Annamalai University Assignments

Accounting for Managers

Q1. Arun the managing director is surprised that his profit every year is quite different from what he wants or expects to achieve. someone advised him to install a formal system of budgeting. He employs a fresh accountant to do this. For two years, the accountant faithfully makes all budgets based on previous year accounts. The problem remains unsolved. Advise Arun the managing director and the accountant on what steps they should take. Make assumptions about what is lacking.

 

Q2. In a factory, actual fixed cost overheads were different from the standard fixed overheads because the actual output, actual time consumed, actual rate per hour and per unit of output differed. Compute the variances taking assumed figures.

 

Q3. A company has to decide whether to Make or Buy. Through differential cost analysis, how will you ascertain the net difference between the two alternatives so as to assist the management in their decision making? Use hypothetical figures to illustrate.

 

Q4. As a management accountant you were asked to introduce a system of capital expenditure control for your organization. Explain the important feature you want to incorporate in the system you propose to introduce with the suitable example of a project involving capital expenditure.

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