Railway Accounts Department Examinations

Showing posts with label LDCE. Show all posts
Showing posts with label LDCE. Show all posts

Tuesday, April 20, 2021

Fixed Cost and its importance in BEP

 

Fixed Cost & its importance in BEP

 

·         Meaning:  A cost does not change with an increase or decrease in the Goods produced.

 

·         In General, companies can have two types of costs, i.e., Fixed Costs and Variable Costs.

 

·         Also called as Indirect cost or Overhead costs.

 

·         Examples:  Lease Rentals, Salaries, Insurance, Taxes, Interest expense, Depreciation etc.

 

·         All Sunk costs are Fixed Costs.  But, all fixed costs are not sunk costs..

 

·         Sunk cost: Money that has already been spent and which cannot be recovered.  Examples are Machinery Cost, Lease expense, etc.

 

·         A fixed cost per unit is always variable; Whereas Variable cost per unit is always fixed.

 

·         Segregation of Total Costs into fixed Costs and Variable costs helps the Management to decide the scale of Production and Breakeven analysis. 

 

·         Example: A company Produces Pens.  Their fixed costs are Rs. 10000 and Variable costs are Rs. 10 per Pen.  Find the Total cost for 100 Pens and 200 Pens.

100 Units

Costs

No of Pens

Rate per Unit

Total

Fixed

100

100

10000

Variable Costs

100

10

1000

Total costs

100

110

11000

Selling Price

100

120

12000

Profit

100

10

1000

 

200 Units:

Costs

No of Pens

Rate per Unit

 

Fixed

200

50

10000

Variable Costs

200

10

2000

Total

200

60

12000

Selling price

200

120

24000

Profit

200

60

12000

 

·         From the above, the Fixed Cost per Unit is changed from Rs. 100 to Rs.50 when Production was increased from 100 units to 200 Units.  Whereas, Variable cost is remain fixed though production was increased from 100 units to 200 units.

 

So, when change in the Production:

 

·         Fixed cost per unit is variable  (though Total Fixed cost is fixed)

 

·         Variable cost per unit is fixed. (though Total Variable cost is variable)

 

·         The segregation of Total costs into Fixed Costs and Variable costs helps the firms to analyze the breakeven analysis. (Where there is no profit, no loss) and increase their profit capacity.

BEP –Break Even Point = Fixed Costs / Sales Price per Unit – Variable Cost per unit

·         In above example 100 units production level, BEP is 10000/120 – 10 = 91 Units.  

 

·         That means at the point of 91 units, there is no profit or no loss.

 

At 91 units

 

Costs

No of Pens

Rate per Unit

 

Fixed

91

109.90

10000

Variable Costs

91

10

910

Total

91

119.90

10911

Selling price

91

120

10920

Profit

91

0.10

9

 

Profit Rs.9 is almost negligible.  Hence at the production of 91 units, there is no profit, and there is no loss.   So Break Even Point (BEP) is 91 units

###

 

 

 

 

Monday, October 19, 2020

Selections 70% and LDCE 30 % exam reforms in Indian Railways (except Accounts & RPF)

 

Selections 70% and LDCE 30 % exam reforms in Indian Railways (except Accounts & RPF)

 

Link for Railway Board LetterNo.E(GP)2018/2/31 dated 16.10.2020

 

 

Salient Features of the New Examination Pattern

 

 

 

 

Applicable for

 

 

 

 

 

 

 

 

 

 

Personnel

Stores

Engineering

Mechanical

Electrical

S&T

Traffic

 

 

Not Applicable for

 

 

 

 

Accounts

 

RPF

 

Centralised Exam

 

Computer based

 

Objective type Exam

 

 

 

 

 

Qualifying Marks

 

Marks for every Correct Answer

 

Marks deducted for every Wrong Answer

60%

 

1

 

1/3

 

 

 

 

 

Duration of Exam

 

Question paper consists of

 

Question paper – Attempt only

2 Hours

 

125 Questions

 

100 Questions

 

 

 

 

 

Commencing from

 

Exam Centres

 

Medical Examination & Viva voce

01.01.2021

 

Zonal Hqrs and Divisional Hqrs

 

At Zonal level

 

 

 

 

 

Only one Paper carrying 100 Marks for both 70% and 30% exams

(Previously LDCE is having Two Papers each 150 Marks)

 

Model Question papers of 100 questions each Dept will be circulated to the Candidates.  It means Question Bank will not be distributed to the Candidates.

 

 

 

 

 

 

 

 

 

Selections 70% Examination Total 100 Marks

 

 

 

 

 

 

 

Professional Subject

 

Financial Rules & Establishment Rules

 

Official Language (Optional)

70 Marks

 

20 Marks

 

10 Marks

 

 

 

 

 

 

 

 

 

 

 

 

LDCE 30% Examination Total 100 Marks

 

 

 

 

 

 

 

Professional Subject

 

Financial , Establishment Rules & Official Language (Optional)

 

GK (Excl: Current Affairs)

70 Marks

 

20 Marks

 

10 Marks

 

 

 

 

 

 

 

 

 

 

 

 

Question Bank with Key – No of Questions

 

 

 

 

 

 

 

Professional Subject

 

Financial Rules

 

Establishment Rules

5000 Questions

 

500 Questions

 

500 Questions

 

 

 

 

 

Official Language

 

 

 

GK (Excl: Current Affairs)

500 Questions

 

 

 

1000 Questions

 

 

 

 

 

 

 

 

 

 

 

 

Question Bank with Key  Preparation

 

 

 

 

 

 

 

Through CTIs

 

By Retd PHODs/HODs/Professors of Universities on Honorarium basis

 

Syllabus will be distributed chapter wise to Zonal Railways. Contribute at least 200  Questions each for 70% and30%