Railway Accounts Department Examinations

Showing posts with label Management Accounting. Show all posts
Showing posts with label Management Accounting. Show all posts

Wednesday, June 8, 2022

Study Material on Expenditure (English & Hindi), Books & Budget (English & Hindi), GRP Part 1 (English & Hindi), GRP Part 2 (English) and Management Accounting (English)

Study Material Index 

By Nageswara Rao M, 9492432160

 

English Medium

Subject

No of pages

No of Topics

No of MCQs

GRP Part One

165

68


GRP Part Two

277

33

289

Books & Budget

126

42


Expenditure

240

80

139

Management Accounting

113

42


Total

921

265

428

 

अध्ययन सामग्री सूचकांक

 

हिंदी माध्यम

विषय

पृष्ठों की संख्या

विषयों की संख्या

एमसीक्यू की संख्या

जीआरपी भाग एक

157

68


जीआरपी भाग दो

कुछ ही देर में

बुक और बजट अध्ययन सामग्री

125

42


व्यय अध्ययन सामग्री - अक्टूबर, 2021 

245

78

139

Total

527

188

139

 Coming soon:

  1. Differences between Questions & Answers

  2. Advanced Bookkeeping

  3. Traffic Accounts 

  4. Workshop Accounts

  5. Stores Accounts

  6. The study material for LDCE of Departments (other than Accounts)

  7. GRP Part Two (Hindi Medium)





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

###

 

 

 

 

Thursday, August 13, 2020

Management Audit

 

Management Audit | Purpose | Scope | Advantages | Disadvantages


Management Audit


 

What is : Assessment of competency and capability of Organization’s Management in carrying out corporate objectives. 

 

Purpose is: The purpose of Management Audit is not to appraise individual Executive performance, but to evaluate the management team as a whole.

 

Why conducts: Check the effectiveness of Management team in respect to  fulfils the interests of shareholders, industrial relations with staff and uphold good reputation standards.

 

Who conducts:  Independent consultant hired by the Company.

 

Scope:  Narrow one

 

When:  Conducted before mergers, restructurings, bankruptcies, succession planning and also to identify the weaknesses in a company management.

 

How long:  Normally a month or two months. 

 

Mandatory:  No

 

 

*****

Monday, July 27, 2020

Functions of Management Accountant



Functions of Management Accountant

Easy to remember   PRE TEA

Planning & Control
Reporting
Evaluation
Tax administration
External effects
Asset Protection

Differences between Financial Accounting and Management Accounting

Financial Accounting vs Management Accounting | Top 9 Differences

Differences between
SN
Item
Financial Accounting
Management Accounting
1
End user
Mostly outsiders (Govt,
Tax bodies, Investors etc)
In house Management
2
Legal obligation
Statutory
Non statutory
3
Coverage
Company as a whole
Segment wise
4
Type of Information
Monetary value
Monetary, Quantity & Quality
5
Format
Standard
Not specified or customised
6
Source
Internal
Internal & External
7
Principles/flexibility
GAAP (Generally Accepted
Accounting Principles)
No specific ones
8
Analysis
Not much
Mostly analytical
9
Ends & Means
Ends in itself
Means to end
10
Nature
Objective / Measurable
Subjective / Interpretations / Personal
opinions
11
Periodicity
At the end of Financial Year
No such period.  But information may
 be required at any time
12
Audit
Subject to Independent Audit
Need not be audited