Advanced Management Accounting Paper

paper was quite long

The answer given by raam is wrong for 4 a

It says contribution is 3/4 of variable cost 

so if contribution is 150 then variable cost is 200 and this 200 is same for both monopoly and perfectly competitive

Originally posted by : ravi kiran
	take chill pill dude...sum guys write for 70 marks n get 55 or sumthing..sum write for 100 n fail...COMPLETION IS SUBJECTIVE...WAT MATTERS IS U PASSED OR NOT..HOPE DISCUSSION ENDS HERE..GUD LUK TO ALL...

In my attempt in nov 2008 i attempted 65 and secured 59....my bad luck..

Originally posted by : Aditya
	The answer given by raam is wrong for 4 a It says contribution is 3/4 of variable cost  so if contribution is 150 then variable cost is 200 and this 200 is same for both monopoly and perfectly competitive

agree to  u  my  answer  might be wrong  .........but  its  cant  be  same  in both  cases  in that  case  even  as  u said   , conribution  differ  for  both  monopoly  its   150  per unit  and  in   perfect  its  30   if   u  take  varible  cost  as  200  then  in monopy  its  going to  be  350  and  in  perfect  market  its  should  be  rs.230 

lets  end  the topic  ....just  postpond  it  till  16  then we have 

lol.........:)

Hi Can anyone tell me , whether Benchmarking was in our syllabus? i have taken up the new study material and its not there...the question was taken from the Practice Manual which are the previous year questions, I suppose...

The Paper was quite a tricky one...Assignment and transportation question almost took large chunk of time...The Theory was wayward where we are asked to write disadvantages of cost plus pricing and differentiation between PERT n CPm which was there last time as well...

The shocking part was the Standard costing...You expect a sum of atleast 10 to 16 marks from this chapter and last two attempts the institute has almost played the game with the students by giving the question on just material variance, sales variance and fixed oh variance....and it lmost took 2 days to revise this Chapter....

The good part was ABC, Operating Costing and PERT/CPM...

And i agree with all thos who says that paper cant be completed in 3 hours...The tricky part almost take your 15-20 min nd ou get stumped....

plz give me the answer sheet of LAW AND COSTING, MANAGMENT PAPER

i am not able to bear this tension

you are write we should concentrate on getting marks not on completeing paper. BUT this time paper was tricky not lengthy. Students who attempted question 2, 5 and 7 might found paper lenghty becuase these involve calculations. 

In general , theory paper commands 100% attempt to score atleast passing marks. However, one should not write irrelevant things  which could be negative impact on examiner. I often avoid writing irrelevants I write what i think correct.

first principle to score atleast 40 marks is that always attempt question no 1 (compulsory part) and another question contains sub-choices (usually 4*4=16 ) which is must .Strategically, you may lose few marks if any part is wrong but it did wrong a long question carrying 11 or 12 marks will definately kills you. However, such question always take less time than one long question.

Easy paper. First time in my life I completed my costing paper due to 15 minutes extra time. Good decision by ICAI...

Q1 b) - Cost of Inspection under Option I = (10 + 4 + 32) = 46,000

             Cost of Inspection under Option II = (8 + 8)            = 16,000

So Option II is better as it results into saving of Rs 30,000/-

Q1 d) Assignment F1~D1 = 300 / F1~D2 = 100 / F1~D3 = 100 / F2~D2 = 300 / F3~D3 = 200

           Minimum Transportation Cost = 4500/- (Since ij value is 0 at one place, 1 anotheroptimum solution is possible which will be acheived by drawing loop.

The another optimum solution is

F1~D1 = 100 / F1~D2 = 100 / F1~D3 = 300 / F2~D2 = 300 / F3~D1 = 200

Even in this assignment Minimum cost of transporation = 4500/- only

Thus 2 optimum solutions

Q2 a) Unit OH cost for R using ABC = 16.45 per unit

Q3 a)  i) MatrixAfter Step 2 (Backward calculation by adding 3)

ii) Task II seems to be most difficult for all three operators I, II & V

iii) Operator 4 seems to be the most efficient as it is 0 for all task. That means it took minimum time for his which was deducted which doing Row minimum Step

iv) I am not sure

v) No management can go ahead need to start afresh as assignment wont be proper

Q3 c) Opportunity Cost X = 8000 / Y = 6000 / Z = 4500

Q5 a) Maximum Price Y can trasfer..there are two views

           View 1 = 640 - 64 = 576 ( assuming 64 is the cost of 2 hours...[Variable cost of Rs 40 per hour is for the production of Wheels...It cant be asumed that same cost will be incurred for modification of Gears)

          View 2 = 640 - 64 - 80 = 496 (assuming 2 hrs as opportunity cost .. which could have been utilized for manufacturing of Wheels)

         Anyway, in both the views the the remaining answer to question will not change.

ii) Minimum Transfer price X will demand if transfers 5000 qty to Y....

Situation a = 620.80 per gear

Situation b = 496 per gear

Situation c = 616 gear

iii) So in situation b Management can step in and compel X to transfer 5000 gears to Y

I think lot of people will disagree with answer iii.

But guys in situation a & situation b ... Y division can import gears @ 640. So company will do better in importing & management cant compel ... as overall company's profit will reduce.

so management can compel only in situation 'b'

Q6 c) Maruti Agency will do better in opting for advance version

Incremental Benefit = 15,00,000 (5000 x 30 x 10 months)

Incremental Cost = 10,60,576 (3,55,000 + 1,70,400 + 5,35,176 material wastage)

Net Benefit = 4,39,424

Q7 a) Prediction of 5 days of Demand

Day1 = 5 / Day2 = 6 / Day3 = 7 / Day4 = 6 / Day5 = 8

So Average no of cars rented per day = 6.40 car

Rental lost over 5 days = 3 rentals (1 on 3rd day & 2 on 5th day)