MGT402(Cost & Management Accounting)-Important Practice Questions-Lecture 28-29-Part 2-Short Lecture

MGT402 (Cost and Management Accounting) - 100% Exam/Paper Preparation - Important Practice Questions - Short Lectures - By Rare Academy of Science Email id: [email protected] Rare Academy of Science PROBLEM QUESTIONS Q. 2: A company that manufactures one product has calculated its cost on a quarterly production budget of 10.000 units. The selling price was Rs 5 per unit. Sales in the four successive quarters of the last year were as follows: Quarter 1 10,000 units Quarter 2 9,000 units Quarter 3 7,000 units Quarter 4 5,500 units The level of stock at the beginning of the year was 1,000 units and the company maintained its stock of finished products at the same level at the end of each of the four quarters. Based on its quarterly production budget, the cost per unit was as follows: Cost per unit Rs. Prime cost 3.50 Production overhead 0.75 Selling and administration overhead 0.30 Total 4.55 Fixed production overhead, which has been taken into account in calculating the above figures, was Rs 5,000 per quarter. Selling and administration overhead was treated as fixed, and was charged against sales in the period in which it was incurred. Required: You are required to present a tabular statement to bring out the effect on net profit of the declining volume of sales over the four quarters given, assuming in respect of fixed production overhead that the company: (a) Absorbs it at the budgeted rate per unit (b) Does not absorb it into the product cost, but charges it against sales in each quarter (i.e. the company uses marginal costing). #learn #shortlecture #mgt402 #mgt402practicequestions #cost&managementaccounting #accounting #cost #management #mgt402paperpreparation #rareacademyofscience #Rare #Academy of #Science #Hina #Mehjabeen #important #series #service #fifo #lifo #weightedaveragemethod #exam #paper #preparation #education #trending #trend #trendingvideo #trendingnow #sale #costofgoodssold #gross #profit #percentage #percent #sta301 #sta301quiz3solutionfall2025 #fall2025 #sta301quiz3 #quiz #statisticsandprobability #statistics #cs302quiz1solution#fall #2024 #cs304 #cs304assignment1solutionfall2024 #fall #cs304assignment1solution #objectorientedprogramming #edu401 #edu401quiz3solutionspring2024 #contemporary #issues #education #trends #sta301 #sta301quiz1solutionspring2024 #statistics #probability #eco402 #eco402quiz1solutionspring2024 #microeconomics #ajax #introduction #synchronous #asynchronous #oop #php #objectorientedprogramming #class #object #constructor #variables #datatype #output #déclaration #multiple #values #forms #bootstrap #array #method #function #arrowfunction #variables #datatype #identifiers #rules #examples #javascript #array #object #link #styling #style #property #table #comment #syntax #example #webprogramming #introductiontohtml #html #tags #structure #webdevelopment #programming #website #development #html #css #langauge #assignments #lecture #mth302 #solution #timeseries #analysis #multan #vu #virtualuniversity #average #business #mathematics #quiz #module #time #statistics #vuassignment #lectures #maths #trending #trend #university #vulectures #gdb #rare #academy #science #shorts #video#principlesofmanagement #principles #management #marketing #pakistan #delegation #comment #organization #strategy #method #latestnews #latest #update #market #2023 #spring #mgt211 #business #introduction #products #customer #clientes #distribution #channel #approach #pricing #strategy #productlifecycle #expansion #job #design #theory #service #items #commodity #goods #design #motivation#education #curriculum #development #goals #source #unity #teaching #students #college #school #interview #samping #evidence #experience #learning #online #shopping #course #planning #evaluation#generalknowledge #method #concept #discover #children #knowledge #professional #practice #experiment #critical #thinking #young #weight #question #interview#criticalthinking #practice #reflective #tools #observation #solution #assessment #skills #knowledge #portfolio #experience #academic #design #documentation #visual #report #test #task #reasearch #specifications #general #result #letter #brand #style #business #approach #products #customer #architecture #humanresourcemanagement #hrmanagement #latest #law #views #traditional #power #police #manger #job #rules #competition #rewards #boss #expert #suspension #lecture #factorial #permutations #combination #time #life #combinations #permutations #probability #practicequestions #practice #question #mathematics #statistics #programming #language #learning #latest #exam #paper #examination #calsses #online #earning #mgt201 #lectures #financialaccounting #commerce #accounting #finance #normaldistribution #distribution #business #frequency#mobileapplicationdevelopment #application #mobileapplication #course #android #studio #androidstudio #hec #highereducation #bzu #bzuuniversity #bzumultan