Complete
Assignment available for NMIMS
in
rs 250 per assignment only
You
can call us 87-55555-879
Within
1 hour will revert you by mail
Sample only
Strategic
Cost Management
Problem
1
Initial Investment: 500,000
Annual savings of: 100,000
Cost
of capital: 9%
Find
the payback period and discounted payback period (nearest year is acceptable),
which one will you recommend and justify your recommendation
Round
to 3 decimal places for all calculations. Assume all savings happen at the end
of year, starting from Year 1(10 Marks)
Answer
Payback
period is defined as the number of years a company takes to recover its initial
investment
Formula
Problem
2:
An
auto component manufacturing company is contemplating introducing a new
inspection process in their assembly line to save on rectifying cost. The
current production is in batches, each batch produce 5000 components. The cost
of inspection of each component is Rs 50, the cost of rectifying each defective
component is Rs 250. If a defective component is sent to customer and returned
by customer it cost the company Rs 500. Calculate at what percentage of
defective rate it would be beneficial for the company to adopt the proposal. (10
Marks)
Answer
Let
the defective units be x.
It
should be said that, the acceptable defective rate should be such that all the
cost of the company should
Problem
3:
From the following details
calculate and elaborate on:
Sales 150,000
Total Cost 120,000
Fixed Cost 60,000
Profit 30,000
a.
P/V ratio (5 Marks)
Answer
Formula
of P/V Ratio = 
Contribution =
b.
Break Even Point and Margin of Safety (5 Marks)
Answer
Formula
of Break-Even
Complete
Assignment available for NMIMS
in
rs 250 per assignment only
You
can call us 87-55555-879
Within
1 hour will revert you by mail
Sample only
No comments:
Post a Comment