ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD (Department of Business Administration

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COST AND MANAGEMENT ACCOUNTING (5538) CHECKLIST SEMESTER: AUTUMN 2010

This packet comprises the following material: 1. Text Book (one) 2. Course Outline 3. Assignment No. 1, 2 4. Assignment Forms ( 2 sets ) In this packet, if you find anything missing out of the above mentioned material, please contact at the address given below: Director, Admission and Mailing, Allama Iqbal Open University, H-8, ISLAMABAD. Phone: 051-9057611-12 Mahmood-ul-Hasan Course Coordinator

PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD OF DEGREE/CERTIFICATE. 1 Q. 2 .21.200.360 per dozen. All materials are added at the beginning of the process. SUBMITTING ASSIGNMENTS BORROWED OR STOLEN FROM OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN “AIOU PLAGIARISM POLICY”. Current costs were Rs. ISLAMABAD (Department of Business Administration) WARNING 1.500 units were put into process. Normal spoilage is expected to be 5% of good output.000. A total of 7. The 3.000 Rate of return (Income) on Sales 10% Gross Profit rate on Net Sale 40% Rate of Marketing expenses to Sales 15% Total Liabilities 2.ALLAMA IQBAL OPEN UNIVERSITY. 3 (a) A club purchases 6. The product is inspected when it is 80% converted.500 for materials. policy manual of the club prescribes to impute 10% interest on average inventory investment.31.52. The cost involved in handling each purchase order is Rs.770 for labor.525 for factory overhead.000 5% Bond payable represents 37.000 dozens of tennis balls next year. Required: prepare a cost of production report for March. 2. discussion turned to the possibility of preparing financial statements from few accounts together with financial ratios.300.000 dozens tennis balls in each order. price quoted by the supplier is Rs. Net Income 1. Required: i. Q. The Assistant Controller provided the following data: Item Rs. Q. and Rs.000 units were transferred to finished goods. IF FOUND AT ANY STAGE. and spoilage is identified only at the point. EOQ ii.000 units still in process at the end of March were estimated to be 90% complete. Rs. Secretary of the club propose to buy 2. Other costs associated with storage amount to Rs.39. 2 Waris Company uses process costing.5% of the total liabilities – Required: An Income Statement based on the above information. 1 In an accounting conference. Semester: Autumn 2010 Marks: 100 Course: Cost and Management Accounting (5538) Level: MBA ASSIGNMENT No.60 per dozen. Show how much the club can save by buying in economic order quantity. During March 10.

The relevant costs are: Ordering Cost = Rs. explaining situations.000 and for 7000 hours is Rs.12. Fixed overhead 3. where earnings are guaranteed at 80% of time based pay ii. Premium bonus system Q.8.5 per hour 3 minutes Re0. 4 The following information is available.(b) Mustafa uses EOQ model to help in the planning and control of its inventory.000. You are required to calculate the following from the data given above: 1. Actual overhead for the month is Rs. Normal volume 4.27 per order Carrying Cost = 15% Required: Determine the EOQ and calculate the total ordering cost and carrying cost at this level. One of the best items jeans is sold to public for Rs. Mustafa expects to buy and sell 1. Spending variance GUIDELINES FOR ASSIGNMENT No.9. Normal working day: Guaranteed rate of pay (on time basis) Standard time allowed to produce 1 unit Piecework price 8 days Rs. Over or under applied FOH 6.  How clearly you think?  How well you can reflect on your knowledge & experience?  How well you can use your knowledge in solving problems. you are indicating your knowledge to the teacher:  Your level of understanding of the subject. Variable rate 2. and communication skills. Capacity variance 7. and how much care and attention you give to what you do? 3 . Q. Budgeted overhead for 3000 hours per month is Rs. Applied FOH 5. management skills. Piece work.2. and describing organizations and management?  How professional you are.000 and actual volume is 5000 hours.00 per hour. 5 The XYZ company factory overhead rate is Rs. 1: You should look upon the assignments as a test of knowledge.600 per piece (at a markup of 400% of cost).1 per standard minutes Premium bonus 75% of time saved in addition to hourly pay Required: For the following levels of out puts produce in a day: ∅ 80 units ∅ 120 units ∅ 210 units Calculate the earnings based on: i.200 pieces of this item during the year 2000.5. When you write an assignment answer.

Introduction to the issue (brief history & significance of issue assigned) 6. Select any organization (preferably manufacturing0 and study its incentive wage plans. address the question directly. 0.Conclusion (one page brief covering important aspects of your report) 10. Discuss with reference to any specific organization. Application of standard costing in a manufacturing concern keeping in view the various variances. The report should follow the following format: 1. Recommendations (specific recommendations relevant to issue assigned) 11. 8. An abstract (one page summary of the paper) 4. For example. SWOT analysis (strengths. Process Costing Application in a manufacturing concern keeping in view the treatment of lost units (Normal or abnormal). and indicate how principles from the course materials apply.Table of contents 5. weaknesses. 3. You must also be able to identify important problems and implications arising from the answer. 9.Title page 2.To answer a question effectively. opportunities & threats) relevant to the issue assigned 9. You are required to select one of the following issues according to the last digit of your roll number. 4. if your roll number is P-3427180 then you will select issue # 0 (the last digit): ISSUES: 1. writing bibliographies. 2 (Total Marks: 100) This assignment is a research-oriented activity. Study an organization and discuss various issues related to Quantitative Tools of Inventory Management. Prepare a report on the uses of break even analysis in a specific manufacturing concerns. References (as per APA format) 12. refer to sources. Application of budgeting techniques in a manufacturing organization. 2. APA format should be followed.Data collection methods 8.Acknowledgements 3. 5. For citing references. Analysis and application of various cost concepts for decision making. ASSIGNMENT No.Practical study of the organization (with respect to the issue) 7. 6. Appointment of Overheads is a common practice in manufacturing concern. Draft a cost accounting information system of any manufacturing organization 7. Annexes (if any) 4 . Select a manufacturing organization and discuss its cost accounting cycle and issues related thereto. bring important related issues into the discussion. You are required to obtain information from a business/commercial organization and prepare a report of about 1000 words on the issue allotted to you to be submitted to your teacher for evaluation. and formatting the assignment.

2:  1. so do that until you are confident enough. Workshop presentation transparencies should only be in typed format. and don't look too much at the transparencies (occasional glances are acceptable to help in recalling the topic to cover). punctuation)  Professionalism (readability and general appearance)  Do more than repeat the text  Express a point of view and defend it.  A 15-minute presentation can be practiced several times in advance. opportunities & threats) relevant to the issue assigned 7) Conclusion (one page brief covering important aspects of your report) 8) Recommendations (specific recommendations relevant to issue assigned) GUIDELINES FOR WORKSHOP PRESENTATION:  Make eye contact and react to the audience. the presentation is the combination of the transparencies and your speech. Don't read from the transparencies or from report. You should use transparencies and any other material for effective presentation.GUIDELINES FOR ASSIGNMENT No.5 line spacing  Use headers and subheads throughout all sections  Organization of ideas  Writing skills (spelling. weaknesses. The transparencies are not the presentation. WEIGHTAGE OF THEORY & PRACTICAL ASPECTS IN ASSIGNMENT # 2 & WORKSHOP PRESENTATIONS: Assignment # 2 & workshop presentations are evaluated on the basis of theory & its applicability. WORKSHOPS: The workshop presentations provide you opportunity to express your communication skills. knowledge & understanding of concepts learned during practical study assigned in assignment # 2. The transparencies should follow the following format: 1) Title page 2) An abstract (one page summary of the paper) 3) Introduction to the issue (brief history & significance of issue assigned) 4) Practical study of the organization (with respect to the issue) 5) Data collection methods 6) SWOT analysis (strengths. Some people also use a mirror when rehearsing as a substitute for an audience. but only a tool. grammar. The weight age of each aspect would be: Theory: Applicability (practical study of the organization): 60% 40% 5 .

5 Cost Volume Profit Relationships 5.2 Variable Costs – Its Implications 5.1 Material Procurement and Use 3.1 Cost Behavior Patterns 5.4.5 Basics of Labor Cost Control 3.6.1 Factory Overhead (Pre-Determined Rate. Job Order Cost Accumulation Procedures 2. The Organizational Chart.COST AND MANAGEMENT ACCOUNTING Course Outline (MBA-5538) Unit-1 The Conceptual Framework 1.3 Fixed Costs and Relevant Range 5.6.4 Departmental Overhead Rates and Variances 4. The Scope of Cost Accounting 1.9 The Margin of Safety Unit-2 Unit-3 Unit-4 Unit-5 6 .2 FOH Variance Analysis 4.8 Incentive Wage Plans Planning and Control of Factory Overhead 4.3 Economic Order Quantity 3. Planning and control 1.2.7 Applications of (cost Volume Profit)CVP Concept 5. The Cost of Production Report 2. The Manufacturing Cost Accounting Cycle 2.7. Cost of Goods Manufactured Statement 2. Applied & Actual) 4. Difficulties Encountered in Process Costing Material and Labor Costing 3.2.2 Material Costing Methods 3.4 Material Controls 3.4. Distinction between Cost & Mgt Accounting with Financial Accounting 1.3 The Concept of Departmentalization 4.4 The Contribution Format 5. Process Costing 2. Cost Accounting Principles and Practices The Cost Accounting Systems 2.3.1.5.5 Overhead Departmentalization in Non-Manufacturing Business Cost Behavior – Analysis and Use 5. The Flow of Costs 1.5.1.8 Break Even Analysis 5.6 Labor Performance Reports 3. The Basics of Cost Accounting Information System 2. The Concept of Cost Management 1.6 Cost Structure 5.7 Recording Labor Costs 3.3. Uses of Cost Accounting Data 1.7.

Calculation and Analysis 7. USA.3. Zero-based Budgeting 6. Make Versus Buy Decision 8. Irvine.5. Standard Cost Defined 7. The Basic Framework of Budgeting 6.6.8. Projected Financial Statements 6.4 Assigning Costs to Activities and Products 9.9. Advantages of Budgets 6. Managerial Accounting (5th Edition) 3 Cost Management Accounting and Control 7 . Fixed Overhead and Absorption Cost of Product 8.1.5.Unit-6 Budgeting 6.3.2.10.2.1.7.5 Comparison of ABC with Traditional Costing Systems Author Matz – Usury (Latest Edition) Ray H.2. The Contribution Approach 8.4. The Master Budget – A Network of Inter-relationship 6. Comparison of Budgets and Standards 7. Cost Concepts for Decision Making 8.4. The Absorption Vs Direct costing 8.1 Limitations of Traditional Costing Systems 9. Responsibility and Control of Variances Costs in Decision Making 8. Sales.3. Islamabad. Setting Standards – Ideal Versus Practical Standards 7.6. Garrison Hansen & Mowen ======= Publisher National Book Foundation.7.8.3 Activity Identification and Classification 9.2 ABC Process 9. Difference between Planning and Control 6. Unit-7 Unit-8 Unit-9 Recommended Books Title 1. Reconciliation of Direct Costing and Absorption Costing 8.1. Principles of Budgeting 6.5. The concept of Flexible Budget – Different Dimensions Control through Standard Costs 7. Definition. Production and Cash Budgets 6. The Opportunity Costs Activity Based Costing (ABC) 9.4. Variances. Identifying Relevant Costs 8. The Budget Committee 6. Cost Accounting – Planning and Control 2.

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