to same product manifuctares.

3)

From the above information prepare a Cash Budget for the quarter January to March 2017, showing
the budgeted amount of bank facilities required, if any, in each month end.

Answer : Cash Budget For Month Ending

March 2017

Particulars Jan Feb March

Opening Balance 20000 37000 35000
Collection from Debtors 124000 100000 94000
A.total 144000 137000 59000
Payments

Payment of Creditors 96000 162000 164000

Wages 11000 10000 12000
B-total 107000 172000 176000

Closing Balance

A-B 37000 35000 117000

Collections

Jan : 124000 Feb : 100000 March : 94000

Payments

Jan : 96000 feb :162000 March : 164000

UNIT 2

1)

Budgeted 100000 Standard 900000 Actual 900000

Ton Rate Amount Ton Rate Amount Ton Rate Amount

1 20 20 9 20 180 10 21 210

MCV : Standard cost of material actual cost of material

= 180 210

= 30

MPV : (Standard price Actual Price) X Quantity

= (20-21) x 10

= 10

Material Usage Variance : Standard unit price ( Standard Usage - Actual Usage )

=20 ( 9-10)

=-20

2).