Online Exam Accounting Fundamentals - Desklib

   

Added on  2023-06-18

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Online exam ACCOUNTING
FUNDAMENTALS
Online Exam Accounting Fundamentals - Desklib_1
TABLE OF CONTENTS
QUESTION 1...................................................................................................................................3
a) Calculation of BEP.................................................................................................................3
b) Profit made on sale of 75000 units.........................................................................................3
c) Calculation of new profit figure..............................................................................................3
d) Limitation of break even.........................................................................................................4
QUESTION 2...................................................................................................................................4
Importance of management accounting and difference with financial accounting.....................4
Three techniques through which management accountant can attain objectives of management
accounting...................................................................................................................................5
REFERENCES................................................................................................................................7
Online Exam Accounting Fundamentals - Desklib_2
QUESTION 1
a) Calculation of BEP
Particulars Formula Amount
Selling price per unit 11
Less: VC per unit 6
Contribution Selling price- VC 5
Fixed cost 350000
BEP (units) Fixed cost/ contribution 70000
BEP (rupees) 770000
With the above calculation it is clear that BEP is 70000 units that is in case company will
sell this much of units then they will be in no profit no loss situation. In case company sells
beyond 70000 then they will start earning profits.
b) Profit made on sale of 75000 units
Sales 825000 (75000 * 11)
Less:
Variable cost 450000(75000 * 6)
Contribution 375000
Less:
Fixed cost 350000
Profit 25000
c) Calculation of new profit figure
Sales 1040000 (80000 * 13)
Less:
Variable cost 560000 (80000 * 7)
Contradiction 480000
Online Exam Accounting Fundamentals - Desklib_3

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