ca exam fee last date

up to aug 25th with out late fee
with late fee up to sept 1st

Group-I:       2nd , 4th, 6th & 8th November 2015  Group-II:     10th, 13th & 15th November 2015

material

                                   CHAPTER 1.MATERIAL

                                  (ALLOCATE DAILY 2HRS FOR THIS SUBJ)

MOST IMP Topics to be covered:-

a. theory questions .

1) What is MRN,BOM.

2) what is BIN card.

3) what is ABC analysis and advantages.

4) What is stores ledger.

5) perpetual inventory records.

6) what is EOQ , ROQ.

B. SUMS

1. EOQ

a. simple EOQ  calculations (using wilson’s formula & using carrying cost)

b. and with discount

1. The average annual consumption of a material is 18,250 units at a price of Rs. 36.50 per unit. 

The storage cost is 20% on an average inventory and the cost of placing an order is Rs.50. 

how much quantity is to be purchased at a Time.

Sol.          EOQ = √2AO/C       (using Wilsons formula )

                  Here A = Annual Requirement of Raw Material*

                            O = Ordering cost per order.

                             C = Carrying cost p.u.*

A =18,250 units( given directly some time’s he gives demand or production then we have to calculate)

O = Rs.50.

C = 20% on 36.5 i.e.  Rs.7.3 p.u.( not given directly then only we have to calculate)                          by solving we get EOQ = 500 Units.

2. Compute EOQ where Annual Requirement = 30,000 kgs, ordering cost = Rs.20 per order,

    Carrying Cost = Rs.10 per unit p.a.

Ans .here every this is given directly if you know the formula you can solve it.

         EOQ = 346.41 kgs.

3. A firm produces a product, which has a monthly demand of 2000 units, the product requires a special component, which is purchased at Rs.2 p.u.  for every finished product two unit of special component is required. The ordering Cost is Rs.15 per order and the Holding Cost is 20% p.a.

Here  A = 2000*12*2 =48,000 units.

           O = Rs.15.

            C = Rs.2*20% = .40 p.u.

    

 By solving we get EOQ = 1897.36 means we have to take 1898

                                           ( 3 SUMS IN  EACH POST)

       

IPCC CFM SYLLABUS

Group I
Paper 3 : Cost Accounting and Financial Management
[One paper: Three Hours – 100 marks]

Level of Knowledge :

Working knowledge.

Part I: Cost Accounting (50 Marks)

Objectives:

(a)	To understand the basic concepts and processes used to determine product costs,
(b)	To be able to interpret cost accounting statements,
(c)	To be able to analyse and evaluate information for cost ascertainment, planning, control and decision making, and
(d)	To be able to solve simple cases.

Contents:

1.

Introduction to Cost Accounting

(a) Objectives and scope of Cost Accounting (b) Cost centres and Cost units (c) Cost classification for stock valuation, Profit measurement, Decision making and control (d) Coding systems (e) Elements of Cost (f) Cost behaviour pattern, Separating the components of semi-variable costs (g) Installation of a Costing system (h) Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management.

2.	Cost Ascertainment
	(a) Material Cost (i) Procurement procedures— Store procedures and documentation in respect of receipts and issue of stock, Stock verification (ii) Inventory control —Techniques of fixing of minimum, maximum and reorder levels, Economic Order Quantity, ABC classification; Stocktaking and perpetual inventory (iii) Inventory accounting (iv) Consumption — Identification with products of cost centres, Basis for consumption entries in financial accounts, Monitoring consumption. (b) Employee Cost (i) Attendance and payroll procedures, Overview of statutory requirements, Overtime, Idle time and Incentives (ii) Labour turnover (iii) Utilisation of labour, Direct and indirect labour, Charging of labour cost, Identifying labour hours with work orders or batches or capital jobs (iv) Efficiency rating procedures (v) Remuneration systems and incentive schemes. (c) Direct Expenses Sub-contracting — Control on material movements, Identification with the main product or service. (d) Overheads (i) Functional analysis — Factory, Administration, Selling, Distribution, Research and Development Behavioural analysis — Fixed, Variable, Semi variable and Step cost (ii) Factory Overheads — Primary distribution and secondary distribution, Criteria for choosing suitable basis for allotment, Capacity cost adjustments, Fixed absorption rates for absorbing overheads to products or services (iii) Administration overheads — Method of allocation to cost centres or products (iv) Selling and distribution overheads — Analysis and absorption of the expenses in products/customers, impact of marketing strategies, Cost effectiveness of various methods of sales promotion.
3.	Cost Book-keeping
	Cost Ledgers—Non-integrated accounts, Integrated accounts, Reconciliation of cost and financial accounts.
4.	Costing Systems
	(a) Job Costing Job cost cards and databases, Collecting direct costs of each job, Attributing overhead costs to jobs, Applications of job costing. (b) Batch Costing (c) Contract Costing Progress payments, Retention money, Escalation clause, Contract accounts, Accounting for material, Accounting for plant used in a contract, Contract profit and Balance sheet entries. (d) Process Costing Double entry book keeping, Process loss, Abnormal gains and losses, Equivalent units, Interprocess profit, Joint products and by products. (e) Operating Costing System
5.	Introduction to Marginal Costing
	Marginal costing compared with absorption costing, Contribution, Breakeven analysis and profit volume graph.
6.	Introduction to Standard Costing
	Various types of standards, Setting of standards, Basic concepts of material and Labour standards and variance analysis.
7.	Bugets and Budgetary Control
	The Budget manual, preparation and monitoring procedures, budget variance, flexible budget, preparation of functional budget for operating and non-operating functions, cash budget, master budget, principal budget factors.

Part II: Financial Management (50 Marks)

Objectives:

(a) To develop ability to analyse and interpret various tools of financial analysis and planning, (b) To gain knowledge of management and financing of working capital, (c) To understand concepts relating to financing and investment decisions, and (d) To be able to solve simple cases.

Contents:

1.	Scope and Objectives of Financial Management
	(a) Meaning, Importance and Objectives (b) Conflicts in profit versus value maximisation principle (c) Role of Chief Financial Officer.
2.	Time Value of Money
	Compounding and Discounting techniques— Concepts of Annuity and Perpetuity.
3.	Financial Analysis and Planning
	(a) Ratio Analysis for performance evaluation and financial health (b) Application of Ratio Analysis in decision making (c) Analysis of Cash Flow Statement.
4.	Financing Decisions
	(a) Cost of Capital — Weighted average cost of capital and Marginal cost of capital (b) Capital Structure decisions — Capital structure patterns, Designing optimum capital structure, Constraints, Various capital structure theories (c) Business Risk and Financial Risk — Operating and financial leverage, Trading on Equity.
5.	Types of Financing
	(a) Different sources of finance (b) Project financing — Intermediate and long term financing (c) Negotiating term loans with banks and financial institutions and appraisal thereof (d) Introduction to lease financing (e) Venture capital finance.
6.	Investment Decisions
	(a) Purpose, Objective, Process (b) Understanding different types of projects (c) Techniques of Decision making: Non-discounted and Discounted Cash flow Approaches — Payback Period method, Accounting Rate of Return, Net Present Value, Internal Rate of Return, Modified Internal Rate of Return, Discounted Payback Period and Profitability Index (d) Ranking of competing projects, Ranking of projects with unequal lives.
7.	Management of Working Capital
	(a) Working capital policies (b) Funds flow analysis (c) Inventory management (d) Receivables management (e) Payables management (f) Management of cash and marketable securities (g) Financing of working capital.