‘OR EDUCATIONAL USE nentName - Bhavdua) jyori Suryarnan Class - TA Beom - A Rott no = Jy pate) Qubctontrack Cost Pod for the Contract is debited dp Combrack Account - Ps 50,000 Units , Moya loss 1s 6000 Unik ermal Lass 1s 4,000 Vail. inpub Js 60,000 Unik. fale whether the followiny Staltment art Trur or False Material Usage Variance is Calcwlated an the bovis of ; 1 he Standard price an Poco Aios - false Ms Standard Costond ths Laimakd Costart +e Synony me af cach piher,- false Standard Cast denates Cost Which is pre -delrmined 00 she basis of Speci Scahon lold down by the manage - ponent. ~ True. at i idaree. batch level Bchvity.= True. | ABC does nob lead to Cantnol Over Qvevhead Cash, = False ~~ 6) | overheads are allocated oe ths basis of divect Labour —_ Cost only ~ false. | Conti bubon is the Sum Total vf fixed Cast and pooh - “Toe. "FOR EDUCATIONAL ISEMarna - Bharduis} jyott Buryaman Class - TYBcom - A Roi no ~ 14 DATE: 3 The Saling pcr geducfon rewults in reduction of Ply Rabo” ~ Tru Ak_no profit no loss Conbibution is equol +o Aixed Cost. ~ Tru when paw makwol is purchased the Stores Jedger ALC is debited - False. yrrack Caskn, of Work done after the CGrtGicohon by Hie Architeck ig Known as work CriGied - false Normal toss is treated as normal Cost of produchon. - True. FOR EDUCATIONAL USEYaa O12 dara Wak! Qumuamen Nace Bhardusa} yok Suryamon Class - TY Beom- A Reino - 14 pate: 4 @2-A Tn the books OF mls Akshay Mumbai Contract AIC Or. 1 cr. Parhicwlant Amoun) Porbowans Armounr Jo _Direck Labour !9,60,000] By makata! Rahion ($000 To matero! Igsuad 200,000] @4 malemal Sald {g000. Jo plont Installed —_|2,50 000, By work Cork fied GAL 00 [qo Direct Expenses | 50000] Qy work Uacenk fied | [8,066 Jo office overheads | 99,000| By maleol at Sik. 25000. 2 | fo Architect Fees __—10,000/ By malemal loo De Jo Transfer from | | | Nasik Contract | \6,000 Qo Notjone) profit | ProBk _1y6u6% | Reresve _YOGSB_— BHT 993125 9,93,127 Work Gibfied Lr || Cash Recewed = B07 xX Work Cort Red §,00,000 = Gov. x Work Certified Wore Cenhed = $,00.000 X00 go Work CechBed = 620,000 - FOR EDUCATIONAL USE1 Rees “Name- Shordeoa) Siow Surgyoman Clays ~ T+ Btovn & Ret ao ~ 14 DATE: 5 _ Profit @ Joss E e x Notional Proht «Cash received Dork Cork Red = 2 x BU2T x _s00000 62000 Profit = ZAHEYCR. | Des Moaaik Coatract Adc. Cr. | Particulars Ant | Parkewlars Amb “Mo pixeck Labour —_|1,90,000)_Qy malenal Raven 13006 | To material issued 2.2.0900/ renin do amcnbal (6000 | lastallod work [3.00000 To Diseck Bepert 40,000 By sone Daceniied | (2000 To nffia Oerheady (5000 By matey atSitk | S000 To Prebohect Feoy S00 BY PlantobSiLs 3, 80,000 l By Profir & loss Alc LAg,000 840,000 | 270,000 Coleukaton of work Corie d sorte Copkfed = 240,000 100 go = 300,000 TOR EDUCATIONAL OSEset ett Qaninmnae Nanas Bhordws} Yok Surmyaman Class = Tap.Boom eA Rol no~ tH, DATE: @ = — 028 Todthe books of Ahyjo Put: lid . iL Conkeact Ate - Dr Cr. | Part cedars Amt Porhculars Arcoh _ To _Dineck Material LISGa0,_ By work Cov Hed To tndinect Malema _| |, 14,500 Be wore Unewth Pred |_ To Dinect wages 422,000 By materiel of Sie To Supervision Charyes 1,40,00 Ry Plant at St | a To Arrbite ct Fees 1,Q1,206 7 | To_Ceastruche 0 oHs U.S, g00 To Ad ministrahve OHS 15160 To Plant £00,000 | Mo Moen Profit _ Proht \Qos] _ Reserve W689 25740 ! 1829 800 1829 800 rohit = Eshmaed Prot x Wore CemsPiel Contact Pics = 2%IN0 * 12.50,000 I 24,00,000 = \30S). FoR EDUCATIONNLSEeee! Qimtnmnne ___ 24130,000 Mame sl) Qhandway YOR Sumyoman Clay |) TA Bem A Aalto il \y DATE: —— De. memmraaduns Contract Ale. cs ___Paxraslart Frat Portjuslerns Aa To Direct Malernos | 3,3S,600] Ry plantar srk 10,080 —___|_To Tadinec msleniol | 2.UnS00| @y contracts Alc | 27,02,00° To Dinect Wag 37,000, To Supervision Chax4)_1,98,006, | To Architect Fees 2.96,000 To Conti buson oH's | S450 |_To Adeinistrahve OHS | 39160 | To Plant 600,000 | To _ pre RE | 29140 { 1 1 |.23,30,000Momi- Bhordys} yok Seegeran Class ~ TYBeem = A ' fot no 14 DATE: & Q3-8 Tosh books of AbWijset Ltd | Qo. Gtne Ledge Contr] “Ale, ______—_ a | Parti cstars Att Parbitsslaas ee TM Balonu bid 25,000 | @y_usarte fo_progo-ti) SUSE, O00- | To Cost Ledyan Conte! | 11.25,000| py Factory oft Controlstls | 60,000 - Ate | By office OfH Control Ale | [$2000 | Ag Bolona eld 28,008 | (500,000 | 15,99 960 Dn Llork in = progress Contr! Alc tan Pan culars fene Parhiulan “Amr | To. Bolance bid 13,00,000 | Qy Finish Creed Contrel Ae _(2,00,000. To Store Ledger Control AIC 450,000) fry Balance eld S¢Aso To wags Coarwl Ale 3.49,000 t To Factory O[H Contre! Ac 131,250 12,56, 250 Or. Piaished Gto0ds Contr! Ae. Con Parkases Amr Partodan | fea Ae palanu ld SF 000 _Qy Cort OF Salen _1S.09060 To wore tn Gregr-e) 72100,000 By Bolona ld 1.82,000 Contre | fle No oller oft Lontret-tl $3,000 | [\4.,82,000 13,82,000 FOR EDUCATIONAL USEMom - Bhard we} jyek Sueyomon Cla) > TY Beem = A et Ao ~ TY. DATE: 9 Dr. Cost Led gen Contre! Alc. Co |__Paricutars sft Pork sla Ame To Sales Alc- 19,00,000 | By Balang bld [2,00,000_- To Botany od 13,13,29D | By store ledger Contr! A 1),25,000_— By wags Coatrol-Ale _| 4,50 900 _- By office OH Conte! Ale] YS,0O? - By Selling and D. old + | Coatro! Ale uso + | By Coshag PRA | 1,4G,2sD - 13113,250 | (3113, 240 | Dr. factory Ovenhead Cootml=Alc. tm |b Pant outa | ron Partotlors [eBep To stort Jedgen | £0,000 BY WIP Contrlede | [21,250 Contr | Ac By Coshey PLLA | 3gTo To wage Contr} He 9,000 Is 5 136,000 _ L38,000 — Br. Office Ouenhwad Contes! Alc. GL Pariuda cok Portada: Amr — To_ Show Led yen Coat! {5000 By Fiaished Creoda_ S}000 _ — eelic Cooter] Ne — Jo Cost Conte Ale. | HS000 My bosbos FLAC 3000 — - — | LP | Lo KO,000 C0006 — TOR EOCENE JAa? Qaminmnias Namt- Brande yor Surgeon | Class - TY: Beem = A Le Rel no - (4. pate: |0. [De Solin and Distr bulion O/H ‘Contr! ic Cn | Porrhieutans | Amb Part lars Amb r | ToCost Ledqar@oatuihe| 21500 | By Cost of Sabena Yssoo “To comiag P2LAIe | 1S000 . 46500 4esoo Or. 1 t 2 loss Ate. Gr. | Particulars Aik Particulars Ame Th Cosrof Sales -Ale | 1S4¢S00 | By Salzer [900,000 Tofactor oH Ale | 3.750 By Galiiog & Diss. | 1500 To office oft Contr) aid 3000 Beton We | To. y | 248,240 | Nekpyro Be | 1G,01,500 | 19,01, 500 Dr. Wages Contr] Ale Co, Part cular fm Parbenlars Pyrat | To Cety Jed gx Contre! 150,000 By we Contr!Afe — 3AD aor dl i By Factory O/H Me _ FS,000 HiS0,000 450, 900 cas Cost of Sas Me. _ Cr Pant aon Amt Parrheuserp == —/ToSatticg& D-Cootrraic 46,50 By Costins PA LALe | 16146 100 1$,00,000 Vo Factory oes Lenicel 100, [1546 S00 | |15,Y6, 500| ame = Blhased Woy yeh Suayaman in - Name- Bhordwaj Yoh Suryemon | Choss ~ TY. Beem A ® \| Rell woe IY, Panktulass | unit | Rata _| Tota Jo Rau maleriot |Sc0 | 5 [2000 | By Mormel Loss | 25 3 TO Od mateo! 1250 | @y proces ‘B'ale| UES 11-95 15,675 ® pred Lobour tooo | Te Preduchon O/H 1000 | | : | 500 |_| S450 500 [sto - CP.0 = SIO-IT = SOT = 19S | S00=y Ov. Procesy'®! file. Cx Partrealacs Unit | Rate |Totd | Partoslars Doit | Rats | Total To proces 'A' Ale | UT |1-95 SCH py ooemol loss | UG [e [avo fo Dixed) atria! | | 1000 gy Abnownal ion | [204 | 1S To Oirtet_Lesour | 1500 ay Proce Ale Yao [921 | 1 2%0 To Prodiichon O/H }500 | Us 364 ua 19640 CPU + WW-aYyo = War = 22 Arr n-yh 429 Process 'B' Proces'c! Qaput Yar ye |) \oss s Wormel loss NS We Expected Outpuh 42t 348 Actus! Oulpuk po, | str @brornal Cada 1 3 Cran ~ as FOR EDUCATIONAL USE| dame « Bhardwaj jyet! Suayeman Nomi Bhatdura) iyo Suagoman Clas - TY Beem - # & Rela - 14, : Ge. ae Procen'C' Ale Pann Swat [state | Totes Partindon | Unit | Rola tek! pan Wad 21 19280 | Py rlormal loss | Y2 —S___210 nee me 4 T1500 | Ae Abreemal Low | 3 13854 116 Ao p-hbour 2.000 | ay Raished | To_Prefucton | 9.000 | Shade Otc SF _ag.sy 144SY Ovtiprecd | [ | | | I i | yo T9809, | Ye 4780 CP = 1490-20 = IUSTo = 90.5y. yap - 42 318 Be. _-Mocorens!_Los Gr, | Voit Vale | Tota Pork |wlans Voit Rats Totel_— Parreticabars. To procs: Ale F224} MIS. By Acriol Soler tle! BS 35. Ro proey'e' Ale 3 BBY NG By Achiolsalenle 9 | 5 15 Bx Coshag PA tite 221 10 a4 jo a4 Gamay FOR EDUCATIONAL USE| Mame - Bhased wo \yeh Suayaman amu - Brande} yok! Suryaman Class - FyBeem ~A Rata -t4. Q-4-Al Y Sells ha = 20 Salay 20 Nawable Coot = 443 +3 210 ONerable _1o Hixed cose = 50,000 Contieution Le Ply Roo = Contbuon x (yo ales = \0 foo + SO/. do BEP = fixed Cost = 50,000 = ¥ 1,00,000 PN Rabo Soy. = 5,000 > 5000 Unik. BEP CUnit) = Fixed Cost 10 Co nt perc Unit QEP in Voits = $000 voiks 2) B&p = 4,000 Volts elting = wt, Naniable = 10 Conbhdrbuboo = UX -10 At) x 4000 + 50,000 2 56 000 mM -l 4,000 oA slo = J2-5 mM 2 te-5tl0 Ws 22-5 = 226 | Sut £4 ps ao FOR EDUCATIONAL USE Guaeaa}Mame = Rhasd wal yeh Suryamay Name - BYordwaj “Nott Same aman, Class - TY. Boom A Ray no ~ 4. Q) Prt = [0,000 Contibubon = Profs t Fred Cott = 10,900 + 50,000 = Cooon Unit Sold = Cont) beboo Cont Pers ort Go00D ” lo = 600° Voit Unit Sold = 6000 Unit e FOR EDUCATIONAL USEMame - Bhardwaj yet Suayaman amv ~ Bhordvss) yO Suny amen Class - Ty Beem -A Rati go - 14, ® Qu 6-2 A 8 SQ 10000 15000 SP 15 ao Ag Qooo 2000 AP 1.6 2.2 Material Cost Variance = (Sa x SP) - CAM AP) Product A = Cfocoo0x lS) -( 9000 x 16) = 46000 —\2800 = 2,200 Cf) Produce B= (15000x2) - (12000 x22) 30000 - 2840d vy 3,600 CF) Matera Pri. Variance = 6P -AP) x AQ Product A = C16 -1:6) x 000 > O1x 3000 = Boo Ca) Product 6 = Co 72-2) Xl2qQ00 = 62 * |2000 > 2400 CA) Genders FOR EDUCATIONAL USEMemes Ayott Suagarcen Bane dsj Clary - BY Beem ~ A a We — ©. SRE asa Besa s Qo x hS_ > Sooo Cf) Product 8 > ({S000 - 12000) x2 = Soo x2 > Sooo) _ Nearfcahoo caw = mov t Mev pre duck A= Moeo(f) = Basel Ch) * BoocA) Product B = Qco0 Ch) = 600066) + 200A) VOR EDUCATIONAL USEName - Buareltva} ek Setagjarnan Us - TH Beem - fh Rot av ~ IN. —QU8-2 Dr Process 'P' Ale. | Partculass Tuntk Rate Tots | Aartindans [Voir Pal | tobal To maleriel OSB 41000 | gy Normal Los 2S 2 5° 10 Direck mal \ Gy proce) = Teint wage Uae m5 | 20 | 450b To Preduchon op | | . _- 450 4550] 250 4550 or. Procen'@ Ale " co Pork urlans Unik Rat Tord — Parkolawn Unik Pate ey To process PA 925 30 4s00 Ry Norma tes 4S 180 No Disect mabnal 1900 @y Koished To Dat t wayn (GY Shy Ale 130 SO 4¥ag0 Tp Ereducton o/y 1940 | | iaetenenaee | 225 S190 225 310 “POR EDUCATIONAL USTPlame - Bhavd wo} yeh Suryaman : Answer the following queshons . —_ fi. TE 4 e Cone ol arqek Hing in detail 9 = An: u Meaning - H Giloba! Competition increased Customer expectations | and Competitive Pricing in many Fadustries Have foxced | the organisations to look fox ways to reduce Cost | year and at the Same time producing Products oF |_ good quality . Henry Ford is describing this technique as “Target Costing”. Elements of Target Costing The Various element of Target Costing are as follows ¢ Customer srequirements | The first clement of Target Costing is Understanding — Cuvtomer requirement Tt includes performance acd Cost Characteristics of Competitos's product Then a | So as4o beat the Competition . design Can_be Created to meet the CLutomer requirements —— Gratheving Market Tnformaton Taformation Has to be Collected about price, quality + delivery Service , Technology and product pesformanc e. Cost Structure Finalys' 5 The Manufacturer Should develop eshmates of Competitor's Cost Structure by finalysis of Internal Cost _of existing products .Name - Bherdassy jyok Sngjarnan Class - Th Beero- A = a | | Barne = tu, [=T 77 /1®_. ; = Rest _prachces Model A Tk Considers the best design Characteristics best - Processes and best economics as factors . - ‘Toternal Cost models 7 Tr rrelates to Cost drives to Specific elements io the | Cost Stsuctuve of a product. _ Product Design - Te Considers the impact of Various Cost drivers during a product design . J Supplier Tavolvement 7 Torget Costing provides Information to +ne Supplier — with a beter Understanding of Customer requinements. — Anis also gives them insight into the Type of mateo .— aad design required . — \lalue eagineeving — Tntemas Cost model gives Toformation te Value — engineering Team obout the Current producton oF Cost - — Continuous Improvement an During Ol! Stages of The product ik Cycle, tk — fosters Continuous improvement OF Cort driven. Fae Tmprovement Team Can use the jaformakon -to = attack ‘oot Causes of Cost. Te ehminaks Acne — shat Couse waste . —Nome- Bhardwaj jyek Suryaman Cla - TY Brome A Rettav ~14 OD Explain the Concept of Normel Loss Monormal Lots end Abnormal Chodo ta Process Loss 9 | Process Coshing is used To aacerta:n the Cosr OT product ob a Shage of manufachet pihere proline! js posed nougio Vaxd ous aperrakoOs to Obiaio a fined produck— Hormel Ja ss Crasan ing) Th is a part ofthe process loss: which ts Caused Vode Clecunstancss Dis 0 enlreole toss. Te Cannot be Avoided - Pp does occus Tsp) bh dPthe me adUoe Aaken by ths monasement Normal Loss I Colcuosed ab a Cetioda penceniage of dhs Input to Unit “Tarrodiced ta dhe ayer be proces). Codeubaiony to OF rit = ‘Input x txpeded sof Monmod Of Hormel (oss Qaits Loss Qoalsable Value of = Units of Nonnal Scope Moltsof Necma Scrap Qorap SOULE poe bo} b Prooorme! Loss Cenaaning) Th ig ct parck of He process los)» whids fs Qwed dur do fbnowmad lassen -coreumstances to the fey ctory for bars labour Shile jworbles do able » (ho-slow 1 Break -down oF machingny +» Power —Precideads edt FOR EDUCATIONAL USE| Mome- Bhardwey \yok Suryaman Clats~ TY: Biom ~ Relino -1y, @) Colewlakons Abnormal Lass _}s Avoidable. TW Gan be Controlled 4 the Managzecnact ly taltigs prop ayt_precatuhpn erg. Mroduets + Readg :— Tapu xm Les ~ Normal Loss xx Ex Pected Nudpur on Listy ~ Peduad Dutpuk > GD Albnoxm ol Less —frbnommeal Grain Comeoning) Prbnornal Grain gets es whon-f-chiel waolaye Clots js [299 than & Normad Wastage ov when ths Achiod Oitpur 16 Mort Han He Nermal Durput Abnormal aan arises durto-pise both, efRdency OF Hh du chon A 8 poackn ent : 0 Colcakon . Alonorma) Crain is dattemhed by du @/bwia, Bemula: g SAretiad Yuspub x Less + Eopeckd o4tput 500 Less « Noweeal Los xx Beachrmorteing Process 1) Planning : Tdeatify yanchmatik ouspuls. idenKOy beat Cocrpolirors § Determina Data Colle chon muthod . Vi) Ponalyss Determine Comper tye gop rae oF —futucc Derg ennaics hay. | iii) Tajegration + Establish Funckonal goals Smemuokahon | af dota Acceptanu of AMalysis iv) Peton : Implement of Ipe cific Achon . Racahbrote beachyawiks » Monitor yeu , Report pfogress | Stages of Life Cycle Cashag Be Each product Hoo o |i hy (2. Oy Vases from | roots to Several Hears. ‘preduct 1c Cycle 18 a ateaty of Expandituxt «Sale dewols revere and per Ovree ‘Hrs period From niw Iden qenmaborn TO hy deletion of Product. Stegev of UR Cyck Cosy + eas FOR EDUCATIONAL USE| Moms - Bhardwey dyok Suryamon Clos - T4-Beem -A Yoll no po @) 1) Tntmaduchon + Ak this Stage the praduce js placed lo athe marked _an Congu. dad _onioi curr 2) Cxrowth + Pi this Stage +e product panabrobts oto the manket «ths Sales lactare because of the Cumulabure efforts of ths Sale premoton [Benobunrry = At this S4age the preduct reaches Such a Stage Ak whith Salar Yeizes to vise exponenpally . Tre Sales afer tis Stage declines 4) Soturedoo Stage: At+his SHage the Sates decline absolutely Oa He pp duet is SwhsHtuted by Lester produch fa thy moreeh . [ 5) Decline Stage : Abts Stage the Sales decline absaletdyy ay the product is Substituted by bsHes products ia the morket - The Company may tacur losses. oS 3) IL ost Ledger Cootrel Ale. is Ale 1s also known os Grnerel Lodger Adjvahoer Alc oc Arandal Ledger Adjwohment plc. Tis malnteined Jo make fre Cash edge SIP boloyday All the Hous af Tncome and Expeaditune Wh dh Have bean exfraded “fae Qaancial booles a% pasted to this de. Ds Alc aep eMoN Ale's Wow ta the Raoncad booles - pil rhs ends 24 Should be posted jraovgl, ans Account - FOR EDUCATIONAL USE,Nome - Bhayerwes ex Suayacron Class Te Boom - A, Pov Ao - My, 8 Cos Ledger Coatso) Ae . Par aul aa zz Paws wd ans Amr Vo Costa, paeme | Kx By Bat bid Ax Csoles) | By stores led Conti Ale xi Ao Bot ld xe | C Parchavs) | Au cinges Control Ale | AK | | wages Tacuered’) | By Produchoo BJH xx . “Contra “Ale | = | By Admin O/H'S | Genter Ae | By SLO of Contre) “Ae | OM [Ry Cosbog PREATC |X rohit | xx [xx 4) || ey Lobo eos || This is popularly baown ao; PV Robo. Tr Px presses Tie ylabonthip dohsttn Cont bebion ond Sales . Ab Is “ ‘Exprevcod in Peraotage - fy Robe is givio fy the ama 5 Computabon "ply Labo = Conbibubo loo Sates aohine C= Conbabubon (being div difference pehwern Sates ard Naniable Cost } Sates Vz Nanioble Cost Gandara FOR EDUCATIONAL USE.Meme. Biraxdue) Yoh Suryamnan Ctals ~ TY. Beom’ = A | Rott no ~ 94. & Fy Rabo Can be dalerrnined by Exprenicg Change lo profik or {ro} loss ta qadation to. Change in Sales. Py Lako Indicabs the ve labye profi tahiti ry of Aiflinant preduch , processes And departments» |£ Tnfeemokon about wo periods Is ghen P/y Rabo ts Cal cutoled ov Foilous OChy Robo = Chan3o 19 Pep hr x lwo. Change in Soles oO 5) Nandan As is the most ierportant managintad repre ok Qtondard tostgg - Mamoru. may be deBned ay thre difference be bw een the Goadard Wir and Pedual Cosy Namsance Pralucis isthe proces Oktyrdasias Varancy toy. be dividigg thers |o Such a way Prod Mange - Coeat Can locakt yesponsibilits fora parvkalay enformank «The Varian may be Pavouroble ar Uofaveursbe - Tha Varian is Said tote Cyvourodle when AChial Coot is 12 than He Shandard Cosh - Tr Sarg Ao be Vofavourchlic Ohan Achual Cask 1S Mow aan the Slandard ost. Cavoureb le Va anu ts clenole by Ff land Unfavourebi vfarine ts denoted bys A, The management Can Achieve Cost Contre] AMnowgh Variane analysis: Variana Gnays! s 69 Y= porns Fe seeaponui bili i eo of TAdividuels and departments ‘hor Eremple. dhe purchase Manager 9?) bb Pepouible for Vafovourable Makniol pric Nomiance + He brpduckoo Wana gen For Vale vaussbl. Matenas usage Vamance ett: FOR EDUCATIONAL USE