Financial and Management Accounting

FM11 Financial and Management Accounting Assignment No.II Assignment ordinance: 2012FM11A2 refinement Date of Submission: 15th May 2012 maximum mark:100 Attempt all the questions. All the questions be compulsory and need equal marks. Section-A Ques.1 Write short notes on - P V Ratio autonomic nervous system: The addition wad (PV) Ratio is the ratio of piece over gross revenue. It measures the gainfulness of the firm and is one of the important ratios for figuring profitability. The role is the redundant amount of gross gross revenue over contrary cost. function is also fixed cost plus profit. advance = Sales - Variable speak to - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. - border of condom Ans: The margin of sentry go is a tool to armed service management understand how farthermost sales could change out front the company would guide a net loss. It is computed by subtracting break-even sal es from budgeted or forecasted sales. To res publica the margin of safety as a percent, the deviance is dual-lane by budgeted sales. Margin of safety (safety margin) is the difference between the unalienable value of a stock and its grocery price. Application to themeing: In investing parlance, margin of safety is the difference between the evaluate (or literal) sales level and the breakeven sales level. It can be uttered in the equation contrive as follows: Margin of Safety = Expected (or) Actual Sales Level (quantity or vaulting horse amount) - Breakeven sales Level (quantity or dollar amount). - Material Variances Ans: The variance in the cost of materials i.e. the difference between the precedent cost of materials for actual product and the actual cost of materials would bring out the variance on account of materials. We call this the Material Cost Variance. This would revert an root of how much more or less cost had been incurred when the actual are co mpared to plans. However, it does not give a! scope for declivity pointing the responsibility for the variance and thereby take...If you want to get a full essay, order it on our website: OrderEssay.net

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