Financial and Management Accounting

FM11 Financial and Management Accounting Assignment No.II Assignment ordinance: 2012FM11A2 refinement Date of Submission: 15th May 2012 utmost mark:100 Attempt all the questions. All the questions argon compulsory and need equal marks. Section-A Ques.1 Write short notes on - P V Ratio autonomic nervous system: The addition sight (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 special(a) amount of gross gross revenue over at odds(predicate) cost. theatrical role is also fixed cost plus profit. lolly = Sales - Variable represent - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. - borderline of guard duty Ans: The margin of sentry go is a tool to armed service management understand how off the beaten track(predicate) sales could change out front the company would do a net loss. It is computed by subtracting break-even sales from budgeted or forecasted sales. To nation the margin of safety as a percent, the deviance is split up by budgeted sales. Margin of safety (safety margin) is the difference between the inbuilt 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 expressed in the equation contrive as follows: Margin of Safety = Expected (or) Actual Sales Level (quantity or sawbuck amount) - Breakeven sales Level (quantity or dollar amount). - Material Variances Ans: The variance in the cost of materials i.e. the difference betwe! en the mensuration cost of materials for actual product and the actual cost of materials would fade the variance on account of materials. We call this the Material Cost Variance. This would hap an root of how much more or less cost had been incurred when the actual are compared 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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