Hello Friends.....!
If anyone among you guys have tried or thinking of trying the numericals of Practice Manual of icai (which is most expected qustion bank for the exams ) Then plz go through this for Mutual Help
Following are my queries on the topic "CVP analysis & Decision making" given under the Practice Manual of C.A final "Advanced Management Accounting" Study Material provided by ICAI...
1.In Ques no.6 the requiremnt of the question is to calculate the Operating profit and relative efects on it, Does considering Fixed Marketting cost for operating Profits justified?
2.In Question no.23 there is a confusion in understanding the Requiremrnt of the Question ,there can be two alternative possible as follows
(i) The Return on Investment of 21 % is to be acheived by Product Z exclusively----If this statement is considered then Why for the purpose of calculating the Contribution per hour the Return i.e 0.21*40 Lacs=840000 has been divided by 420000 hours (which represents total capacity incl. Other products as well)
(ii) The return on Investment of 21% is the total return to be acheived by Product Z ALONG WITH OTHER PRODUCTS------If this statement is considered then Why for the Purpose of calculating return from working capital to be acheived i.e 0.21*4 Lacs has been divided by only product Z units i.e 18000
I am getting confused since in the solution both of the above statements have been used
In waiting of ur Reply
Regards.....
Manish Arya
CAclubindia
