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CA IPCC : Question Paper (with Answers) - COST ACCOUNTING & FINANCIAL MANAGEMENT May 2011

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CA IPCC
Tilak Vidyalaya Higher Secondary School (TVHSS), Kallidaikurichi
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PAPER 3 : COST ACCOUNTING AND FINANCIAL MANAGEMENT Question No. 1 is compulsory. Attempt any five questions from the remaining six questions. Working Notes should form part of the answer. Question 1 (a) You are given two financial plans of a company which has two financial situations. The detailed information are as under: Installed capacity 10,000 units Actual production and sales 60% of installed capacity Selling price per unit ` 30 Variable cost per unit ` 20 Fixed cost: Situation A = ` 20,000 Situation B = ` 25,000 Capital structure of the company is as follows: Financial Plans XY ` ` 12,000 40,000 35,000 10,000 52,000 Equity Debt (cost of debt 12%) XM 45,000 You are required to calculate operating leverage and financial leverage of both the plans. (b) You are given the following information of a worker: (i) Name of worker : X (ii) Ticket No. : 002 (iii) Work started : 1-4-11 at 8 a.m. (iv) Work finished : 5-4-11 at 12 noon (v) Work allotted : Production of 2,160 units (vi) Work done and approved : 2000 units (vii) Time and units allowed : 40 units per hour (viii) Wage rate : ` 25 per hour The Institute of Chartered Accountants of India

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