Cost & Management Accounting – Ascertain Contribution per piece and as a % of Sales Price

27 Apr

Ascertain Contribution per piece and as a % of Sales Price.

Ascertain Contribution per piece and as a % of Sales Price.

Contact us: – Prakash

Mobil: – +919741410271/ 08722788493

Email: – smu.assignment@gmail.com

Visit: – http://www.mbaassignmentsolutions.com/

Cost & Management Accounting

1. Given the slowdown in the auto sector, Fast Automobile company, a car manufacturing company wants to go in for an overhaul of its operations. The Management wants to review the cost of all its product lines i.e. types of cars it has in various segments and the way they value their closing stock given the inventory pile up, to take some strategic decisions.

The Management accountant is asked to prepare a summary of costs to enable the top team to decide which product to manufacture, discontinue some segments etc. What are the various types of ways the Management accountant can classify the costs by Management decisions. Describe any 5. Also, discuss the different ways in which the company can value its closing stock?

2. Traditional Managerial accounting was all about managing costs whereas Management accounting has undergone a sea change, given the change in the overall Global environment. Discuss and describe in relation to the following –

  • Growth of E-Commerce and e-business. Share atleast 2 practical examples.
  • Focus on cross-functional Groups
  • Total Quality management concept

How these impacted global management accounting practices.

3. Fancy Bag company purchases Ladies Bags from a wholesaler @ Rs 1100/- per piece. They add accessories and packaging and sell each bag for Rs 1800/- per piece. They incur certain fixed expenses.

The company wants to understand how many pieces they must sell in order to be profitable. They seek the help of a Management accountant to:

a. Ascertain Contribution per piece and as a % of Sales Price.

b. Prepare the Profit / Loss account for sale of 200 pieces 300 pieces

Details provided:

Purchase Cost                                     1100                per pc

Sale                                                     1800                per pc

Expenses                                                                    Per Month

Rent                                                                            50000

Staff Salary                                                                 75000

Commission per pc                                                      100

Contact us: – Prakash

Mobil: – +919741410271/ 08722788493

Email: – smu.assignment@gmail.com

Visit: – http://www.mbaassignmentsolutions.com/

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