nND |n 8us|ness Leve| S

Student Name: LALIT HKUMAR POTHURI

EdexceI Reg. No.:CH4794

Centre No.: 93252

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ss|gnment Issue Date

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Notification to Student
Unit specification:
Welcome to the unit '__________________________ ProI
has delivered lecture Ior this unit His / Her oIIice is in StaII room Iirst Iloor oI Roots Business
School
This unit is delivered in the Iorm oI lectures, activities, case studies, discussions, role plays and
presentations on days speciIied in the time table commencing 2011 and
Iinishing at the end oI The unit speciIications can be Iound within Syllabus
pack
Teaching Strategy:
O The scheme oI work outlines the topics you are being taught over the above period
O This module is being delivered through a mix oI practical and theory lectures, seminar
discussions and workshops
O lassroom activities included the Iorm oI case study discussions, quizzes, brainstorming
sessions and group work
O ou are expected to take responsibility Ior your learning through case studies, handouts,
directed reading and work based research
Assessment Criteria:
O The assignment brieIs Ior the assessments are included within this unit pack and include
all the marking criteria that you will be assessed against
O ou will be given written Ieedback which identiIies the strengths and areas where you
could have improved your work to obtain a higher grade
O our tutor will also give you verbal Ieedback, usually within two weeks oI submissions
O The assignment schedule sets out details oI assessment methods used to test your
understanding oI the unit
Tutor Support:
our tutor will support you iI you have any problems with your assignments; the best way oI
contact is via the email system The tutor email address is vijayrithagmailcom
PIagiarism CIause:
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is a serious oIIence and action will be taken as per rules applicable
Learner DecIaration:

I, Student Name: .............., Reg No: ...... hereby conIirm
that this assignment / project is my own work and not copied or plagiarized It has not previously
been submitted as part oI any assessment Ior this qualiIication All the sources Irom which
inIormation has been obtained Ior this assignment / project, have been reIerenced (Harvard
Format)
I Iurther conIirm that I have read and understood the Roots Business School rules and
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Student Signature: Date:
Learn|ng Cutcomes
Learn|ng Cutcomes of th|s
Un|t
ssessment Cr|ter|a
1 ollect and analyse cost information
within a business

11WidentiIy and classiIy diIIerent types oI cost
12Wcalculate costs using appropriate techniques
13 explain the need Ior, and operation oI, diIIerent
costing methods
14Wcollect, analyse and present data using
appropriate techniques
2 2 Propose methods to reduce costs and
enhance value within a business

21Wprepare and analyse routine cost reports
22Wcalculate and evaluate indicators oI productivity,
eIIiciency and eIIectiveness
23Wexplain the principles oI quality and value, and
identiIy potential improvements
3 3 Prepare forecasts and budgets Ior a
business

31Wexplain the purpose and nature oI the budgeting
process
32Wselect appropriate budgeting methods Ior the
organisation and its needs
33Wprepare budgets according to the chosen
budgeting method
34Wprepare a cash budget
4 4 Monitor performance against
budgets within a business

41Wcalculate variances, identiIy possible causes and
recommend corrective action
42Wprepare an operating statement reconciling
budgeted and actual results
43Wreport Iindings to management in accordance
with identiIied responsibility centres




Intended Learn|ng Cutcomes Covered |n the
ss|gnment w|th Grade descr|ptors
Task Question Grade
Descriptors
Indicative Characteristics Learning
Outcome
covered
C1 identiIy and classiIy diIIerent types oI cost (ase
study /Exercise 1)
11
2 "2 calculate costs using appropriate techniques (ase
study /Exercise 1)
12
3 "3 explain the need Ior, and operation oI, diIIerent
costing methods (ase study /Exercise 2)
13
4 "4 collect, analyse and present data using appropriate
techniques (ase study /Exercise 2)
14
5 " prepare and analyse routine cost reports (ase
study /Exercise 3)
21
6 " calculate and evaluate indicators oI productivity,
eIIiciency and eIIectiveness (ase study /Exercise
3)
22
7 " explain the principles oI quality and value, and
identiIy potential improvements (ase study
/Exercise 3)
23








Case study]Lxerc|se no 1
1 Manoor marbles prlvaLe llmlLed ls manufacLurlng Lhe producL M" and Lhe followlng
lnformaLlon ls avallable from Lhe records for Lhe perlod endlng 31122001
SLock on 112001 on 31122001
8aw maLerlals (8S) 40000 44800
llnlshed producLs (unlLs) 2000 4000
Worklnprogress (8S) 9600 32000
As per Lhe records Lhe followlng flgures are avallable for Lhe year 2001
urchase of 8aw maLerlals 240000
lndlrecL maLerlals 12000
Works managers salary 16000
lndlrecL wages 2000
8 u expendlLure 10000
Lmployees SLaLe lnsurance 2000
CLher facLory expenses 22000
ulrecL wages 200000
Carrlage lnward 2880
rlnLlng SLaLlonery 4000
Cfflce salary 24000
CounLlng house salary 4000
Sales 600000
AdverLlslng dlscounL allowed ls 8s 1 per unlL 1oLal unlLs produced durlng Lhe year ls 32000






;uest|on 1 ldenLlfy Lhe cosLs and prepare a proflL sLaLemenL?
Profit Statement of Manoor Marbles as on 32200
9@ICULS ,CUN@%s) @ota| mount %s)
uirect Moterio/s
Cpen|ng aw ,ater|a|s
%+)urchases
%+)Closlng
Carrlage lnwards
uirect moterio/s consumed
ulrecL wages
Prime cost
loctory overheods
lndlrecL wages
CLher offlce expenses
Works manager salary
6ross loctory overheods
%+)Cpenlng work ln progress
%)Closlng work ln progress
loctory costs
Cfflce salary
CounLlng house salary
rlnLlng sLaLlonary
cost of production
5e//inq overheods
%+)openlng sLock of flnlshed goods
%)closlng sLock of flnlshed goods
costs of qoods so/d
%+)AdverLlslng and dlsc allowed

%%@oto/ costs
5o/es
Profit



40000
240000
44000
2880

200000



2000
22000
16000

9600
32000

24000
4000
4000


30600
61200


32000








238880


438880




480880


438480



490480



439880



491880
600000
108120

;uest|on 2 CalculaLe Lhe unlL cosL of producL M" and proflL per unlL?





unlL CosL CosL of producLlon/ noof unlLs
490480/32000
8s133/ per unlL
roflL er unlL 1oLal roflL/noof unlLs Sold
108120/30000
8s36/ per unlL
Case study ]Lxerc|se 2
;uest|on 3 lease explaln ln one paragraph each whaL you undersLand by a) !ob cosLlng b) sLandard
cosLlng c) baLch cosLlng d) ConLracL cosLlng
a) ob Cost|ng
An orderspeclflc cosLlng Lechnlque used ln slLuaLlons where each [ob ls dlfferenL and ls
performed Lo Lhe cusLomers speclflcaLlons !ob cosLlng lnvolves keeplng an accounL of
dlrecL and lndlrecL cosLs
Slnce boLh Lypes of cosLs are usually closely relaLed (a [ob requlrlng hlgh lnpuL of
labor and maLerlal ls llkely Lo consume more power machlne Llme supervlslon Llme
lnspecLlon Llme eLc) lndlrecL cosLs may be applled as an esLlmaLed fracLlon of dlrecL
cosLs !ob cosLlng meLhods are slmllar Lo conLracL cosLlng and baLch cosLlng meLhods
and are used ln consLrucLlon moLlon plcLure and shlpplng lndusLrles ln fabrlcaLlon
repalr and malnLenance works and ln servlces such as audlLlng

b) Standard Cost|ng
An esLlmaLed or predeLermlned cosL of performlng an operaLlon or produclng a good or
servlce under normal condlLlons
SLandard cosLs are used as LargeL cosLs (or basls for comparlson wlLh Lhe acLual
cosLs) and are developed from hlsLorlcal daLa analysls or from Llme and moLlon sLudles
1hey almosL always vary from acLual cosLs because every slLuaLlon has lLs share of
unpredlcLable facLors

c) 8atch Cost|ng
1he ldenLlflcaLlon and asslgnmenL of cosLs relaLed Lo produclng a seL amounL of goods
1hls lncludes all flxed and varlable cosLs for produclng Lhe baLch 1he unlL cosL of a baLch
of goods can be calculaLed by dlvldlng Lhe baLch cosL by Lhe number of unlLs produced

d) Contract Cost|ng
8evlew and analysls of cosL daLa submlLLed by a conLracLor Lo a prlnclpal (cusLomer)
for assessmenL of lLs accuracy and reasonableness ln vlew of Lhe posslble economles
and achlevable level of efflclency






;uest|on 4 lor Lhe followlng conLracL no 222 of navln consLrucLlons prepare Lhe conLracL accounL for
Lhe Lhree years and calculaLe Lhe proflL 1he deLalls avallable are glven below
1he lnformaLlon glven below has been exLracLed from Lhe books of navln ConsLrucLlons relaLlng Lo
conLracL no 222 for 8s 1000000 lease noLe LhaL 80 of Lhe value of Lhe work cerLlfled by Lhe archlLecL
ls belng pald by Lhe conLracLee
lLem 1 year 2 year 3 year
MaLerlals 120000 143000 84000
ulrecL wages 110000 133000 110000
CLher expenses 3000 12600 6300
Work cerLlfled 233000 730000 1000000
Work uncerLlfled 3000 8000
lanL lssued 14000
MaLerlal on slLe 2000 7000
Wages accrued (31/12) 11200 7000 3000

Contract No 222 ]C for the 1
st
year
9art|cu|ars mount 9art|cu|ars mount
1o dlrecL maLerlal
1o dlrecL wages
1o oLher expense
1o planL lssued
1o wages

1o proflL
120000
110000
3000
14000
11200


8y work cerLlfled
8y work uncerLlfled

8y closlng maLerlal


8y noLlonal loss
233000
3000

2000


20200

Contract No 222 ]C for the 2
nd
year
9art|cu|ars mount 9art|cu|ars mount
1o dlrecL maLerlal
1o dlrecL wages
1o oLher expense
1o planL lssued
1o wages
1o noLlonal Loss
1o proflL
143000
133000
12600

7000
20200
423200
8y work cerLlfled
8y work uncerLlfled

8y closlng maLerlal


8y noLlonal loss
730000
8000

7000





Contract No 222 ]C for the 3
rd
year
9art|cu|ars mount 9art|cu|ars mount
1o dlrecL maLerlal
1o dlrecL wages
1o oLher expense
1o planL lssued
1o wages

1o proflL
84000
110000
6300

3000

1163200
8y work cerLlfled
8y work uncerLlfled

8y closlng maLerlal

8y roflL
8y noLlonal loss
1000000




423200


lrom Lhe above ConLracL A/C daLa we can know LhaL Lhe conLracLor geLs a proflL of 8s423200 afLer 3
years of Lhe conLracL


















Case study]Lxerc|se no 3
Ms Colour Chemlcals submlLLed Lhe followlng lnformaLlon for Lhe monLh of CcLober 2010
SLandard maLerlals requlred Lo produce 100 kg of chemlcal u ls as follows
MaLerlal A 30 kg aL sLandard cosL 8s 100 per kg
MaLerlal 8 40 kg aL a sLandard cosL of 8s 30 per kg
MaLerlal C 30 kg aL a sLandard cosL of 8s 60 per kg
uurlng Lhe monLh of CcLober 2010 acLual producLlon of Chemlcal u ls 1000 kgs
AcLual maLerlals consumed
MaLerlal A 330 kgs AcLual purchase prlce of maLerlal A 8s 90 per kg
MaLerlal 8 420 kgs AcLual purchase prlce of MaLerlal 8 8s 60 per kg
MaLerlal C 330 kgs AcLual purchase prlce of maLerlal C 8s 70 per kg

uurlng Lhe monLh Lhe planL dld noL run for 13 hours due Lo power fallure 1he planL normally runs for
23 days ln a monLh for 8 hours per day 1he normal ouL per hour ls 60 kg of Chemlcal u 1he selllng prlce
ls 8s 120 per kg and Lhere ls enough demand CLher varlable cosLs (power 7 per kg waLer eLc 3 per kg)
are normally 8s 10 per kg ower from generaLor wlll cosL double Lhe normal power
;uest|on S Compare Lhe acLual cosLs and flnd Lhe LoLal varlances ln CcLober and also Lhe reasons for
varlance on accounL of maLerlal usage and prlce?
;uest|on 6 lease make an evaluaLlon and glve your recommendaLlon wheLher generaLor power should
be used or noL?
;uest|on 7 Clve your recommendaLlons on how Lo generaLe a varlance reporL every monLh wlLh areas
of conLrol?







Assessment:
Task
Grade
Descriptors
Feedback to Learner
(evidence presented against published criteria)
Achieved
Y/N ?


Y/N
2 Y/N
3 Y/N
4 Y/N
5 Y/N
6 Y/N
7 Y/N

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