question 1

Michael & Co. is in the business of providing Car Services like plumbing, sewerage line cleaning etc. There is a proposal before the company to purchase a mechanized sewerage cleaning line for a sum of ` 211 lacs. The life of the machine is 18 years. The present system of the company is to use manual labour for the job. You are provided the following information:

Cost of machine 23.652 lakhs

Depreciation 20.646% p.a. straight line

Operating cost ` 4 lacs per annum Present system

Manual labour 450 persons

Cost of Manual labour 45544 (ten thousand) per person per annum

The company has an after tax cost of funds of 10% per annum. The applicable rate of tax inclusive of surcharge and cess is 35%.

Based on the above you are required to:

(i) State whether it is advisable to purchase the machine.

(ii) Compute the savings/additional cost as applicable, if the machine is purchased.

question 2

An organization is setting up the business spending plan for two possible items. The two items require the utilization of a similar assembling gear, which is just a...

Item An on the grounds that the commitment edge is more per unit than Product B.

Item B since they can deliver a bigger number of units of that item than Product A.

Item An in light of the fact that it will utilize the hardware than Product B.

Item B since they can deliver numerous units and still save hours for Product A.

question3

Accept that an assembling firm keeps up its item cost bookkeeping records utilizing throughput costing. Toward the finish of the monetary year,

Announced overall gain will be not exactly would be accounted for utilizing activitybased costing.

A changing section will be needed to rehash the stock records for outer announcing purposes.

The firm should change its records over to an immediate costing premise.

The subsequent creation volume change ought to be shut to cost of products sold.

question4

When utilizing throughput costing, inventoriable expenses would incorporate as it were

Direct material, direct work, variable assembling overhead, and fixed assembling overhead expenses.

Direct material, direct work, and variable assembling overhead expenses.

Direct material and direct work costs.

Direct material expenses.

question5

Bandito Company sells item XRP for $180 per unit. Overhead is designated dependent on direct work hours. Bandito assesses overhead to be $600,000 per...

$323456

$987654

$1,56700

$1,864355

question6

Successful expense limit the board

Limits the worth conveyed to clients

Expands required future ventures.

Matches the organizations assets with current and future market openings

Is restricted to taking out transient worth.

question7

What is the key issue when a firm is thinking about limit development?

Anticipating long haul interest.

Breaking down the conduct of contenders

Recognizing choices.

Keeping away from industry overcapacity

question8

Limit extension is likewise alluded to as

Market infiltration.

Market advancement

Item advancement.

Expansion.

question9

Cycle esteem investigation is a vital part of action based administration that joins item costing and

Decrease of the quantity of cost pools.

Consistent improvement.

Collection of heterogeneous expense pools.

Overhead rates dependent on wide midpoints.

question10

A deliberate way to deal with arriving at focused expense levels during esteem chain investigation is known as

Worth designing.

Life-cycle costing.

Interaction esteem examination.

Action examination.