ASSIGNMENT Jan-2019

MS-04 Accounting and Finance for Managers

Note : Attempt all questions and submit this assignment on or before 30th
April, 2019 to the coordinator of your study centre.

1. Why are Accounting Practices Standardised? What progress has been made
regarding Standardization of Accounting Practices in India?

2. What do you understand by the term Working Capital? Why is it required in

a business and how do you determine the requirement of Working Capital in
a Business?

3. You are required to compute all Variances for ABC Ltd. The company is
producing a single product for which the standard cost data per unit of
output is as given below:

Direct Material 20 Kg @ Rs 10 per kg

Direct Labour 12 hours at Rs 5.50 per hour
Variable Overheads 12 hours at Rs 10 per hour
Fixed Overheads Rs. 9,00,000 per month based on a normal
volume of 60,000 direct labour hours
Selling Price Rs 600 per unit

The costs incurred and other relevant information for the month of November 2018 are as under.
Direct Material used 1,00,000 Kg at a cost of Rs. 10,50,000
Direct Wages Paid Rs 3,10,000 for 62,000 hours worked
Overheads Rs. 15,26,000 out of which a sum of Rs. 9,40,000 is fixed.
Actual Output Rs. 4,800 units sold for Rs. 28,32,000.
Assume no stocks of work-in-progress or finished goods at the beginning or at the end of the month.

4. XYZ Ltd. is planning to invest 20,000 crore in a project which is expected to generate Cash Flow, over
the next ten years,as follows.
Project Cash Flow over the years of XYZ Ltd.
Year Cash Flow (in crores) Year Cash Flow (in crores)
0 -20,000 6 4,000
1 1,000 7 5,000
2 1,700 8 5,500
3 2,000 9 5,500
4 2,500 10 5,500
5 3,000 - -
The WACC of the project is 10%. Compute the NPV and IRR of the Project. You are supposed to advise
XYZ Ltd on the basis of your findings whether it should accept or reject the project under consideration.

5. Discuss the purpose of dividend policy. What are the different types of dividend policies? Describe the
factors that affect dividend decisions.

Get Solved Assignment Jan 2019 with pervious solved question paper
“ Why do you want to pay only for assignment answers, when we can provide you assignment answers with
last 5 years university solved question papers in printed book format at your door step.”
www.dotcombooks4u.com
email :- dotcombooks@yahoo.co.in
Call 9825183881