Calculate Labour Yield Variance from the following data:

16 Sep

Strategic Cost Management

1. XYZ is considering a Project with an initial investment of Rs.100,000. Three probable cash flow scenarios with their probabilities of occurrence are as under:
Annual Cash Flow (Rs.)
20,000
30,000
40,000
Probability
0.1
0.7
0.2
Project life is 5 years with expected return of 20%. The expected terminal values associated with each of above probabilities are Rs.0, Rs.20,000 & Rs.30,000. Find the probable NPV.
2. An M&A expert has been hired to explain to the management of a sick company the symptoms that are normally seen before a company qualifies for being referred to as a BFIR candidate. You being a freshly appointed Management Trainee are required to present a small write up, briefly explaining those early symptoms.
3. a) From the following particulars, calculate: Material Cost Variance & Material Price Variance
Quantity of materials purchased
3000 units
Value of materials purchased
Rs.9000
Standard quantity of materials required per tonne of output
30 units
Standard rate of material
Rs.2.5 per unit
Opening stock of materials
nil
Closing stock of materials
500 units
Output during the period
80 tonnes
3. b) Calculate Labour Yield Variance from the following data:
Standard Output
500 units
Actual Output
450 units
Standard Time
1000 hrs
Standard Rate
Rs.20 per hour

From the following particulars, calculate: Material Cost Variance & Material Price Variance

16 Sep

Strategic Cost Management

1. XYZ is considering a Project with an initial investment of Rs.100,000. Three probable cash flow scenarios with their probabilities of occurrence are as under:
Annual Cash Flow (Rs.)
20,000
30,000
40,000
Probability
0.1
0.7
0.2
Project life is 5 years with expected return of 20%. The expected terminal values associated with each of above probabilities are Rs.0, Rs.20,000 & Rs.30,000. Find the probable NPV.
2. An M&A expert has been hired to explain to the management of a sick company the symptoms that are normally seen before a company qualifies for being referred to as a BFIR candidate. You being a freshly appointed Management Trainee are required to present a small write up, briefly explaining those early symptoms.
3. a) From the following particulars, calculate: Material Cost Variance & Material Price Variance
Quantity of materials purchased
3000 units
Value of materials purchased
Rs.9000
Standard quantity of materials required per tonne of output
30 units
Standard rate of material
Rs.2.5 per unit
Opening stock of materials
nil
Closing stock of materials
500 units
Output during the period
80 tonnes
3. b) Calculate Labour Yield Variance from the following data:
Standard Output
500 units
Actual Output
450 units
Standard Time
1000 hrs
Standard Rate
Rs.20 per hour

An M&A expert has been hired to explain to the management of a sick company

16 Sep

Strategic Cost Management

1. XYZ is considering a Project with an initial investment of Rs.100,000. Three probable cash flow scenarios with their probabilities of occurrence are as under:
Annual Cash Flow (Rs.)
20,000
30,000
40,000
Probability
0.1
0.7
0.2
Project life is 5 years with expected return of 20%. The expected terminal values associated with each of above probabilities are Rs.0, Rs.20,000 & Rs.30,000. Find the probable NPV.
2. An M&A expert has been hired to explain to the management of a sick company the symptoms that are normally seen before a company qualifies for being referred to as a BFIR candidate. You being a freshly appointed Management Trainee are required to present a small write up, briefly explaining those early symptoms.
3. a) From the following particulars, calculate: Material Cost Variance & Material Price Variance
Quantity of materials purchased
3000 units
Value of materials purchased
Rs.9000
Standard quantity of materials required per tonne of output
30 units
Standard rate of material
Rs.2.5 per unit
Opening stock of materials
nil
Closing stock of materials
500 units
Output during the period
80 tonnes
3. b) Calculate Labour Yield Variance from the following data:
Standard Output
500 units
Actual Output
450 units
Standard Time
1000 hrs
Standard Rate
Rs.20 per hour

Project life is 5 years with expected return of 20%. The expected terminal values

16 Sep

Strategic Cost Management

1. XYZ is considering a Project with an initial investment of Rs.100,000. Three probable cash flow scenarios with their probabilities of occurrence are as under:
Annual Cash Flow (Rs.)
20,000
30,000
40,000
Probability
0.1
0.7
0.2
Project life is 5 years with expected return of 20%. The expected terminal values associated with each of above probabilities are Rs.0, Rs.20,000 & Rs.30,000. Find the probable NPV.
2. An M&A expert has been hired to explain to the management of a sick company the symptoms that are normally seen before a company qualifies for being referred to as a BFIR candidate. You being a freshly appointed Management Trainee are required to present a small write up, briefly explaining those early symptoms.
3. a) From the following particulars, calculate: Material Cost Variance & Material Price Variance
Quantity of materials purchased
3000 units
Value of materials purchased
Rs.9000
Standard quantity of materials required per tonne of output
30 units
Standard rate of material
Rs.2.5 per unit
Opening stock of materials
nil
Closing stock of materials
500 units
Output during the period
80 tonnes
3. b) Calculate Labour Yield Variance from the following data:
Standard Output
500 units
Actual Output
450 units
Standard Time
1000 hrs
Standard Rate
Rs.20 per hour

XYZ is considering a Project with an initial investment of Rs.100,000

16 Sep

Strategic Cost Management

1. XYZ is considering a Project with an initial investment of Rs.100,000. Three probable cash flow scenarios with their probabilities of occurrence are as under:
Annual Cash Flow (Rs.)
20,000
30,000
40,000
Probability
0.1
0.7
0.2
Project life is 5 years with expected return of 20%. The expected terminal values associated with each of above probabilities are Rs.0, Rs.20,000 & Rs.30,000. Find the probable NPV.
2. An M&A expert has been hired to explain to the management of a sick company the symptoms that are normally seen before a company qualifies for being referred to as a BFIR candidate. You being a freshly appointed Management Trainee are required to present a small write up, briefly explaining those early symptoms.
3. a) From the following particulars, calculate: Material Cost Variance & Material Price Variance
Quantity of materials purchased
3000 units
Value of materials purchased
Rs.9000
Standard quantity of materials required per tonne of output
30 units
Standard rate of material
Rs.2.5 per unit
Opening stock of materials
nil
Closing stock of materials
500 units
Output during the period
80 tonnes
3. b) Calculate Labour Yield Variance from the following data:
Standard Output
500 units
Actual Output
450 units
Standard Time
1000 hrs
Standard Rate
Rs.20 per hour

Strategic Cost Management

16 Sep

Strategic Cost Management

1. XYZ is considering a Project with an initial investment of Rs.100,000. Three probable cash flow scenarios with their probabilities of occurrence are as under:

Annual Cash Flow (Rs.) 20,000 30,000 40,000
Probability 0.1 0.7 0.2

Project life is 5 years with expected return of 20%. The expected terminal values associated with each of above probabilities are Rs.0, Rs.20,000 & Rs.30,000. Find the probable NPV.

2. An M&A expert has been hired to explain to the management of a sick company the symptoms that are normally seen before a company qualifies for being referred to as a BFIR candidate. You being a freshly appointed Management Trainee are required to present a small write up, briefly explaining those early symptoms.

3. a) From the following particulars, calculate: Material Cost Variance & Material Price Variance

Quantity of materials purchased 3000 units
Value of materials purchased Rs.9000
Standard quantity of materials required per tonne of output 30 units
Standard rate of material Rs.2.5 per unit
Opening stock of materials nil
Closing stock of materials 500 units
Output during the period 80 tonnes

3. b) Calculate Labour Yield Variance from the following data:

Standard Output 500 units
Actual Output 450 units
Standard Time 1000 hrs
Standard Rate Rs.20 per hour

Strategic Cost Management

27 Jun

1. A closely held successful start-up venture has recently converted itself into a publicly listed company post a successful IPO and handed over the management in the hands of young professional managers. These teams of managers are a bit inexperienced in strategic business decisions. They have heard that Pears and Robinson have in their paper discussed the various dimensions of strategic issues. Discuss how these dimensions of strategic issues will be relevant in current scenario.

2. The Cost Accounting department and the Engineering department of a large EPC company have been at loggerheads off late. Their main contention has been the concept of Total Productive Maintenance (TPM) & Total Quality Management (TQM). The Engineering team feels that they are both the same with old wine in new bottle, whereas the Cost Accounting department opines otherwise. You are a newly appointed intern in the Cost Accounting department having freshly qualified as CMA. You are expected to resolve this conflict by providing your note discussing the similarities & differences between the two.

3. a) An input of 100 kgs. of materials yields to a standard output of 10,000 units. Standard price per kg of material is Rs.20. Actual quantity of material issued & used by production department is 10,000 kgs. Actual price per kg of material is Rs.21. Actual output 900,000 units. Compute Direct Material Cost variance, Material Price variance & Material Usage variance.

3. b) Number of employees is 200. Standard wage rate per employee is Rs.40 per day and standard daily output per employee is 100 units. Total number of days worked is 50 days (Idle time paid for and included above is half day for each employee). Actual wage rate per day is Rs.45. Compute Direct Labour Cost variance, Direct Labour Rate variance & Idle Time variance.