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Components of CIA

This document outlines the requirements for CIA-III, which involves analyzing a manufacturing company using various cost accounting techniques. Students must 1) Identify cost accounting techniques and justify their applicability to the chosen company. 2) Calculate aspects of CVP analysis like contribution ratio, breakeven point, and margin of safety. 3) Perform activity-based costing by allocating costs to activities and cost drivers. 4) Prepare a breakeven chart using financial statement data. 5) Submit a report with calculations, justifications, and assumptions. The goals are to classify and apply costs, use marginal costing, activity-based costing, and CVP analysis to inform decision-making.

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AKSHAT GUPTA 1923507
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76 views2 pages

Components of CIA

This document outlines the requirements for CIA-III, which involves analyzing a manufacturing company using various cost accounting techniques. Students must 1) Identify cost accounting techniques and justify their applicability to the chosen company. 2) Calculate aspects of CVP analysis like contribution ratio, breakeven point, and margin of safety. 3) Perform activity-based costing by allocating costs to activities and cost drivers. 4) Prepare a breakeven chart using financial statement data. 5) Submit a report with calculations, justifications, and assumptions. The goals are to classify and apply costs, use marginal costing, activity-based costing, and CVP analysis to inform decision-making.

Uploaded by

AKSHAT GUPTA 1923507
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Components of CIA-III                                                                                     20 Marks (10%

Weightage) 
               
CIA III  
From the actual financial data, students are required to calculate  
1. Identify various cost accounting techniques which can be used for taking
decision for the choosen manufacturing unit, with sufficient justification 
Mention: The Meaning of Cost Accounting Techniques, Different Techniques:
in two lines  with exampales of  industries  applicable: 
Name of the Company Choosen: Few lines ;Why you have choosen(max one 
paragraph) 
The Indusry  it belongs : 
Cost  ingredients of  the products  sold(if  possible) Main product 
Applicablity of  cost accounting  technieques  to this company: with
justification 
Methods Vs Techniques: 
 
2. calcuate Various aspects of CVP analysis 
PVRatio:    Contribution/Sales 
BEP=       Fixed Cost/PV Ratio       
Actual Sales --- given in the Income Statement 
MOS= Actual Sales- BEP Sales 
 
 
Variable Cost= from Income Statement: Direct Material , Direct Labour,
( Direct Over heads Directly relating to production) 
 
 
3. Break up the cost on the basis of Activity Based Costing mentod. 
ABC- Departments- Classification of  cost; 
Idendiy the Activitie- Relate  it to Cost Drivers 
Total Cost= Activities allocated the cost to the activities based on the drivers:  
 
 
Identify the functional Areas: Material, Stores, Quality, Personnel, Marketing: 
Activities 
Cost Driver Applicable: 
 
4. Preparation of BEP Chart from the data available from financial statements of
a manufacturing unit. 
5. Preparing a report with proper justifications and assumptions. 
Learning outcomes: 
1. Students will be able to identify cost from financial
statement 
2. Students will be able to classify the cost 
3. Students will be able to apply marginal costing equations,
ABC and CVP techniques  
4. Students will be able to prepare Break even charts through
which how to see BEP for different levels of output  
Duration: 15 Hours ( Two days time will be given) 
Instruction to students: 
1. Type of assignment: Individual 
2. Marks : 20 Marks 
3. Students are required to identify a company and then take
their recent financial statement and do the required calculations as
asked in the question 
 Assumptions if any made should be given clearly 

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